New Survey Predicts 3.4% Average Salary Hike for UAE Workers in 2026

UAE employers are planning an average base salary increase of 3.4% in 2026, with pay growth expected to remain stable into 2027, according to Korn Ferry's Global Total Rewards Pulse Survey. The findings indicate that companies continue to offer steady salary growth while placing greater emphasis on performance-based rewards and employee retention.

Salary Growth Remains Stable

The survey, conducted in June 2026, covered 5,512 organisations across 135 countries. It found that the median base salary increase for UAE employees is 3.6% in 2026.

Executives and senior managers are expected to receive the highest median salary increase of 3.9%, while middle management, supervisory, and clerical employees are projected to receive median increases of approximately 3.6%.

Looking ahead to 2027, the average salary increase is forecast to be 3.3%, with the median easing slightly to 3.2%. Executives are expected to remain the biggest beneficiaries, with projected median increases of 4.0%, while other employee groups are likely to receive increases ranging between 3.0% and 3.2%.

Companies Focus on Performance-Based Rewards

According to Mayank Patel, SVP at Adecco and Head of EEMEA, salary growth in 2026 is expected to remain moderate and carefully managed.

He noted that many organisations are increasingly relying on performance-based incentives and variable pay schemes to help manage inflationary pressures while continuing to reward high-performing employees.

Merit Increases and Promotions

The survey revealed that merit-based salary increases averaged 3.3% across UAE organisations in 2026, with a median increase of 3.8% for executives, middle management, and supervisory staff. Clerical employees received a slightly lower median merit increase of 3.1%.

Promotion-related salary increases showed a median rise of 1.5%, while the average increase reached 4.4%, reflecting larger salary jumps for a smaller number of promoted employees. Middle management and supervisory employees received the strongest promotion-related increases, with a median of 2.0%.

Employee Turnover Remains Low

The report also highlighted the UAE's strong employee retention compared to many international markets.

Total employee turnover stood at a median of 7.5% and an average of 9.9% during the most recent annual cycle. Voluntary turnover, which measures employees leaving by choice, remained lower at a median of 4.6% and an average of 6.7%.

These figures suggest that UAE organisations continue to retain employees more effectively than many companies in the United States, United Kingdom, and several Asian markets included in the survey.

Global Challenges Continue

Beyond salary trends, the global report identified several challenges shaping compensation strategies in 2026. Organisations worldwide are balancing cost control, talent retention, AI adoption, reward communication, and manager readiness as they navigate ongoing economic and geopolitical uncertainty.

Outlook

The survey suggests that UAE employers are maintaining a steady approach to salary growth while increasingly using performance-based rewards to attract and retain skilled professionals. With relatively low employee turnover and stable pay increases expected into 2027, the UAE labour market continues to demonstrate resilience despite global economic challenges.