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UAE salary increases to average 3.4% in 2026, says new survey
Recruitment consultants in the UAE say that organisations in the country are leaning more heavily on performance-based incentives and variable pay schemes
- PUBLISHED: Tue 4 Aug 2026, 9:10 AM
UAE companies are budgeting for average base salary increases of 3.4 per cent in 2026, according to Korn Ferry's latest Global Total Rewards Pulse Survey, with pay growth expected to hold broadly steady into 2027.
The survey, conducted in June 2026 and covering 5,512 organisations across 135 countries, found the median base salary increase for UAE employees stands at 3.6 per cent this year, rising to as high as 3.9 per cent for executives and senior management. Middle management, supervisory and clerical staff are each set to see median increases of around 3.6 per cent.
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For 2027, the average increase across all UAE employees is projected at 3.3 per cent, with the median dipping slightly to 3.2 per cent. Executives and senior managers remain the best positioned, with a projected median increase of 4.0 per cent, while increases for middle management, supervisory and clerical staff are expected to moderate to around 3.0-3.2 per cent.
Mayank Patel, SVP at Adecco and Head of EEMEA, also sees a moderate and disciplined salary growth in 2026.
He added that many organisations are leaning more heavily on performance-based incentives and variable pay schemes to help offset inflationary pressures while still rewarding top talent.
Promotion-related increases
Within the overall pay increase, merit-based rises for UAE employees averaged 3.3 per cent in 2026, with a median of 3.8 per cent applied fairly evenly across executive, middle management and supervisory levels, while clerical staff saw a slightly lower median of 3.1 per cent.
Promotion-related increases in the UAE were more modest at the median (1.5 per cent) but carried a notably higher average of 4.4 per cent, reflecting larger jumps for a smaller share of promoted employees, particularly in middle management and supervisory roles, where median promotion increases reached 2.0 per cent.
On turnover, UAE organisations reported relatively low staff attrition compared with many global markets.
Total employee turnover stood at a median of 7.5 per cent and an average of 9.9 per cent for the most recently completed annual cycle. Voluntary turnover – reflecting only self-initiated exits – was even lower, with a median of 4.6 per cent and an average of 6.7 per cent, underscoring comparatively strong retention levels in the UAE relative to markets such as the US, UK and several Asian economies covered in the survey.
The findings come as the report’s broader global analysis flags reward communication, manager readiness and AI adoption as key challenges shaping total rewards strategy in 2026, with organisations worldwide balancing cost discipline against the need to retain critical talent amid economic and geopolitical uncertainty.
