Average Salary in United Arab Emirates 2022

How much money can one expect to earn working in the United Arab Emirates?

A monthly salary of around 19,600 AED is average for a worker working in the United Arab Emirates. The starting salary is 4,370 AED and may go up to 90,100 AED.

This is the typical amount of money earned per month, taking into account housing, transportation, and other amenities. There is a significant gap in pay across various types of work. For example, construction workers make an average of only 5,770 AED per month while financial analysts earn around 43,430 AED.

The cost of living in the United Arab Emirates is relatively high. Expenses such as rent, food, and transportation can add up quickly. However, many employers offer benefits such as housing allowances which can help offset some of these costs.

The average salary in the United Arab Emirates is a good income, especially when compared to other countries in the region. With a little careful planning, one can enjoy a comfortable lifestyle in this dynamic country.

Pay Scales across the Board in the United Arab Emirates

Amount of Salary

There is a wide variety of salary options available in the United Arab Emirates, starting at 4,370 AED per month and going up to 90,100 AED per month. The average salary in the UAE is 12,500 AED per month.

However, it should be noted that these are only averages and salaries can vary greatly depending on a number of factors, such as experience, education, type of employer, and industry. For instance, those working in the oil and gas industry tend to earn much higher salaries.

Median Compensation

Since the median wage is 18,400 AED per month, this indicates that 50% of the population earns less than 18,400 AED per month, while the other 50% of the population earns more than 18,400 AED per month.

The median wage is often seen as a better indicator of what “average” workers earn, as it is not skewed by a small number of extremely high earners.

Percentiles

There is a quarter of the population that makes less than 10,300 AED per year, while the other three quarters make more than 10,300 AED per year. The top 10% of earners make more than 43,700 AED per year.

This indicates that salaries in the UAE are quite unequal, with a large gap between those at the very top and those at the bottom.

How does the median pay vary from the average wage?

Both the average income and median salary are indicators. While the former is more common, the median salary is a more accurate representation of earnings in the UAE.

The main reason for this is that the average pay includes all types of salaries, while the median only takes into account basic incomes.

Comparative Wages Based on Years of Work Experience in the United Arab Emirates

How does a person’s pay change over the course of their career?

The United Arab Emirates is a great place to work, and salaries reflect this. Based on years of experience, here is how average salaries in the UAE change:

Average salary in Europe
  • 0-2 years: AED 40,000 per year
  • 3-5 years: AED 60,000 per year
  • 6-8 years: AED 80,000 per year
  • 9-11 years: AED 100,000 per year
  • 12+ years: AED 120,000 per year

These are only averages, of course, and your actual salary will depend on factors such as your qualifications, the company you work for, and the specific role you play within that company. However, this general trend shows that salaries in the UAE are very competitive, and increase steadily with experience.

If you’re looking for a great place to work and earn a good salary, the United Arab Emirates is definitely worth considering. With its high wages and excellent working conditions, it’s no wonder the UAE is such a popular destination for expatriates.

Comparison of Wages in the United Arab Emirates Based on Level of Education

How does your degree of education influence the amount of money you make?

In the United Arab Emirates, those with a high school degree earn an average of AED 3,333 per month.

This salary increases to AED 4,166 for those holding an associate’s degree, and AED 5,200 for those with a bachelor’s degree. Finally, those with a master’s degree or higher make an average of AED 7,000 per month.

As you can see, there is a significant difference in earnings based on your level of education. Those with a higher degree of education tend to earn more money. This is likely due to the fact that they have more skills and knowledge, which makes them more valuable to employers.

So if you’re looking to make more money in the United Arab Emirates, it’s worth considering furthering your education. Doing so could lead to a significant increase in your earnings.

Comparative Analysis of Wages Earned by Men and Women in the United Arab Emirates

The average annual salary for male workers in the United Arab Emirates is 7%  more than that of their female colleagues across all industries. When comparing average salaries by gender, it is evident that there is a significant gap between what men and women are earning in the country.

