# Salary package offer - Your opinion please!



## dimkatsar

Good evening everyone.
Recently i got an offer from a european company located in Dubai.They offered me a UAE contract with duration of 18months for a project that will be held on behalf of a company located in UK.
This means that i am going to be employed with a UAE contract by the company in Dubai and get paid by the "customer" company located in UK.

I am 34yrs, i am an Electrical and Electronic Engineer and i also have an MSc in Telecomms and Computer Networks. Moeover i have 9yrs of experience in the telecomms and networking sector, i possess several vendors certifications such as Cisco,MCP and Huawei and currently i work in one of the biggest ISP company here in Greece.

So the offer that i would like to have your opinion is that one follows:
1.Basic Gross Salary of 18,089 AED/month (Shouldnt be tax free as it is a UAE contract!!!???)
2.Medical insurance (the contract states that i will be also entitled to participate at the 3Company’s expense in the Company’s private medical expenses insurance)
3.A repatriation Insurance covered by the company
4.End of service benefit of 1 month salary for each working year accordingly to the U.A.E Laws. 
5.Sick leave and an Annual leave of 22 working days.

As you can notice no allowances are provided at all, like house allowances,car allowances etc.
That thing that really makes me a little bit confused is the fact that despite a UAE contract is offered to me, the contract clearly states that "The Employee will be responsible for paying all employee tax and social security payments".
Can you tell me if this is legal or not?. I thought that a UAE contract means generally a tax free income!. Am i wrong or not?.
Is it legal for someone to be offered a UAE contract , working in UK company and pay taxes as a UK citizen?. Is it againt the UK Laws for someone not to pay taxes even if a uae contract has been offered to him?.

I really would like to have your opinion if i have to say yes or no to this kind of little bit "strange" contract. 
Please advice me in order to take my final decision.


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## Warold

Actually because your getting paid in the UK through the UK finance office you will be charged Tax... Its the same with alot of expat companies (Shlumberger , Halliburton etc). Some big companies have their finances at locations where the tax is minimal (10%). But yea it sometimes happens.

But the wording is a bit generic.. some home countries require you to pay tax even tho your getting paid outside the country. I think they say it just for legal reasons that they are not responsible for your tax payments. I think US citizens have to pay tax even tho they are earning the money outside the US.


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## dimkatsar

yes but suppose i will be a UK resident having a uae contract.will i still pay taxes in uk?.i say this because as you know there are no taxes at all in uae countries.


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## Warold

You would probably need to ask a tax office in the UK for that.


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## dimkatsar

Good morning everyone.
I would like to have your opinion about the following salary package from a company located in Dubai.I am currently living with my wife, no children,so will be both of us when coming to Dubai hopefully.

The salary package is this one.

Basic:9607aed
general allowance:9607aed
Total: 19214aed

Benefits:
22working days
one yearly return ticket for self,spouse and children
medical insurance for self,spouse and children.
Accomodation allowance will be nearly 12k/year.

Do you believe this salary package would be good for 2 persons. Are we going to struggle or having a normal life doing some savings as well?.
Also,i would like to ask, in case i need to pay for my wife`s entry permit/residence visa, then how much it normally costs?.

thank you and i will be waiting for your answers soon please!


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## bornrelics

Hi,

I have accepted a job offer as a software developer and would like to know if my offer is any good and if I will be able to save some money. 

I have a wife and 7 month old baby. 

My Package consists of:

Basic : 240,000 AED
Housing : 112,000 AED (I don't have to spend all on housing)
Bonus : 15,000 AED

Medical Insurance for me only (Insurance for my wife and baby will cost me extra 5,000 AED "Bupa Gold Cover")
Holiday : 30 days
Flights : 1 Return ticket per year (up to 4,000 AED)

Thanks


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## p830335

So that's a good 50% down on what you should be looking for. Bloody hell, even I earn more than that. Stay in SA and aim for another strike, because for that amount it's not worth uprooting your family.

