UAE: 75% of employers expect salaries to increase in 2025
Khaleej Times January 16, 2025 12:39 AM

Nearly half – 48 per cent – of UAE employees received a salary hike in 2024 and 74 per cent expect their salaries to increase in 2025, according to GCC Salary Guide 2025 released by Hays.

The survey found that employees in UAE most commonly received increments between 2.5 per cent to 5 per cent in 2024.

Interestingly, 75 per cent of employers said they expect salaries to increase in their organisation in 2025, according to GCC Salary Guide 2025 released by Hays.

Nearly 8 out of 10 – 77 per cent – of UAE employers said they would recruit for permanent roles this year as the macroeconomic outlook of the country’s economy is strong.

However, 65 per cent of UAE professionals plan to change jobs this year, citing salary, benefits package and development initiatives as the most important factors for them.

Nearly half – 49 per cent – of UAE firms are optimistic about the economic outlook for 2025 while 65 per cent of companies recommend using artificial intelligence (AI) technologies in the workplace. Nearly 8 out of 10 – 79 per cent – of UAE employers expect their organisation to allow staff to use AI tools in the future.

The GCC Salary Guide 2025 covered nearly 2,000 employers and working professionals across the Gulf region. It included salary data for almost 400 roles and insights into the workforce trends shaping the UAE and GCC.

Last year, 55 per cent of UAE nationals saw no change in their salary. For those that did, the most common rate of salary growth was 16 per cent and above; with most salary increases being attained from a new job, it said.

Looking ahead, 72 per cent of UAE nationals expect their salary to increase in 2025, while 28 per cent think it will stay the same.

The proportion of salary increases for UAE nationals was steadier than the overall Gulf region average (51 per cent), but the level of increases was higher.

“This indicates a highly competitive hiring market among employers leading Emiratisation recruitment strategies. Where possible, organisations should consider the reward they are offering their current employees, especially if they are focused on retention.”

In 2025, a Hays survey found that 67 per cent of UAE nationals say they plan to switch organisations, a significant increase from the 23 per cent of people who planned to move to another organisation in 2024.

“Aside from salary, the leading cause for UAE nationals changing jobs last year was lack of learning and development. This is particularly important to these professionals and will also be a key reason for many people looking to leave their current organisation this year,” said the global recruitment consultancy.

“Providing employees with professional training, upskilling opportunities, and regular progression reviews is not only important for employee satisfaction and retention but also contributes to growing a skilled workforce.”

The survey found that the Emiratisation programme continues to hold significant importance as hiring strategies focus on seeking experienced citizens. In the UAE, 55 per cent of employers say they currently employ UAE nationals, up from 51 per cent the previous year.

Looking forward to 2025, 46 per cent of employers in the UAE plan to increase the headcount of UAE nationals.

“Most professionals are currently hired through permanent employment contracts, with only a small percentage of people opting for temporary employment or choosing to work as a contractor,” Hays said.

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