UAE: Will a higher salary make employees happier? What experts say

A new global study has reignited the age-old debate about money and happiness, revealing that income may contribute more to overall life satisfaction than previously thought. Supporting the study, wellness experts in the UAE emphasised that “a sense of control over one’s life can enhance overall satisfaction".

Recent research from Wharton indicates that happiness continues to increase with income, extending well beyond the $500,000 annual threshold (approximately Dh2 million) that was once considered the "satisfaction ceiling".

According to Matthew Killingsworth, if there is a limit where money no longer impacts happiness, it’s likely much higher than previously believed.

Killingsworth conducted a study involving over 33,000 working adults in the US, examining their life satisfaction and income. He compared their results with two groups of wealthy individuals from earlier studies — one consisting of millionaires worldwide and the other of people from the Forbes 400, America's wealthiest.

The results were striking. Wealthier individuals consistently reported higher levels of happiness, suggesting that if there is a point where money ceases to impact happiness, it may be far higher than previously assumed.

While the study doesn’t confirm that money directly causes happiness, it reinforces the increasing evidence of a strong connection between the two. “This shows the link between money and happiness continues to grow, even beyond incomes of hundreds of thousands a year,” Killingsworth noted, adding that “the difference is substantial and meaningful".

Wellness experts in the UAE said this study challenges earlier ideas about a “satisfaction ceiling” and opens up fresh discussions about how wealth shapes wellbeing.

Bushra Khan, an emotional wellbeing and transformational coach at Wellth, said: “The link between wealth and happiness seems to run deeper than we thought. More money provides greater choices — whether it’s deciding how to spend their time, pursuing hobbies, or avoiding stressful situations. This sense of control over life can boost satisfaction.”

Experts explained that with more income, people can afford enriching experiences like travel, learning opportunities, and leisure activities, which contribute to both joy in the moment and lasting memories.

Khan added: “Wealth provides a safety net, better healthcare, savings for emergencies, and peace of mind about the future. This reduces anxiety and improves mental wellbeing. Additionally, for some, financial success offers a sense of achievement and social validation, which can foster self-esteem and personal fulfilment.”

While the study suggests that happiness rises steadily with income, it doesn’t mean money can solve everything. Life satisfaction is complex, and there are a few limits to how much wealth alone can do.

Shereen Abraham, an emotional wellbeing consultant at Inner Voice Consultancy, said the link between money and happiness is nuanced. She stated that while financial gains can bring immediate joy, the boost is often short-lived. "Studies have shown that people are happy when they get a bonus, a raise, or win the jackpot — but this happiness is short-term and can dwindle over time."

Lasting happiness, she said, comes from autonomy and the ability to shape one’s circumstances, which wealth can help sustain. "Higher income levels can provide ongoing security and access to better opportunities, but income is just one factor that contributes to a person’s holistic wellbeing."

Dr Ajay Kumar from Prime Medical Centre – Deira said it’s not simply money, but the quality of life it enables, that influences happiness most. “Money, when used wisely, can enhance happiness through social relationships, meaningful spending on others, and greater autonomy in the use of one's time."

"Still, happiness is a complex topic. Factors like genetics, health, relationships, leisure time, and purpose likely matter more for wellbeing than money alone," the psychiatrist highlighted.

Ultimately, while the study supports a strong link between money and happiness, experts agree that wealth is just one piece of a broader puzzle in shaping a fulfilling life.