About 49 per cent of companies in the UAE are budgeting for higher salaries during their annual pay reviews this year, as inflation increases the cost of living globally, according to a new report.
Sixty-eight per cent of organisations in the Emirates said they conduct a annual pay review, according to professional services company Aon, which surveyed 150 companies across all industries in the country in the first two weeks of June.
Companies that participated in the survey included the Prime Minister's Office, Majid Al Futtaim, Abu Dhabi Investment Authority, Abu Dhabi Global Market, DP World, Beeah Group, Mubadala, Mondelez, Microsoft and Airbus, among others.
The actual and budgeted amount for regular pay increases for a majority of companies in the UAE ranges from 2 per cent to 6 per cent, the survey revealed.
“Post-pandemic labour market pressures are placing significant strain on how organisations manage these turbulent times,” said Robert Richter, Middle East head of data business for human capital solutions at Aon.
“In order to best counteract the challenges that are faced in the current environment, there is an increased need to review employees’ salaries to ensure they can attract new talent and retain their current workforce.”
Inflation in the Emirates is relatively low, compared to other parts of the world. It was 3.3 per cent in the first quarter and is projected to average 2.7 per cent for 2022, according to the UAE banking regulator.
For 2022, inflation globally has been forecast at 5.7 per cent in advanced economies and 8.7 per cent in emerging market and developing economies, according to the International Monetary Fund.
Meanwhile, 43 per cent of businesses in the UAE plan to increase salaries in 2022 by an average of 3 per cent as the job market and economy improve on the back of Expo 2020 Dubai and the government’s positive handling of the Covid-19 pandemic, according to a December report by recruitment agency Cooper Fitch.
Fourteen per cent of UAE companies are planning an “exceptional mid-year pay review or increase”, the research showed.
Of these companies, 21 per cent are budgeting for a salary increase in the range of 5 per cent to 8 per cent, while 24 per cent are aiming for an increase greater than 9 per cent, according to Aon.
Seventy-four per cent of companies have felt increasing pressure to attract and maintain talent in the current job market, the survey found.
“The two key reasons for companies conducting salary reviews are to maintain the competitive landscape and employee retention,” Aon said.
Apart from increasing salaries, companies are also offering special allowances on an ad-hoc basis, extending one-time supplementary payments, changing their reward structure and amending benefits and allowances to help employees cope with increasing inflation, it added.
Companies plan to adjust employees’ housing and transport allowances the most during the pay review, followed closely by education allowances, according to the report.
Sixty-six per cent of UAE employers said an increase in housing allowance would apply to all employees.
UAE salary guide 2022 — in pictures
Salary increases would differ across job roles in the organisation, 78 per cent of employers surveyed said. Junior and middle management, on average, have higher salary increase budgets allocated compared with top leadership, the research showed.
ICC T20 Team of 2021
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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Rating: 1/5
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Married Malala
Malala Yousafzai is enjoying married life, her father said.
The 24-year-old married Pakistan cricket executive Asser Malik last year in a small ceremony in the UK.
Ziauddin Yousafzai told The National his daughter was ‘very happy’ with her husband.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
FIXTURES
December 28
Stan Wawrinka v Pablo Carreno Busta, 5pm
Milos Raonic v Dominic Thiem, no earlier then 7pm
December 29 - semi-finals
Rafael Nadal v Stan Wawrinka / Pablo Carreno Busta, 5pm
Novak Djokovic v Milos Raonic / Dominic Thiem, no earlier then 7pm
December 30
3rd/4th place play-off, 5pm
Final, 7pm
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
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Stars: Lana Condor and Cole Sprouse
Rating: 3/5
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
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Results
Stage 7:
1. Caleb Ewan (AUS) Lotto Soudal - 3:18:29
2. Sam Bennett (IRL) Deceuninck-QuickStep - same time
3. Phil Bauhaus (GER) Bahrain Victorious
4. Michael Morkov (DEN) Deceuninck-QuickStep
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General Classification:
1. Tadej Pogacar (SLO) UAE Team Emirates - 24:00:28
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3. Joao Almeida (POR) Deceuninck-QuickStep - 0:01:02
4. Chris Harper (AUS) Jumbo-Visma - 0:01:42
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GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
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Fines for littering
In Dubai:
Dh200 for littering or spitting in the Dubai Metro
Dh500 for throwing cigarette butts or chewing gum on the floor, or littering from a vehicle.
Dh1,000 for littering on a beach, spitting in public places, throwing a cigarette butt from a vehicle
In Sharjah and other emirates
Dh500 for littering - including cigarette butts and chewing gum - in public places and beaches in Sharjah
Dh2,000 for littering in Sharjah deserts
Dh500 for littering from a vehicle in Ras Al Khaimah
Dh1,000 for littering from a car in Abu Dhabi
Dh1,000 to Dh100,000 for dumping waste in residential or public areas in Al Ain
Dh10,000 for littering at Ajman's beaches
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
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ABU DHABI ORDER OF PLAY
Starting at 10am:
Daria Kasatkina v Qiang Wang
Veronika Kudermetova v Annet Kontaveit (10)
Maria Sakkari (9) v Anastasia Potapova
Anastasia Pavlyuchenkova v Ons Jabeur (15)
Donna Vekic (16) v Bernarda Pera
Ekaterina Alexandrova v Zarina Diyas
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