For employees in the country’s embattled public sector, the news is worse, with salary increases set to fall to 3 per cent, from 5 per cent in 2023, the country’s professional body for human resources says in its quarterly Labour Market Outlook report.
“This quarter, we see the tide turning on pay,” the CIPD says. “As inflation continues its descent in 2024, expected pay awards will likely follow suit.”
Inflation in the UK peaked at a record 11.1 per cent in October 2022, leading to a cost-of-living crisis and steep drop in the value of employees’ salaries as they struggled to cover daily living expenses.
However, the UK slipped into recession in the second half of 2023 after the economy shrank 0.3 per cent in the three months to December, the Office for National Statistics said earlier this month.
While inflation has eased – in January, the UK’s inflation rate remained steady at 4 per cent and food prices fell for the first time since September 2021 – salary increases are expected to track the cost-of-living index amid a competitive labour market.
“Decreasing staff levels appears to be higher on the agenda in 2024, in response to the higher wage costs experienced over the past couple of years,” the CIPD says.
“This is evident in both the public and private sector, combined with a turn away from continuing to absorb costs or, in the case of the private sector, reduced profits during the period of high inflation.”
What is the salary and employment outlook for jobseekers in the UK in 2024? Read on to find out and look at our detailed salary guides below for a snapshot of your industry.
Will salaries increase in 2024?
Salary rises in the UK this year will be lower compared with 2023, falling in line with easing inflation at an average of 4 per cent.
That doesn’t mean to say that employees will be unable to negotiate higher increases above the average estimate, but it will depend on the sector, a company’s bottom line, performance reviews and whether or not their role is in demand.
However, the economic landscape is creating a challenging hiring outlook for candidates and employers, says Doug Rode, managing director of the UK and Ireland at Michael Page.
“This trajectory that hiring will continue to tie in with the economic outlook is something we expect to see throughout 2024 – especially when it comes to salary,” Mr Rode says in the Michael Page 2024 UK Salary Guide.
“Candidates are nervous to move due to uncertainty around job security and clients are becoming increasingly selective about hiring decisions and packages as they look to fulfil their business needs.”
Average salary increases in small to medium enterprises (SMEs) will remain higher at 5 per cent compared with private sector organisations, the CIPD adds.
“This, combined with the finding that fewer SMEs are hiring, indicates that SMEs appear to be focusing on retention of existing staff as we enter 2024,” it says.
“Many people will also benefit from incremental progression or promotions, bonuses or a pay bump when switching jobs.”
The CIPD data is based on a poll of more than 2,000 HR professionals and decision makers in the UK and shows that 24 per cent of organisations in the country plan to increase their employees' base pay by between 4 per cent and 4.99 per cent.
One in five companies (19 per cent) will increase salaries by 2 per cent to 2.99 per cent, while 12 per cent are planning a pay freeze, it adds.
“However, a larger proportion [17 per cent] are still planning pay rises of above 6 per cent in 2024," it says.
Meanwhile, jobseekers’ salary package expectations are evolving and they are seeking a better work-life balance and to develop new skills, Mr Rode says.
“As a result, businesses must look beyond the numbers and ensure they’re offering a holistic package to ensure talent – existing and new – feel safe, secure and, most of all, motivated,” he adds.
What benefits can UK jobseekers expect in 2024?
Attractive employee benefits can give companies a competitive advantage when it comes to recruitment, as well as boosting staff retention, morale and productivity, UK job search engine Adzuna says.
Up to two thirds of employees believe the benefits offered to them are equal to or more important than their basic salary, Adzuna said in a blog post in December.
“Indeed, demand from employees for benefits may also be on the rise, with 83 per cent of businesses having experienced an increase in requests from employees for enhanced well-being benefits,” it said.
However, three in 10 professionals say they do not receive any workplace benefits at all, according to a study conducted by recruitment specialist Reed as part of its 2024 UK salary guide, which surveyed 5,000 employees last November.
The three most common benefits received by employees in the UK are: flexitime (20 per cent), a company pension higher than the required amount (18 per cent), and an annual salary increment (18 per cent), the Reed survey found.
However, 45 per cent of workers say they would prefer an annual salary increase, 36 per cent want to be offered a four-day working week and 36 per cent want flexitime, it shows.
“In 2021, we saw higher demand for health-related benefits, which reflected the stress the pandemic had on workers,” Reed says in its report.
“Last year, workers were feeling the initial impact of rising energy bills and inflation, which was reflected in their desire for more financial-led benefits, such as salary increments and pensions. This year, however, there’s a greater balance between money and flexibility.”
Other benefits on employees' wish lists include private health care, a cycle to work initiative, life insurance, uncapped annual leave and a gym and wellness programme, Reed says.
Will employees receive a bonus in 2024?
The positive effect that year-end bonuses have on employees is well-known. Not only do they boost morale for a job well done, they are also a welcome financial boost for workers, particularly during challenging economic times.
In the UK, 41 per cent of employees do not expect to receive a bonus for their hard work in 2023, according to the Robert Walters 2024 salary guide, which surveyed 4,000 professionals and 2,000 employers for its annual report.
