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Salaries expected to grow 5.1 percent across the GCC
September 21, 2014, 1:51 pm
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In their annual ‘Global Salary Increase Survey  2014’ , Aon Hewitt, a global leader in human resource solutions, has forecast that companies across the GCC are predicting an average salary increase of 5.1 percent in 2015. 

The figure is slightly down from forecasts made in 2014 and 2013 which was 5.5 percent and 5.4 percent respectively, indicating that companies across the region are being slightly more conservative with their budgets. However, employees were given an average salary increase of 4.9 percent in 2014, only slightly below the original projection of 5.5 percent. 

The figures are based on data from a robust comparative group of over 500 organizations across the Middle-East. The report offers a unique snapshot of salary increase trends which, in turn, enables organizations to benchmark their forecasts with the market in order to remain competitive. 

Robert Richter, Compensation Survey Manager, Aon Hewitt Middle East, said: “The latest figures show that corporates continue to have confidence in the 2015 economic outlook despite the slightly lower predictions made for the year ahead. It is normal procedure for companies to rethink their salary projections on an annual basis and the latest figure should not be a cause for concern for employees. Final budgets will be determined by HR and the management team of a company and the numbers we receive are the projections made by HR only; it seems this year HR will be more in line with the final numbers.”

Among the participating GCC organizations, Oman and Saudi based companies gave the highest salary increase projection for 2015 at 5.4 percent each; a slight decrease from the 2014 predictions. According to the research firm Capital Economics, inflation in Saudi Arabia is likely to remain steady at around 3.5- 4.0 percent over the coming years, as growth weakens in comparison to the past decade. According to the National Centre for Statistics and Information (NCSI), inflation in Oman has remained subdued in the first quarter of 2014, despite a rise in consumer spending. 

Bahrain gave the lowest salary increase projection at 4.5 percent followed by United Arab Emirates at 4.8 percent, Qatar at 5.2 percent and Kuwait at 5.3 percent.

 Aon Hewitt has been conducting the Global Salary Increase Survey on an annual basis for 36 years and launched it in the Middle-East for the first time in 2009.

Salary Increase predicted and actual across GCC Countries:

Country        

Predicted Increase 2014

Actual Increase 2014

 

Predicted Increase 2015

 

Bahrain        

            5.2%

       4.5% (-0.7%)

            4.5%

Kuwait

           5.6%

5.2% (-0.4%)

 

5.3%

Qatar

   5.6%

        5.1% (-0.5%)

             5.2%

Oman                     

5.6%

 5.3% (-0.3%)

 

5.4%

 

Saudi Arabia         

6.0%

 5.2% (-0.8%)

            5.4%

UAE  

          5.0%

  4.6%

            4.8%

Average

          5.5%

4.9%

            5.1%

 

 

 

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