Amidst global economic pressures and regional unrest, Bahrain’s average salary growth over the last 12 months stood at a resoundingly steady 3.5 per cent against a forecast of 5 per cent,” according to a research report.
Hay Group in its annual salary report for the Kingdom of Bahrain covered more than 70 organisations in Bahrain participated in the study which is published annually by the consultancy.
The report which analyses salary information for more than 12,400 employees in the Kingdom predicts salary increases of 5 per cent over the next 12 months.
“Against a backdrop of regional change and wider global economic influences, Bahrain’s pay market is stabilizing,” Warren D’ Cruz, Manager of Reward Information Services at the Hay Group, said.
“Following the global economic slowdown, of which Bahrain felt the impact during 2008 and 2009; the Kingdom has witnessed a steady growth in basic salary this year. Financial services, which has a long established history here is the highest paid sector which pays an average of 17 per cent more than the general market,” Warren D’ Cruz, added.
“In 2008 we witnessed double digit salary increases of 13 per cent. This then fell to just below the rate of inflation in 2009 during the global economic crisis – during that year pay rises were 2 per cent on average. We then see new growth in 2010 and 2011 which track inflation more closely.”
“Over the next 12 months, we forecast five per cent growth which would keep pay movements ahead of inflation,” he said. “This means the purchasing power of employees earning in Bahrain will still grow despite the actual numbers appearing less impressive than say three years ago.”
“Employers in Bahrain tend to make changes to basic salary which gives us the figure of 3.5 per cent in the report. When we take into account allowances to give a total cash figure, the pay movement is 1 per cent. However, employers are increasingly looking to include more factors such as employee benefits in their analysis of reward packages,” D’Cruz, said, while commenting on 2011 new pay market dynamics.
“Perks such as annual leave tickets, children’s education and healthcare all make up part of the total reward package and are becoming more prominent in the minds of employers and employees,” he said.