# What happens to excess housing allowance?



## ukay (Mar 12, 2009)

Hi,

The package I have been offered includes a set amount for housing allowance. 

My question concerns what the general practice is in Dubai when a company employee is frugal enough to choose accommodation that does not utilise his or her full housing allowance.

Is it typically the case that an employee is given any excess amount of unused housing allowance or does the excess simply remain with the employer, in which case it would make most sense for the employee to simply choose a property which uses up as much of the housing allowance as possible, for example by negotiating a rent which includes bills for all services associated with the property (i.e. DEWA, maintanenance, internet, etc.)?

Just want to avoid any nasty surprises!!

Thanks.


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## Sparkysair (Jul 16, 2008)

Normally you would be paid your allowances in the same way as you are paid your salary. If your company are good enough to pay your full year's rent up front for you (check because this is not a given) it should be deducted from your salary each month. Any unused amount should be paid along with your monthly basic. 

It's a renter's market at the moment so try negotiating 12 (or at least 6, 4 or at worst 2) cheques with your potential landlord. That way, you don't have to rely on your employer to pay up.

HTH


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## ukay (Mar 12, 2009)

Thanks a lot, Sparkysair that was really helpful.

My plan is to rent a cheap furnished short term let for about a month then decide where to stay longer term once I am more familiar with the ins and outs of living in Dubai.

Thanks again for your advice!


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## Lenochka (Apr 19, 2008)

pretty much depends on your contract. If the housing is stated as X AED, than this is what you are entititled too. it is then your decision if you want/should/have to use the whole amount or go for a more budget option. However, the contract may state that excess shall be returned to the company (I know one case like that, hence that guy uses the full amount despite the fact that he lives know in a bigger apartment then actually desired).


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## irishxpat (Nov 17, 2008)

Get a big place and sublet


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## ukay (Mar 12, 2009)

Thanks for the advice, folks. My contract doesn't say anything about giving a fil back! So I should be entitled to all of it...ALL OF IT I TELL YA! MUAHAHAHA...


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## flossie (Jun 9, 2008)

Our company pays our rent up front in one cheque. If the rent exceeds the allowance, the balance is deducted monthly from salary. If the allowance exceeds the rent, the balance is paid monthly.


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## ratpick_2000 (Jan 30, 2009)

smash the excess on booze in Irish Village tomorrow. You'll get rid of most of it in one evening. Happy Paddys day!


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