The latest in HR and labour news from around the world.
By Gillian Manning
Middle East
Non-oil Salaries becoming more competitive
The historical tether between oil prices and compensation in the Middle East may be no more—or, at least, as strong as it has been. According to The Gulf Cooperation Council (GCC) Labor Market Transformation Report, there is a “decoupling” of labour demand from oil prices occurring this year as expenditures in non-oil sector jobs rise.
In 2026, average salary increases in Saudi Arabia are projected at 4.6% and at 4.1% in the UAE. Professionals in non-oil sectors like AI, digital transformation, and specialised finance are now part of the so-called “10% Club,” where annual salary growth is expected to exceed double digits because of extreme talent scarcity.
“The demand signal for 2026 is no longer for generic labor,” the report notes. “It is for a sophisticated cadre of professionals capable of operationalising “AI Factories” and navigating one of the world’s most rapidly evolving regulatory landscapes.”
In the Age of Remote Work, Employees Say the Workplace is Critical
While much of the global workforce remains locked in debates over hybrid flexibility, new data reveals that the physical office is experiencing a strong resurgence in the Middle East. According to the Gensler Global Workplace Survey 2026, employees in the UAE currently spend an average of 53% of their workweek in the office.
The report suggests that for UAE professionals, the workplace has evolved into a highly valued destination. Despite the rise of hybrid work setups, respondents reported that they would ideally spend 65% of their time in the office to maximize both individual productivity and collaboration with their teams.
“Our report findings reflect how the role of the office has evolved. Rather than simply providing desk space, workplaces increasingly function as hubs for collaboration, learning and access to specialised resources,” says Todd Pilgreen, principal and co-managing director at Gensler Middle East.
The top motivators for coming to the office, according to the more-than 16,400 surveyed workers, are “access to technology, the ability to focus on work, professional development or coaching opportunities, leadership visibility, and socialising with colleagues.”
Latin America
Companies in Mexico Prepare as Government Cuts the Work Week
The Government of Mexico has officially published a decree reducing the statutory work week from 48 to 40 hours. According to an analysis by Holland & Knight, this is one of the most significant structural overhauls to the Mexican labour market in recent decades.
While the reform officially entered into force on March 3, 2026, the transition will not be immediate. To prevent abrupt disruptions to industrial and business operations, the government has established a phased implementation timeline stretching from 2027 through 2030, where every year, the working hours are reduced by two. So, working hours are 48 per week in 2026; 46 hours per week in 2027; 44hours per week in 2028; and so on.
Crucially for employers, the amendment expressly says that this reduction in hours cannot result in any decrease in worker salaries or benefits, and the established obligation to provide a full paid rest day for every six days worked remains as well.
APAC
Strategic Pay in the Face of AI
According to a recent report by WTW, while median salary increases across the Asia-Pacific remain steady at 4.9%, the gap between the market median and the upper quartile has dropped to 5.2%, indicative of a move toward more disciplined compensation strategies.
However, the resurgence of AI-driven demand has triggered intense competition for technology talent. To navigate this tight market for critical skills, organisations are increasingly adopting value-differentiated rewards, with the top 10% of performers in the region receiving approximately 20% of the total salary increase budget.
Alongside talent retention, organisations are facing severe pressures from soaring medical inflation. Healthcare costs in the region are projected to outpace the global average by about 3% in 2026. To manage these pressures, employers are leaning on AI-supported job leveling tools to accurately place employees into consistent career bands, reducing bias and manual effort while ensuring equitable job progression.
