2014 UAE salary guide: 3.8% pay hikes this year… Is it enough

Salaries in the UAE and the Middle East are expected to go up by an average of 3.8 per cent next year, according to the just released 2014 salary guide by Robert Half Middle East.
This hike, the recruitment firm says is expected for starting salaries for professional occupations and will vary on the sector and of course the position and the circumstances of an individual.
Any kind of pay hike is welcome, but residents in the UAE say this will not be enough to beat the rising cost of living. Many of them believe it is important to bridge the gap between the cost of living and the salaries.
“It’s not easy to maintain a family and with the ever increasing rents and schooling costs it’s just becoming more difficult,” said Roland Allan, a resident in Dubai.
Last month, a report by professional services firm Towers Watson predicted higher pay hikes.
It said that employees in the UAE can expect an average pay increase of 5 per cent in 2014, adding that inflation will average 2.5 per cent, resulting in an increase in disposable income, or the real pay hike, to the tune of 2.5 per cent.
However, a recent report by Standard Chartered said that it expected inflation in the UAE to pick up to around 4.2 per cent in 2014 as the housing component [39 per cent of the inflation basket] better reflects market conditions.
“If we go by the latest report I believe we will need to spend more in the coming year,” said Viji James, an Indian resident in Dubai