Are you planning to relocate to Dubai and wondering how much is the relocation allowance in Dubai will be? Find out exactly how much you will be paid in our guide to the relocation allowance in Dubai.
What is relocation allowance?
An employee who is required to move to a new location for work purposes will receive a relocation allowance, also known as relocation assistance or relocation package. As part of the relocation allowance, relocation expenses, including moving expenses, temporary housing, and other related expenses, are offset.
There may be a variation in the relocation allowance depending on the employer’s policy as well as the specific circumstances of the employee’s relocation. Typically, it may include reimbursements for expenses such as travel, temporary housing, moving, and storage. Additionally, some companies may provide assistance with finding a new home, enrolling children in schools, or providing language classes to employees.
How much is the relocation allowance in Dubai?
Due to its booming economy and tax-free environment, Dubai is a popular destination for ex-pats. Relocating to Dubai can be exciting and life-changing, but it can also be extremely expensive. When ex-pats are considering moving to Dubai, one of the most common questions they have is the amount of relocation allowance available.
The relocation allowance in Dubai can vary depending on your employer and your job position. Most companies offer a relocation package that includes airfare, temporary accommodation, transportation, and shipment of personal belongings. As a result of the company and the level of the position, the allowance can range from a few thousand dirhams to tens of thousands of dirhams.
A typical relocation package offered by employers in Dubai includes the following:
- Airfare: An employee’s and their family’s one-way flight to Dubai is typically covered by their employer.
- Temporary accommodation: Employees and their families are often provided with temporary housing by their employers while they search for permanent residences.
- Transportation: Transport to and from the airport is often provided by employers as well as transportation to and from the workplace.
- Shipping allowance: A shipping allowance may also be provided by employers to cover the cost of shipping personal belongings to Dubai.
- Visa and residency permit: Employees and their families are typically covered by employers for the cost of obtaining a residency permit and work visa.
It is common for a relocation allowance in Dubai to range between AED 5,000 and AED 50,000, depending on the company and the position. In general, relocation packages include expenses such as airfare, temporary accommodation, transportation, and shipment of personal belongings. Obtaining a residency permit and work visa may also be covered by some companies.
You should be aware that some companies do not offer relocation packages, or offer limited relocation packages. If this is the case, you may need to negotiate with your employer to ensure that relocation expenses are covered.
Factors affecting relocation allowances in Dubai?
When considering a move to Dubai, one of the most important factors to consider is the relocation allowance, especially if you are moving from another country. Moving to Dubai can be both exciting and costly, especially if you are moving from another country. A number of Dubai employers offer relocation packages to assist employees in covering moving costs, though the amount offered varies based on several factors.
Relocation allowances in Dubai may be affected by the following factors:
1. Employer policy:
The relocation package policy of each company differs. Some employers may offer a comprehensive package that covers all expenses, while others may offer a limited package. Before accepting the job offer, it is imperative to discuss the relocation package with your employer to ensure that it is satisfactory to you.
2. Job position:
The relocation allowance may differ according to the level of the job. For example, senior management positions may receive a more generous relocation package than entry-level positions.
3. Accommodation:
Housing in Dubai is costly. Some employers may offer relocation packages that cover the cost of housing for their employees and their families.
4. Destination country:
As well as country of origin, relocation allowances can differ depending on the cost of living in the country. For example, employees moving from countries with a higher cost of living may receive a higher relocation allowance than those moving from countries with a lower cost of living.
5. Family size:
It is also important to consider your family size when determining the relocation allowance. Employers may offer a larger relocation allowance if a larger family is moving.
6. Immigration expenses:
It may be necessary for an employer to offer their employees a higher relocation package in order to cover the costs associated with obtaining a residency permit and a work visa.
7. Moving expenses:
Depending on the company, the relocation allowance may be determined by the cost of moving personal belongings to Dubai. Some employers may offer a greater relocation allowance to cover the costs of moving personal belongings to Dubai.
Understanding the Components of a Relocation Allowance
Relocation allowances, also known as relocation packages or relocation assistance, provide employees with a benefit when moving to a new location for work purposes. There are a number of components associated with relocation allowances that help offset the costs associated with relocating. Here are some of the main components of relocation allowances:
1. Moving Expenses
An allowance for moving expenses is one of the most important components of a relocation package. This includes the cost of hiring a moving company or renting a moving truck, as well as packing supplies and shipping expenses.
2. Temporary Housing
As part of a relocation allowance, temporary housing is an essential component. This is particularly important for employees who need to relocate quickly and may not have time to locate a new home prior to starting their new job. Hotel rooms, rental apartments, or other types of accommodations may be considered temporary housing.
3. Travel Expenses
Additionally, relocation allowances cover expenses associated with transportation to the new location, such as airfare, train tickets, or gasoline costs. The cost of meals and lodging may also be covered as part of the program.
4. Storage Fees
As part of a relocation allowance, storage fees may also be included. These fees cover the cost of storing personal belongings at a facility or warehouse until the employee is able to relocate them.
5. Additional Benefits
The relocation allowance may include additional benefits in addition to those listed above. Some employers might provide assistance with locating a new home or enrolling children in schools. To assist the employee in adjusting to the new location, others may provide language classes or cultural training.
Depending on the employer’s policy and the particular circumstances of the employee’s relocation, the components of a relocation allowance may vary. There are employers that provide a lump sum payment covering all expenses, while others reimburse employees for their actual expenses.
Comparing Relocation Allowances in Dubai with Other Cities
Relocating to a new city can be an exciting but expensive prospect, especially if you’re moving for work purposes. It is important to understand how the relocation allowance compares to other cities when you are considering relocating to Dubai. Employers often provide a relocation allowance to offset the costs associated with moving. You should need to know:
Relocation allowances in Dubai
The cost of living in Dubai is generally considered high, with the cost of housing, healthcare, and education being high. It is a popular destination for ex-pats with a thriving economy and a high standard of living. It is for this reason that many employers provide generous relocation allowances to assist their employees in adjusting to the new location.
Relocation allowances in other cities
There are a number of factors that influence the relocation allowance offered by employers, including the city and the circumstances surrounding the relocation. In some cities, the cost of living is lower and relocation allowances are lower, while in others, the cost of living is higher and relocation allowances are more generous.
New York, London, and Tokyo, for example, are known for their high cost of living and may offer higher relocation allowances than cities with lower costs of living, such as Bangalore and Manila.
FAQ’s
1. What is a good relocation allowance?
2. How much salary is needed to live in Dubai?
3. Is 3000 AED enough to live in Dubai?
Conclusion
According to company policies and the position of the employee, relocation allowances in Dubai can vary. Some employers may cover all relocation expenses, including housing, transportation, and visa fees, while others may only provide a lump sum to assist with the move.
To determine the amount of the relocation allowance and the expenses covered, it is imperative that you carefully review the terms of the relocation package. Furthermore, it is important to consider the high cost of living in Dubai and ensure that the relocation allowance is adequate to cover all expenses.