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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! 

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  • Hi Sarah, it generally depends on how the package is structured. Companies who provide basic salary plus separate allowances that are not calculated as a % of basic (e.g. housing) would apply an increase to basic salary but not allowances. Companies who provide total cash with a % allocation between basic and allowances tend to apply changes to the total (unless they change the % allocated). We quote housing and transport as separate amounts that aren't linked to basic, which means we can adjust housing up and down in line with market conditions. As Katie mentioned, housing costs have decreased in Dubai.
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  • Hi Sarah, it generally depends on how the package is structured. Companies who provide basic salary plus separate allowances that are not calculated as a % of basic (e.g. housing) would apply an increase to basic salary but not allowances. Companies who provide total cash with a % allocation between basic and allowances tend to apply changes to the total (unless they change the % allocated). We quote housing and transport as separate amounts that aren't linked to basic, which means we can adjust housing up and down in line with market conditions. As Katie mentioned, housing costs have decreased in Dubai.
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