Spoken from experience, 

Paul



bornrelics said:


> Hi,
> 
> I have accepted a job offer as a software developer and would like to know if my offer is any good and if I will be able to save some money.
> 
> I have a wife and 7 month old baby.
> 
> My Package consists of:
> 
> Basic : 240,000 AED
> Housing : 112,000 AED (I don't have to spend all on housing)
> Bonus : 15,000 AED
> 
> Medical Insurance for me only (Insurance for my wife and baby will cost me extra 5,000 AED "Bupa Gold Cover")
> Holiday : 30 days
> Flights : 1 Return ticket per year (up to 4,000 AED)
> 
> Thanks


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## bornrelics

p830335 said:


> So that's a good 50% down on what you should be looking for. Bloody hell, even I earn more than that. Stay in SA and aim for another strike, because for that amount it's not worth uprooting your family.
> 
> Spoken from experience,
> 
> Paul


Hi Paul, 

So do you earn more than that in Dubai or you do still live in SA? Because currently there is no way I will be able to earn 360,000 AED (convert to Rands +- R800,000) in SA. Also I am relocating my family from the UK, where we have been for last 8 years.

Had a few replies saying that is a good wage and I will be able to live comfortably.

So I am bit confused, unless someone else can give their opinion.

Thanks


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## Guest

Warold said:


> Actually because your getting paid in the UK through the UK finance office you will be charged Tax... Its the same with alot of expat companies (Shlumberger , Halliburton etc). Some big companies have their finances at locations where the tax is minimal (10%). But yea it sometimes happens.
> 
> But the wording is a bit generic.. some home countries require you to pay tax even tho your getting paid outside the country. I think they say it just for legal reasons that they are not responsible for your tax payments. I think US citizens have to pay tax even tho they are earning the money outside the US.


hi, I would check everything out with your employer prior to signing any contract or moving out. ask them directly what it includes or doesnt. because once your out here its very hard to change anything. my husband works for a uk company but it has an international status, meaning he gets tax free. im sure yours would be if your getting paid in the uae. if you getting paid into your uk account then your get taxed.

just be upfront and ask is this tax free.

good luck and welcome.. if your coming from the uk, be prapared for a challenge. things do not work the same as they do in the uk.. but its a good experience.:confused2:


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## Geke

mrschestnuts said:


> hi, I would check everything out with your employer prior to signing any contract or moving out. ask them directly what it includes or doesnt. because once your out here its very hard to change anything. my husband works for a uk company but it has an international status, meaning he gets tax free. im sure yours would be if your getting paid in the uae. if you getting paid into your uk account then your get taxed.
> 
> just be upfront and ask is this tax free.
> 
> good luck and welcome.. if your coming from the uk, be prapared for a challenge. things do not work the same as they do in the uk.. but its a good experience.:confused2:


I work for a UK company and get paid in the UK but as I am working and living out here I am classed as a non resident so my tax code is NT (no tax). All you have to do is contact the tax office, fill out a form and they advise your company of your NT tax code. If you do not do this then you will be taxed as the company will go by your tax code on your P45 from your previous employer. You will however have to pay full national insurance for a minimum of 12 months from the dae you leave the UK.


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## blazeaway

Geke said:


> I work for a UK company and get paid in the UK but as I am working and living out here I am classed as a non resident so my tax code is NT (no tax). All you have to do is contact the tax office, fill out a form and they advise your company of your NT tax code. If you do not do this then you will be taxed as the company will go by your tax code on your P45 from your previous employer. You will however have to pay full national insurance for a minimum of 12 months from the dae you leave the UK.


I understood that you ay NI until the end of the tax year which you leave ?


