Pay rises in KSA this year lowest in a decade

RIYADH — Average pay rises in Saudi Arabia and across the Gulf Cooperation Council (GCC) are set to be lower in 2016 than at any time over the past 10 years, according to the latest research released on Monday by online recruitment firm GulfTalent. “Many professionals in 2016 are likely to face a double-whammy of rising living costs coupled with stagnant wage growth. As a result, real salary increases net of inflation are expected to be significantly lower than in previous years,” the report stated. The research report was based on GulfTalent’s survey of 700 employers and 25,000 professionals across the six GCC states. Drawing on its survey results, the study found that salaries across the GCC are forecast to increase at an average of just 5.2 percent in 2016, down from 5.7 percent in the previous year. Saudi Arabia is expected to top the region’s pay increases, at 5.9 percent. In addition to lower pay rises, the study reported a marked slowdown in recruitment activity, with employers much more cautious in adding to their payroll. Much of the recruitment activity is now focused on replacement hiring only. Sectors that are particularly hit include oil & gas and construction. On the other hand, retail has seen limited impact and healthcare is booming, driven by a combination of population growth and regulatory changes making healthcare provision mandatory for employers. — SG