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Compensation  >>   Housing and Education Allowance in Dubai? Search Discussion Posts
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#1

Housing and Education Allowance in Dubai?  
Posted: 05/11/2010 10:19am   76 Views
  

Hi all,

Does anyone have information on housing and education allowance's to employees in UAE/Dubai? I have been hearing and the simple norm of 50% of guranteed cash as housing but do not have significant data to back it up.

Any help will be great.

 

Thanks


Private10790

   
Housing and Education Allowance in Dubai?  
Posted: 05/11/2010 10:32am  
  

Housing is more like 250% more expensive than comparable rentals in the U.S., per the ERI Relocation Assessor Survey.  Education allowances are more contingent on the employee's nationality and family dependent situation.  The economy in UAE has undergone some severe shocks over the last year. 


Private25353

   
Housing and Education Allowance in Dubai?  
Posted: 05/11/2010 10:45am  
  

Thanks.


Private10905

   
Housing and Education Allowance in Dubai?  
Posted: 05/11/2010 01:06pm  
  

Housing Allowance Information:

Ninety-eight percent of companies provide HRA as part of the compensation package, either as a fixed amount or calculated as a percentage of basic salary. 

 

Employers offer to meet part of the rental costs of the employee in the form of House Rent Allowance (HRA). This allowance is granted to cover a part or whole of the rent that the employee incurs, and a part of it is exempt from tax for the employee under certain conditions (such as they do not own the house of residence.) Out of HRA received during the year, least of the following three amounts will not be included in the employee's taxable income:
- The amount equal to 50% of annual salary, for persons staying in Mumbai, Chennai, Calcutta or Delhi, but 40%, for others
- The actual amount of house rent allowance received
- The amount of rent actually paid in excess of 10% of annual salary

The (HRA) is a percentage of the employee's basic wage (or pay). The amount of the allowance is determined by the city "category: A-1", "A", "B-1", "B-2" and "C". This classification was initally based on the recommendations of the Fifth Pay Commission of India (1997) and was later revised based on the results of the 2001 Census of India.  Employee's residing in category A cities (e.g., Mumbai, Delhi) may receive an additional 40% of their basic pay as their housing rent allowance (HRA). Employee's residing in category B cities may receive an additional 30% HRA. And employee's residing in category C cities may receive an additional 20-25% HRA.

** I did not have market data on education allowance but note that there are other allowances that are common in India such as a leave travel and dearness allowance

#1

Housing and Education Allowance in Dubai?  
Posted: 05/11/2010 01:40pm  
  

Claudia,

Thanks for this. I was looking for this information in Dubai? My message was not clear.

Do you have anything for Dubai or UAE?

 

Thx

M

 


Private10905

   
Housing and Education Allowance in Dubai?  
Posted: 05/11/2010 11:17pm   Revised: 05/11/2010 11:18pm  
  

The information covers India but isn't specific to Dubai.  However, you can purchase survey data (by job) specific to Dubai that includes allowances (Mercer, Towers, IPAS and Radford).


Private22979

   
Housing and Education Allowance in Dubai?  
Posted: 06/02/2010 03:58am  
  

We publish data on Housing Allowance in UAE (by Emirate) based on our database of 400 organisations in United Arab Emirates.  For more information to get access to our annual database and Housing allowance policy and practice information please contact us at MERewardInformation@haygroup.com or call us on 97142329555 in Dubai, UAE.

Regards,

Vijay


 
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