Compensation of employees in the local and federal government sectors across the UAE recorded a semi-annual growth of about 7% during the first six months of this year, bringing the total salaries, benefits, bonuses, allowances and other payments received by government employees during the monitoring period to AED 61.6 billion, compared to AED 57.6 billion in compensation recorded during the same period last year, an increase of AED 4 billion.
The latest data issued by the Ministry of Finance showed that government employee compensation accounted for 32.9% of the total combined expenditures estimated at AED 187 billion during the first half of this year.
According to the Ministry of Finance, the increase in employee compensation during the first six months of 2024 exceeded expectations and studies published at the beginning of the year, which expected an increase of only 4.5%. The Central Bank had stated earlier this year that there was an increase in the employment rate in the private sector, and an increase in salaries, based on the Central Bank’s wage protection system.
The UAE witnesses an increasing demand for residency and work in various economic sectors every year, while the official government sector, whether local or federal, remains the first and most preferred destination for work for citizens and residents alike.
• 32.9% of the total consolidated expenses were allocated to compensation of government sector employees.
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