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Rent Allowance

26

Posts

EW NEWBIE

Latest post on 08 May 2014 - 07:26

Please can anyone tell me that if you have a rent allowance in your contract, how this is done? Or what the legal procedure in Dubai is, if there is one?

We were under the impression that if the Company pays your rent for the year upfront then they deduct your rent allowance from your wages monthly? Is this the way it should be?

Really need some confirmation on this, thanks

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26

Posts

EW NEWBIE

Latest post on 09 May 2014 - 09:34

Thanks everyone. We just needed to know if this was allowed, what they have done to us. It is a very small company and the PRO has no interest in "white people" (and has actually said that). Looks like we just in for a difficult month and then we not guaranteed wages paid on time at the end of May..this is another problem :(

45

Posts

EW NEWBIE

Latest post on 08 May 2014 - 14:56

My hubby's company (US-based) have set it up in 2 options: Option 1: Housing allowance is divided by 12 and added on top of salary monthly Option 2: Housing allowance is divided by 2 and added on top of salary bi annually. With option 2, the months are set for everyone across the company. When we moved to UAE last year, the company provided one month free accommodation and paid the year's housing allowance up front. We're now on (option 1) the monthly allowance until the biannual month rolls around and we get to opt into option 2.

275

Posts

EW NEWBIE

Latest post on 08 May 2014 - 14:02

Looks like every company has a different policy. If they aren't bound by certain laws on how to do this then hopefully you can negotiate something with them. My husband works in DIFC - we don't get separate housing allowance, it's just included within his salary. But they paid the LL upfront one cheque and then are just deducting it equally over 12 months from his pay, which makes sense. LL happy, we're happy.

8965

Posts

EW MASTER

Latest post on 08 May 2014 - 13:31

I thought it normally worked where your salary was split in 3: 1. Salary 2. Housing Allowance 3. Transportation Added together and that is what you got in your pay. Some do it this way Others pay your LL directly Some give it up front and deduct monthly from your salary I think taking it in one lump is very harsh though however I would check your contract I spoke to my PRO who said there is no law governing this in the labor laws Has DH spoken to HR at him company?

2738

Posts

EW EXPERT

Latest post on 08 May 2014 - 13:26

Expats get packages. Some get salary, allowances and rent, some get one figure and they have to work it out, some get other sorts of packages. Expats should investigate where they are moving to, costs and read and understand their contracts before they commit.

4423

Posts

EW MASTER

Latest post on 08 May 2014 - 12:47

I thought it normally worked where your salary was split in 3: 1. Salary 2. Housing Allowance 3. Transportation Added together and that is what you got in your pay.

4393

Posts

EW MASTER

Latest post on 08 May 2014 - 12:45

With the first company DH worked for they paid his rent allowance directly to the LL and we paid the difference ourselves. One word of warning, when he was "let go" after six months, we got no salary for his final month and a bill for what they had already paid. Just be aware incase this happens. Much prefer it now as his alllowance, for what it is, is paid with his salary.

Madge_Gustard59558

841

Posts

EW GURU

Latest post on 08 May 2014 - 12:45

Rent allowance is normally separate to monthly salary, it is one of the added bonuses of being an expat There's nothing in Dubai labour law requiring any company to pay any kind of housing allowance, and indeed some people don't get it at all. Before you sign any contract you should check this, it is a separate amount for rent that certainly does not come out of your monthly salary unless you have agreed this Most people just look at the total amount they get paid every month and call it their monthly salary. They do not mentally break it down into salary, housing allowance, travel allowance and so on. If companies provide an upfront loan, they will deduct it from your monthly salary.

2738

Posts

EW EXPERT

Latest post on 08 May 2014 - 12:39

Please can anyone tell me that if you have a rent allowance in your contract, how this is done? Or what the legal procedure in Dubai is, if there is one? We were under the impression that if the Company pays your rent for the year upfront then they deduct your rent allowance from your wages monthly? Is this the way it should be? Really need some confirmation on this, thanks Rent allowance is normally separate to monthly salary, it is one of the added bonuses of being an expat. Before you sign any contract you should check this, it is a separate amount for rent that certainly does not come out of your monthly salary unless you have agreed this. How the payment is made differs from company to company.

Madge_Gustard59558

841

Posts

EW GURU

Latest post on 08 May 2014 - 12:35

Please can anyone tell me that if you have a rent allowance in your contract, how this is done? Or what the legal procedure in Dubai is, if there is one? It's up to individual company policy. Some people are still lucky enough to have their company pay their LL directly, and they don't have to pay that rent back through their salary. What's more common these days is that companies just pay a monthly salary, part of which counts as housing allowance, and they leave it up to the employee to find the lump sums needed to pay rent. All the banks here do a roaring trade in rent loans (which *aren't* interest-free).

1618

Posts

EW EXPERT

Latest post on 08 May 2014 - 09:38

Ours gives us a cheque twice a year it doesn't go through the bank account. My husband is changing jobs and the new company is paying it monthly with the salary.

2043

Posts

EW EXPERT

Latest post on 08 May 2014 - 09:34

Companies now have to comply with the WPS (Wages Protection Scheme) this essentially means that any salary/allowances agreed on an employees labour contract and recorded in their Ministry of labour contract MUST be paid via the central bank to prove the company is abiding by their agreement with the employee. So if a company advances an employee money to pay their rent it has to go through the central bank so that there is a record. These new measures are to protect employees.

391

Posts

EW EXPLORER

Latest post on 08 May 2014 - 08:23

Our company will either pay per month in salary or if you request - will pay it upfront in one go and then not pay it in salary. They don't write the cheque to the landlord - they just pay the allowance in one hit upfront. I am not sure this applies to all employees but my DH is pretty senior so they can quite accommodating sometimes. The contract just contains a number per month - no mention of how it is paid. The amount does not cover the rent 100% for us.

1097

Posts

EW OLDHAND

Latest post on 08 May 2014 - 08:18

That doesn't sound right to take it all in a lump sum ! Is it a local company ? I would follow up on that, although it is tough to do that when you have just started a new job. We don't get our allowance in the salary, the company pay it directly to the landlord. It is a 'use it or lose it' allowance, if our rent is less than the allowance we don't get to pocket the difference.

2264

Posts

EW EXPERT

Latest post on 08 May 2014 - 08:05

I've never heard of it being done this way to be honest. Normally when a company pays the LL - the housing allowance is separated from your main salary. So for example a salary is say 20,000 dhs a month, but you have a housing allowance of say 100,000 dhs which is totally separate. You'd have to speak to the Ministry of Labour about your contract and what your company have done as it sounds like a very weird process.

26

Posts

EW NEWBIE

Latest post on 08 May 2014 - 07:53

What has happened to us is the company has paid our Landlord 3 cheques to cover the rent for the year. What they have done is left us WITHOUT 2 months salary and taken our expenses for relocation out here (which we were supposed to get reimbursed) to cover the 2 cheques so far for our rent. We had no idea whatsoever this is what was happening until I questioned it. Is this allowed or is it supposed to be deducted from your wages as a monthly payment?

2264

Posts

EW EXPERT

Latest post on 08 May 2014 - 07:34

It really depends on the company. Some companies will pay the landlord directly. I think very few people actually get enough allowance to pay 100% of their rent these days. I'd say in the majority of contracts accommodation allowance is included in the breakdown of allowances that make up your total salary and most people pay the rent themselves.

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