In order to better understand this discrepancy, we need to take a closer look at the different industries where UAE residents work. It is important to note that the oil and gas sector is one of the most prominent industries in the country, and it employs a large number of both men and women.

When we compare average salaries in the oil and gas sector, we see that men earn 14% more than women. This suggests that there is a significant gender pay gap even in one of the most lucrative industries in the UAE.

Average Percentage of Annual Salary Increase in the United Arab Emirates

How much are the United Arab Emirates’ yearly wage increases? Are increases given to staff on a regular basis or just when necessary?

The majority of employees in the United Arab Emirates may expect an increase in their salaries equal to 8% every seventeen months. The yearly wage increases that workers get in the United Arab Emirates often amount to an average of 5% of their previous year’s pay.

The highest-paid workers in the United Arab Emirates are those working in the oil & gas and banking and finance industries. Workers in these industries can expect to receive wage increases of 10-15% every year.

The lowest-paid workers in the United Arab Emirates are those working in the retail and hospitality industry. These workers will only receive wage increases of 2-3% per year.

So, on average, salaries in the United Arab Emirates are expected to rise by 8% every 17 months. The highest-paid workers will receive wage increases of 10-15% every year, while the lowest-paid workers will only receive wage increases of 2-3% per year.

UAE Industry Growth Rate 2022

  • Healthcare – 8%
  • Information Technology – 5%
  • Tourism – 6%
  • Banking – 7%
  • Business and Management – 8%
  • Construction – 10%
  • Education – 5%

These industry predictions are based on a number of factors, including population growth, infrastructure development, economic diversification and government initiatives.

The UAE has been investing heavily in developing its non-oil economy and this is starting to pay off, with a strong growth forecast in a number of key sectors.

UAE Average Experience-Based Salary Increase

Junior-level workers in UAE earn about 2,040 AED per month on average. With experience, salaries can increase to as much as 12,000 AED per month.

Mid-level professionals in UAE earn an average of 5,840 AED per month. With experience, salaries can increase to as much as 30,000 AED per month.

Senior-level workers in UAE earn an average of 11,560 AED per month. With experience and expertise, salaries can increase to as much as 60,000 AED per month.

The salaries vary because of many factors such as the level of experience, the type of company, and the specific industry.

The table below provides an overview of average salaries in UAE according to different job categories:

Job Category Average Salary (AED)

  • Junior Level – 2,040 – 12,000
  • Mid Level – 5,840 – 30,000
  • Senior Level – 11,560 – 60,000

The UAE’s Bonus & Incentive Payout Ratio

How frequently are bonuses given?

Surveyed employees in UAE claimed that 50% of them had not received any bonuses or incentives in the preceding year, while the other 50% said they had gotten at least one monetary bonus.

Bonuses ranged from 3% to 5% of yearly compensation for those who received them. The most commonly cited reason for not receiving a bonus was that the respondent’s company did not offer one (67%). Other reasons given were that bonuses were not part of the respondent’s job package (16%), or that the individual had not been employed long enough to be eligible (15%).

What are some common benefits and perks?

Surveyed employees in UAE typically receive the following benefits and perks:

  • Medical insurance
  • Transportation allowance
  • End of service benefits
  • Annual leave
  • Housing allowance

Types of Rewards

Individual Rewards Determined by Work Progress

This kind of bonus is given to employees as an encouragement to excel in their work and attain the company’s targets. The amount of the bonus is not predetermined but is linked to how much progress the employee makes in meeting the goals.

Bonuses Based on the Performance of the Company

This type of bonus is usually given to executives and senior employees as it is based on the company’s overall performance.

The amount of the bonus is determined by how well the company does in terms of sales, profit margins, and other factors.

Achievement-Based Rewards

This type of bonus is given to employees who have made a significant contribution to the company, such as developing a new product or service, or increasing sales. The amount of the bonus is predetermined and is usually a lump sum payment.

This kind of bonus is also given when the employee has reached a milestone in their career, such as 10 years of service.

Seasonal / Year-End Bonuses

Many companies give their employees a bonus at the end of the year or during the holiday season. The amount of the bonus is usually a percentage of the employee’s salary, and it is given as a show of appreciation for their work over the past year.

