UAE Jobs Salary Hike expectations are gradually rising and putting employers under more pressure. At the same time, the new statistics take us in the direction of a widening gap between compensation and employee duties.
Although salary hike opportunities are growing throughout the region, discontent is still high. Critical skills that are in short supply will make it harder for the organizations in the UAE and the GCC to make the right choices on salaries, retention, and workforce planning.
Findings from the Hays GCC Salary Guide 2026 show that 58 percent of professionals received a UAE salary increase in 2025, up from 51 percent the previous year. The most common rise ranged between 2.5 and 5 percent, although 12 percent reported increases exceeding 20 percent. Despite this upward movement, six in ten professionals said their pay does not reflect their responsibilities.
Looking to the future, 78% predict a rise in salary in 2026, with almost one-fourth foreseeing an increase of more than 20%. Employers seem to be much more prudent; 70% of them are expecting increases, but mostly limited to 5%, revealing a growing difference in expectations in the current GCC salary trends.
There has been a consistent and remarkable hiring activity in the job market of the UAE. In 2025, over half of the employers hired more staff, with special emphasis on the sectors of technology, banking, construction, real estate, transport, and logistics. Also, the hiring of contract, temporary, and freelance workers is going up as firms desire to have the benefit of flexible staffing and get specialized skills.
Sustained recruitment has not resolved talent shortages. Around 90 percent of organisations reported skills gaps, driven by uncompetitive pay, intense competition for talent, and limited access to industry-ready professionals.
Retention pressures are intensifying as benefits expectations diverge. While 27 percent of professionals changed employers last year, many more are considering a move in 2026. Employees increasingly prioritise flexible working, additional leave, wellbeing support, and child education allowances.
Employers continue to focus on core benefits such as medical cover and standard leave, contributing to ongoing dissatisfaction.
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To put it briefly, Hays Middle East Managing Director Oliver Kowalski commented, “Despite ongoing global economic uncertainties, the Gulf region continues to demonstrate resilience and forward momentum.” The hiring perspective in the UAE for 2026 is still optimistic, and there is already a shift in the employers’ thinking towards the salaries and benefits to be more realistic in comparison with the current market.