UAE Salaries Set to Rise Up to 4% in 2026

Salaries in the UAE are expected to increase by around four per cent in 2026, while employees in highly specialised and hard-to-replace roles could see pay hikes exceeding 10 per cent, recruitment experts say.

Speaking to Khaleej Times, Dr. Trefor Murphy, founder and CEO of Cooper Fitch, said the UAE Salary Guide 2026 shows that companies plan to raise salaries between 1.6 per cent and 4 per cent next year.

He noted that organisations projected zero salary growth for 2025, yet the actual increase reached 2.6 per cent, suggesting next year’s figures could also exceed initial estimates.

According to the survey, 84 per cent of companies expect to either increase or maintain salaries in 2026, reflecting strong employer confidence amid a competitive labour market. Nearly 48 per cent plan to raise salaries, 37 per cent will keep them unchanged, and 15 per cent expect to offer lower ranges to new hires.

Most hikes will fall within the 0–5 per cent band, with only a few companies budgeting increases of 6–9 per cent or over 10 per cent for roles in technology, transformation, and specialised finance.

Global consulting firm Korn Ferry projects a similar 4.1 per cent salary increase for 2026.

Strong Economy Driving Salary Growth

Dr. Murphy said the UAE moves into 2026 with a “solid economic outlook”, supported by strong non-oil activity and investment in strategic sectors.

The Central Bank forecasts real GDP growth at 5.3 per cent, driven by construction, financial services, logistics, and advanced industries—key factors expected to push salaries upward.

Companies Reinstate Benefits

Nicki Wilson, managing director of Genie Recruitment, said salaries have largely remained stable except for entry-level roles. However, companies are now restoring benefits cut in previous years, including family benefits, schooling allowances, and enhanced medical coverage, to attract senior talent.

She added that inflation is pushing employees to seek better opportunities.

While base salaries may not see major jumps, firms are focusing on retention strategies, flexible working models, and well-being-focused benefits to stay competitive.