Salary increases are modest and employees aren’t job-hopping the way they used to, so the competition has moved to benefits that actually build trust, say HR consultants
Employers in the UAE are expanding employee benefits and packages beyond traditional health insurance and travel allowances, adding mental health support, flexible work, wellness allowances, structured learning budgets, as well as financial and legal planning services to retain top talent, according to HR and legal consultants.
Employers in the UAE are expanding other allowances and perks because they can’t compete on salary increases, which are growing by only about four percent.
The real story isn’t that employers are getting more generous; it’s that they can’t win on salary anymore. Pay rises are modest, and people aren’t job-hopping the way they used to, so the competition has moved to benefits that actually build trust, said Sanjeev Giri, head of sales and operations at Adecco UAE.
“In today’s workplace,” Giri said, “the most meaningful benefits are those that address employees’ overall well-being and long-term security. Employers are expanding their offerings to include mental health support, flexible and hybrid work, wellness allowances, and structured learning budgets. One of the fastest-growing areas is financial well-being.”
With the introduction of modern savings schemes, according to Giri, employers can now offer alternatives to traditional end-of-service gratuity structures, allowing funds to be invested rather than simply held. The UAE government has allowed private sector companies to invest employees end-of-service gratuity.
Succession, will-planning support
Moreover, UAE employers are also supporting their employees with will drafting and succession planning. A small but growing number of organisations, particularly larger firms based in financial hubs such as the DIFC, are beginning to offer these services, largely because the workforce here is heavily expatriate and people worry about protecting their families and assets in the UAE. While the offering is not yet widespread, it is viewed as a high-impact, low-cost benefit that signals a deeper level of employer care and commitment, added Giri.
According to UAE-based estate advisory firm Just Wills Legal Consultants, corporate demand for employee-focused succession planning programmes has risen sharply in recent months, with HR and people-and-culture teams seeking to address growing awareness gaps around inheritance laws, guardianship, and asset protection.
The trend is being driven largely by Dubai’s expatriate population, many of whom have established long-term roots in the country through property ownership, family life, and cross-border financial commitments.
“For years, employee benefits have centred around immediate needs like healthcare and insurance,” said Mohammad Marria, CEO and founder of Just Wills Legal Consultants. “What we’re now seeing is a clear shift toward long-term planning, where employees and employers alike are recognising the importance of legal preparedness, particularly in a market like the UAE where succession laws can be complex for expatriates,” he concluded.
