DUBAI, Aug 9 (Reuters) - Dubai's biggest bank Emirates NBD
has given most employees a pay rise of up to 8% to
help cushion against rising costs of living driven by inflation,
two sources familiar with the matter said.
The increases varied according to seniority and were part of
a mid-cycle salary adjustment for inflation, with top executives
receiving smaller or no increases, the sources said.
Most employees received a pay rise of between 5% and 8%,
with lower-paid staff receiving the biggest increase, one of the
sources, who has direct knowledge of the matter, said.
Emirates NBD, majority owned by Dubai's government, said it
did not comment on staff-related matters.
"As a people-first organization and a leading employer,
Emirates NBD has remained committed to initiatives and policies
that support staff wellbeing, while adopting a robust employee
recognition program," a spokesperson added in an emailed
response to a Reuters query.
It was not immediately clear if the salary increases were
only for employees in the United Arab Emirates. The lender also
has operations in Egypt, India, Turkey and elsewhere.
Annual inflation in the oil-producing Gulf state reached
3.4% in the first quarter, according to the central bank, which
has projected 5.6% inflation for the year. The UAE has not
published monthly inflation figures this year.
The trajectory of price increases represents a significant
turnaround from deflation throughout 2019, 2020 and the first
seven months of 2021.
In recent months people have voiced concerns over increasing
living costs in the UAE, with retail fuel prices now up around
55% so far this year, falling from a high of about 80%.
The UAE is the only Gulf Arab country without a cap on
domestic fuel prices, leading to petrol costs surging at the
Dubai average rental prices for apartments and townhouses
rose by 29% and 33% in the first half of the year and for villas
by 64%, according to Betterhomes, as the property market
continued a strong post-pandemic recovery.
Emirates NBD in late July reported a 42% jump in second
quarter profit to 3.5 billion dirhams ($952.98 million).
The Central Bank of the UAE has increased its base rate a
cumulative 225 basis points since March in parallel with the
U.S. Federal Reserve, because its currency is pegged to the
dollar, as central banks globally battle historic inflation.
($1 = 3.6727 UAE dirham)
(Reporting by Yousef Saba; Editing by Jan Harvey)