Many private sector employees in the UAE are not receiving bonuses, according to a recent poll conducted on Khaleej Times’ WhatsApp channel. The survey found that the majority of respondents did not receive a bonus in the last 12 months and do not expect to receive one in 2024. Bonuses are typically given as a reward for good performance or company profits and are paid in addition to an employee’s regular salary.
Emirates Group recently awarded its employees a bonus of 20 weeks of their salaries as the company celebrated record-breaking profits. While bonuses are not required by UAE labor law, many companies choose to offer them as part of their annual practices. The eligibility and terms of bonuses are usually outlined in employment contracts or company policies, and the amount is at the discretion of the employer.
According to a UAE salary guide, three in 10 employees reported that no one in their company received a bonus in the previous 12 months. It was advised for business leaders to be aware of potentially dissatisfied employees as many look forward to an annual bonus. Bonuses can be added to job contracts as an additional payout beyond the monthly salary, with criteria for eligibility and payout amounts specified in the agreement.
Bonus calculations typically occur at the end of the financial year and are based on various factors such as company performance, growth, budget targets, and individual employee assessments. Annual bonuses in the UAE commonly range from 15 to 45 days of pay, depending on the industry. A majority of companies surveyed in the UAE intend to issue annual bonuses, with most planning to pay one month’s basic salary as a bonus.
In addition to salaries, bonuses are becoming increasingly important in the UAE job market for talent retention. Other factors like remote work options also play a role in attracting and retaining employees. It is crucial for employers to ensure that bonus terms are fair, compliant with labor laws, and mutually agreed upon with employees. Overall, bonuses play a significant role in rewarding and incentivizing employees in the UAE private sector.
