30% of UAE companies plan to cut workforce: Survey

30% of UAE companies plan to cut workforce: Survey

The direct impact of Covid-19 on the compensation and benefits landscape is less drastic than initially feared. Even though 10 per cent of UAE companies reduced salaries on a temporary basis, and 30 per cent have plans to cut headcount, according to a Mercer survey.

Overall, the market still experienced positive salary inflation and 25 per cent 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 per cent across the general market, although with 19.4 per cent of organisations indicating they froze salaries in 2020. 

Notably, most 2020 budget and salary decisions had taken place