UAE Salary Increment & Compensation Strategy
When negotiating an annual appraisal or promotion in Dubai, Abu Dhabi, or the Northern Emirates, looking at percentage raises in context is essential.
| Current Salary | Increment % | Monthly Increase | New Monthly | New Annual Total |
|---|---|---|---|---|
| AED 10,000 | 5% | +AED 500 | AED 10,500 | AED 126,000 |
| AED 15,000 | 10% | +AED 1,500 | AED 16,500 | AED 198,000 |
| AED 25,000 | 8% | +AED 2,000 | AED 27,000 | AED 324,000 |
| AED 40,000 | 12% | +AED 4,800 | AED 44,800 | AED 537,600 |
Negotiating Basic Salary vs. Allowances
If your employer offers a salary increment, clarify whether the increase will be allocated to your Basic Salary or your allowances:
- Allocated to Basic: This increases both your monthly pay and your statutory end-of-service gratuity accrual rate, as well as your overtime base.
- Allocated to Allowances: Your monthly take-home increases identically, but your end-of-service severance valuation remains unchanged.