Are UAE Salaries Keeping Up? Hiring Strategies in 2025
As the global economy evolves, salary trends are one of the most critical areas of focus for employers aiming to attract and retain top talent. According to Mercer's Annual Total Remuneration Survey, companies in the UAE are projected to increase salaries by 4% in 2025. With an inflation rate of 2.3%, real growth is 1.7%. This aligns with broader economic recovery trends and rising demand for skilled professionals. But how does this compare globally, and what can employers in the UAE learn from these insights?
Global Salary Trends: A Benchmark for UAE Employers
The projected salary increment in the UAE sits within a global context where countries like India and other South East Asian Countries continue to lead with higher projected increments, while developed economies such as the US and Europe report more modest increases. For instance, global salary forecasts highlight:
India: 9.5% (inflation rate in 2024: 4.4%)
Vietnam: 6.7% (inflation rate in 2024: 4.1%)
Indonesia: 6.3% (inflation rate in 2024: 2.5%)
Philippines: 5.8% (inflation rate in 2024: 3.3%)
Malaysia: 5% (inflation rate in 2024: 2.8%)
Singapore: 4.4% (inflation rate in 2024: 2.6%)
US: 3.8% (inflation rate in 2024: 3%)
UK: 3.5% (inflation rate in 2024: 2.6%)
Europe: around 3-5% (inflation rate in 2024: 3.5%)
For UAE employers, the 4% salary increase mirrors trends in Singapore and Malaysia, demonstrating competitive growth when compared to developed nations like the US and UK. However, employers must consider inflation-adjusted increments to ensure real wage growth for their workforce.
How Can Businesses Make Use of the Global Salary Trends?
The salary gap between regions opens up new possibilities for employers, especially through remote work. The rapid adoption of remote work models allows companies to tap into talent across different geographies, leveraging lower salary expectations in regions with lower costs of living while maintaining competitive packages for local employees.
For example, hiring remote workers in markets like Vietnam, Indonesia, or the Philippines—where salary increments outpace inflation—can offer UAE employers access to highly skilled professionals at competitive costs. Simultaneously, employers can use the savings from such arrangements to enhance compensation packages for key roles that must remain local, ensuring the retention of top-tier talent within the UAE.
Balancing Local and Global Strategies
Leverage Remote Work for Cost Efficiency: Hiring remote teams in regions with favourable salary-to-inflation ratios can bridge skill gaps and optimise budgets.
Boost Local Competitiveness: Use the savings from remote arrangements to strengthen local compensation packages and improve non-monetary benefits.
Stay Agile with Salary Planning: Regularly benchmark salaries globally and align with inflation trends to maintain an attractive employer value proposition.
By incorporating inflation-adjusted salary planning and strategically utilising remote work, UAE employers can achieve a balance between cost efficiency and competitive talent acquisition strategies in 2025 and beyond.
Why Salary Planning Matters More Than Ever
In today’s fast-paced job market, competitive salaries are more than just a retention tool—they’re a strategic advantage. Employers who adapt quickly to trends and offer packages aligned with market realities will not only secure the best talent but also position themselves as industry leaders.
To learn more, download Eagle Partners’ Global Fintech Salary Guide and ensure your compensation strategies are ready for the challenges and opportunities of 2025.