Comparison of United Arab Emirates Bonus Rates by Career Field

What aspects of a job make it deserving of a high base wage in addition to desirable bonuses?

In the United Arab Emirates, there are a number of careers that are known to offer both. The following table compares some of the top jobs in the country in terms of average bonuses as a percentage of base salary.

As can be seen from the table, there is significant variation in bonus rates between different career fields.

For example, while CEOs in the UAE earn an average base salary of AED 1.2 million, their bonuses make up a much smaller proportion of this figure (5.6%).

On the other hand, those working in sales and marketing roles tend to receive higher bonuses, with the average figure for these positions exceeding 10% of the base salary.

Bonus Comparison in the United Arab Emirates-based on Seniority

As in any other country, management and seniority play a role when it comes to bonuses in the United Arab Emirates. In general, those who are higher up on the totem pole can expect to receive greater bonuses than their subordinates. However, there are a few notable exceptions to this rule.

For example, entry-level positions may be entitled to a signing bonus upon joining a company. This is especially common in industries where competition for talent is high, such as in the financial sector.

Furthermore, employees who have performed exceptionally well may also be rewarded with a bonus that exceeds the average amount given to others in their position.

In terms of frequency, most bonuses in the United Arab Emirates are given out annually. However, some companies may opt to give out bonuses on a semi-annual or quarterly basis. This is usually dependent on the company’s financial performance and the individual’s contribution to it.

Compensation for Well-Known Jobs in the United Arab Emirates

Banking

  • Bank Branch Manager – 35,300 AED
  • Teller – 6,620 AED

Human Resources

  • HR Manager – 19,780 AED
  • HR Generalist – 16,560 AED

Information Technology

  • IT Project Manager – 27,840 AED
  • IT Systems Administrator – 11,880 AED

Marketing

  • Product Manager – 25,920 AED
  • Brand Manager- 23,520 AED
  • Digital Marketing Specialist- 20,160 AED
  • Sales Manager – 18,700
  • Sales Engineer – 26,560 AED

Healthcare / Medical

  • Doctor – 27,840 AED
  • Nurse – 12,270 AED
  • Pharmacist- 15,750 AED
  • Operations Manager- 18,930 AED
  • Quality Control Manager- 19,780 AED)

Comparison of UAE City Salaries

Dubai workers earn about 21,500 AED and Abu Dhabi workers earn around 19,000 AED. There is a significant cost of living difference between the two cities though, with Dubai being more expensive. When comparing salaries in both cities, it’s important to consider the cost of living as well.

The average salary in Ajman is 12,300 AED while in Al Ain it is 10,700 AED. Salaries are lower in these smaller cities but so is the cost of living. Comparing salaries across different cities can be difficult because the cost of living varies so much.

The UAE’s Hourly Wage Distribution

The United Arab Emirates has a median hourly income of 110 AED, which is often referred to as compensation per hour. The lowest 10% of earners make less than 30 AED per hour while the top 10% of earners make more than 160 AED per hour.

The country’s hourly wage distribution is very different from that of other countries in the Gulf region. The UAE has a much higher proportion of workers earning above the median income and a much lower proportion of workers earning below the median income.

This difference is largely due to the high proportion of expatriate workers in the UAE. Expatriates tend to be better paid than locals, so they skew the distribution towards the higher end.

The Salary Differences Between the Government and Private Sector

In the United Arab Emirates, workers in the public sector earn, on average and across all industries, 6% points more than their colleagues in the private sector. However, this difference greatly varies depending on the field of work.

The most significant salary discrepancies between the two sectors are found in the oil & gas, mining and banking industries, where public sector workers earn 42%, 34% and 30% more than those in the private sector, respectively.

On the other hand, there is virtually no difference in earnings between government and private employees in the retail industry.

In general, Emirati nationals working in the public sector earn 20% more than their counterparts in the private sector. However, when compared across industries, this trend is not always maintained. For example, Emiratis working in the banking sector earn 29% less than those employed by the government.

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