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Will Your Salary in the UAE Increase in 2025? Here’s What You Need to Know

Will Your Salary in the UAE Increase in 2025? Here’s What You Need to Know

The UAE job market is chattering with activities; however, at the cusp of 2025, a major question begs to be answered: “Are salaries going up?” In brief , opportunities galore; still , salaries can be expected to grow but within modest lines. Let’s get down to understanding what’s in store for this year ahead.

The Salary Landscape: Modest Growth Ahead

Recruitment experts forecast a blend of zero to low single- digit salary growth in 2025. Why? A blend of already – high existing wages, tax- free benefit, and the flood of international talent has tempered the market.

According to Trefor Murphy, CEO of Cooper Fitch, highlites:

  • Salaries in the UAE are already relatively competitive within those of cities such as London and New York.
  • Companies do not want to increase pay anymore to stay cheap in the international market.

According to Mercer, this is what the data suggests, with a 4% average salary hike, according to a survey of more than 700 companies. However, some sectors such as consumer goods, life sciences, and technology are expected to lead with slight increases of up to 4.5%.

Hot Sectors for Increases in Salaries

Certain roles and industries are expected to get better pay:

  • Technologyand AI: Ones who have skills in digital transformation, AI, and FinTech remain highly sought after.
  • ConsumerGoods: With increases of 4.5%, they will lead the pack.
  • Energy and Financial Services : The salary increases would remain steady at 4 % as the demand continues to grow .Energyand Financial Services: 
  • Social Media and Digital Marketing: Specialists in thistype of field will be rewarded with market demand. However, sectors such as retail and junior administrative jobs face a problem in that oversupply may drive down 

Hiring Trends: Stability Amid Talent Influx

The UAE’s job market continues to attract expatriates seeking a better lifestyle, safety, and career growth. Zahra Clark from Tiger Recruitment notes that this influx of talent is increasing competition, with some candidates willing to accept lower-than-market salaries.
Despite this, demand remains strong in high-growth sectors, including sales, engineering, IT, and supply chain roles, where hiring and retention are still challenging.

Bonus Expectations in 2025

Bonuses remain a mixed bag, heavily influenced by industry performance and company profitability. Estimates for bonus payouts vary:

  • 2% to 6% of annual salary in some industries.
  • Up to 30% or more in high-performing sectors like finance and real estate.
  • Annual bonuses are increasingly common in food and beverage sectors.
    Shiraz Sethi of Dentons emphasizes that bonuses tied to contracts must be honored, reflecting individual performance and company results.

Perks Beyond Pay: A New Era of Benefits

With rising living costs, companies are enhancing non-financial benefits to attract and retain top talent. Some trends include:

  • Flexible Working Hours: A government-backed initiative to improve work-life balance.
  • Remote Work Options: Employees can now work from anywhere for up to a month in some companies.
  • Wellness and Learning Opportunities: Expect more wellness workshops, mental health support, and AI training programs.
  • Family-Friendly Perks: Housing and schooling allowances are becoming more common.

Staying Ahead in a Competitive Market

As the UAE transitions toward skill-driven hiring, candidates who continuously upskill will have the edge. Sectors like IT, digital marketing, and AI-driven technologies are leading the charge, making these the skills to watch.

Key Takeaway

While 2025 might not bring massive pay hikes, the UAE job market remains vibrant, offering plenty of opportunities for growth. Staying competitive means focusing on developing future-ready skills, embracing new opportunities, and understanding the evolving workplace dynamics.
Prepare now to make the most of the year ahead!

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xcvbner_admin

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