by Mark Timms
Published Mar 4, 2025
Pay Secrecy in the MENA Region: The Impact on Trust, Engagement and Gender Equality
Pay transparency laws are being implemented in parts of the US, requiring organizations to include salary information in their job postings. While no current laws exist in the MENA region, discussions surrounding pay transparency are becoming increasingly common.
Why is pay secrecy so widespread in the MENA region?
While the MENA region is generally more discreet than the US, the UAE has seen a sharp increase in transparency. Still, many regionally owned companies and MNCs in the region practice pay secrecy. There are defined salary bands within multinational structures, but these bands are large enough to enable companies to implement policies that require employees to keep their salaries secret from their colleagues.
What are the negative consequences of pay secrecy for employees?
A key negative consequence is that some employers practice differentiated pay scales for expats originating from different countries. While rampant in the past, this practice has decreased over the last 15 years, with most reputable employers sticking to established salary bands irrespective of nationality.
The Gender Pay Gap
Although the trend of having a significant female workforce is recent in the region, there is no gender pay gap for a man and woman doing the same job. Calculations may reveal a gap due to the number of men at senior levels, which will gradually reduce as more women climb the corporate ladder.
Promoting Pay Transparency and Reducing Pay Secrecy
Pay transparency requires standardized pay structures based on the nature and seniority of the role. Organizations can promote transparency by conducting a detailed analysis and revamp of their compensation and benefits structure based on job evaluations. With the help of consultants, organizations can ensure fair pay structures, enhancing trust and employee morale.
Pay transparency means that if the pay structures in place are not standardized based on the nature and seniority of the role, employees will immediately pick up on it which would create widespread distrust and negatively impact morale.
In order for any organization to be boldly transparent about pay scales, it needs to first do a detailed analysis and revamp of its compensation & benefits or ‘total rewards’ structure based on job evaluations. Whilst larger organizations would have the financial might to employ a global consultancy to help them with standardizing their pay structures with the intent of enabling them to be able to attract and retain the best employees with optimal financial efficiency, smaller organizations could also employ independent comp & ben consultants to help with the same. The work of these consultants would ensure that there is a method to all pay structures and, hence, transparency would actually enhance trust and employee morale as they would feel that they are being paid fairly according to their role and level within the organization.
