The2017 Bayt.com Middle East and North Africa Salary Survey, conducted by Bayt.com, the Middle East’s number one job site, and YouGov, a leading market research agency, revealed that almost half (44%) of UAE respondents believe that salaries are increasing in the UAE, and24% believe that they are staying the same.
Current Salary
In terms of current salary package composition, more than half (58%) of those surveyed in the UAE receive a basic salary as well as benefits in their compensation package. Almost one in five (18%) of those surveyed actually receive their basic salary plus benefits and commission. Just under a quarter (24%) of respondents only receive a basic salary.
Of those receiving additional benefits, personal medical insurance (52%) was the top benefit received, followed by personal annual ticket (37%), and a transportation allowance (30%).
When it comes to end of service benefits in the UAE,63% stated that their company offers an end-of-service gratuity, and10% claim they will receive a pension on retirement.7% claim to have other forms of benefits.
21% of UAE respondents claim that their loyalty is completely linked to the salary they earn, while nearly one third (31%) claim that salary is not linked to loyalty at all. Besides salary, opportunities for career advancement (34%) and the nature of daily responsibilities (33%) emerged as the most important factors driving employee loyalty in the UAE.
In terms of equal pay, while four in ten respondents (40%) claim they “Don’t know/can’t say”, a large proportion (35%) believed that men and women are paid equally for doing the same work and in the same position.
“With salary being such an important factor for both employees and job seekers, we hope that the Bayt.com Salary Survey2017 will shed light on salaries, savings, and spending in the Middle East,” said Suhail Masri, VP – Employer Solutions, Bayt.com. “We conduct tens of comprehensive research reports each year in line with our mission as an organization, which is to provide people with the tools and information they need to build their lifestyle of choice. This survey was created in order to provide employers with insights into current employee satisfaction levels when it comes to their salaries and raises.”
Pay Raises
In2016,44% of respondents in the UAE received a salary raise, while48% of those surveyed did not receive a pay raise at all. Of those who did receive a raise,49% were very happy or modestly happy with their raise.
52% of respondents in the UAE expect to receive a salary raise in2017.
Future Plans and Expectations
Over half of UAE respondents (55%) claim that they are planning on finding a better job in the same industry within the next12 month, while45% stated that they will be looking for a better job in a new industry. Only15% of UAE respondents will look for a better job in a different country in the Middle East.
When asked about salary trends,44% of respondents believe that salaries are increasing in the UAE. According to respondents, factors causing salaries to increase include good corporate performance/increased profitability (33%), inflation / rise in the cost of living (32%), and growth in opportunities and economic growth in the country (28%).
Masri adds: “For people interested in more specific information about salaries, tools such as Salary Search by Bayt.com can help employers uncover the salaries that are being paid in their industry. The same tool helps professionals gauge their earnings against market average, and thus, learn whether or not they are being fairly paid for the job they are doing. The information collected through this survey is important when it comes to guiding both employers and job seekers, so that the difference between salaries offered and expectations can be successfully addressed.”
Expenses and Savings
With regards to the rising cost of living in the UAE, a fifth (19%) of respondents have seen their cost of living increase between6% and10%. Respondents claim to have seen an increase in their rent (74%), food and beverage (59%), and utilities (57%). Another36% of respondents say they have also experienced increases in education, and32% mentioned entertainment as one of the cost increases. When it comes to the future, the majority (71%) of respondents believe that the cost of living in the UAE is going to increase in2017.
That being said,64% of respondents in the UAE still manage to save a portion of their income and63% manage to repatriate a portion of their salary to their home country.
Investments and Home Ownership
The top monthly expenses of respondents in the UAE were rent (46%), food and dining out (15%), and Education / Children's schooling / Books (10%). When asked about the frequency of eating out,20% of respondents said they eat out every day,26% said they eat out a few times a week, and the rest do so less often.
In the UAE, the most popular choice for monthly investments among those surveyed includes investing in their own business (21%), and gold (15%).23% of UAE respondents make financial investments on a regular basis, and a third already own their home (32%). Among those who do not own a home,43% are interested in owning a home in their country of residence, and64% would like to own a home in their home country.
Elissavet Vraka, Research Manager, YouGov, said: “It is interesting to note that64% of UAE respondents manage to save a portion of their monthly income, with63% of those living outside their home country being able to repatriate a portion of their savings to their home country. This is a good sign for both employers and job seekers, as the ability to save and repatriate savings can impact other factors such as employee satisfaction and loyalty towards the company.”
Data for the2017 Bayt.com Middle East and North Africa Salary Survey was collected online from March23rd to April9th,2017. Results are based on a sample of3,879 respondents who live in the UAE, Saudi Arabia, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, and Tunisia.