The performance appraisal and rewards season is here, and according to a new survey by Zurich International Life Middle East, a whopping 75% of UAE workers are expecting a bonus this year.

This is closely aligned with the Salary Outlook 2025 reports, which indicate that while salaries are expected to see an average increase of 4%, most employers in the region are also planning to offer bonuses equivalent to one or two months' salary.

The optimism in these expectations – 68% jump from 2024 – is driven by awareness towards financial security. The survey commissioned by YouGov, suggested that there is a growing emphasis on strategic financial planning among the UAE residents. The Emiratis and even the expats in the region, want to save a portion of this year’s bonus as a long-term investment.  

What are the reasons?

The survey reveals that there is rising economic optimism in the UAE, and employees in the region are ready to invest in their future. A similar sentiment was shared by the Chief Economist of ACCA, who highlighted how, despite challenges, the overall economic outlook for the region is quite positive. Additionally, the report also emphasised how the economy is rapidly improving with non-oil GDP growth, increased workforce participation supported by flexible work arrangements, and enhanced benefits and policies aimed at nurturing talent. These elements are keeping employees happy and fulfilled, leading to 68% of the region’s workforce feeling confident about their current financial situation.

Does financial awareness have a role to play?

In addition to this, workers are increasingly seeking professional financial advice, which has significantly boosted their confidence in a better financial future — as conveyed by 79% of the survey respondents. This reflects that workers in the region trust expert guidance for financial management to improve their financial literacy — presenting an opportunity for organisations/ employers to schedule a seminar or session with a financial advisor for their employees. 

The awareness will help them plan for their long-term financial security, as over 75% of workers are optimistic about their retirement funds. They make proactive financial decisions, and are prioritising savings, investments, and retirement planning to build a stable financial future. But, 61% of the survey respondents said that for a comfortable retirement AED 5 million or less is enough. 

A lot of them (65%) rely solely on workplace savings or gratuity, which might not be enough in the long run. While gratuity can help, it’s not enough for a secure retirement. To build lasting financial security, residents should consider structured savings and smart investments, like saving part of their bonuses and salary increases.

Overall, the survey shows that while many feel positive about their finances, there’s a need for better understanding of how much savings are actually needed for a comfortable retirement.

Savings with a fulfilling purpose

The UAE workers plan to save part of their bonus, for:

• 55% are investing for the future.
• 46% are building emergency funds.
• 38% are saving for their children's education.

But, the quality of life and personal growth are also up on their priority list, with 60% of them willing to spend their bonuses for travel or holidays, and the remaining 27% aim to invest in their learning and development – acquiring new skills.

Interestingly, young workers are showing a strong focus on saving for the future, as 31% of Gen Z plan to save their entire bonus for better financial security. Whereas, 52% of those aged 45 and above prefer to save most of their bonus, taking a more flexible approach to balance saving with other needs.

Much like Gen Zs, 63% of Millennials also plan to save 100% or or a bigger share of their bonuses.

This shows a growing trend of financial responsibility across generations, with younger people leading the way in planning for the future while managing immediate expenses. 

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David Denton-Cardew, Head of Propositions at Zurich International Life Middle East underlined, “As financial awareness continues to grow across all generations, it’s clear that UAE residents are becoming more proactive in managing their money. Younger age groups, in particular, are leading the way, signalling a shift toward long-term planning and financial stability being ingrained in culture. The ability to balance saving with spending highlights a mature approach to financial well-being, where residents are not only preparing for the future but also prioritising personal growth and experiences,”

In essence, employers need to think of ways to support financial wellness programs at work, like seminars with financial experts or savings plans. Helping employees plan for the long term can boost their financial security and well-being, creating a happier and more productive workforce.