How will new salary trends change your career?

How will new salary trends change your career?

discover | Tuesday - 10 / 02 / 2026 - 9:29 am

Have you ever wondered why your colleague earns a higher salary than you despite similar qualifications? Or why salaries vary so significantly across sectors and geographies?

Salary scales are the foundation for making smart career decisions, directly impacting the quality of your professional and personal life. In 2025, understanding these dynamics is a necessity, not just a piece of information.

But why have wage structures undergone such radical transformations?

According to the latest International Labor Organization (ILO) report released in March 2025, global wage structures have undergone a 40% radical shift compared to five years ago.

A recent study conducted by the Arab Chamber of Commerce also confirms that 62% of companies in the Gulf region have restructured their salary scales in the past two years.

Key Factors Behind This Shift:

This radical change is due to three main, interconnected factors:

• Accelerating technological development: The emergence of artificial intelligence and task automation has changed market requirements.
• Global economic changes: the impact of the pandemic and the shift to a digital economy.
• The emergence of new professions: such as data engineer, user experience specialist, and augmented reality developer.

What exactly is a salary scale?

A salary scale is a system that determines how much each employee in a company should be paid, based on their job and level.

This system resembles a clear price list showing:

• The minimum salary for the position.
• The average salary.
• The maximum possible salary.

This depends on the employee’s experience, qualifications, and job responsibilities.

The goal of a salary scale is to make wages fair and clear for all employees.

A story that illustrates its importance:

Let me tell you a true story that happened at a technology solutions company:

Ahmed, a software engineer with 5 years of experience, was surprised to find that his new colleague was receiving a salary of 3,000 riyals more than him for no apparent reason.

Fatima, a project manager, wondered why her employees were receiving a higher salary than her, even though she was the manager!

General Manager Khaled noticed that good employees were leaving the company and productivity was declining because everyone felt unfair.

Solution: The company hired human resources experts and used Logix Enterprise Resource Planning (ERP) system to manage payroll. This software automatically calculates payroll and intelligently manages employee affairs.

The amazing results:

• Resignations decreased by 70%.
• Productivity increased by 40%.
• Ahmed received a fair salary.
• Fatima received a promotion commensurate with her responsibilities.
• Every employee learned how to develop themselves professionally.

Thus, the company became more fair and successful thanks to Logix payroll system.

But how has the salary scale evolved in the modern era?

The concept of the salary scale has witnessed significant development over the past two decades. Whereas organizations once relied on a rigid hierarchy based on seniority, modern organizations have adopted more flexible and fair systems that focus on personal competence and professional achievements rather than mere years of service. This shift reflects a growing trend toward achieving motivational justice and linking wages and bonuses directly to actual performance and the value of contributing to achieving organizational goals. This enhances job stability and supports a culture of continuous development within modern work environments.

Some may ask: Are there factors that influence the salary scale?

The simple answer is: yes, absolutely. The salary scale is not determined randomly, but is influenced by a set of factors that contribute to determining wage levels within companies and directly impact career progression and career paths.

In the following lines, you will discover the most important factors affecting salary scales, and how each contributes to creating a fair and organized work environment in terms of compensation and financial benefits.

Factors Influencing Salary Scales:

Josh Bersin, a global human resources expert, says: “Salary is no longer determined solely by job title or years of experience, but rather by the true value an employee adds to the organization.”

In fact, salary scale structures are influenced by several main factors, which can be classified into three major categories:

First: Individual Factors:

• Years of practical and specialized experience.
• Academic qualifications and accredited professional certifications.
• Technical and personal skills.
• Job performance and professional achievements.

Second: Market Factors:

• Supply and demand for various job specialties.
• Inflation rates and economic fluctuations.
• Technological developments and their impact on the nature of jobs.
• Government legislation and policies related to wages.

 Third: corporational factors:

• The size of the organization and its total revenues.
• Corporate culture and approach to compensation and rewards.
• Geographic location and its impact on the cost of living.
• The human resources strategy adopted within the company.

Now that you’ve learned about the factors affecting salary scales, it’s time to explore the most prominent salary trends in Saudi Arabia for 2025.

Continue reading to learn about the latest developments in the Saudi labor market and how economic and technological transformations are impacting the wage structure.

What are the most prominent salary trends for 2025 in Saudi Arabia?

