Emirates Group has limited basic salary increases to 3% for employees this year to keep a tighter focus on costs despite delivering its strongest financial results ever.
Internal documents show staff at Emirates Airline and the Dnata ground services unit received a pay adjustment of three percent on their base salaries for 2025, one percentage point lower than last year’s increment.
The adjustment does not extend to allowances covering housing, transport and school fees, which have been left unchanged according to people familiar with the matter.
The airline, which employs more than 120,000 people across its businesses in Dubai, has declined to comment publicly on its latest compensation structure.
Emirates’ approach comes at a time when the Gulf’s biggest airline group remains a bellwether for the region’s aviation pay trends. The decision arrives only two months after the company announced its highest-ever annual profit and awarded staff a 22-week bonus to reflect the robust performance.
The group’s modest salary policy is unfolding as regional labour competition intensifies. Newer rivals such as Riyadh Air are ramping up hiring and investment to scale operations, increasing pressure on established players to retain skilled staff through competitive pay and benefits.
For Emirates cabin crew, pay remains tax-free and combines base salary with flying pay. The airline also provides free shared accommodation for its flight crew in Dubai. This year, cockpit and cabin crew salaries were adjusted upward by 5%, one point higher than the general increase for ground and office staff.
The average monthly income for Emirates’ economy-class flight attendants is just under $3,000, according to industry data.
Emirates Airline alone accounts for nearly 70,000 of the group’s workforce, positioning it well ahead of regional competitor Qatar Airways, which employs about 55,000 across its airline and aviation services divisions.
Analysts note that maintaining competitive allowances is critical for Gulf carriers, given that expatriates make up the majority of their workforce.
Last year, Emirates raised certain add-ons like housing by up to 15% and transport support by 4%, while local Emirati staff received targeted top-ups under a retention scheme aimed at keeping nationals in private sector roles.
The decision to hold allowances steady this year comes as Dubai’s cost of living continues to climb. Rising housing rents and limited spots in top schools have pushed household expenses higher, driving up compensation expectations.
According to Mercer, salaries in the UAE are projected to grow by about 4% on average in 2025, although actual increases vary widely by sector and employer.
While Emirates has consistently paid out performance-linked bonuses in recent years, the reduced annual salary adjustment signals the company’s intention to protect margins while managing wage inflation in a tightening global operating environment.