Qatar employees can expect 6 percent rise in salaries
Employees in Qatar can hope to see six percent rise in salary over the next year, according to a report by global management company, Hay Group. This is the report submitted after a salary and benefits study conducted by organizations from major sectors such as oil and gas, real estate, banking and local conglomerates, which involved 16500 employees from more than 65 organizations in Qatar.
The study shows 11 percent increase in the average basic salaries in Qatar and 10 percent rise in housing allowance since June 2008. The report forecasts six percent rise in pay for 2010 and also reveal that Qatari nationals are among the better paid (50 percent higher than expats).
According to General Manager of Hay Group, Middle East, Qatar is optimistic and hence the scenario is a little different in comparison to other GCC economies.
The organizations in Qatar have forecasted a six to eight percent salary growth for 2010, while the other economies in the region have predicted lesser forecasts, comparatively, he added.
The report lays emphasis on the pay movements in Qatar, which has slowed down, in comparison to last year, but are yet one of the highest in the region, at 11 percent growth since June 2008.
Although average compensation has moved by double digits on an average, the break down indicates that new recruits employed into clerical cadres this year, have been hired at pay scales that are 12 to 15 percent lower in comparison to total market average. This suggests an increase supply-demand balance in the market.
With the economic downturn, the organizations have been compelled to take some major steps towards restructuring their costs. The report also highlights that the shift in compensation is partly due to rising costs of living in Doha.
Although the forecast for Qatar is positive, the findings indicate that 50 percent of the businesses have established lower revenue target for this year, and more than 60 percent of the companies are considering some budget cuts going forward. However, it should also be noted that more than 60 percent of the organizations are expecting an upturn in business performance within next twelve months, the report said.
The Hay Group Compensation Report is published in Qatar annually. The report covers cash compensation, salary administration, allowances and non-cash benefits. Similar studies are also carried out in MENA (Middle East North Africa) region.
Posted on 6/10/2009