Survey says Qatar salaries to increase by 0.9% in 2017

There is some good news on the horizon for Qatar’s population. A new report by Aon Hewitt Middle East Survey says that a higher salary increase is on the cards for employees in Qatar next year.

The GCC Salary Increase Survey has forecast that salary increase in Qatar will average 4.5% in 2017, a significant increase from this year's rise of 3.6%.

Based on a survey of 600 multinational companies and locally-run conglomerates in the GCC, Aon Hewitt said, "Although companies in Qatar have predicted the lowest increase in the GCC region at 4.5% next year, the outlook is significantly higher than the recorded salary growth of just 3.6% this year."

Among the participating GCC organisations, companies based in Saudi Arabia noted the highest projection for salary increases in 2017 at an average of 4.9%, an increase on this year's actual 4.6% growth. Kuwait-based organisations have estimated salaries to rise by 4.8% in 2017, a significant increase from this year's rise of 4.3%.

Companies operating in Bahrain have registered the third-highest salary increase projection within the GCC for 2017, reaching an average of 4.7%. Although optimistic, that falls just under the growth rate of 4.8% for this year, the highest in the region for 2016.

Both UAE and Oman-based companies projected an average salary increase of 4.6% for 2017. Oman's outlook for 2017 shows a marked increase from 4.2% increase noted in 2016. For the UAE, this marks a slight increase from the 4.4% average salaries growth seen in 2016.

The largest of its kind in the Gulf region, the survey has predicted that GCC countries will have an average salary increase of 4.7% in 2017. This demonstrates a more optimistic outlook across the board as GDP growth is also expected to climb in the year ahead.

While 2016 proved to be a challenging period for economic expansion in some markets, over the next few years new policies governing inflation, taxation, diversification, and commodity pricing are anticipated to come into effect and lead to a general upswing in GCC salaries.

Moreover, the impact of lower oil prices and reduced public spending has not had the detrimental impact that some have anticipated, with most employers surveyed increasing the salaries of their employees this year and planning for even greater increases next year.

The latest survey also notes that actual salary increases for the year 2016 have been the highest for pharmaceutical, media and food & beverage industries. The industries with the lowest salary increases for 2016 are Telcos, construction and oil & gas.

Courtesy: Qatar-tribune.com