Trends in Salaries and Compensation Packages in Dubai.

Author

Denis Popov

 

When thinking about finding a job in Dubai, it is important to consider all the features and study the local market thoroughly. This approach will allow you to understand the potential for career development in Dubai and help you make an informed choice As you know, Dubai is an advanced city that does not stop developing in scale and innovation. It is important here to keep up with modernity and keep up with the active rhythm of the big city. Despite the absence of a minimum wage here, each area has its own rules regarding wages. These standards are established by law and are mandatory. The future employee must compare his future salary with the local standard of living to make sure that he can feel comfortable and settle down well. Well, an equally important factor is the ability to save a certain amount, so take this point into account.

The Economic Landscape Affecting Salaries in Dubai

 

Dubai, one of the seven emirates of the United Arab Emirates (UAE), is famous for its dynamic economic growth and attracts not only tourists but also thousands of international professionals looking for a job in the UAE with high salaries and generous benefits. These include a decent standard of living and premium real estate. Individuals, both citizens and residents, are not subject to income tax at all in the UAE. They are also exempt from taxation on interest, dividends, wealth, luxury goods, inheritance, gifts, and capital gains.

A foreigner with a resident visa does not pay pension tax in the UAE, while in Portugal, for example, the tax rate on pensions received from abroad ranges from 10 to 48%.

The same applies to freelancers and self-employed persons who are residents of the country.

Hence, the salary and other bonuses in Dubai are attractive factors for international professionals. This city offers unique opportunities for professional growth and well-being due to high salaries combined with benefits provided by companies and the absence of personal income tax. These factors create an attractive economic environment where employees can keep most of their wages and enjoy a high standard of living in the UAE, receiving quality services and good service. 

Trends in Salaries in Dubai

Current trends in salaries

In 2013, the UAE Ministry of Human Resources and Emiratization (MoHRE) established salary guidelines for various categories of workers. The purpose of this action was to achieve a level of payment sufficient to ensure that the basic needs of workers were met. According to the recommendations, the monthly salary of skilled workers should be at least 5,000 dirhams (1,361 US dollars), qualified technical specialists - at least 7,000 dirhams (1,905 US dollars), and specialists with higher education - at least 12,000 dirhams (3 US$270).

According to Article 27 of the UAE Labor Law, the Cabinet of Ministers has the right to set the minimum wage for all categories of workers at any time. It follows that in the future the UAE may introduce a law establishing a mandatory minimum wage. When asked about the average salary in Dubai, international recruiting agencies say it is around AED 20,000 per month (USD 5,450). However, this amount depends on the company, the qualifications of the employee, his education, and experience, and is also largely determined by his negotiation skills and even nationality.

Evolution of compensation packages

It is important to understand your rights and responsibilities under the country's labor laws.

One of the most notable changes in labor law is the introduction of a new system for resolving labor disputes. The law now requires that all disputes between employers and employees be referred to a new labor court, which has the power to make binding decisions or declare the termination of employment contracts.

  • Compensation for unjustified dismissal. In the UAE, it is unacceptable to dismiss employees or terminate employment contracts without valid reasons. In case of unjustified dismissal, the employee must be paid an amount equal to three months' salary. However, to receive this compensation, the employee must work for the company for at least one year after concluding the employment contract.

  • Vocational training programs. From time to time, the company or government must offer vocational training programs to employees. However, these programs mustn't cause changes in employee benefits or wages.

Impact of global trends on salary in Dubai

In the UAE, salaries remain consistently at a good level. However, foreigners may come across different offers, so it is important to learn how to choose the right vacancies and explore the entire market. Analysis is one of the keys to success, which you cannot do without when finding a job. 

The salary level depends on the value of the employee. A company is willing to pay a lot when it seems that a specialist is difficult to replace and brings income or benefits to the business. This is logical, so there may even be competition in the market for valuable employees, and this is not a rare occurrence. Moreover, if you learn to position and promote yourself correctly, then offers may come to you on their own.

Looking at salary statistics in the UAE and other countries, you can see who gets paid more. Qualified workers and managers can count on good earnings. Housekeepers will earn less, but there are fewer requirements for them, and it is not always necessary to know a foreign language.

 

Understanding the meaning of the term "base rate" is also important. You can receive additional monetary rewards in addition to the fixed salary. If the base rate is paid for fulfilling the duties specified in the contract, then rewards are usually paid for some achievements. In addition, bonuses can be in the form of benefits from the employer. This includes housing, payment for transport, insurance, telephone communications, and much more. Usually, such features are immediately added by the company to vacancies to attract the interest of more valuable specialists.

Predictions about salary trends in the coming years

The UAE's thriving economy attracts people from different nationalities. Thanks to many factors and advantages, it has developed a multicultural society to which it needs to adapt. The question that worries foreigners most often concerns salary. On average, with official employment, a person in standard positions can receive from $1,200. Of course, the better his experience and education, the more opportunities open to him.

It is quite difficult to predict future trends regarding wages in this country. At the moment, one can notice the active development of the UAE and the desire for further changes. If you are interested in a profession, but you are not yet ready to move, monitor its demand, relevance, wages, and the value of such specialists. Also, carry out salary comparison sectors to make the right choice in the future. At the same time, continue to study and receive additional useful information on topics of interest. Everyone has their criteria and wishes, but in any case, working in the UAE is a chance to improve their financial situation and make new acquaintances. Especially if you actively show yourself and don’t stop there. 

Global trends on salary in Dubai

The local labor market is actively expanding and therefore is experiencing a shortage of many specialists. This applies to many areas from construction, biology, and medicine, to real estate and IT. If you are working legally in this country, you can enjoy many benefits if you do your job properly. Moreover, this applies not only to saving money but also to an invaluable experience. A valuable employee will be able to count on positive recommendations from his employer at the end of his contract and continue to look for interesting offers. Career growth is not prohibited here, but encouraged, so everyone has the same opportunities to build the life of their dreams from scratch.

Interesting connections can help you advance faster. Especially if you are constantly in sight and present yourself as a professional in some field. Employers often value such specialists, so they do not exclude rewards for the work done and the value they bring to the company.

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I agree with every word and am grateful to the authors for a valuable article.
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Dubai is attractive for employment, so I am considering this city.
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It is important to find out as much information as possible before applying for a job
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I read it from beginning to end and drew conclusions for myself.
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Thanks for the article, I will recommend it to my colleagues
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