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GCC construction pay rises up by 6.1% in 2015

Regional salary hikes could, however, dip to 5.2% this year amidst low oil prices, which also resulted in Bahrain reporting the lowest pay rises in 2015

Bahrain recorded the lowest pay rises in 2015.
Bahrain recorded the lowest pay rises in 2015.

Construction salaries are believed to have increased by 6.1% in the GCC last year. 

This is second behind the retail sector, which recorded pay rises by 6.6%, and one ahead of banking, which increased salaries by 6% in 2015.

An atmosphere of competitiveness and the desire to retain specialised staff are being viewed as the key contributing factors behind this trend, according to Gulf Talent's Employment and Salary Trends 2016 report.

However, it is likely these figures will drop this year as oil prices lead to stifled state and private sector budgets. 

Gulf Talent's report said: "With the recruiting market cooling and businesses tightening their spending, average pay rises in 2015 slowed down to 5.7%, from 6.7% in the previous year.

"Employers also reported an accelerating shift to performance-based variable pay.

"Based on Gulf Talent’s survey of employers, salary increases are set to slow down even further in 2016, forecast to average just 5.2%," it added.  

Qatar and Oman had the highest salary increases in 2015, the report continued. 

Heightened activity in anticipation of 2022 FIFA World Cup buoyed pay rises in Qatar, while the increased unionisation of the workforce in Oman continues to put pressure on salaries there.

Bahrain, "heavily exposed to the oil price collapse and still recovering from the political unrest of the last few years, witnessed the region’s lowest average pay rise", the report added. 

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Construction Week - Issue 747
Aug 03, 2019