Salary hikes in the UAE are expected to increase to 5 per cent in 2016, but slow down across the GCC as a whole, according to US-based human resources consultancy Aon Hewitt.

Salary adjustments in the country are expected to increase from the 4.8 per cent forecast for this year, based on a survey of 600 multinational companies and locally-run firms.

Wages across the six-country GCC bloc are also expected to increase by 5 per cent in 2016, but this is a slowdown from the 5.1 per cent forecast for 2015, 5.5 per cent last year and 6 per cent in 2013, says Aon Hewitt.

“Clearly, the impact of lower oil prices can be felt across the region, with governments cutting back on subsidies, reducing spending on larger projects and thinking about introducing some form of taxation,” the consultancy says.