A year-end bonus remains a crucial retention tool, influencing almost four in five employees' career plans
Chris Eldridge, chief executive of Robert Walters UK
More than half of professionals, or 68 per cent, polled for the survey say they would “seriously contemplate” leaving their current job if they missed out on a bonus, it adds.
However, 59 per cent of professionals are expecting a bonus of between 10 per cent and 30 per cent of their salary.
“A year-end bonus remains a crucial retention tool, influencing almost four in five employees' career plans,” Chris Eldridge, chief executive of Robert Walters UK, says in the report.
“It also helps with motivation for the following year – when people feel appreciated, they are more committed to continuing the hard work to reap the benefits in the years to come.”
Meanwhile, a third of employers polled for the survey say they have not budgeted for end-of-year bonuses, but 52 per cent have, according to Robert Walters.
UK salary guide 2024
Check out our detailed salary guides below for a snapshot of how much you can expect to be paid in your sector in 2024.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Expert input
If you had all the money in the world, what’s the one sneaker you would buy or create?
“There are a few shoes that have ‘grail’ status for me. But the one I have always wanted is the Nike x Patta x Parra Air Max 1 - Cherrywood. To get a pair in my size brand new is would cost me between Dh8,000 and Dh 10,000.” Jack Brett
“If I had all the money, I would approach Nike and ask them to do my own Air Force 1, that’s one of my dreams.” Yaseen Benchouche
“There’s nothing out there yet that I’d pay an insane amount for, but I’d love to create my own shoe with Tinker Hatfield and Jordan.” Joshua Cox
“I think I’d buy a defunct footwear brand; I’d like the challenge of reinterpreting a brand’s history and changing options.” Kris Balerite
“I’d stir up a creative collaboration with designers Martin Margiela of the mixed patchwork sneakers, and Yohji Yamamoto.” Hussain Moloobhoy
“If I had all the money in the world, I’d live somewhere where I’d never have to wear shoes again.” Raj Malhotra
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
Fixtures
Friday, November 1 – Oman v UAE Sunday, November 3 – UAE v Netherlands Thursday, November 7 – UAE v Oman Saturday, November 9 – Netherlands v UAE
Federer's 19 grand slam titles
Australian Open (5 titles) - 2004 bt Marat Safin; 2006 bt Marcos Baghdatis; 2007 bt Fernando Gonzalez; 2010 bt Andy Murray; 2017 bt Rafael Nadal
French Open (1 title) - 2009 bt Robin Soderling
Wimbledon (8 titles) - 2003 bt Mark Philippoussis; 2004 bt Andy Roddick; 2005 bt Andy Roddick; 2006 bt Rafael Nadal; 2007 bt Rafael Nadal; 2009 bt Andy Roddick; 2012 bt Andy Murray; 2017 bt Marin Cilic
US Open (5 titles) - 2004 bt Lleyton Hewitt; 2005 bt Andre Agassi; 2006 bt Andy Roddick; 2007 bt Novak Djokovic; 2008 bt Andy Murray
Juliot Vinolia’s checklist for adopting alternate-day fasting
- Don’t do it more than once in three days
- Don’t go under 700 calories on fasting days
- Ensure there is sufficient water intake, as the body can go in dehydration mode
- Ensure there is enough roughage (fibre) in the food on fasting days as well
- Do not binge on processed or fatty foods on non-fasting days
- Complement fasting with plant-based foods, fruits, vegetables, seafood. Cut out processed meats and processed carbohydrates
- Manage your sleep
- People with existing gastric or mental health issues should avoid fasting
- Do not fast for prolonged periods without supervision by a qualified expert
UEFA CHAMPIONS LEAGUE FIXTURES
All kick-off times 10.45pm UAE ( 4 GMT) unless stated
Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid
Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
Stars:Grace Kaufman, Pico Alexander, Jacques Colimon
Rating:2/5
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Match info:
Portugal 1
Ronaldo (4')
Morocco 0
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023 More than 3.5 million Indians reside in UAE Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Children who witnessed blood bath want to help others
Aged just 11, Khulood Al Najjar’s daughter, Nora, bravely attempted to fight off Philip Spence. Her finger was injured when she put her hand in between the claw hammer and her mother’s head.
As a vital witness, she was forced to relive the ordeal by police who needed to identify the attacker and ensure he was found guilty.
Now aged 16, Nora has decided she wants to dedicate her career to helping other victims of crime.
“It was very horrible for her. She saw her mum, dying, just next to her eyes. But now she just wants to go forward,” said Khulood, speaking about how her eldest daughter was dealing with the trauma of the incident five years ago. “She is saying, 'mama, I want to be a lawyer, I want to help people achieve justice'.”
Khulood’s youngest daughter, Fatima, was seven at the time of the attack and attempted to help paramedics responding to the incident.
“Now she wants to be a maxillofacial doctor,” Khulood said. “She said to me ‘it is because a maxillofacial doctor returned your face, mama’. Now she wants to help people see themselves in the mirror again.”
Khulood’s son, Saeed, was nine in 2014 and slept through the attack. While he did not witness the trauma, this made it more difficult for him to understand what had happened. He has ambitions to become an engineer.
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
