The2015 Bayt.com MENA Salary Survey, conducted by Bayt.com, the Middle East’s number one job site, and leading market research agency, YouGov, has found that more than half of Kuwait professionals are expecting a salary increase in2015, although39% admit that they didn’t receive one in2014.
Current Salary and Future Expectations
Across the MENA region, a little over half (52%) of professionals surveyed claim that their current package consists of basic salary plus benefits. In Kuwait,38% said that they receive a basic salary with benefits; another14% are also entitled to commissions. For over almost half of the respondents surveyed in Kuwait (38%) who receive a basic salary along with other benefits, the basic salary consists of76-1000% of their monthly salary package, while for31% their basic salary represents51-75% of their overall monthly income. Based on the survey,61% of respondents in Kuwait prefer a100% fixed-pay structure.
Today,43% of Kuwait professionals are unhappy with their income, compared to just4% who are highly satisfied with what they earn. More than half (54%) of Kuwait respondents state that men and women get equal pay for doing the same work. Moreover, according to69% of respondents in Kuwait, their salary is lower than what other companies in their industry offer.
Surprisingly,39% of Kuwait respondents said that they did not get a pay raise in2014. For those who did,26% were either very or modestly happy with their raise. Another28% thought that their raise was fair in light of their contribution to the company or the organization’s financial situation – or even both.45% of Kuwait professionals are quite unhappy or very unhappy with their raise.
Almost a third (29%) of Kuwait respondents do not expect to receive a salary increase in2015. In parallel,30% expect a raise of up to15%.
In Kuwait, the most common benefits offered by companies are personal medical insurance (27%) and personal annual air ticket (27%).
A total of64% of Kuwait professionals claim that their company does not pay for overtime.
Loyalty, End of Service Benefits, and Insurance
61% of Kuwait respondents recognize that their loyalty to their company is, on some level, based on the salary that they earn. For29%, however, that is just not the case. Other variables that drive Kuwait professionals’ loyalty to their company include opportunities for long-term career advancement (35%) and their line manager (38%).
In Kuwait,65% of respondents receive an end-of-service gratuity and a mere6% get pension upon retirement.29% have access to other forms of end-of-service benefits or none at all.
27% of Kuwait professionals have access to medical insurance for themselves – through their company – while11% are also offered coverage for their dependents.
Cost of Living, Quality of Living, and Savings
A staggering89% of Kuwait respondents have seen the cost of living rise in2014, with40% saying that it grew by more than20%. These Kuwait respondents who mentioned that the cost of living increased attribute it to increases in the cost of rent (86%), food and beverages (71%), and utilities (29%).80% of Kuwait respondents expect that the cost of living will continue to soar throughout the year.
The increased cost of living has, in turn, hampered these professionals’ ability to save:28% of Kuwait respondents admit that they save nothing from their monthly salary. Still,64% of expats in Kuwait manage to repatriate a portion of their salary to their home country.
Despite the Kuwait’s high cost of living,45% of Kuwait respondents say that they are better off, in terms of quality of life, compared to other people of a similar generation in their country of residence.
In the next12 months,55% of Kuwait professionals intend to look for a better job in the same industry, while33% aim to find one in another industry.63% believe that salaries in the Kuwait are increasing.
As for the factors causing salaries to jump, respondents in the Kuwait think that these include inflation/rise in cost of living (50%) and opportunity and economic growth (34%). On the other hand, the elements that are hindering pay rises are poor corporate performance/decreased profitability (31%) and a bad economy (23%).
“The2015 Bayt.com MENA Salary Survey indicates that there is a growing gap between the cost of living in Kuwait and salary earnings and propensity to save,” said Suhail Al-Masri, VP of Sales, Bayt.com. “Most respondents (79%) from across the Middle East and North Africa region are expecting a further increase in the cost of living in2015. This means that employers must quickly address this widening disparity if they want to effectively tap into the local and regional talent pool. This study was especially designed to provide employers with insights into employee satisfaction levels with salary and raise received. Such information is key to guiding both employers and job seekers, so the mismatch between salaries and living costs can be successfully addressed. Ultimately, it is about equipping professionals across the career and industry spectrums with the right tools needed to make their next career move – one that can better suit their lifestyle. Tools such as the Bayt.com Salary Search can help employers uncover the salaries that are being paid in their industry. This way, employees will be happier with their pay and will have less reason to worry about the rising cost of living.”
Elissavet Vraka, YouGov, also added: “With about one-third (32%) of respondents from across the region admitting that they are unable to save any money at all, there is no doubt that the need for a salary boost, especially as prices continue to climb, is a very real one. After all, this is impacting employees’ loyalty to their company and encouraging them to jump ship. If they want to retain their employees, employers, on their part, will have to find new ways to improve their salary packages.”
Financial Investments, Expenses and Home Ownership
Only19% of Kuwait respondents make regular investments (at least once a month), with insurance and investment plans (25%) being the most popular investment product.
When it comes to eating out,16% of respondents in Kuwait do it daily, while25% choose to eat out a few times a week, and39% eat out a few times a month. Kuwait respondents’ top monthly expenses comprise rent (62%) followed far behind by dining out (8%), children’s schooling (9%) and transportation (3%).
While over one third of Kuwait respondents already own a home,24% of Kuwait respondents who currently do not own a home would like to own one in their country of residence. Another76% aspire to own a home in their home country.
About the Respondents
74% of respondents from Kuwait fall into three categories based on their time spent in their current career:22% have worked in it for less than3 years,27% have worked in it for3-6 years, while a quarter have stayed in the same career for7-10 years. Moreover,44% of Kuwait respondents have been working with their current employer for less than three years, compared to36% who have been with their employer for3-6 years.
37% of Kuwait respondents have up to five people reporting to them, either directly or indirectly. While only13% of them consider that they have attained the most senior level possible within their company,34% believe that they are at a fairly senior level, but not at the top yet.
According to29% of Kuwait respondents, the average length of time that they have held a job for is at least six years.
Data for the2015 Bayt.com MENA Salary Survey was collected online from March30-April62015. Results are based on a sample of12,158 respondents. Countries that participated are the UAE, KSA, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, and Tunisia.