With salary increases remaining modest and job-hopping becoming less common, employers are increasingly competing through benefits that foster trust and improve employee wellbeing, according to HR consultants.
Employers in the UAE are broadening their benefits packages beyond traditional offerings such as health insurance and travel allowances, introducing perks including mental health support, flexible working arrangements, wellness allowances, structured learning budgets, and financial and legal planning services, according to HR and legal consultants.
Industry experts say companies are increasingly enhancing allowances and non-monetary benefits because they have limited room to compete through salary increases, which are currently averaging around 4 per cent.
“The real story is not that employers are becoming more generous, but that they can no longer compete on salary alone. Pay rises remain modest, and employees are not changing jobs as frequently as they once did, so the focus has shifted to benefits that genuinely build trust and strengthen employee loyalty,” said Sanjeev Giri.
“In today’s workplace, the most valued benefits are those that support employees’ overall wellbeing and long-term financial security,” said Sanjeev Giri. “Employers are increasingly expanding their offerings to include mental health support, flexible and hybrid working arrangements, wellness allowances, and structured learning budgets. One of the fastest-growing areas is financial wellbeing.”
Giri noted that the introduction of modern workplace savings schemes has given employers new ways to support employees financially. These programmes offer an alternative to the traditional end-of-service gratuity model by allowing funds to be invested rather than simply held. The UAE government has enabled private-sector companies to invest employees’ end-of-service benefits through approved savings schemes.
Succession and will-planning support
A growing number of UAE employers are also introducing services such as will drafting and succession planning.
“A small but increasing number of organisations, particularly larger firms operating in financial centres such as the DIFC, are beginning to offer these services,” Giri said. “The UAE workforce is heavily expatriate, and many employees are concerned about protecting their families and assets. While these benefits are not yet widespread, they are viewed as high-impact, low-cost offerings that demonstrate a deeper level of employer care and commitment.”
According to Just Wills Legal Consultants, corporate demand for employee-focused succession planning programmes has risen significantly 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 UAE through property ownership, family commitments and cross-border financial responsibilities.
“For years, employee benefits have focused on immediate needs such as healthcare and insurance,” said Mohammad Marria. “What we are seeing now is a clear shift toward long-term planning, with both employers and employees recognising the importance of legal preparedness, particularly in a market like the UAE where succession laws can be complex for expatriates.”
