Respondents to the Hotelier Middle East Salary Survey have called on GCC governments to step in to impose salary bands for the private sector so that salaries increase in line with drastic increments in housing costs, which are due to rise at 25% year on year.
Following the Dubai Expo announcement in November 2013, the Dubai Government in December 2013 increased public employee salaries by up to 100%, causing private sector employees to demand a review of their own salaries.
Regarding the possibility of pay rises to match steep increases in cost of living, one respondent to the Salary Survey commented: “It is one thing that employers and owners would rather sweep under the carpet.
“They don't want to talk about it even after the knowledge that the standard of living has risen drastically after the announcement of the Dubai Expo 2020. It is high time that the government comes into the picture to ensure fair pay in keeping with the standard of living within the UAE.”
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One respondent said that private sector wages are unlikely to be affected by the increasing house prices since governments are “more interested in building the nation and infrastructure to give maximum benefits to the locals and least benefits to the expats whose sweat and blood has made these countries so successful".
Another agreed that salaries for expats in general will not be affected “unless governments set rules for organisations, whether local or international, to match countries’ inflation similarly as they do for locals.”
Additionally this respondent raised concerns about standards of living, saying: “A low percentage of expats is able to have the work life balance and cope with the living standards in the Gulf States.”
Others claimed standards of living was a government matter, particularly for staff living in employee accommodation.
One respondent said: “The UAE government should be concerned more about a rising wages for all other private sectors, not just only for a government.
“At the moment cost of living is really so high especially for the staff accommodation and all properties in a market that there is no chance to have wellbeing for middle class or executive lives.”
Some also raised concerns about the impact of an influx of three- and four-star hotels since these tend to pay the lowest wages.
One comment that came out of the survey was: “The labour department should look at the working conditions of three- and four star hotels around the UAE. People take undue advantage and exploitation to reach up to levels of western standards.”
Download the Hotelier Middle East app through iTunes to read more on the Salary Survey in the June Edition of Hotelier Middle East on your iPhone or iPad.
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