Expats will have fat wallets in 2024; Over half of UAE companies have taken that decision 

ABU DHABI: A recent report by Cooper Fitch unveils potential salary hikes of 4.5% in the UAE for 2024. Sectors beyond oil companies showcase promising performances this year hinting at positive economic growth.

The report highlights varied stances among companies regarding salary adjustments. More than half employing Indian expatriates show willingness to increase salaries with about 39% considering a 5% raise. Moreover, one in ten companies leans towards a 6-9% increase while roughly 5% plan increments of 10% or higher. However, a significant 21% are contemplating salary reductions and over a quarter aren't considering any pay rises.

The non-fuel sector anticipates growth in real estate, travel, tourism and aviation compensating for an anticipated decrease in economic growth from the previous year's 7.9%. In 2023, 81% of companies either increased salaries or maintained status quo with 54% offering increments. Notably, around 8% granted pay rises exceeding 10%.

Regarding bonuses, 71% of companies in 2023 opted to provide bonuses with varying extents. Thirty-five percent committed to offering a month's basic salary as a bonus, followed by 17% considering two months, while 12%, 4%, and 1% planned for three, four and five months respectively. Notably, industries like accounting, chemicals manufacturing, consumer goods, hospitals and healthcare are inclined to provide substantial bonuses while IT and financial firms show hesitancy.