Employers in the UAE are adding mental health support, flexible work schedules, wellness allowances, structured learning budgets, financial and legal planning services, and other benefits and packages beyond the standard health insurance and travel allowances in order to retain top talent, according to reports citing HR and legal consultants.
Due to their inability to compete on pay increases, which are only increasing by roughly 4%, employers in the UAE are increasing other benefits and allowances.
The truth is that businesses are no longer able to win on salary, not that they are becoming more giving. The rivalry has shifted to incentives that genuinely foster trust because pay increases are modest and people aren't changing jobs as frequently as they formerly did, according to Sanjeev Giri, head of sales and operations at Adecco UAE, as reported by Khaleej Times.
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According to Giri, "the most meaningful benefits in today's workplace are those that address employees' overall well-being and long-term security." Employers are increasingly giving wellness benefits, flexible and hybrid work schedules, mental health help, and organised learning budgets. Financial well-being is one of the sectors that is expanding the fastest.
Employers can now provide alternatives to traditional end-of-service gratuity systems, allowing money to be invested rather than just held, thanks to the development of contemporary savings schemes, according to Giri. Private sector businesses are now permitted by the UAE government to invest their employees' end-of-service gratuities.
Additionally, businesses in the UAE assist their staff members with succession planning and will drafting.
"A small but increasing number of organisations, especially larger corporations situated in financial hubs like the DIFC, are starting to offer these services-largely because people are concerned about protecting their families and possessions in the UAE, and the workforce is heavily expatriate," Giri said. "Although the program is not yet widely available, it is seen as a high-impact, low-cost benefit that signifies a deeper level of employer care and commitment."
Corporate demand for employee-focused succession planning programs has increased dramatically in recent months, according to the UAE-based estate advisory firm Just Wills Legal Consultants. HR and people-and-culture teams are attempting to close the growing knowledge gaps regarding asset protection, guardianship, and inheritance laws.
Dubai's expatriate population, many of whom have built long-term ties to the nation through family life, property ownership, and cross-border financial commitments, is primarily driving this development.
For years, employee benefits have centred around immediate needs like healthcare and insurance, according to Mohammad Marria, CEO of Just Wills Legal Consultants. "We're now witnessing a clear shift toward long-term planning, where employers and employees alike are recognising the importance of legal preparedness, particularly in a market like the UAE where succession laws can be complex for expatriates."
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