canukabroad

Is it common for UAE companies to base your salary (in an employment offer) on your net UK salary (after tax)?

For example:
UK gross salary = £80K
UK net salary = ~£55K after tax
UAE offering salary equiv' of £55K + housing etc.

I had expected that working in the UAE I would receive more than I would 'after tax' in the UK.

Any insight to this much appreciated.

Ross

Robbies

based on what you say above, you are. You are getting housing in addition to your UK salary. Lets assume you get around 200k AED per year for housing. That is about 28k GBP (approx 2 or 3 bed appartment on Palm Jumeirah or Marina area)

So, that is a fair bit. In the UK, your rent/mortgage has to come out of your 55k net figure.

Think about it - once your housing is paid, what else do you have to spend your 55k on? Pay a bit more towards the housing if you want, pay off a car loan...

Once you get past housing, I have found most things in Dubai to be relatively cheap. Eating out is cheap (ok, you can go to $$$ places, but generally ok), booze is about the same as UK.

If the company matches your after tax UK salary, and pays housing, then all good. That is the situation as what I came here with, and am better off here than I was back home for sure.

canukabroad

Thanks very much - that helps to put things into perspective!

Cheers,
R.

Majj

It really depends on what you spend your money on and how. But overall if your UK salary after tax is the same as your overeas salary plus housing then you probably would be better off considering the lower cost of living. But you could try negotiating a further 10% or so.

Norm_uk

If you can manage in the UK on that then you should be able to save and life comfortably in the UAE...of course if you go and buy a monsterous 4 wheel drive and eat out in 5 star hotels every night you might find it a bit tight.

N.

Robbies

Petrol is about 20p a litre - just get the 4x4!!

canukabroad

...always fancied having a big ol' landcruiser or ranger rover!

mcp

Yeah big cars and fuel are cheap, but that is about all

lionheart

You will be getting AED 34,375 per month plus housing. In my view, that is more than enough to survive comfortably here and save too. If you are paying a mortgage back home, can you not rent out the place? That should offset your mortgage payments while the property continues (hopefully) to appreciate in value.

Cham128

i'd agree with that... although it costs a little more you might consider an estate agent taking over the management of the property as well so issues can be dealt with by them...

the housing market in the uk is a bit poo at the moment but for rentals the prices are holding again

lionheart

I like your use of technical jargon when describing the UK housing market...so how would you describe the housing market here?

Dago

Don't forget to factor in currency risk.

Big Geezer

Getting back to your question......

Yes a lot do use that to justify a certain wage structure. Some will also use the fact that you have had to pay for schooling or can use your UK house rent as extra.

Keep it to the facts: It is expensive in the UAE and there are costs that need to be covered. Forget your house in the UK that is your personal situation.

Rule of thumb? Aed 120k + for housing 45k per kid education cars are cheaper than other parts of ME cost of living depends on how much you want to ramp it up! If you do not go out every night it is not too bad. Having said that it is a few years since I lived there so I do stand to be corrected but all in all do your homework and stand your ground!
( check out the final benefits package also etc ! If you know people there ask them ) Don't be afraid to confide in other expats as they are generally always pleased to help as they were in the same position as you !

canukabroad

Dag can you explain a bit more about 'currency risk' and the implications on a package offer I receive?
Does that make a difference what currency I get paid in, and where I bank?(offshore VS in UAE) Thanks!

Madam Medusa

well if you get paid in sterling, for example, like we do...it's gone from 6 to the dirham in two years to 7.5+...so now we are obviously much better off. If you're planning your budget on another currency, you need to bear that in mind...clearly my happy currency situation may not last long, lol...

MM, xx