Average basic salary rises in the UAE are set to be in the region of 3 percent next year, according to global remuneration expert Robert Mosley. predicted the pay increases despite an uncertain economic climate in the UAE with the imminent launch of Value Added Tax (VAT), declining oil prices and a rising inflation rate.Mosley provided detailed insights into the current pay trends and forecasts for the approaching year, while addressing a recent seminar, hosted in conjunction with the University of Wollongong in Dubai (UOWD).
“We are very optimistic about the latest basic salary pay trends currently at 2.5 percent – an increase of mere 0.3 percent over the previous year – with the possibility of moving up in 2018,” he told the forum.Mosley said salary increase forecasts for 2018 looked “quite favourable” and set to reach about 3 percent.Mosley said 34 percent of UAE employees received no salary increase during 2016-2017, while 66 percent received an increase averaging 3.6 percent with the majority based on performance.
He added that the 2017 guaranteed fixed cash trends – basic salary plus allowances – indicate that UAE nationals are being paid around 45 percent more than expats with the gap on the increase.Medical insurance and education benefits have seen the most significant negative changes, as these services are quite expensive for employers to provide, Mosley noted. Mosley also said that the traditional performance appraisal system would soon make way for a new system called MSC. MSC is monthly short-term specific Must Do, Should Do and Could Do goals and targets. Employees will be rated in short 10-minute sessions with their managers instead of the long two-hour meetings with line managers on a bi-annual basis.