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Dubai: Should you be expecting a salary increase in 2023? 57 per cent of companies in the UAE that took part in a recent survey said that they planned to increase salaries of employees this year.
In a salary guide released by recruitment and HR consultancy Cooper Fitch, companies spoke about the changes they expect to make to salaries in 2023. Here are the details.
How many companies plan to increase salaries?
While less than a quarter of the respondents (24 per cent) said that they might decrease salaries this year, 17 per cent of the companies surveyed said that they plan to make no changes. Over a third of the companies (38 per cent) said that they planned to increase salaries by up to 9 per cent, while 21 per cent of the companies said that they planned to increase salaries by 10 per cent or more.
Changes in salary in 2023
When asked ‘Does your organisation plan to revise salaries in 2023?’, these were the responses of the UAE companies surveyed:
• 16 per cent said that they planned to decrease salaries by 0-5 per cent.
• Two per cent said that they planned to decrease salaries by 6-9 per cent.
• Two per cent said that they planned to decrease salaries by 10 per cent or more.
• 23 per cent said that they planned to make no changes.
• 45 per cent said that they planned to increase salaries by 0-5 per cent.
• Five per cent said that they planned to increase salaries by 6-9 per cent.
• 7 per cent said that they planned to increase salaries by more than 10 per cent.
Overall, Cooper Fitch predicted that wages in the UAE will increase by just under two per cent in 2023.
When asked whether they plan to reduce their headcount or hire more employees this year, only 24 per cent of the companies said that they expect to reduce their headcount in 2023, while 59 per cent planned to increase their numbers.
The report stated: “On a broader level, the UAE’s jobs market has enjoyed its strongest year in a decade, with higher than anticipated demand across the public and private sectors.”
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