UAE employers move beyond paychecks to retain top talent: Here are the steps they are taking amid ‘modest pay rises’

As salary growth in the UAE remains relatively modest at around 4%, employers are increasingly turning to enhanced benefits and workplace perks to attract and retain skilled professionals, HR and legal consultants said, according to a Khaleej Times report.

Rather than relying solely on traditional offerings such as health insurance and travel allowances, companies are broadening their employee value propositions by introducing mental health support, flexible working arrangements, wellness stipends, dedicated learning and development budgets, and financial and legal planning services.

The shift reportedly reflects a growing focus on non-monetary benefits as organisations seek to remain competitive in the talent market despite limited scope for significant pay increases.

“In today’s workplace, 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," he added.

Giri noted that the introduction of modern savings schemes has enabled employers to move beyond traditional end-of-service gratuity arrangements by offering options that allow gratuity funds to be invested rather than simply retained. He pointed out that the UAE government now permits private-sector companies to invest employees’ end-of-service benefits, creating new opportunities for long-term wealth accumulation.

He added that employers are also expanding support services beyond financial benefits, with some companies assisting employees in areas such as will preparation 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,” Giri further remarked.

Corporate interest in succession-planning initiatives for employees has increased significantly in recent months, with HR and people-and-culture teams placing greater emphasis on educating staff about inheritance regulations, guardianship matters and asset-protection strategies, representatives of UAE-based estate advisory firm Just Wills Legal Consultants said.

The growing demand is largely being fuelled by Dubai’s expatriate community, the report noted, adding that many expatriates have developed deep ties to the UAE through home ownership, family commitments and financial interests spanning multiple countries, prompting employers to offer greater support in long-term legal and estate planning.

Mohammad Marria, CEO and founder of Just Wills Legal Consultants, stated, “For years, employee benefits have centred around immediate needs like healthcare and insurance. 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.”