A study has shown a drastic difference in how Generation Z and millennials, compared with Baby Boomers, talk to their peers about salaries.
About 37 per cent of Gen Z (between 18 and 24 years old) have asked their close friends how much money they make, according to a recent survey of 1,000 Americans conducted by Go Banking Rates.
That compares with roughly a quarter of millennial respondents (27 per cent of those aged 25 to 34 and 25 per cent of those aged 35 to 44), 15 per cent of Gen X, and only 4 per cent over the age of 65, the survey found.
Although the younger generation is much more open in talking about their salary with colleagues as well as friends, it is still a taboo area with those aged 45 to 54.
The survey stated that only 14 per cent of this age group have had an open discussion with their colleagues regarding salaries.
However, in recent years, measures have been put in place around the world to aid transparent and open conversations about pay.
In the US, for example, New York State has passed legislation for salary ranges to be posted on job adverts.
In March, the EU Parliament approved pay transparency laws, with other governments expected to follow suit.
However, in the Middle East, these laws still lag behind; a 2022 survey by PwC recommended that companies should commit to pay transparency, based on responses from more than 1,500 people.
While pay transparency may not be widespread, it clearly holds value for employees in the region.
Why are salary discussions still taboo?
From an early age, society instils the idea that discussing what you earn is a private affair – it is impolite and too personal to talk about.
These deeply ingrained social norms discourage people from being open but this could potentially create a block in their career progression.
According to Tiger Recruitment’s latest salary survey, the top reasons people avoid asking for a pay rise include being uncomfortable talking about money or being worried their boss would question their commitment.
In other words, people who feel they deserve a pay rise, or who need one due to the rising cost of living, often suffer in silence rather than broach the subject with their employer.
Equally, openness in salary discussions can make an employer nervous. They worry that if employees find out what their colleagues earn, they will begin to demand more – plus an imbalance of salaries could lead to resentment and mistrust.
It is increasingly clear that employees simply want to be paid a fair wage in line with average industry ranges, in accordance with their skills and experience.
Why does pay transparency matter?
Trust in the workplace is vital; fostering it right from the beginning is a valuable focus for organisations looking to build strong employer brands that establish credibility and help them compete for top talent.
One of the most important predictors of employee attraction and engagement is communicating honestly about pay.
A recent survey by Adobe found that 85 per cent of Gen Z employees were less likely to apply for a job if it did not disclose the pay scale.
In the current employment market, when quality talent is at a premium, this should be an important consideration for employers.
Another issue is that a lack of transparency creates a challenging environment for employees to negotiate better pay.
This can be a major disadvantage for people who do not have the confidence to ask for what they are worth, compared with their more confident peers.
Salary discussions in the workplace also allow employers to put in place valuable benchmarks for career growth and development, which provide employees with a road map of their career trajectory and future potential.
In turn, employers can expect increased loyalty and reduced staff turnover, which positively affects the bottom line.
Overcoming the taboo of salary transparency and ending the culture of pay secrecy is crucial for building trust and empowering people to advocate fair compensation.
Encouraging an open and honest dialogue helps ensure that employees receive the recognition they deserve.
As the UAE continues to progress, will pay transparency weave its way into the country’s unique cultural and economic landscape?
Zahra Clark is head of the Mena region at Tiger Recruitment
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Rating: 4.5/5
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The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown
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The number, in kilograms, that Swarovski’s wedding gown weighed.
1,000
The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]
50
How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday
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The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.
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The number of followers that Michael Cinco’s Instagram account has garnered.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Rating:**