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## Alija_MN

bornrelics said:


> Hi Paul,
> 
> So do you earn more than that in Dubai or you do still live in SA? Because currently there is no way I will be able to earn 360,000 AED (convert to Rands +- R800,000) in SA. Also I am relocating my family from the UK, where we have been for last 8 years.
> 
> Had a few replies saying that is a good wage and I will be able to live comfortably.
> 
> So I am bit confused, unless someone else can give their opinion.
> 
> Thanks


Yes, its a handsome package specially for small family like yours... and reasonable according to local market too


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## cashbbox123

Hi friends,.....I have got an employment offer letter from one of the companies in Dubai.......The post they have offered is "HR Administrator",but the offered salary package is 
1.	Salary : A monthly salary comprising of;
Basic Salary : Dhs.1,500/-
Accommodation Allowance: Dhs.1,000/-
Transport Allowance : Dhs.7,50/-
Other Allowance : Dhs.7,50/-
2.	Annual Leave : 30 Days
3.	Gratuity : As per UAE labour Law
That’s all and the contract is for three years. It is a contracting company in Emirates (metro station)
I have 12 years experience in India in the HR field, Qualification is MBA with BA. LLB. No UAE experience , Driving License and knowledge in Arabic, are the drawbacks they points out and they have taken me as a fresher. My age is 46.Is this offer is a reasonable one?
Please advise me in finding a cheapest one room accommodation near Emirates metro station
Thanks in advance


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## insomnia55

Hi guys,

I would like to know your experienced opinion on a job offer I got from my current employer to move to Dubai (not 100% expat situation, more of a relocator with local UAE contract).
It is a Senior Recruitment Consultant position. I have almost 5 years of experience in that area.
OFFER:
-Basic yearly salary: 195.000 AED,
-Car allowance: 2500 AED,
-Variable Uncapped Bonus Commission Scheme,
-Medical Insurance
(+ return-flight ticket, 2 first weeks in hotel, guaranteed basic salary for first months)

I will be living alone in Dubai, and I am currently earning yearly 28 k £ net (=160k AED), all inclusive, here in my home country, with a mortgage loan of 400 £ per month.

What do you personally think?

Thanks so much for your help folks! ;-)


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## BedouGirl

insomnia55 said:


> Hi guys, I would like to know your experienced opinion on a job offer I got from my current employer to move to Dubai (not 100% expat situation, more of a relocator with local UAE contract). It is a Senior Recruitment Consultant position. I have almost 5 years of experience in that area. OFFER: -Basic yearly salary: 195.000 AED, -Car allowance: 2500 AED, -Variable Uncapped Bonus Commission Scheme, -Medical Insurance (+ return-flight ticket, 2 first weeks in hotel, guaranteed basic salary for first months) I will be living alone in Dubai, and I am currently earning yearly 28 k £ net (=160k AED), all inclusive, here in my home country, with a mortgage loan of 400 £ per month. What do you personally think? Thanks so much for your help folks! ;-)


If you check the stickies, you will find pages and pages on this subject and there is a forum specifically for Dubai, where you will get more answers as this forum is for the rest of the UAE.


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## SAtoUAE

*Opinion on Salary offfer*

Hi

I have received an offer from a company in Dubai. The package is as follows:

Basic 366,000
Accommodation 126 000
Education 40 000
Flight home 19 000
Medical included

We are a family of 4 (Wife and 2 Kids 4 and 6 years)

Any thoughts would be appreciated.

Thanks


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## rsinner

SAtoUAE said:


> Hi
> 
> I have received an offer from a company in Dubai. The package is as follows:
> 
> Basic 366,000
> Accommodation 126 000
> Education 40 000
> Flight home 19 000
> Medical included
> 
> We are a family of 4 (Wife and 2 Kids 4 and 6 years)
> 
> Any thoughts would be appreciated.
> 
> Thanks


http://www.expatforum.com/expats/du...-salary-offer-package-questions-part-2-a.html


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## shakerz

Hello all,

Last week I have been offered a 3 year posting in Dubai in the DIFC, I am wondering if the package offered is a package that enables my family (wife and toddler) and I to live comfortably in the UAE.
The offer is in AED:

AED 450,000.00 Annual Salary 
AED 110,000.00 Assignment Allowance per annum
AED 38,500.00 Flights home per annum, however we choose to use it
AED 35,750.00 Car Allowance per annum (is this enough to lease a standard saloon car?)
AED 255,000.00 Housing Allowance per annum

The company provides relocation package to the UAE, a search trip for housing, medical, tax advisor, school allowance, relocation package to return to the UK after 3 years.

Thanks for your guidance.


