Around 43% of firms in the UAE are planning to hike salaries next year by 3% on average as the job market and economy are bolstered by Expo 2020 Dubai and the government’s pandemic management.

This is according to the Cooper Fitch UAE Salary Guide 2022, which surveyed over 600 businesses in the UAE. As many as 35% have plans to increase salaries from 0% to 5%, whilst 4% of companies will offer workers a 69% increase and 5% will hike wages by 10%.

“We predict that salaries in 2022 will increase by 3% in the UAE,” according to Trefor Murphy, founder and chief executive of Cooper Fitch.

“Many of the UAE’s traditionally strong sectors such as tourism, real estate and aviation were hit hard during the pandemic but have since started to see a positive recovery, with announcements of rehiring for both airlines and the hospitality sector.”

Moreover, business activity within the non-oil private sector in the UAE hit a two and a half-year high last month amid a boost to tourism activity and heightened spending during the economic recovery. The IHS Markit purchasing managers’ index rose to 55.9 in November from October’s 55.7 reading, the highest since June 2019, reports The National.

Employers in the UAE are set to increase hiring in 2022 and boost salaries by 3.6% on average as job demand rallies amid the economic recovery. Also, some 74% of UAE-based businesses are planning bonuses in 2022, according to the Cooper Fitch report.

“2022 looks to be a return to near full bonus pay out with exceptions for struggling organisations,” Murphy added.

Approximately 63% of firms in the UAE said they paid bonuses this year, a 19% rise compared to last year. The research also found 59% of firms plan to increase their headcount by as much as 10% in 2022, with 23% planning to reduce headcount in the coming year.