Most UAE employees bet on a wage hike this year. Do you?

Improving market conditions have resulted in an optimistic outlook among UAE residents, with many expecting their salaries to increase in the coming months, a survey has found.

Bayt.com's Salary Survey revealed that 44 per cent of UAE respondents believe salaries are increasing in the UAE, while 24 per cent say they are staying the same.

In 2016, over 44 per cent of respondents in the UAE received a salary raise, while 48 per cent did not receive a pay raise at all. Of those who received a raise, 49 per cent were very happy or modestly happy with their raise.

Around 52 per cent of respondents in the UAE expect to receive a salary raise in 2017. In addition, 55 per cent plan to find a better job in the same industry within the next 12 months, while 45 per cent said they would look for a better job in a new industry. Only 15 per cent of UAE respondents will look for a better job in a different country in the Middle East.

According to respondents, factors causing salaries to increase include good corporate performance/increased profitability at 33 per cent, inflation/rise in the cost of living at 32 per cent, and growth in opportunities and economic growth in the country at 28 per cent.

Interestingly, 21 per cent of UAE respondents said their loyalty is completely linked to the salary they earn, while 31 per cent believe salary is not linked to loyalty at all. Besides salary, opportunities for career advancement at 34 per cent and the nature of daily responsibilities at 33 per cent emerged as the most important factors driving employee loyalty in the UAE.

With regards to the rising cost of living in the UAE, 19 per cent of respondents have seen their cost of living increase between six per cent and 10 per cent. Respondents claim to have seen an increase in their rent, food and beverage and utilities costs. Another 36 per cent of respondents said they have also experienced price increases in education and 32 per cent cited entertainment as one of the cost increases.

When it comes to the future, 71 per cent of respondents believe the cost of living in the UAE is going to increase in 2017. In the UAE, the most popular choice for monthly investments among those surveyed includes investing in their own business and gold.

Elissavet Vraka, research manager at YouGov, said: "It is interesting to note that 64 per cent of UAE respondents manage to save a portion of their monthly income, with 63 per cent 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."

Source: Khaleej Times