Salaries in the UAE are expected to increase by an average of 4% across industries in 2025, according to Mercer’s annual Total Remuneration Survey. The survey, which included over 700 companies across sectors like energy, finance, and technology, also found that 28.2% of UAE organizations plan to expand their workforce in the coming year.
Consumer goods companies are projected to lead with a 4.5% salary increase, while life sciences and technology industries anticipate increases of 4.2% and 4.1%, respectively. Despite industry variations, employers across sectors plan to apply these increases equally to all employee levels.
Andrew El Zein, Mercer’s UAE Career Products Leader, attributes the salary uptick to a “resilient and optimistic” UAE economic outlook. He suggests HR leaders should review housing allowances alongside salary hikes to stay competitive amid rising living costs.
The survey also highlights the UAE’s high AI adoption rate, with 74% of employees using AI weekly. Mercer’s Middle East Career Products Leader, Ted Raffoul, emphasized the impact of generative AI and automation on skill demands and wage pressures, recommending that companies enhance digital literacy and adapt their Employee Value Propositions (EVPs) to prepare for the evolving job market.
