UAE companies largely resist employee calls for immediate action on inflation, says survey

UAE companies largely resist employee calls for immediate action on inflation, says survey

- Companies plan for bumper pay rises of 5% in 2023 as over two thirds of companies receive employee requests for higher compensation

Dubai, UAE: Firms are feeling the pressure to adjust compensation packages according to global consulting firm Mercer, with its latest spot survey revealing that 67 per cent of businesses have received requests from employees regarding compensations and allowances to offset the rising inflation in the UAE.

More than 200 global and local companies from all sectors were surveyed for Mercer’s 2022 UAE Inflation Spot Survey, with only 16 percent having taken some form of action, including one-time lump-sum payments, off-cycle salary increases and housing allowance increases, as they look to retain talent, and have increased salaries by an average of four per cent during annual salary increase cycles at the beginning of 2022.

Most business in the UAE however are resisting employee demands. Even with inflation in the UAE projected to reach 5.6 per cent in 2022, according to the latest data from the Central Bank of the UAE (CBUAE), and with Dubai ranking among the world’s most expensive cities to live and work in for expatriates this year, according to the 2022 Cost of Living survey by Mercer –