Employees in the UAE can expect a period of consistent, moderate salary growth over the next two years. According to the latest Global Total Rewards Pulse Survey by Korn Ferry, companies are planning for an average base salary increase of 3.4% in 2026, with projections remaining relatively stable at 3.3% for 2027. While executives and senior management continue to secure the highest raises—reaching up to 4.0% in 2027—middle management and clerical staff are also seeing steady, if slightly more conservative, annual adjustments.

To manage these costs while still attracting top talent, many local firms are shifting their focus toward variable pay and performance-based incentives to combat inflationary pressures. The data also highlights a resilient labor market in the UAE, characterized by lower staff turnover compared to international peers in the US and UK. With voluntary attrition rates sitting at a median of 4.6%, businesses are finding success in retaining staff, even as they navigate broader global challenges like AI integration and the need for better communication regarding compensation strategies.