GCC workers to see lowest salary hike in a decade

March 14, 2016 5:32 pm

Salaries in the Gulf region will grow at their slowest pace in more than a decade, despite the rising cost of living caused by cuts in government subsidies, reveals the latest survey by online recruitment firm GulfTalent.

In the oil-hit region, where the costs of essential commodities have been on the rise, average wage growth is forecast to be 5.2 per cent in 2016, down from 5.7 per cent the previous year.

“Many professionals in 2016 are likely to face a double whammy of rising living costs coupled with stagnant wage growth. As a result, real salary increases net of inflation are expected to be significantly lower than in previous years,” says the report.

Bahrain hits bottom


In the special grouping of six Arab countries, Saudi Arabia is expected to top the salary increases at 5.9 percent. However, with inflation in the Kingdom forecast at 4.7 per cent in 2016, real pay rises net of inflation will average just 1.2 per cent.

Though the UAE is expected to offer the region’s second highest wage rise at 5.3 per cent, its staggering 3.1 per cent inflation will drag the real increase into 2.2 per cent.

Qatar will see a hike of 4.7 percent, followed closely by Kuwait and Oman at 4.6 and 4.4 per cent respectively.

Bahrain is projected to be the worst performer in the region with a just 3.7 per cent increase. This matches country’s  forecast inflation rate, leaving employees with no net increase in their purchasing power.


Mujeeb Rahman
By Mujeeb Rahman
Mujeeb Rahman is a business journalist at AMEinfo. His areas of focus include economy, markets, politics and international relations in MENA and Asia-Pacific regions. An ex-BBC digital journalist, he delves deeper into the subjects that matter most.