The hidden costs of working in the UAE.
We got a pay rise but it’s inadequate especially with regards to Housing and Pension. And the package that I signed up to is being progressively eroded by inflation. I have worked out that I take home about AED7,000 more per month than I would in Europe, however, I have also worked out that it will take me at least 3-5 years to simply break even because there are huge hidden costs. Here is the reality of those hidden costs.........
There is ZERO pension which is a hidden cost of circa AED 32,000pa. Although there is an End of Service gratuity, it is now where near a replacement for the lack of pension; it equates to just AED4,000 pa if you stay for <3 years, AED8,000 pa for 3-5 years and a paltry AED12,000 pa for > 5 years of service.....a 20,000k short fall at best or 28,000k shortfall in the worst case. Ouch!! That is very, very painful!
This is a company that has chosen to do everything it possibly can to avoid / minimise that end of term gratuity.....only the basic qualifies......that’s why FDB uses so many allowances and that is why FDB has never ever increased the basic.....all increases have been made to the allowances.
The housing allowance is now inadequate. You won’t rent a 3 bed villa for much less than AED145,000 pa unless you live on a building site. And rent is increasing at an alarming rate. It’s in excess of 10% pa and FZ have only increased the allowance by 5% in 3 years. And, if you have children, you will have little control over where you live unless you want to drive huge distances. School places are very limited and can dictate where you live which can mean living in a more expensive area than you would otherwise choose.......many companies pay schools debentures which mean their employees get priority school places but FZ did not when I joined.
Schooling fees may, in some cases, have a shortfall of up to AED20,000 per child. And you get ZERO allowance if you choose to school you kids in their homeland. FZ have chosen to confine the allowance to schools only within the UAE.......(the government want you to spend your money here rather than sending it home). This is OK for Junior School as the Junior Schools are very good. However, the Senior schools in the UAE have a poor reputation and it could be very expensive mistake for your kids in later life if they end up at a poor senior school in the UAE.
Dubai is also expensive. Many items costs 30% more than in the US or Europe even after VAT...it’s allegedly tax free but the base price of most things is far higher than it would be outside the UAE. On average our shopping basket costs 30% more. This includes everything from food through footwear, clothing, consumables, electronics etc. Cars and fuel are however cheap.
This is a company that provided literature at the interview which categorically said “You are entitled to concessional tickets on the Flydubai........and Emirates....”. This is untrue; there is ZERO discount on FZ travel......not even one dirham. And although Emirates concessional tickets are available they are almost impossible to use as there is no formal access to predicted loads.......how can you expect your wife to turn up at the airport with young kids, in your absence, without having the slightest idea whether the flight is under or overbooked? Unfortunately, despite being given literature that said concessionary travel was available, it’s not repeated in the contact.
And your parents will have to pay full fare tickets to visit you or their grandchildren.
There is no annual increment & when you return home you will start on year 1. The difference between a year 20 pilot and a year 15 pilot can be between AED25,000 and 50,000 pa!
It costs AED 25,000 to ship here and AED 28,000 to ship back.
You will pick up other considerable other one off costs.....curtains, white goods, selling vehicles at home.....
Another hidden cost is about AED7,500 pa for your family to return home each year.
Another hidden cost is about AED 3,000 pa for a family with kids for trips to the doctor / hospital.
There is NO compassionate leave for your parents.....you will miss their funeral. It only covers your children/wife. However, it appears as though the company will help, but only if it suits them.
The package also offers little or no compensation for the additional risks that occur when living in Dubai which simply would not be present in the US or Europe. Blood money can be payable should you be unfortunate enough to kill a pedestrian or be involved in an accident. Standard Blood Money, when found liable for causing a death, is AED200,000 and it’s also payable in varying amounts for damaged cause to a person’s body parts. Most insurance companies will pay the deceased directly but will then recover the amount from you! Some won’t pay at all in which case you can go to jail until the amount is paid. For other offences, you or your family can be asked to leave at any stage.
Other costs include losses on selling your cars when you leave Dubai and how much will it cost for white goods, curtains, setting up house when you return home?
And how do you go for an interview or sim ride?
When you do return you could possibly end up with a seasonal contract which would prove to be very expensive indeed if you end redundant at the end of the contract........you return to zero seniority when you return home.
The list goes on and on.
This is a very one sided post and there are many very good things about FZ and Dubai however, don’t come here on the hope of making more money than you could in the US or Europe. Only come here if you are unemployed or are from a politically unstable /dangerous country.
Rant over.
Last edited by asteroid02; 19th May 2014 at 05:00.