Understanding UAE Allowance and Salary Structure: Insights on Benefits and Compensation Practices

Hi,

I'm a Management Trainee and presently working on the salary structure in UAE. I have a doubt regarding the allowances provided to non-UAE national employees, apart from the basic salary component. Could someone enlighten me on the standard allowance practices in UAE?

1. Are employees provided with a fixed sum as per grade/band, or are the employees entitled to a certain percentage of the basic salary as allowances?
2. After substantial Google research, I understand that the standard allowances paid are HRA, Transportation Allowance, and Children's education allowance. Could you tell me how the amount assigned for each allowance is decided? I hope I'm right about the allowance components.

I would be really thankful if you could reply to this thread.

Hi!

Benefits generally come in two categories: First are those mandated by law, and second are those that are given by employers on their own voluntary discretion. The latter varies from company to company. Moreover, a "salary structure in the Middle East" cannot be compared with the "salary structure in India". In the Middle East, a salary structure is similar to those prepared by big business organizations where job grades or bands become the reference point for the basic salary's minimum, mid-point, and maximum rates. In India, your salary structure generally refers to the "salary components", which are actually the basic plus the cash benefits.

Hence, it is difficult to predict and benchmark if you don't have access to the compensation and benefits survey done and published in the area. But, things become easier if you can get a copy of a document that can provide you with a detailed summary of the benefits on a per category basis.

My company has a Benefits Menu for UAE & KSA. This menu provides information on the general practices of companies operating in the area relative to the benefits provided to employees working there. This is a very good reference material for HR practitioners and top management in the area.

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Best regards.

Ed Llarena, Jr.

Managing Partner

Emilla International Consulting Services