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## tauseefcasvab

shakerz said:


> Hello all,
> 
> Last week I have been offered a 3 year posting in Dubai in the DIFC, I am wondering if the package offered is a package that enables my family (wife and toddler) and I to live comfortably in the UAE.
> The offer is in AED:
> 
> AED 450,000.00 Annual Salary
> AED 110,000.00 Assignment Allowance per annum
> AED 38,500.00 Flights home per annum, however we choose to use it
> AED 35,750.00 Car Allowance per annum (is this enough to lease a standard saloon car?)
> AED 255,000.00 Housing Allowance per annum
> 
> The company provides relocation package to the UAE, a search trip for housing, medical, tax advisor, school allowance, relocation package to return to the UK after 3 years.
> 
> Thanks for your guidance.


Hi, it looks a good package


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## Aus1982

*Aus to Dubai inter-company transfer*

Hi guys, any one here experienced, or know anyone, that has been transferred to Dubai by their company? (Inter-transfer) do companies offer same salary as the country of origin? 
In fact, I am Australian citizen, and I am working as a senior engineer in a tire one EPC oil and gas. They are paying me good package here (14000 Aud per month before tax, equal to 40000 AED/month). My company asked me if I am interested to move to their Dubai office. Can I expect that they pay me same salary in Dubai? or even higher (e.g. Allowance, etc..) :fingerscrossed:. Or they will probably adjust my salary? 
Thanks heaps guys


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## Racing_Goats

Aus1982 said:


> Hi guys, any one here experienced, or know anyone, that has been transferred to Dubai by their company? (Inter-transfer) do companies offer same salary as the country of origin?
> In fact, I am Australian citizen, and I am working as a senior engineer in a tire one EPC oil and gas. They are paying me good package here (14000 Aud per month before tax, equal to 40000 AED/month). My company asked me if I am interested to move to their Dubai office. Can I expect that they pay me same salary in Dubai? or even higher (e.g. Allowance, etc..) :fingerscrossed:. Or they will probably adjust my salary?
> Thanks heaps guys


For a transfer they should match if not increase your base salary and (in a tier one Co, if that means MNC?) Provide accommodation, relocation, family (school) allowances as those need to be paid in a new posting overseas..


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## Hesho

*hello*



dimkatsar said:


> Good evening everyone.
> Recently i got an offer from a european company located in Dubai.They offered me a UAE contract with duration of 18months for a project that will be held on behalf of a company located in UK.
> This means that i am going to be employed with a UAE contract by the company in Dubai and get paid by the "customer" company located in UK.
> 
> I am 34yrs, i am an Electrical and Electronic Engineer and i also have an MSc in Telecomms and Computer Networks. Moeover i have 9yrs of experience in the telecomms and networking sector, i possess several vendors certifications such as Cisco,MCP and Huawei and currently i work in one of the biggest ISP company here in Greece.
> 
> So the offer that i would like to have your opinion is that one follows:
> 1.Basic Gross Salary of 18,089 AED/month (Shouldnt be tax free as it is a UAE contract!!!???)
> 2.Medical insurance (the contract states that i will be also entitled to participate at the 3Company’s expense in the Company’s private medical expenses insurance)
> 3.A repatriation Insurance covered by the company
> 4.End of service benefit of 1 month salary for each working year accordingly to the U.A.E Laws.
> 5.Sick leave and an Annual leave of 22 working days.
> 
> As you can notice no allowances are provided at all, like house allowances,car allowances etc.
> That thing that really makes me a little bit confused is the fact that despite a UAE contract is offered to me, the contract clearly states that "The Employee will be responsible for paying all employee tax and social security payments".
> Can you tell me if this is legal or not?. I thought that a UAE contract means generally a tax free income!. Am i wrong or not?.
> Is it legal for someone to be offered a UAE contract , working in UK company and pay taxes as a UK citizen?. Is it againt the UK Laws for someone not to pay taxes even if a uae contract has been offered to him?.
> 
> I really would like to have your opinion if i have to say yes or no to this kind of little bit "strange" contract.
> Please advice me in order to take my final decision.


