As I wrote about earlier, Emirates Airline reported a record $2.9 billion profit for the past financial year. The airline is recognizing this by rewarding employees in a pretty unprecedented way…
100,000+ Emirates employees get huge bonuses
Emirates has historically offered profit sharing to employees when the airline has a good year. However, there’s no consistent formula to this, and it’s at the discretion of the company’s executives. With the airline having done so well the past financial year, employees are being rewarded in an exceptional way.
The Dubai-based airline has announced that all employees of the company will be getting a bonus equal to 24 weeks worth of salary. Yes, that means all Emirates employees will be getting nearly a 50% bonus on their salaries.
Historically when Emirates has performed well, the airline has offered employees bonuses equal to several weeks worth of salary. For example, for the 2017-2018 financial year, the airline offered employees bonuses equal to five weeks worth of pay. Meanwhile in 2018-2019, profits decreased by 69%, and employees didn’t get any bonus. As you’d expect, there also wasn’t much profit sharing during the pandemic.
I can’t think of any airline that has ever offered employees profit sharing making up such a large percentage of their salary. Here in the United States, Delta is best known for its profit sharing scheme. The company’s formula is to share 10% of its first $2.5 billion of annual profits, and 20% of its annual profits in excess of that. For example, in 2019, that amounted to nearly 17% of employees’ salaries. Even that pales in comparison to what Emirates is now offering its staff.
This is really great to see from Emirates
Gulf carriers are often vilified for their employment practices. While I think some criticisms are warranted, Emirates usually does a pretty job taking care of employees, and this is a clear reflection of that. Even without a union or collective bargaining agreement, it’s possible for a company to be generous with staff.
I don’t think any Emirates employees were expecting profit sharing equal to nearly 50% of their salary, and I’m sure this will do a lot to help morale at the airline, given what a rough few years it has been for employees in the industry. I’d expect employees to be especially happy over the coming days.
So many Emirates employees live in Dubai, while their families are back home in the country they’re originally from. Often the Emirates staff are bread winners for their whole family, so getting this kind of a bonus will make a material difference in their lives.
Emirates reported a record profit of $2.9 billion, and the airline is celebrating that by offering employees profit sharing that’s equal to 24 weeks of salary. After a rough few years for the industry, this is a nice reward for a lot of hard working employees.
What do you make of Emirates’ massive bonus for employees?