# what's a normal relocation package?



## Sziszi

Hi All,

I have been offered a job in Dubai as an area manager and was wondering what would be a normal relocation package offer for a family of 4 with 2 kids (4 & 7)? Is it normal that the company pays for:
1. both kids schooling
2. accommodation
3. shipping of our things
4. all airplane tickets for the move
5. 1 times airplane tickets / year back to home country for the whole family
6. health insurance for the whole family?
7. Did I miss anything?

I am in the negotiation phase and would highly appreciate your valuable comments!

Thanks a million,
Sziszi


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## Madam Mim

That sounds about right. You could also add in utilities and car allowance. Some companies however nowadays are not giving allowances just an 'all in' salary where you have to pay for everything yourself except health care I think - salary would of course have to be sufficient to cover all these things. Other companies only pay part schooling and part accommodation. A few years ago most, if not all, of these allowances would have been the norm however things changed when the recession hit. However hopefully your new company will provide them - good luck


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## ccr

Other than what already said, depending on the company as some only pays schooling for kids 5 and over. But some pays from 4. You better ask...

Also, most pays only 1 x 20ft container. Some pays more... Again, better ask depending how much you are bringing with you.


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## Sziszi

Dear Mim,
Thank you very much for your prompt reply! Say if the company only provides accommodation and schooling for 1 child, how much would be a salary we could live a normal life on?
Thanks a million,
Sziszi


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## Madam Mim

Sziszi said:


> Dear Mim,
> Thank you very much for your prompt reply! Say if the company only provides accommodation and schooling for 1 child, how much would be a salary we could live a normal life on?
> Thanks a million,
> Sziszi


That's a hard question which everyone would have a different answer to - depends what is classed as a 'normal' life. Everyone has different standards. Perhaps if you were to give us an idea how much salary only you are expecting I could give you a better answer. School fees in Dubai are I think approximately 40,000 dhs per term so that would give you an idea.


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## Sziszi

I am expecting AED 18 000 / month. Normal life for us means cooking at home and go out to eat maybe once per week. No excessive spend on anything, no nanny, just the needful. Weekend fun with the kids, eg aquapark. Extra curricular activities for kids at school, maybe 2 per kid. Not much partying, no expensive gadgets or jewellery. Especially in the first months, since we dont know how we can get on our salary. Of course I need the lady stuff: hairdressers, waxing, manicure-pedicure, facials. But thats all.


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## rsinner

So are you expecting 18,000 + housing + schooling for 1 child + medical insurance for family ?
1. Schooling for the other child - expect to pay maybe 35-40,000 per year (not term) for a good school. For top schools, expect to pay 1.5 to 2 times this amount. So that is c. 3,000 per month
2. utilities - if you are in a villa, I would think that the monthly bill would be c. 500 to 1000 per month
3. car - for one car, if rented, min is 1800-2,000 per month. If owned, minimum cost (if you get a loan) would still be 1000-1500 per month
4. Phone - depends, but maybe 500 Dhs per month if usage is between phone + skype
5. groceries - if you mostly cook, i would still expect up to 1500-2000 per month for a family of four
So you are down about 9000 (at the higher end of the above numbers) already.
Then factor in costs like taxis (in case you have one car), going out (assuming you go to a brunch), you may spend c. 500 Dhs in one day - obviously you can spend much less (say going to a free beach) or much more (say going to a water park in the Atlantis at 275 Dhs per adult + kids' charges). Beauty parlour - i am guessing 200 Dhs at the minimum for one session of whatever have you. Then there are small things which add up for a family of four during the month
Obviously it depends on how lavishly or frugally you choose to live. I know people who can easily live on 18000 and save, and know people who will not be able to survive on this amount.


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## Madam Mim

Thanks rsinner - just realised I had put school fees per term meant annual!


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## Sziszi

Thanks a lot Rsinner - this is great help! I did some calculations based on what you said and looks like AED 18 000 would only be enough if the company covered both children's tuition. We are not big spenders but want to live a comfortable life and not think twice if I can afford to buy fruit to the children or not. 

One more question please: how do you guys sort out your pension? Since there is no tax in the UAE... In Hungary the governmet deducts from your gross salary a % for pension... how does this work in the UAE? Do you have private pension savings?


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## rsinner

Sziszi said:


> Thanks a lot Rsinner - this is great help! I did some calculations based on what you said and looks like AED 18 000 would only be enough if the company covered both children's tuition. We are not big spenders but want to live a comfortable life and not think twice if I can afford to buy fruit to the children or not.
> 
> One more question please: how do you guys sort out your pension? Since there is no tax in the UAE... In Hungary the governmet deducts from your gross salary a % for pension... how does this work in the UAE? Do you have private pension savings?


To be honest I do think 18,000 is a bit tight if you want to save as well (aren't we all here in the middle of the desert to save some money as well?)

From what I know, there is no govt. pension scheme. It is governed by the Labour Law (which is a bit fuzzy to me), but in short, if you have spent more than 2 years in a company, you will get 3 weeks of salary for every year worked. I may be wrong on the numbers, but this is the concept and this is all you get. So in case you want to build your retirement fund, you will have to plan for it yourself and set aside some money. There is no deduction from the salary.

However, i DO know that there are some companies which may have a PF scheme. So there is an x% deduction from the salary, and the employer (not the govt.) also contributes x% to the pension fund of the employee. So also check with your potential employer if they have such a scheme


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## Sandgroper74

You might also need to factor in the cost of a maid and school bus if you won't be finishing work before the children finish school, if your husband will be working too. I'd also check how much education allowance you are entitled to. I assumed that full education fees would be paid but we only receive a set amount and it is likely that we will have to make a contribution.


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## Sziszi

Guys you are so great, thank you - excellent information! I am taking notes!

Also, how much would be extra curricular activities per year for the 2 kids? I mean school extras on top of tuition? (uniform, school bus, extra curricular activities, meals, etc)


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## CrowdedHouse

- School bus depends on the school and where you live usually. I think the average at my son's school is 8k/year
- Some schools offer extra activities for free, but programs outside the school will be expensive (even when offered on school premises). Especially things like dance, music or sports. I don't know exact numbers because our son's school offers a wide variety of after school stuff for free.
- Sometimes my son eats lunch at school and he uses up to 10 dirhams a day.
- Uniform - we bought the bare minimum (3 polo shirts, 2 gym shirts, 3 shorts) and paid around 2k. Expensive in my opinion.

Also re: the utilities, it can get really expensive if you don't monitor your water and a/c usage in the summer. Villas are probably going to be 2-3 times more expensive than apartments.


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## Sziszi

Hi CrowdedHouse,
Thanks a lot for your useful info - now I can calculate and ask for what we need. 

Thanks a million and you guys all have a fantastic day! Great to experience so many of you are offering help!  YOU ARE GREAT!


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## rsinner

great so you are not even here and advertising for free ? In case you didn't know, you need to be a premium member to advertise on the forum


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## irishjojo

rsinner said:


> great so you are not even here and advertising for free ? In case you didn't know, you need to be a premium member to advertise on the forum


I wasnt trying to advertise, if I was advertising I would have said something completely different. I was placing a comment on a thread to a question others ignored. He may or may not use the information provided. I certainly didnt intend to offend anyone. Good luck


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