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Salary Increases - Dubai

Sarah Jeffery

Hi there,

I'm hoping to get some insight on salary arrangements in the Middle East - specifically Dubai.  Our salaries are split between a base salary, housing allowance and travel allowance (split approximately 65%/25%/10%).  

My question is around how salary increases are commonly applied/calculated in the region - are these applied simply to the base salary, or do organisations tend to apply an increase to the total package including allowances? 

Many thanks in advance for any insight anyone can provide! 

Parents
  • From my experience of working in the UAE, any increases such as an annual increase, would typically only be applied to the basic salary and not housing elements. In fact, as per what Ray stated, organisations are now reviewing housing allowances on offer to their employees and actually decreasing these based on the current rental market in the UAE, particularly in Dubai which has seen a significant drop in rent values over the last 18 months or so.
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  • From my experience of working in the UAE, any increases such as an annual increase, would typically only be applied to the basic salary and not housing elements. In fact, as per what Ray stated, organisations are now reviewing housing allowances on offer to their employees and actually decreasing these based on the current rental market in the UAE, particularly in Dubai which has seen a significant drop in rent values over the last 18 months or so.
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