Employee allowances extend beyond basic salaries,
often encompassing various perquisites and allowances. In the Middle East,
particularly in the United Arab Emirates (UAE), Qatar, and Saudi Arabia,
companies offer diverse benefits to attract and retain talent. Here are some of
the nuances of perquisites and allowances in these three countries, shedding
light on the unique employment landscape of the region.
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Car and Transportation Benefits:
In the realm of transportation benefits, around
three-quarters of companies in the UAE provide a transportation allowance, with
45% also offering a company car benefit. In Qatar, more than two-thirds provide
a transportation allowance, and about 50% extend the additional perk of a
company car. Saudi Arabia follows suit, with approximately 86% of companies
offering a transportation allowance, and 52% providing a company car benefit.
Drivers for executives is not a prevalent offering across these countries.
Housing Benefits:
The majority of companies in the UAE, Qatar, and
Saudi Arabia provide housing allowances as part of the salary structure,
varying with job level/seniority. The emphasis on housing reflects the
importance placed on employee well-being and stability. The allowance is
usually set at 20%-25% of the base salary.
Additionally, companies in the hospitality, construction,
and manufacturing industries usually offer the allowance in kind by providing
physical accommodation often near the place of operations.
Service Awards:
About 50% of companies in the UAE, Qatar, and Saudi
Arabia offer service awards upon key milestones. Interestingly, Saudi Arabia
includes jubilee awards for birthdays or similar events, showcasing a unique
cultural touch.
Mobile Phones/Communication Benefits:
A significant majority of companies in the UAE
(85%), Qatar (75%), and Saudi Arabia (77%) provide mobile phone benefits,
covering monthly bills up to a variable maximum depending on employee grade.
Saudi Arabian companies often cover the cost of personal calls, differentiating
their approach from the other two countries.
Education Benefits:
Around three-quarters of companies in the UAE and
Saudi Arabia provide a dependent education allowance/benefit, while in Qatar,
30% offer the same. This benefit typically involves reimbursement up to a
maximum limit per dependent child, up to three children, up to 18 years.
Savings Plans, Employee Loans, and Recognition
Awards:
Savings plans for expatriates are gaining
traction in the Middle East, albeit not yet commonplace. Employee loans,
particularly for car-related expenses, are more prevalent in the UAE.
Recognition awards and onsite daycares are not widely available across the
three countries.
Other Perquisites and Allowances:
Expatriates in the Middle East often receive
additional allowances, such as annual airfare tickets or cash equivalents to
their home country. Meal allowances or subsidized eating facilities are not
common in these countries, except in the hospitality industry or off-site
locations.
Conclusion:
Understanding the intricacies of perquisites and
allowances in the Middle East is crucial for both employers and employees. As
the employment landscape evolves, companies in the UAE, Qatar, and Saudi Arabia
continue to tailor their offerings to attract and retain top talent, reflecting
the diverse and dynamic nature of the region's workforce. Whilst the above sets out the market practice for
the typical allowances in the above-mentioned countries, there may be a minimal
percentage of companies that offer either lower or higher than these practices,
which is often seen in small retail or service shops and the technology
industry, respectively. Associated Alliance not only provides brokerage
services, but also employee benefits consultancy, including typical allowances
in the region. More in-depth information and consultancy on the topic are
available to our clients and partners, or upon request.
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