Workers in Saudi Arabia can expect a hike in wages across industries in 2020, a new survey has revealed.
Consulting company Mercer’s TRS (total remuneration survey) research of over 472 companies – across manufacturing, retail and wholesale, services, chemicals, life sciences, high tech, energy, and other industries – revealed that the base salaries are projected to increase by 4.5 per cent.
The highest hike of 5 per cent in wages is expected in the life sciences industries, while the lowest increase is anticipated in the energy industry with a projected 3.5 per cent increase in 2020, the survey found.
The recruitment outlook in the country is also promising as 52 per cent respondents plan to grow their headcount in 2020 while 38 per cent are aiming to maintain the number of employees next year.
In terms of the voluntary turnover rate has reached 9 per cent in 2019, up from nearly 7 per cent in 2018, the survey revealed.
“It is very encouraging to see that a large segment of Saudi employers are looking to increase salaries in 2020,” said Basem Samara, career products leader, Mercer in Saudi Arabia.
“The contractual agreement between employers and employees will always have a significant weight, however, this is no longer sufficient. Employers must consider how they are perceived by their employees as an enabler to fulfill their professional and personal ambitions.”
According to the 2018 Gulf Business salary survey, Saudi Arabia was the highest paying country among the five GCC states covered with an average monthly salary of $8,560 in 2018. The average was 2.9 per cent higher than in the UAE, 8.4 per cent higher than Bahrain, 8.7 per cent more than Oman and 8.96 per cent more than Kuwait.