# Car Allowances?



## HamishUK (Oct 20, 2009)

Hi Guys,
Just looking for some advice really. My company is based in Dubai Media City and I live less than 5 minutes walk from my office, however for the last year i've been travelling to work in Abu Dhabi for the company and paying out of my own pocket. My contract covers out of pocket travel expenses outside of the Dubai office but I wasn't claiming for the last year as no one else does. I've finally put my foot down and said to my boss I'd like to claim expenses and he begrudgingly said yes but he'd rather give me a travel allowance. For the last year i've been travelling 5 days a week but from next week it will probably be 3 days a week, but it could go back up to 5 or down to 0 within a few months.
Basically i'm wondering what I should ask for from him in terms of what should be covered and how much money I should ask for. Currently my costs are around 70dhs a day in petrol, 2700dhs car loan a month and servicing etc. on top. I'd still have a car if I was working in Dubai so obviously there is some personal useage.
From a little googling it seems that 60fils/km is a usual expenses rate and 2000dhs a month for car allowance. although I think this is a bit high for what I can ask for.
Any advice or experience with this?


----------



## Gavtek (Aug 23, 2009)

At one point it was looking like I was going to be relocated to Abu Dhabi, I negotiated an allowance of 2400 Dhs a month as that's how much it would cost to hire a decent-ish car to use for the commute. I wasn't willing to put the mileage on my own car.

I'd stick to your guns.


----------



## HamishUK (Oct 20, 2009)

Gavtek said:


> At one point it was looking like I was going to be relocated to Abu Dhabi, I negotiated an allowance of 2400 Dhs a month as that's how much it would cost to hire a decent-ish car to use for the commute. I wasn't willing to put the mileage on my own car.
> 
> I'd stick to your guns.


Cool, do you have any kind of calculation that you used to reach that figure?


----------



## Gavtek (Aug 23, 2009)

Nope, that's how much I was to hire a Honda Civic before I got my local driving license so used that on the basis that I wasn't spending 2 hours a day in a Yaris/Tiida/Lancer.


----------



## stuartmatthewson (Feb 15, 2011)

When I worked in Abu Dhabi my car allowance which was paid as part of my overall package was AED 5000 per month as a mid level Manager


----------



## junkymoe (May 10, 2011)

Why would anyone opt for a car allowance?

Lets say your salary right now is 20,000 per month; inclusive of a housing allowance of 5,000. The remaining 15,000 is considered your basic salary, and is what will make up your severance / end of service package if and when you leave your job.

however, if your salary 20,000; with a housing allowance of 5,000 and a car allowance of 2,500; you just reduced your end of service by 2,500; and for what? In the end, you are still making 20,000 regardless of what labels are attributed to it.

DONT opt for an allowance, try to add it to the basic salary if you can.


----------

