The impact of the Arab Spring has led to several announcements by governments regarding increases in pay and allowances for their national population, mainly in the public sector.
From a recent ‘Hay Group Middle East Flash Survey’, c. a third of the organizations surveyed in the Middle East are looking at expansion in revenue growth in the coming year, indicating a change from the sombre atmosphere of early 2011. They have forecast a healthy 5-15% revenue increase compared with global organizations. FIGURE 1 above highlights the 2012 pay forecast from the responses received from 1,500 organizations in 11 countries. It is clear that salary increases will outpace inflation.
All countries in the MENA region are forecasting a modest-to-healthy increase in salaries in 2012, although this varies depending on inflation rates. From government initiatives in the Gulf countries to recruit nationals, to revisions in pay and benefit policies in North Africa, to salary reforms in the Levant, all these have an impact on pay. A combination of civil unrest and legislation means many changes still lie ahead for compensation and benefits in the region.