Salary increases in the UAE private sector have slowed since the start of the economic downturn, according to HR consultancy Towers Watson.
Increases reached an average of 8.7 per cent per annum prior to the recession, but dropped to 4.6 per cent last year, the firm said.
A survey of 180 companies in the UAE found that 25 per cent of firms did not grant any salary increases in 2009.
The consultancy urged companies to adopt “a more balanced approach” to its remuneration policies, and to adopt structured pay grades.
“The focus now needs to be on internal pay equity which means ensuring that roles of similar value within the organisation are paid similarly,” said Roman Weidlich of Towers Watson.
The firm also said that 41 per cent of UAE companies do not have a formal structure to justify the pay grades of individual roles.