Hi, 
Working in UAE regardless of the company's nationality put you under full control of UAE law unless something different is mentioned in your contract.
So you are not eligible to pay for UK tax.
Whether this amount is sufficient or not, you may consider if you are coming alone or with spouse and children. If alone i would say you would survive with some control on your expenditure.


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## faffypants

*£103,000 Tax free*

Hi, 
The position I'm looking at (a head hunter is hounding me) quotes a take home of £103k, tax free. 
I've got 3 kids, they're offering 30K UED per child towards education. 
They say they will pay medical insurance and visas, and 30k towards 1st year rent, re settlement and flights. 

I'm a designer - it's for a lead / specialist position. 
I've got 20 years experience in the field. 

Does this sound good?


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## Gavtek

Depends what kind of designer (oilfield pipelines, fashion, etc?) and it would be more helpful if the salary was quoted in AED as the GBP is currently in the gutter. It's a decent enough salary at the current exchange rate but with a family of 3 you won't save much unless your wife works also (then you'll likely be hiring a live-in maid).

As a ballpark, you'll be spending AED 170k/year on rent (assuming 4 bedroom villa) + another approx AED 30k in total for electricity/water/AC/internet/phone/cable TV. Putting your kids to a British school, you'll be spending approx AED 12k per child per year out of your own pocket. AED 50k/year for a large SUV (either renting or buying new via car loan). Of course it's possible to spend less on everything (except the school fees).

The company is obliged/expected to pay for the visas, medical insurance, re-settlement costs and annual flights.

Are the company providing any allowances for shipping your personal items, and are they going to put you in a hotel apartment for the first month until you find a house? If not, that's your AED 30k gone and then some.

The amount you pay in tax is not a perk so don't let the headhunter dress it up like that.


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## AlexDhabi

faffypants said:


> Hi,
> The position I'm looking at (a head hunter is hounding me) quotes a take home of £103k, tax free.
> I've got 3 kids, they're offering 30K UED per child towards education.
> They say they will pay medical insurance and visas, and 30k towards 1st year rent, re settlement and flights.
> 
> I'm a designer - it's for a lead / specialist position.
> I've got 20 years experience in the field.
> 
> Does this sound good?


Hi, try to bear in mind the cost of living is higher than the UK. Rent is particularly expensive (although going down). Expect to pay roughly 180k for a villa or apartment of reasonable quality (not brand new). Looks lilke a low offer to me when you have a spouse and 3 children to support. Also the school fees are not at all generous in your allowance (only covering half if that)


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## mv5869

Hesho said:


> Hi,
> Working in UAE regardless of the company's nationality put you under full control of UAE law unless something different is mentioned in your contract.
> So you are not eligible to pay for UK tax.
> Whether this amount is sufficient or not, you may consider if you are coming alone or with spouse and children. If alone i would say you would survive with some control on your expenditure.


That's not true of course.

If he's being paid in the UK he will pay tax on the UK earnings. The "nationality" of the company is irrelevant.


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## gaurangtewari

faffypants said:


> Hi,
> The position I'm looking at (a head hunter is hounding me) quotes a take home of £103k, tax free.
> I've got 3 kids, they're offering 30K UED per child towards education.
> They say they will pay medical insurance and visas, and 30k towards 1st year rent, re settlement and flights.
> 
> I'm a designer - it's for a lead / specialist position.
> I've got 20 years experience in the field.
> 
> Does this sound good?


Does it sound good - YES.

Is it Great - NO.

As people above have already mentioned, you would be able to maintain a good lifestyle, however, Rental, Car & Education would be the highest expense areas.

Rental - 150-170k AED p.a.
Utilities - 25k AED p.a
Edu - 15k AED per child extra from your pocket - 45k AED p.a.
Car + Maintenance + Fuel - 70k (one time)+30k p.a - 100k AED
Groc+Alc - 35k AED p.a. (individual preference)
Going out + Dinner+ movies - 40k AED p.a. (individual preference)

Doesnt include flight tickets, holidays, savings, misc.

Hence its Good, but not great.

cheers!!


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