Companies across the UAE are planning average base salary increases of 3.4 per cent in 2026, with wage growth expected to remain broadly stable into 2027 as employers continue to balance cost management with efforts to attract and retain skilled workers, according to the latest Global Total Rewards Pulse Survey by Korn Ferry.
The survey, conducted in June 2026, gathered responses from 5,512 organisations across 135 countries and provides an outlook on salary trends, promotions and workforce retention.
The report found that the median base salary increase for UAE employees stands at 3.6 per cent this year. Executives and senior managers are expected to receive the largest median increases at 3.9 per cent, while middle management, supervisory staff and clerical employees are each forecast to receive median salary increases of around 3.6 per cent.
Looking ahead, employers expect average salary growth of 3.3 per cent in 2027. The median increase across all employee groups is projected to ease slightly to 3.2 per cent. Senior executives are expected to remain the strongest performers, with projected median salary increases of 4.0 per cent, while middle management, supervisory and clerical staff are forecast to receive increases ranging between 3.0 and 3.2 per cent.
The findings suggest that UAE employers are maintaining a measured approach to pay despite ongoing economic uncertainty and rising competition for skilled professionals.
Mayank Patel, Senior Vice President at Adecco and Head of EEMEA, said salary growth is expected to remain moderate and disciplined throughout 2026. He noted that many organisations are placing greater emphasis on performance-based incentives and variable pay schemes as a way to reward high-performing employees while managing inflationary pressures and payroll costs.
The survey also highlighted trends in merit-based and promotion-related pay increases. Merit increases averaged 3.3 per cent during 2026, with a median of 3.8 per cent across executive, middle management and supervisory positions. Clerical employees recorded a slightly lower median merit increase of 3.1 per cent.
Promotion-related salary adjustments were more varied. While the median increase for promoted employees was 1.5 per cent, the average reached 4.4 per cent, reflecting larger salary gains for a smaller number of employees advancing into higher roles. Middle management and supervisory staff recorded the highest median promotion increases at 2.0 per cent.
Employee retention also remained relatively strong compared with many international markets. The survey found total staff turnover in the UAE stood at a median of 7.5 per cent and an average of 9.9 per cent during the latest reporting period. Voluntary turnover, which measures employees leaving by choice, was lower, with a median of 4.6 per cent and an average of 6.7 per cent.
Korn Ferry said its wider global analysis identified reward communication, manager preparedness and the growing use of artificial intelligence as key factors influencing compensation strategies, as organisations seek to retain talent while maintaining financial discipline.
