Salaries expected to rise a modest 4 per cent

Manama : Salaries in Bahrain are forecast to increase at a rate of four per cent next year, according to a study.

A survey of 600 regional multinational companies and locally-owned conglomerates has forecast that salary increases in 2018 in GCC is expected to be a modest increase. The survey conducted by Aon included companies around the GCC. The report also revealed that actual salary increases in all GCC countries in 2017 were lower than the forecasts for the year. Bahrain’s forecasted salary increase for 2017 was 4.7 per cent but the actual salary increase for the year was 3.9 per cent.

Salaries in Saudi Arabia is forecast to increase the highest with the Kingdom projected to note a 4.5 per cent increase. The actual salary increase in Saudi Arabia for this year was 4.4 per cent while the projected salary was 4.9 per cent. Kuwait had the second highest projected salary for 2018 at 4.5 per cent while, its forecast for 2017 was 4.8 but the actual salary increase for the year was 4.3.

Bahrain’s forecast is the worst among the GCC nations as Oman (4.3) as well as UAE (4.3) both had better 2018 forecasts.

“Despite lower than projected salary increases this year, there is optimism in the region over KSA Vision 2030 and Expo 2020, with the potential for thriving new industries and a significant level of job creation in the region as a whole,” Robert Richter, GCC Compensation survey manager, Aon Hewitt Middle East said.