Source: Muscat Daily
Salaries in the sultanate are expected to rise by five per cent in 2013 against a predicted inflation rate of four per cent, according to management consulting firm HayGroup.
Launching its annual compensation and benefits report for Oman at the Grand Hyatt Muscat on Sunday, Harish Bhatia, HayGroup unit manager for the Middle East, said that the average salary increase in 2012 was 3.9 per cent, down from the 2011 figure of 6.2 per cent.
In this year’s survey, HayGroup collected information from 35,500 employees of 106 organisations in the sultanate.
Bhatia, who worked on the report, said that the rise in salaries over the last 12 months has predominantly taken the form of an increment on basic salary which rose 5.7 per cent, on average. “This is due to the growing economy and infrastructure investment. In Oman, the pressure on allowances is not the same as elsewhere in the GCC, so we see employers increasing basic salaries rather than adding to allowances such as housing, transport and education. The inflation rate which most companies have factored in is currently four per cent, which is fairly standard and stable across the GCC.”
According to the report, Oman’s oil and gas sector had the highest pay rises of seven per cent, on average, this year.
“In 2013 as well, the oil and gas sector is going to be robust in terms of pay rises. Salary growth is also going to be good in banking and other sectors which are doing well. I think across all the sectors there will be a pay rise of between four-seven per cent in 2013,” Bhatia said.