Companies across Qatar are predicting an average salary increase of 5.2% in 2015 according to the latest figures from Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON).
The figure is slightly down from forecasts made in 2014 and 2013 which was 5.6% both years. The latest figure indicates that companies across Qatar are being slightly more conservative with their budgets. However, employees in the country were given an average salary increase of 5.1% in 2014, only slightly below the original projection of 5.6%. Qatar is a fast growing economy with a rapid population, according to Qatar National Bank and Qatar’s real GDP growth will accelerate from 6.8% in 2014 to 7.8% in 2016.
Released as part of its annual Global Salary Increase Survey 2014, the figures are based on data from a robust comparative group of over 500 organizations across the Middle East, including 47 in Qatar. The report offers a unique snapshot of salary increase trends which, in turn, enables organisations to benchmark their forecasts with the market in order to remain competitive.
Robert Richter, Compensation Survey Manager, Aon Hewitt Middle East, said: “The latest figures show that corporates continue to have confidence in the 2015 economic outlook despite the slightly lower predictions made for the year ahead. It is normal procedure for companies to rethink their salary projections on an annual basis and the latest figure shouldn’t be a cause for concern for employees. Final budgets will be determined by HR and the management team of a company and the numbers we receive are the projections made by HR only; it seems this year HR will be more in line with the final numbers.”
Across the GCC, companies are predicting an average salary increase of 5.1% for 2015, a figure slightly down from predictions made for 2014, which was set at 5.5%, indicating a similar approach has been taken across the region. Among the participating GCC organizations, Oman and Saudi based companies gave the highest salary increase projection for 2015 at 5.4% each; a slight decrease from the 2014 predictions. Bahrain gave the lowest salary increase projection at 4.5%, followed by United Arab Emirates at 4.8% and Kuwait at 5.3%.
Aon Hewitt has been conducting the Global Salary Increase Survey on an annual basis for 36 years and launched it in the Middle East for the first time in 2009. The report is free to participating organizations and available at a price of $1,000 to others. The survey is part of Aon Hewitt’s suite of evidence-based, research-led studies including Qudurat, Best Employers Middle East (BEME), Total Compensation Measurement (TCM™) and People Risk Index (PRI®).
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