Employees in the UAE are increasingly demanding higher housing, transportation, and children's school allowances from employers, due to the rising cost of living, according to recruitment consultants.
Mayank Patel, SVP at Adecco and head of EEMEA, highlighted that employees are seeking better compensation packages to cover the escalating costs of rent and daily expenses.
"Many are requesting increases in housing and transportation allowances, or adjustments to salary packages to cope with the basic cost of living and transport. Senior-level executives may also benefit from education allowances or wellness perks,"
Patel noted.
Rents have surged over the past four years, with demand exceeding supply, causing rental prices to double in some areas. Additionally, the recent introduction of new toll gates by Salik Company in November, alongside the implementation of variable pricing, has further increased commuting costs. Peak hours now carry a Dh6 charge, while rates are waived from 1 am to 6 am.
Dina Tawfik, Vice President of Growth at Bayt.com, acknowledged an increase in requests for higher allowances in response to these hikes. She emphasized that flexible benefits—such as school fee coverage, travel allowances, and housing assistance—have become crucial for attracting and retaining talent.
Patel and Tawfik both agreed that employers need to review and adapt their compensation strategies to meet employee needs while maintaining competitiveness in the labor market. Offering comprehensive benefits, including health insurance, professional development, and wellness initiatives, will contribute to job satisfaction and talent retention in this high-cost environment.
News Source: Khaleej Times
