Job Offer in UAE - Is AED 35,000 a good salary?

Hi Dweezy, Did you finally decided to make that plunge? @gmhksgp: Can you help me also making a similar decision? My situation is as below: I have been offered a role in Dubai. I have an MBA and round 9 years of experience. I am wondering whether to take it or not. I am Indian working in bangalore (india) and have a Belgium wife and a 2.5 year old kid. We are also planning to have another kid. To compare, I have ben offered a role in India also for about 5,000,000 INR which is about 73k USD which will be taxable of course. My wife is currently working and earning about 1,800,000 INR which is 26k USD. Since in any case, my job will become hectic so my wife will stop working to take care of kids. In case of dubai she will stop immediately and if we stay in india then she stops after few months. I have been given a salary of 120k USD in Dubai non taxable. This amounts to 37000 aed per month. I have medical coverage for family and 60000 aed for schooling over and above the salary. I am really confused what to go for. Please ask me for more information and i can provide the same. Thanks, SK

Here are some non cash elements (Emirates airline) which you should consider finding out: Annual Leave Minimum of 30 calendar days in addition to 10 public holidays. Leave increases above 30 calendar days in steps dependant on the seniority of the position. • End of Service Gratuity In accordance with UAE Labour Law, on leaving the company you will be provided with an end of service (gratuity) payment calculated as 21 days basic salary per annum for the first 5 years of service and then 30 days basic salary per annum for each year of service beyond 5 years of service. The eligibility of the following benefits is dependant upon the role and/or applicant’s unique personal circumstances: • Leave Tickets Free annual leave tickets are provided to approved leave destinations for the employee and their eligible dependants subject to Company policy. • Education Support Allowance Financial support towards the payment of core tuition fees is provided to staff in more senior positions. It is intended as a contribution towards the overall expenses the employee may incur for their children’s education. • Personal Life and Accident Insurance/ Workmen’s Compensation Insurance • Medical and Dental Provision/Government Health Card • Government Pension Scheme Eligible UAE National and GCC citizens are enrolled into their respective Government Pension Scheme, employees and Company contributions are payable.

Here are some non cash elements (Emirates airline) which you should consider finding out: Annual Leave Minimum of 30 calendar days in addition to 10 public holidays. Leave increases above 30 calendar days in steps dependant on the seniority of the position. • End of Service Gratuity In accordance with UAE Labour Law, on leaving the company you will be provided with an end of service (gratuity) payment calculated as 21 days basic salary per annum for the first 5 years of service and then 30 days basic salary per annum for each year of service beyond 5 years of service. The eligibility of the following benefits is dependant upon the role and/or applicant’s unique personal circumstances: • Leave Tickets Free annual leave tickets are provided to approved leave destinations for the employee and their eligible dependants subject to Company policy. • Education Support Allowance Financial support towards the payment of core tuition fees is provided to staff in more senior positions. It is intended as a contribution towards the overall expenses the employee may incur for their children’s education. • Personal Life and Accident Insurance/ Workmen’s Compensation Insurance • Medical and Dental Provision/Government Health Card • Government Pension Scheme Eligible UAE National and GCC citizens are enrolled into their respective Government Pension Scheme, employees and Company contributions are payable.

Hi, Dweezy, AED 35k for base is not a hugh sum in the UAE but the subsidy for schooling as well as flight allowance do help. Would you also have an estimate for your bonus or other variable comp? Housing could easily set you back by around US$63k pa for a family of 4. There is little info about the state you're from, etc. Without that level of details, it is difficult to assess whether the package would be viable from a financial perspective. Suggest you fully evaluate your package holistically and plan your US taxes to ensure you are able to take full advantage of the foreign earned income exclusion as well as foreign tax credit. There may also be financial reporting requirements even if you owe no US tax. Please let me know if I can help, having lived in Dubai and being a qualified US tax advisor from Big 4 as well as head of mobility for some of the largest MNC's. Given the technical and personal nature of the discussion, you may like to take this offline if you would like to further the dialog. Thanks!

gmhksgp: I would like to take our conversation offline. How can I contact you? Also, my current state is South Carolina, USA. Regarding bonus, I was told the bonus is discretionary and may vary; I was not given a definitive amount.

Hi, Dweezy, you may refer to www.contexomobility.com for my contact details. Since SC determines residency based on domicile and has rulings on residency position of expats, it is unlikely that you could break your residency unless you have strong facts and circumstances to back you up. Fortunately, SC does recognize foreign earned income exclusion. We can discuss more in private. Thanks!

I have got offer of 19000 AED. Can u please let me know whether it is a good offer. I am married and dont have kids.

Oh... be careful about the wording of the UAE end of service gratuity. The previous poster was correct on the days 21 per year and 30 after year 5 BUT..... my husband's employer based it on the "basic salary" which they cut in half of what he actually earned and claimed the other half were for allowances so essentially we got half of what we were supposed to. Thing is that was just a sneaky way to get out of paying the other half since allowances were already covered separately. This was pure salary.

Hi - please see an article we have just posted on expat salaries in the Middle East including Dubai and Abu Dhabi, UAE and neighbouring countries. 

Thing is that was only a slippery method to escape paying the other half since recompenses were at that point secured independently. This was unadulterated compensation.