For those looking to relocate temporarily to the Middle East differences in tax laws and salary conditions can result in individuals making significant increases to their yearly wages. With jobs in Saudi Arabia and the UAE continuing to be available for expatriates, and with salaries much the same as those found in Western countries, tax law variations can play an important part in attracting workers.
Dubai in particular remains highly attractive for prospective workers as, like many other emirate countries, the nation has no personal taxation laws. For this reason, though the majority of salaries may fall in line with those paid in Western nations, net income can often be far greater. In addition, whilst many companies used to offer remuneration packages which divided income into specific portions for items such as education, travel costs, housing provisions etc, recent changes now mean that on the whole an individual will simply receive a salary which covers everything. Allowing for workers to spend their income how they like, the change is an added attraction to an already beneficial package.
Like job positions in the West bonuses and commission practices are also incorporated into work though unlike other places jobs in the UAE and Saudi Arabia also often provide an “indemnity” package. Provided to individuals when a contract ends, the package is normally calculated on a worker’s salary throughout the term of employment, discounting bonuses. Usually providing between 15 and 20 days basic pay for the initial three years of a contract and a month’s salary for each contracted year after, indemnity packages can result in a significant sum, providing workers with a huge ‘thank you’ package for working in the nation.