• 28.3% believe that a positive “work environment” is a key factor in enhancing talent retention.
• 60% of salary increase decisions are determined based on the employee’s “performance level” at work.
• 64.7% of HR experts indicated that salaries in their organizations witnessed various increases during 2024.

The following are the most prominent salary trends for 2025 in Saudi Arabia, based on the latest local and international reports:

1. Annual salary increases:

Expected between 2% and 5%, this often depends on the employee’s individual performance.

Although some companies reduced salaries for new employees in 2024, most are planning increases for 2025, reflecting competition for talent.

2. Significant disparity across sectors:

• Monthly salaries range from SAR 7,000 to SAR 140,000, but the average is SAR 32,000.
• The highest salaries come from the real estate, higher education, and construction sectors, followed by law firms and banks.
• There is a clear disparity in the range:

SAR 25,000–55,000 for finance and accounting specialties.

SAR 50,000–80,000 for legal specialties.

SAR 60,000–90,000 for construction and building specialties.

3. Intense competition for talent:

• 66% of employees plan to change jobs in 2025 for better pay and career growth opportunities.
• 80% of companies expect raises ranging from 2.5–5%, despite challenges in compensation policy transparency.
• More than 90% of organizations face difficulties in bridging skills gaps, especially in leadership positions.

4. Impact of market factors:

The entry of large numbers of international workers (from Europe and America) into major projects (NEOM, etc.) has increased competition.

There is also a significant focus on localizing jobs for Saudis, which impacts salary distribution and workforce composition.

After reviewing the nature of the salary scale and the most prominent trends in the Saudi labor market for 2025, Logix experts offer you a set of practical tips to help you develop a professional and balanced salary scale that meets your organization’s needs and enhances talent attraction.

What tips should you consider when developing a salary scale?

• Linking salaries to performance: Linking pay to performance is one of the most important motivating factors for employees, as it encourages them to improve their productivity and strive for better results in exchange for higher rewards.
• Compliance with laws and regulations: It is essential to ensure that the salary scale complies with the minimum and maximum wages, as well as with the legal percentages of annual bonuses stipulated in labor laws.
• Continuous communication with employees: Periodically explaining evaluation criteria, promotions, and salary progression contributes to enhancing transparency, which positively impacts employee satisfaction and organizational loyalty.
• Considering inflation and flexibility in salary increases: A portion of salary increases should be allocated to be flexible and adjustable according to inflation rates to ensure employee purchasing power is maintained.
• Regular market research: Analyzing and studying prevailing market salaries helps determine fair wages and ensure the organization’s competitiveness in attracting talent.
• Choosing the appropriate salary scale: Salary scales vary depending on the nature of the work, the most prominent of which are:

° Skills-based salary scale: Wages are determined based on skill development and technical expertise.

° Performance-based salary scale: Salary is directly linked to performance results and the achievement of objectives.

° Job-based salary scale: Based on the hierarchy of job levels within the organization.

Well, now that you’ve learned all the aspects related to the salary scale system and realized its importance in building a balanced and effective work environment, now might be the perfect time to take the next step toward digital transformation by adopting LOGIX HR software.

What value does the LOGIX HR system offer you?

The system covers all aspects of human resources management in an integrated manner, starting with preparing the company’s organizational structure and continuing with job descriptions and linking them to the salary scale system. This helps ensure fair financial distribution among employees and enhance job satisfaction levels within the organization.

LOGIX HR system also includes procedures for sending job offers, completing recruitment and appointment processes, and issuing electronic employment contracts with organized and secure archiving.

The bottom line:

Understanding salary scale trends and future developments is no longer just theoretical knowledge; it has become an effective strategic tool for anyone seeking to achieve professional success and financial stability. With the rapid changes taking place in the labor market, it has become essential to adopt a proactive and flexible approach to addressing career opportunities and challenges. Business leaders have realized that salary scales are no longer based on traditional rules. Instead, they are being influenced by new dynamics that focus on the added value employees provide and the extent to which their skills evolve in line with evolving market demands.

In this context, investing in continuous learning and skills development is an indispensable strategic choice. Indeed, it has become an urgent necessity for anyone who aspires to maintain their competitive edge and enhance their chances of achieving sustainable career advancement in a rapidly changing and constantly evolving work environment.

Do you want to improve your company’s payroll management? Contact Logix experts now to develop an ideal salary scale that enhances efficiency and fairness within your organization!