UAE Jobs: Will You Get Salary Hike This Year? New Data Reveals Rising Expectations

(MENAFN- Khaleej Times)

Professionals across the Gulf are seeing higher pay rises, and more expect further increases in 2026, as competition for talent intensifies across key sectors. But new research suggests employee expectations are rising faster than what many employers are prepared to offer.

According to the Hays GCC Salary Guide 2026, 58 per cent of professionals received a salary increase in 2025, up from 51 per cent the previous year. The most common rise was between 2.5 and 5 per cent, while 12 per cent reported increases of more than 20 per cent.

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Despite the upward trend, dissatisfaction remains. Six in ten professionals said their pay does not align with their responsibilities, highlighting growing pressure on employers as skills become harder to source and expectations continue to rise.

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Pay expectations

Looking ahead, expectations are even higher. The report found that 78 per cent of professionals are optimistic about receiving a salary increase in 2026, with nearly a quarter expecting a rise of more than 20 per cent. Employers are positive about pay growth as well: 70 per cent expect salaries to increase within their organisations next year, with most anticipating rises of up to 5 per cent.

The findings are based on a survey of more than 1,600 employers and professionals across the Middle East and form part of the annual salary and labour-market analysis by Hays Middle East, which tracks pay trends across nearly 400 roles in 11 sectors across the GCC.

Hiring stays strong

Two-thirds of employers increased headcount in 2025, with the highest levels of recruitment activity recorded in the UAE and Saudi Arabia, supported by continued investment and growth in sectors such as technology, banking, construction, property, transport and logistics. Only 13 per cent of organisations reported having no major hiring plans.

For 2026, employers identified specialist technical and digital skills, leadership and management roles and expanded support functions as key strategic priorities. Demand for contract, temporary and freelance professionals is also increasing, driven by the need for access to specific skills for one-off projects, support during peaks in demand and flexibility in staffing costs.

However, sustained hiring has not eased talent shortages. The report found that 90 per cent of organisations experienced skills gaps in 2025, ranging from minor to extreme. Employers cited low or uncompetitive salaries and benefits, intense competition for talent, a lack of industry-relevant education or training programmes and limited career progression as the leading causes. Retaining employees remains equally challenging, particularly as organisations struggle to match rising salary expectations in a competitive market.

Benefits gap

Last year, 27 per cent of professionals changed employers, while close to four in 10 are considering moving to a new organisation in a similar role in 2026. Misalignment between benefits offered and employee expectations was among the most common reasons behind job changes.

While salary remains a central factor, benefits beyond pay are playing an increasingly important role in retention decisions. Employees ranked child education allowances, additional annual leave days, flexible working, remote work and additional days off for wellbeing as the most valued benefits. Employers, by contrast, reported that the most commonly provided benefits are paid medical leave, basic private medical care and additional leave days.

Oliver Kowalski, Managing Director at Hays Middle East, said:“Despite ongoing global economic uncertainties, the Gulf region continues to demonstrate resilience and forward momentum. Economic diversification, strategic fiscal reforms, and investment in non-oil sectors have positioned the GCC as a hub of innovation and opportunity."

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