Workers in the UAE are heaving a sigh of relief with 150 major contracting companies in the UAE deciding to give a 15 to 20 per cent salary hike to their labour force.

Of late, price hike has hit labourers hard with many of them going on strike in recent months to demand salary hike and better living conditions.

The increase will benefit thousands of Indian workers in the country. Labourers at Jebel Ali and Sonapur labour accommodation said the news had brought them a lot of cheer.

They said the going rate for unskilled workers ranges between Dh350 to Dh550 while the salary for skilled workers ranges between Dh700 to Dh1,200.

An official of the UAE Contractors' Association told Gulf News that the decision had been taken by the major contracting companies bearing in mind the devaluation of the dollar and the rising cost of living.

"When and by what per cent the salary should be hiked depends on the individual contracting companies. One important aspect that should not be overlooked is the fact that the contracting companies have priced their contracts based on the old salaries and so the technicalities need to be worked out, " added the official.