And your salary hike in Dubai this year will be...

As Dubai’s fast-growing economy seems set for a stellar year, the prospect of employers looking at increments is more than likely.

Average hikes are likely to be in single digits and far from what happened in the boom years, according to various estimates.

“I believe that we will see a year of two halves, with the first half of the year seeing sluggish below-inflation wage growth of circa 2.5 per cent with positive exceptions in the healthcare and mid-market consumer products segments.

“We see real impetus coming from around the region that should impact jobs growth in the second half of the year giving above inflation salary growth of up to 15 per cent in certain sectors lead by construction, investment banking and asset management.

“Overall, though we anticipate salary growth for the full year to be in line with inflation at about 3 to 3.5 per cent,” Toby Simpson, Managing Director, The Gulf Recruitment Group told Emirates 24|7.

As per the figures provided by Robert Half International UAE, employees in Dubai can expect a marginal increase of 4.77 per cent.

Based on a survey of 75 Dubai-based HR directors, Robert Half deduced that in the next 12 months, 41 per cent of the respondents expect that salaries of existing employees will go up.

On the other hand, 55 per cent said pay packages are expected to remain the same, whereas 3 per cent saw the axe coming and 1 per cent didn’t know what is expected in the near future.

Of those who plan to increase salaries for employees, the average amount is 4.77 per cent, according to the executive search company.

As far as bonuses are concerned in the next 12 months, 28 per cent expect it to go up; 65 per cent see it on the same level; 5 per cent see a decrease and again 1 per cent arte not sure. Of those who plan to increase bonuses for employees, the average amount is 5.4 per cent, said a spokesperson of Robert Half UAE.

According to recent paper by CT Partners, the Middle East and other emerging economies were the place to be in 2012 and during 2011 for the largest salary increases.

As reported in the paper, employees saw salary increases hovering around 5 per cent in the UAE last year.

The UAE stands at the 19th position in terms of the best salary increment expected in 2012, according to recruitment platform MyHiringClub.com and NriJobPortal.com.

The UAE is seen leading the GCC in terms of expected salary hikes this year at 8.02 per cent.

“Salary hikes are tailored to the individual and depend on the industry, position and length of time in service.

“However, given the tame nature of current market conditions, if one is lucky to receive a pay rise, it will certainly be limited to single digit growth.

“The exceptions are those professionals who are bringing something unique to the table or have a rare skill-set, ie Basel II experience in banks according to regulations,” Sanad Karkar, a recruitment consultant at Huxley Associates explained to this website.

Some experts believe that it is too pre-mature to talk of any grand hikes this year.

“I do not think anyone should expect a salary hike unless they are delivering results and then most likely they will be rewarded with a bonus rather than a hike.

“Salary growth in the UAE should be relatively flat and at most 3 per cent or 4 per cent on average.

“The Eurozone crisis is creating a lot of uncertainty and companies are playing it safe as we are clearly not out of the woods yet in the context of the global financial crisis of 2008/2009,” added Shane Phillips, Mena Regional Practice Leader, Financial & Professional Services at Stanton Chase.