Organizations in Saudi Arabia plan to increase employee salaries two percent above inflation in 2012, the latest Salary Budget Planning Report for Europe, the Middle East and Africa (EMEA) said Wednesday. It found that salaries for Saudi employees were predicted to increase by six percent against a prevailing inflation increase of 4.1 percent. Salary increases are set to be consistent across all the Gulf states at 5.0 percent - 5.5 percent Theses increases will feel more significant in the United Arab Emirates and Bahrain, where inflation is currently running at a lower rate. The results were disclosed at the Towers Watson Middle East HR forum held in Dubai. The survey also showed that high performers in the workplace will have an added advantage when it comes to salary increases, as more than 75 percent of the companies surveyed have allocated a large portion of their 2012 budget to high-performing employees. Ahmad Waarie, Managing Consultant, Towers Watson, said "the results of Towers Watson's Salary Budget Planning Report clearly show that job market trends across the GCC point to a positive and steadily growing market. The last few years have been a tough one for all economies across the globe. While many markets are still grappling under the weight of the crisis, the Gulf continues to remain a lucrative one for expansion, thus attracting talent and new investments from across the globe.”
