Dubai, 14th September 2014: Companies across the GCC are predicting an average salary increase of 5.1% in 2015 according to the latest figures from Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON).
The figure is slightly down from forecasts made in 2014 and 2013 which was 5.5% and 5.4% 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% in 2014, only slightly below the original projection of 5.5%.
Released as part of its annual Global Salary Increase Survey 2014, 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 organisations 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 shouldn’t 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% 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% 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% followed by United Arab Emirates at 4.8%, Qatar at 5.2% and Kuwait at 5.3%.
|
GCC Countries: |
||
|
Country |
Predicted Salary Increase 2014 |
Predicted Salary Increase 2015 |
|
Bahrain |
5.2% |
4.5% |
|
Kuwait |
5.6% |
5.3% |
|
Qatar |
5.6% |
5.2% |
|
Oman |
5.6% |
5.4% |
|
Saudi Arabia |
6% |
5.4% |
|
UAE |
5.% |
4.8% |
|
Average |
5.5% |
5.1% |
|
GCC Countries: |
||
|
Country |
Actual Salary Increase 2014 |
Predicted Salary Increase 2014 |
|
Bahrain |
4.5% |
5.2% |
|
Kuwait |
5.2% |
5.6% |
|
Qatar |
5.1% |
5.6% |
|
Oman |
5.3% |
5.6% |
|
Saudi Arabia |
5.2% |
6% |
|
UAE |
4.6% |
5% |
|
Average |
4.9% |
5.5% |
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. The report is free to participating organizations and available at a price of $1,000 to others.
The survey is part of Aon Hewitt’s suite of evidence-based, research-led studies including Qudurat, Best Employers Middle East (BEME), Total Compensation Measurement (TCM™) and People Risk Index (PRI®).
-End-
About Aon Hewitt
Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide.
For more information on Aon Hewitt, please visit www.aonhewitt.com.
Media Contact:
Joanna MacAdie
DABO & CO
+97150 9843473
Access international media contacts, the full library of Aon media releases, and a media kit with fact sheet and executive bios, via links below.