UAE: 30 Percent of Companies Plan to Cut Workforce, 10 Percent to Reduce Salaries

UAE: 30 Percent of Companies Plan to Cut Workforce, 10 Percent to Reduce Salaries

Overall, the market still experienced positive salary inflation and 25 percent of companies have reported an increase in productivity as a result of employees working from home, it said.

Covered over 500 companies in the UAE, the survey results also revealed an actual annual salary increase of 3.8 percent across the general market, although with 19.4 percent of organisations indicating they froze salaries in 2020.

Notably, most 2020 budget and salary decisions had taken place early in the year, prior to the full economic impact of the government-mandated lockdown. Around 17 per cent of companies delayed their 2020 increases due to the Covid-19 pandemic, typically for six months.

Salary in 2021

While the general market forecasts a 2021 salary increase of 4 per cent, industry figures vary significantly. The sharpest projected rise has