As organizations across Central and Eastern Europe, the Middle East and Africa (CEEMEA) prepare for 2026, HR and rewards leaders are entering a period of profound change. Economic uncertainty, talent shortages and regulatory shifts are reshaping compensation strategies, forcing companies to rethink how they attract, retain and engage their workforce.
Drawing on WTW’s latest Rewards Data Intelligence survey data and regional insights, here we explore the trends that will define the future of total rewards in the region — and what they mean for HR leaders.
Global GDP growth is projected at 3.2% for 2025, slightly below last year but higher than mid-year expectations, with 2026 forecasted to remain stable at 3.1%. Beneath these steady figures, however, lie significant regional challenges: volatile consumer prices, rising cost pressures and tight labor markets.
In the Middle East, the UAE stands out with a strong economic outlook, forecasting GDP growth of 6.1% in 2026 — a sign of continued investment and expansion. Saudi Arabia continues to project stable GDP growth of 4% although slightly increasing inflation levels are projected, from 2.2% in 2025 to 2.7% in 2026.
In Africa, Kenya also shows resilience, with GDP growth expected at 4.8%, supporting talent demand even as inflation eases. Nigeria, on the other hand, faces a very different reality: Inflation remains stubbornly high at 23%, creating affordability challenges for employers and employees alike. These contrasts underscore the need for localized strategies — what works in Nairobi may not work in Lagos or Dubai.
Despite economic headwinds, real salary increases — growth adjusted for inflation — are expected to remain positive across most CEEMEA markets in 2026. Salary budgets will flatten slightly compared to 2025, but easing inflation means employees’ purchasing power should improve.
Hungary is a prime example, with salary increases projected at 6.4% in 2026, well above inflation, ensuring real wage growth. Greece, by contrast, is taking a more cautious approach, with modest increases of 3.1% to 3.3%, reflecting its stabilizing economy.
In Africa, Nigeria continues to grapple with inflationary pressures, prompting employers to plan double-digit salary increases — 13.7% on average — to retain talent. Meanwhile, the Gulf states, including the UAE and Saudi Arabia, maintain steady salary budgets around 4%, relying heavily on allowances and benefits to remain competitive (Figure 1).
The key takeaway here: Align compensation plans with local realities, monitor inflation trends closely and adopt a total rewards approach to attract and retain talent in a challenging yet opportunity-rich environment.
Beyond base pay, benefits are under intense scrutiny. 68% of companies in the region report rising benefits costs as a major business issue, and nearly half are reallocating spend to maximize value. Mental health and financial wellbeing have emerged as top priorities, alongside efforts to personalize benefits and optimize vendor relationships (Figure 2).
| 1 Costs issues intensify | 2 Talent issues persist | 3 Ambition to elevate benefits | 4 Recalibrate spend to maximize value | |
|---|---|---|---|---|
| Steering the right course: Balancing cost and ambition | 68% report rising benefit costs or financial pressures on budget as a key business issue | 51% say competition for talent is a key business issue shaping benefit strategy | 39% of employers aim to use benefits to signal purpose and values in the future | 49% of employers focus on reallocating spend to get more value from current investments |
| 5 Expand choice | 6 Get more value from vendors | 7 Address employees’ key pressure points | 8 Enhance the experience | |
| Extracting value in a cost-constrained environment | 64% are looking to enhance benefit choice in the next three years | 57% want to enhance value or switch to better-value vendors | 45% say mental health is a top-priority benefit area, with financial wellbeing significantly growing focus | 76% will use nudges at key moments and offer navigation solutions to influence behaviors in the future |
Country-specific practices illustrate this trend vividly. In the UAE, housing and transportation allowances remain a cornerstone of attraction strategies, with more than 60% of companies offering fixed cash allowances.
South Africa shows a different dynamic: While median salary increases hold steady at 5.8%, escalating benefit costs are prompting organizations to renegotiate vendor contracts and redesign benefit packages.
Türkiye, meanwhile, is leveraging benefits as a tool to signal corporate purpose and values, with a growing emphasis on mental health and financial wellbeing programs.
The battle for talent is no longer just about pay — it’s about skills. Across the globe, demand for digital expertise is surging. Roles such as machine learning engineer and cybersecurity specialist are among the fastest-growing, while traditional positions like call center agents are in decline. Sales management, compliance, and technical reporting remain critical skills, but the premium is increasingly on tech (Figure 3).
| Top 10 emerging jobs | Top 10 declining jobs |
|---|---|
| 1. Machine learning engineer | 1. Call center representative |
| 2. Data governance specialist | 2. Audit specialist |
| 3. Cybersecurity engineer | 3. Contract manager |
| 4. Technical presales engineer | 4. SEO specialist |
| 5. AI engineer | 5. Technical support specialist |
| 6. CRM specialist | 6. Content writer |
| 7. Data engineer | 7. Revenue analyst |
| 8. Business intelligence engineer | 8. Quality engineer |
| 9. Prototype engineer | 9. Stockroom operations associate |
| 10. Technology product manager | 10. Receptionist |
In Saudi Arabia and the UAE, data science and business intelligence roles command pay premiums of up to 18% above market median, reflecting their strategic importance. Kazakhstan is seeing similar trends, with strategic planning and IT development roles positioned as high-value functions. For HR leaders, this means workforce planning must prioritize digital capabilities and future-proof roles to stay competitive.
Regulatory change is accelerating across the region. The EU Pay Transparency Directive is reshaping compensation frameworks in Hungary and Greece, requiring clear pay structures and robust reporting.
In the Middle East, while formal legislation is limited, multinationals are proactively adopting transparency frameworks to align with global standards. These developments make accurate benchmarking and clear communication strategies non-negotiable for organizations seeking compliance and trust.
Technology is redefining how rewards are managed. AI-powered tools for job matching, automated leveling and real-time market insights are becoming mainstream, enabling faster, more accurate compensation planning. These innovations not only improve efficiency but also support compliance with emerging pay transparency requirements, positioning HR teams as strategic partners in business transformation.
The diversity of CEEMEA markets cannot be overstated. In the Middle East, salary budgets remain stable at around 4%, but allowances and benefits continue to play a pivotal role in attraction and retention.
Africa presents a more complex picture: Nigeria faces double-digit salary increases to counter inflation, while Kenya’s strong GDP growth and moderate salary increases signal a competitive talent market. In Central and Eastern Europe, Hungary and Greece maintain moderate increases between 3% and 6%, with a strong focus on pay equity and transparency. Kazakhstan, meanwhile, reports salary growth of 8% to 9%, reflecting its dynamic economic environment.
The message is clear: Plan for real wage growth in 2026 but expect flattened salary budgets. Recalibrate benefits to balance cost control with employee wellbeing. Invest in talent intelligence to stay ahead in the digital skills race. Prepare for pay transparency compliance — data accuracy is critical. And leverage AI tools for smarter, faster compensation decisions.
HR and rewards managers should review salary structures against market benchmarks, audit benefits for cost-effectiveness, build a roadmap for pay transparency compliance, and explore digital tools for compensation planning and talent analytics. The organizations that act now will be best positioned to attract and retain talent in an increasingly competitive and complex market.
