10% of UAE firms to reduce salaries and 30% to cut staff, reveals Survey

10% of UAE firms to reduce salaries and 30% to cut staff, reveals Survey

Picture used for illustrative purpose only.

Gulf Today, Staff Reporter

 

According to the 2020 UAE Total Remuneration Survey (TRS) by Mercer, the direct impact of COVID-19 on the compensation and benefits landscape is less drastic than initially feared.

 

Even though 10% of UAE companies reduced salaries on a temporary basis, and 30% have plans to cut headcount, overall the market still experienced positive salary inflation and 25% of companies have reported an increase in productivity as a result of employees working from home.

 

Mercer's TRS research of over 500 companies in the UAE also revealed an actual 2020 annual salary increase of 3.8% across the general market, although with 19.4% 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