Is It Usual To Get Housing Allowance?

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Is it usual to get housing allowance? Feb 22, 2007
Hi -

I have been offered a position in Dubai by my current employer (I'm based in London at the moment). I'm a professional in my mid-30s, married with one young (not school age) child, and planning to have another soon.

The base salary (more or less the same as what I get in the UK now) is pretty good - AED25,500/month plus AED3,300/month car/fuel allowance and private medical cover for me and my family. I get a relocation allowance (one month salary) but I have not been offered a housing allowance.

By my calculations I'll need to budget at least AED150,000 for reasonably decent family accommodation, in other words at least half my salary, and about twice my monthly mortgage payments in the UK.

Should I be holding out for an accommodation allowance? Is this a usual part of an expat package in Dubai? Very grateful for any comments.

jayzed
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Feb 22, 2007
Yes it's normal here, but it varies in amount and often it's just a token that won't cover the cost of a house.

You're better having your remuneration in base salary anyway as that's what your annual bonus plus end of service bonus (you get various weeks/ months salary depending how long you stay even for permanent positions) are paid out on.
scot1870
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Feb 22, 2007
Thanks Scot. Do you/others think that we would be able to live okay and save a bit on the package I've described? It doesn't seem to me that we'd be any better off than we are now in London.

My wife will probably look for work once we're there, but that would be on a local package and given our sprogging plans I don't want to have to rely on her income to make ends meet.
jayzed
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Re: Is it usual to get housing allowance? Feb 22, 2007
jayzed wrote:By my calculations I'll need to budget at least AED150,000 for reasonably decent family accommodation, in other words at least half my salary, and about twice my monthly mortgage payments in the UK.

That's a bit miscalculation, perhaps you were looking to those overpriced 3-4 bedrooms apartments/villas in Marina, Springs, etc. For 1-2 bedroom apt, you still can get as low as 65K-100K (which is still overpriced for some people) in decent apartment and decent area.

Worst case, even for gross salary of about 29K (all inclusive), I think you'll still be comfortable (live nicely and save some). Unless you expect more (depends on the job/position though).
xty
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Re: Is it usual to get housing allowance? Feb 22, 2007
xty wrote:
jayzed wrote:By my calculations I'll need to budget at least AED150,000 for reasonably decent family accommodation, in other words at least half my salary, and about twice my monthly mortgage payments in the UK.

That's a bit miscalculation, perhaps you were looking to those overpriced 3-4 bedrooms apartments/villas in Marina, Springs, etc. For 1-2 bedroom apt, you still can get as low as 65K-100K (which is still overpriced for some people) in decent apartment and decent area.

Worst case, even for gross salary of about 29K (all inclusive), I think you'll still be comfortable (live nicely and save some). Unless you expect more (depends on the job/position though).


great post. i couldn't agree more.
mighty.one
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Feb 22, 2007
With one child and another planned, he might not want to live in a 2 bed apartment and may want at least a 3 bed villa.
So your calculation of 150k will get you an entry level 3-4 bed villa.
That leaves 16 300 per month.
Most people could manage on this amount.
Whether you can live off this per month depends largely on your wife.
If she likes to shop a lot, have her hair/nails etc done every other day, and refuse to be seen driving anything less than a CLK, you might have a problem.
Schooling will also be a large expense that you will need to allow for. This will be about 2000 per month per child.
There is no harm in asking about a housing allowance. It is the norm, but sometimes it may be rolled into the salary.
benwj
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Re: Is it usual to get housing allowance? Feb 23, 2007
jayzed wrote:Hi -

I have been offered a position in Dubai by my current employer (I'm based in London at the moment). I'm a professional in my mid-30s, married with one young (not school age) child, and planning to have another soon.

The base salary (more or less the same as what I get in the UK now) is pretty good - AED25,500/month plus AED3,300/month car/fuel allowance and private medical cover for me and my family. I get a relocation allowance (one month salary) but I have not been offered a housing allowance.

By my calculations I'll need to budget at least AED150,000 for reasonably decent family accommodation, in other words at least half my salary, and about twice my monthly mortgage payments in the UK.

Should I be holding out for an accommodation allowance? Is this a usual part of an expat package in Dubai? Very grateful for any comments.


When quoting the 150k is that the kind of accomodation that you want, because as xty says you could get something much cheaper, also with one child a 2 bed place would suffice.
As whether it is the norm to get housing allowance, you should try to negotiate housing / transportation / schooling / furnishing or relocation allowance into your package, some Companies do pay this.
sage & onion
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