Housing Allowance Dubai question
 

Hi

I have just been offered a position in Dubai for a certain salary but in the contract this is broken down into base salary and allowances. I was wondering if I *have* to use the allowance or if it will be paid in a lumpsum each month? I don't want to spend the amount they have allocated for transport and housing; I would rather save the money. Any help!

Re: Housing Allowance Dubai question
 

It is an 'allowance' paid monthly, so you can spend less, or more to suit yourself.

It would be unusual for a company to control what you spend on accommodation unless the accommodation is provided.

So save away. Good luck with the new position.

Re: Housing Allowance Dubai question
 

It varies - I know of some companies who pay the rent directly to landlord/estate agent (so use it or lose it), some pay monthly in your salary and some pay a one-off lump sum each year.

Re: Housing Allowance Dubai question
 

in general the housing allowance, transport allowance etc are just ways of reducing your end of service benefits. Those then only get calculated on your base salary.

Re: Housing Allowance Dubai question
 

Be mindful that apartment/house rents in Dubai are among the most expensive in the world, so I wouldn't expect to save much, if anything.

Re: Housing Allowance Dubai question
 

yep...true.

you need to establish with the company in what form the allowance is applied.

Re: Housing Allowance Dubai question
 

actually rent is coming down.....slightly