Salaries in the Gulf Cooperation Council (GCC) states are projected to increase by an average of 6.7 per cent in 2012, according to data from a latest survey.

The Salary Increase Survey (SIS) from Aon Hewitt, the global human resources business of Aon Corporation, shows that salary increase levels have risen over the last two quarters, a promising sign for employees across the GCC and Mena region.

Projected salary increases for 2012 are standing at an average of 6.7 per cent - with Kuwait, Bahrain, Egypt, Saudi Arabia and Oman planning to increase salaries most significantly over the coming year, it said.

Data, collected in January and February 2012, came from more than 130 organisations across the Middle East covering 25 industry sectors and seven countries.

In terms of the year ahead, only 12 per cent of companies in the GCC and Egypt are considering a pay freeze.

Dr Markus Wiesner, Mena CEO of Aon Hewitt said: "Despite continued uncertainty elsewhere in the world about a return to economic growth, regional employers are showing a positive outlook overall. We are seeing some positive indicators coming out of the GCC and Mena about the year ahead, as demonstrated by the projected salary increases in the region."

Dr Wiesner said: "We are seeing an increasing trend towards linking compensation with performance, better placing companies to engage and retain their key talent. Without exception, all markets have indicated that a major portion of their overall salary increase is the Merit Increase, which acknowledges outstanding performance. The highest merit increase is projected in Egypt and Kuwait (6.8 per cent) and KSA (5.8 per cent).”  - TradeArabia News Service