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I was told by the recruitment company that alot of businesses (including the one Im talking to) are moving away from offering all the benefits and just preferring to go for a larger lump sum salary. Is this the current trend in Dubai or are they just trying to condition me to not expect accommodation etc? I mean the salary is very good (to me anyway) but I just want to see what the opinion is from those of you up there already?

Thanks

I'm sure others are more qualified to answer this, but I've found this too - seems to be pretty common and it seems to be many companies answers to the spiralling rent prices. If they offer an "all-in" package, it saves them hassle and it puts the onus on you!!
Its good in a way, you can either go "up market" and spend loads on a fancy apartment, or spend a little and share with about 50 others in a villa in Karama!!
The choice is yours!!

ajb wrote:I was told by the recruitment company that alot of businesses (including the one Im talking to) are moving away from offering all the benefits and just preferring to go for a larger lump sum salary

Be careful and think beyond simply acommodation when discussing "benefits". The bottom line is the total amount you get at the end of the month from which you then should pay your accomodation, transportation, etc. I for one can't at the moment remember what my accomodation allowance is as I chose where to live and at what price. For some reason it appears to me that may expats believe they have to spend every cent of the accomodation allowance. This in itself has, I believe, artificially inflated rent prices. Look at the accomodation allowance as part of the salary (and get a place at much lower than the allowance - which will be difficult in most cases).

I believe that by law the employer has to split the salary into "salary, accomodation, and transportation" - I don't see why that would be required but you can check it. (I say "believe" because someone told me and I did not bother to check it as in my case it makes no difference whatsoever)

With respect to the other benefits (holiday leave, gratuity, etc.) these are required by law. Make sure you get real private insurance and not just the "health card" (which again is required by law but offers a different level of service - so I hear).

So get your 100,000 dhs per month and get your own place and car, plus holiday leave and gratuity! Regardless of what is offered to others or by other companies. Now that would be a package! Simple fourth grade math.

Good luck.

thanks .... I definitely have more than accommodation in mind - just that is the most obvious and probably has the largest impact on income.

yes well if it was 100,000dhs a month it would be no brainer ... but Im not quite at that level yet!

ajb wrote:yes well if it was 100,000dhs a month it would be no brainer ... but Im not quite at that level yet!

Don't worry 95% of the population arn't either (working population that is)

salary is split into 2 sections on the labour contract. the first is basic salary, the second section is allowances which is defined by the employer - this covers things like: car allowance, housing allowance, phone allowance etc... these are normally the major portions of your "package". where this split comes into play is when your gratuity is calculated, this is done on the basis of the basic salary and not inclusive of the allowances.

Ok - daft question - what are you meaning by the gratuity??

gratuity is the money that companies pay thier employees on termination of service in recognition of thier service to the company - kind of a going away bonus. this is over and above thier salary/ wages.

gratuity is embedded/provided for under the labour law (Atricles 132 through 142). I haven't typed up all the relevant articles on this, but 132 starts off "An employee who completes one year or more in continous services shall be entitled to gratuity at the end of his service. .."

the relevant articles cover the application of the regulation on gratuites.

for instance an employee is entitles to the equivalent of 21 days wages for each of the first five years in continuous service, with an additional 30 days wage for each year of service thereafter - gratuity no to exceed 2 years wages..

now to get to the nitty gritty. some companies reduce the basic salary of the employee (this has to be shown on the labour contract) to include thier gratuity pay out... in effect this is like a forced savings plan, the money that would be paid to them at the end of thier service is deducted from thier salary/ wage on an ogoing basis and then paid to them on completion of thier contracts - without the employer having to pay any additional costs.

if your employment is terminated under article 120 you you resign before the termination of your contract your gratuity is forefit..

sorry, got a bit carried away on the awnser...

gratuity is just another word for salary Zoots

Ok, er, I think I get it. And its all instead of a pension plan, right??

pension, more or less.
"an award (as for meritorious service) given without claim or obligation "