A new study points out that while employees in Europe would face austerity measures, workers in Middle East would be enjoying an average pay rise of 5.4 percent this year.
The findings are part of the latest Total Remuneration survey conducted by global consulting firm Mercer. The results are based on survey of 570 multinational organizations operating across 76 countries in Europe, the Middle East and Africa.
It is estimated that the average wages in Eastern Europe and Western Europe will increase by 4.6 percent and 2.6 percent, respectively. On the other hand, Middle Eastern employees would be enjoying a much higher pay raise, thanks to improved financial results of organizations in a buoyant economy.
Companies in Africa are expected to announce an average increment of 8 percent, while companies in the Middle East would give employees increases of 5.4 percent in 2013. With the average pay increase set to beat the inflation figure, the real income of employees in the MENA region would not decrease and allow them to maintain their consumption pattern.
Egyptians are likely to benefit from a rise of about 10 percent this year. In other parts of the MENA region, wages in Algeria are set to increase by 6.8 percent, while the workers in Morocco would earn a salary higher by 4.9 percent compared to 2012. In the Gulf, highest average pay rise of 6.5 percent would be recorded in Jordan. Salaries in Saudi Arabia are expected to increase on average by about 6 percent in 2013.
Zaid Kamhawi, a representative for Mercer, cautioned that, “companies however are placing less emphasis on inflation rates when budgeting for pay increases, and factoring such variables as relative pay competitiveness, affordability, labor market conditions and confidence in their business outlook”.
As a result about 5 percent of the surveyed companies were also considering freezing the pay at current levels.