Business | General
Shift in salary packages lures expats to stay longer in UAE
Expatriates are choosing to call the UAE 'home' for increasingly longer periods of time and investing more in their homes than they have in the past, due to a shift in salary packages on offer from employers.
- Staff Report
- Published: 00:15 June 29, 2008
Dubai: Expatriates are choosing to call the UAE 'home' for increasingly longer periods of time and investing more in their homes than they have in the past, due to a shift in salary packages on offer from employers.
A recent survey on the salary packages of multinational companies (MNCs) in the Middle East has revealed the traditional focus of high basic salaries and cash allowances is shifting towards long-term incentives and 'protection' benefits which are enticing expats to stay longer.
The changes in benefit practices are being driven by the continuing increase in multinational companies based in the region, expansion of the expatriate workforce, and greater mobility of expatriates between jobs.
According to the results of the survey, pensions and medical, life and disability insurance, and lifestyle benefits such as company car allowances and leave entitlements are proving increasingly important, while allowances for housing, transport and education remain popular.
Many employers are motivated to focus on benefit provision, not only to respond to competitive pressures but also erosion in value of cash-based remuneration paid in local currencies which are pegged to the weakening American dollar.
Additional perks
Almost all companies in the Middle East provide additional perks and allowances to their expatriates. These vary between countries and employers, but the majority provide allowances for housing, schooling and flights home.
In the UAE specifically, 86 per cent of multinationals in the survey provide housing allowances, while 90 per cent provide support with schooling.
"Increasingly, expatriates are making a long-term commitment to living in the UAE due to new employment incentives that encourage long service and also a greater understanding that the UAE is a safe place to raise a family," said Ajai Kumar Dayal, general manager, retail and marketing, at Easa Saleh Al Gurg Group.
"In the past, it was common for people to come to the UAE with a two or three year plan, but now people are deciding to stay, to raise and school their children, and make a home for themselves here," added Dayal.
Expatriates are making a long-term commitment to living in the UAE due to new employment incentives that encourage long service and also a greater understanding that the UAE is a safe place to raise a family."
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