UAE Employees Receive Record Bonuses in 2024
Some Employees to Receive Over Six Months' Bonus in 2024
Significant disparities have emerged in bonus distribution across the United Arab Emirates (UAE) job market in 2024. According to a recently published study, workers in sectors such as technology, banking, healthcare, and consultancy received the highest bonuses, with some exceeding six months' salary. Conversely, sectors like media, government, and retail saw many employees without bonuses due to budget constraints, shifting priorities, and market uncertainties.
A study published by Cooper Fitch, a UAE-based recruitment and HR consultancy firm, indicates that bonuses are increasingly tied to individual performance rather than team achievements. This suggests that companies are focusing more on rewarding measurable outcomes. In 2024, approximately 72% of companies in the UAE awarded bonuses ranging from one month's salary to amounts exceeding six months' pay.
Competitive Job Market
The UAE job market has become extremely competitive over the past four years, partly due to the influx of professionals into the country. The establishment of new companies and the relocation of foreign companies to the UAE have also contributed to the growth in population and job numbers. In 2023, the most common bonus was equivalent to 1-2 months' salary, distributed by 44% of UAE companies among their employees.
However, in 2024, the bonus amounts continued to rise. Around 23% of companies offered bonuses equivalent to 3-5 months' salary, especially in the banking, consultancy, and technology sectors. Moreover, 5% of UAE companies provided bonuses of more than six months, primarily in banking and consultancy, where total compensation heavily relies on performance-based incentives. These bonuses aim to align rewards with individual and corporate success.
Who Missed Out on Bonuses?
However, more than a quarter (28%) of companies in the UAE did not distribute bonuses in 2024. This was particularly characteristic of the government sector, media, and retail. In these industries, budget constraints, changing priorities, and market uncertainties led companies to be cautious in awarding bonuses.
The media industry, for example, adapted to digital changes, while many retail businesses remained cautious about bonuses due to changing consumer demands. According to Cooper Fitch's report, although financial metrics improved in some sectors, nearly one in three employees still did not receive a bonus in 2024. Companies crafted their bonus strategies carefully to balance costs and the attraction and retention of talent. Bonuses equivalent to 1-2 months' pay remained the most common, awarded by 43% of companies, reflecting a balance between cost management and employee engagement.
Who Received the Highest Bonuses?
Cooper Fitch's annual study revealed that among those in executive positions, 29% received bonuses equivalent to 3-5 months' salary, while 11% of companies offered bonuses exceeding six months, particularly in sectors where retaining leadership-level talent is critical. However, 26% of companies did not provide bonuses to executive-level employees.
For middle management, bonuses varied significantly: 46% of companies offered bonuses of 1-2 months' pay, while 23% offered 3-5 months' bonuses. The report noted that although middle managers play a crucial role in corporate operations, nearly one in three did not receive a bonus. Only 2% received high-value bonuses exceeding six months.
Changes in UAE Bonus Practices
According to the founder and CEO of Cooper Fitch, the UAE's bonus practices are continually evolving to respond to economic changes and government initiatives aimed at strengthening workforce stability. Programs like the Golden Visa and Vision 2071 continue to attract and retain skilled professionals, bolstering the country's position among global talent hubs.
Therefore, the UAE job market remains dynamic and competitive, with bonus distribution increasingly focusing on individual performance. This trend not only benefits employees in high-growth sectors but also indicates that companies are opting for performance-based rewards to attract and retain top talent.
