Salary stagnation or increases ahead?

The UAE jobs market faces its biggest shake-up in years, as companies freeze salaries, cut long-time expat managers and look for AI-savvy recruits from an ever-growing pool of jobseekers.

Salaries for professionals in the UAE will see either zero or low-single-digit growth in 2025 due to a surge in population and the influx of job seekers, according to recruitment consultants.

There are more candidates available in the market than jobs, leading to people accepting lower wages in specific roles, they say.
However, consulting firm Mercer anticipates a 4 per cent increase in UAE salaries for 2025, based on a survey of over 700 companies.

Similarly, a Hays survey indicates that 75 per cent of employers expect to raise salaries this year, with employees commonly receiving increments between 2.5 per cent and 5 per cent in 2024.

Employees in the UAE have been accustomed to receiving salary increases and living a tax-free lifestyle and built that into their cost of living. But this “gravy train” can't last forever, Trefor Murphy, founder and chief executive of recruitment firm Cooper Fitch, told The National.

The National has analysed the data from the Michael Page 2025 Salary Guide report to provide a snapshot of insights and trends on what to expect from the 2025 jobs market in the UAE. Average salaries and ranges are based on professional industry roles. This does not include blue-collar and service roles.