The salaried class, overall, have not been mighty happy over the past three years or so. The double-digit pay-hikes can now be enjoyed only in hindsight, living in the hope of getting handsome increments and bonuses sometime in the future.
But not everyone’s salaries have stagnated. In fact, employees in certain industries have seen their salaries rise at a rosy clip, while many others have actually become poorer in the past few years. Their take-home salary was slashed during the worst recession years, and they haven’t really seen it growing back to the levels of pre-2008 era.
As per Aon Hewitt, the global human resources business of Aon, UAE employees received a 5.2 per cent salary hike in 2012. This year, the workforce is likely to see an anticipated pay hike of 5.1 per cent, just a fraction lower than last year.
While the average income across industries is expected to rise (around the 5-per cent mark), the expected band, however, hides within itself a range of variations, in that employees in certain sectors of the economy will get a much better deal than some others.
According to Gareth Clayton, Director, Charterhouse Partnership, the industries that spelt doom in 2008 still suffer the most when it comes to salaries.
“Certain sectors display slow growth or retrenchment and this can still be seen across areas of financial services and banking. Some sectors, supporting risk and security services, have started to dry up as services linked to conflict zones, supported from the UAE, are re-positioned,” he said.
Commenting on the ones that are expected to see better pay hikes he added: “Retail, hospitality and logistics & transport sectors seem to be buoyant and progressive in terms of growth. Trading and related support services continue to be core strength of Dubai and this is set to drive areas of expansion and demand. Specialised technology industries are also experiencing strong demand pull inflation as skills can be in short supply across the region.”
Gareth El Mettouri, Associate Director at Robert Half International, however, believes those in the banking industry are set to witness rising incomes. “Real estate, construction, FMCG, oil & gas and banking,” are his picks.
Jobs site Bayt.com, in its recent survey of the top paying industries, puts oil and gas as the best perceived industry when it comes to salaries, followed by banking/finance and the airline business.
According to consulting firm Mercer, those in the UAE can expect a pay hike of 5 to 6 per cent in 2013, with consumer and durable goods and energy sector set to fare the best this year.
“Data from last year’s total remuneration survey showed that consumer and durable goods sectors led the way in salary increases, which is a trend set to continue in 2013, along with a similar rise within UAE-based technology firms.
“In the UAE, predicted salary increases amongst employees holding executive positions are highest in the energy sector, whereas those in managerial and lower positions will see higher increments in the consumer goods sector,” said Zaid Kamhawi, Mercer’s IPS Business Leader in the Middle East.
source: E 24/7