UAE companies are planning an average salary increase of 3.4% in 2026, despite the ongoing economic uncertainty. The latest Korn Ferry Global Total Rewards Pulse Survey shows employers continue to balance cost discipline with the need to retain skilled talent. The survey, conducted in June 2026, covered 5,512 organizations across 135 countries.
Reportedly, the median salary increase for UAE employees stands at 3.6% this year. Executives and senior managers will receive a median raise of 3.9%. Middle management, supervisory, and clerical employees will receive median increases of around 3.6%.
Employers are relying on performance-linked compensation rather than broad-based salary revisions. As reported by recruitment specialists, businesses are increasing the number of performance-based payment programs to motivate their best-performing employees while managing their fixed cost expenses.
Salary increments based on merit stood at 3.3% in 2026, with a median of 3.8%. This applied to executive, middle management, and supervision positions. Clerical workers, on the other hand, experienced a slightly lower median increment rate of 3.1%.
The survey also found that promotion-related salary increases were 4.4%, and the median stood at 1.5%. The gap highlights that a smaller group of promoted employees received significantly larger pay jumps.
The UAE continues to outperform several global markets in employee retention. Organizations reported a median employee turnover of 7.5%, while voluntary turnover remained relatively low at 4.6%. The employee turnover rate is said to be a median of 7.5%, while the voluntary turnover rate stands at 4.6%.
The figures are better than those of the US, the UK, and several other economies in Asia, thus showing that the UAE has a very stable labor market. Looking ahead, salary growth is expected to remain largely stable in 2027, with employers budgeting an average increase of 3.3%.
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