Dubai’s biggest bank gives pay raises to cushion inflation
The trajectory of price increases represents a significant turnaround from deflation throughout 2019 and 2020
Dubai’s biggest bank, Emirates NBD, gave most employees in the United Arab Emirates a pay raise of up to eight percent to help cushion against rising costs of living driven by inflation.
The pay increases varied according to seniority and were part of a mid-cycle salary adjustment for inflation, with top executives receiving smaller or no pay changes, sources familiar with the matter said.
Most employees received a pay rise of between five and eight percent, with lower-paid staff receiving the biggest increase.
"As a people-first organization and a leading employer, Emirates NBD has remained committed to initiatives and policies that support staff wellbeing, while adopting a robust employee recognition program," a spokesperson told Reuters.
Annual inflation in the oil-producing Gulf Arab state reached 3.4 percent in the first quarter of 2022, according to its central bank, which projected 5.6 percent inflation for the year.
Monthly inflation figures this year have not been published by the UAE.
The trajectory of price increases represents a significant turnaround from deflation throughout 2019, 2020, and most of 2021.
People are increasingly voicing concerns over increasing living costs in the UAE, with retail fuel prices up some 55 percent this year, falling from a high of about 80 percent.
The UAE is the only Gulf country without a cap on domestic fuel prices, leading to petrol costs surging at the pumps.