Salaries expected to raise by 10 per cent in 2026

DUBAI: Salaries in the UAE are projected to rise by around four per cent in 2026, with employees in highly specialised and difficult-to-replace roles potentially seeing increases of more than 10 per cent, according to recruitment experts.

Dr. Trefor Murphy, founder and CEO of Cooper Fitch, told Khaleej Times that the UAE Salary Guide 2026 indicates employers are preparing for salary adjustments ranging between 1.6 per cent and 4 per cent next year. He noted that while companies had initially forecast zero salary growth for 2025, the actual figure reached 2.6 per cent, suggesting next year’s increases may again exceed expectations.

The survey shows that 84 per cent of organisations plan to either raise or maintain salaries in 2026, pointing to strong employer confidence amid a competitive labour market. Nearly 48 per cent expect to increase salaries, 37 per cent intend to keep them unchanged, and 15 per cent anticipate offering lower ranges to new hires.

Most adjustments will fall within the 0–5 per cent bracket, with only a small number of firms budgeting higher increases. Roles in technology, business transformation, and specialised finance are expected to benefit the most from hikes above 10 per cent. Global consulting firm Korn Ferry has projected a similar salary rise of 4.1 per cent for the year.

Dr. Murphy said the UAE is entering 2026 with a solid economic outlook, supported by robust non-oil activity and growing investment in strategic industries. The Central Bank forecasts real GDP growth of 5.3 per cent, driven by construction, financial services, logistics, and advanced sectors, all of which are contributing to upward pressure on salaries.

Recruiters also report that companies are reinstating benefits previously reduced or withdrawn. Nicki Wilson, managing director of Genie Recruitment, said that while salaries have largely remained stable except at the entry level, many organisations are restoring family benefits, schooling allowances, and enhanced medical coverage to attract senior talent. She noted that rising inflation is prompting more employees to explore new opportunities.

Although base salaries may not grow dramatically, employers are focusing on retention strategies, flexible work models, and well-being-oriented perks to stay competitive in the evolving job market.