what's a normal relocation package?

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what's a normal relocation package?


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Old 21st March 2011, 02:00 PM
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Hi All,

I have been offered a job in Dubai as an area manager and was wondering what would be a normal relocation package offer for a family of 4 with 2 kids (4 & 7)? Is it normal that the company pays for:
1. both kids schooling
2. accommodation
3. shipping of our things
4. all airplane tickets for the move
5. 1 times airplane tickets / year back to home country for the whole family
6. health insurance for the whole family?
7. Did I miss anything?

I am in the negotiation phase and would highly appreciate your valuable comments!

Thanks a million,
Sziszi

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Old 21st March 2011, 02:22 PM
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That sounds about right. You could also add in utilities and car allowance. Some companies however nowadays are not giving allowances just an 'all in' salary where you have to pay for everything yourself except health care I think - salary would of course have to be sufficient to cover all these things. Other companies only pay part schooling and part accommodation. A few years ago most, if not all, of these allowances would have been the norm however things changed when the recession hit. However hopefully your new company will provide them - good luck

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Old 21st March 2011, 02:27 PM
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Other than what already said, depending on the company as some only pays schooling for kids 5 and over. But some pays from 4. You better ask...

Also, most pays only 1 x 20ft container. Some pays more... Again, better ask depending how much you are bringing with you.

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Old 21st March 2011, 02:28 PM
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Dear Mim,
Thank you very much for your prompt reply! Say if the company only provides accommodation and schooling for 1 child, how much would be a salary we could live a normal life on?
Thanks a million,
Sziszi

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Old 21st March 2011, 03:08 PM
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Quote:
Originally Posted by Sziszi View Post
Dear Mim,
Thank you very much for your prompt reply! Say if the company only provides accommodation and schooling for 1 child, how much would be a salary we could live a normal life on?
Thanks a million,
Sziszi
That's a hard question which everyone would have a different answer to - depends what is classed as a 'normal' life. Everyone has different standards. Perhaps if you were to give us an idea how much salary only you are expecting I could give you a better answer. School fees in Dubai are I think approximately 40,000 dhs per term so that would give you an idea.

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Old 21st March 2011, 03:17 PM
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I am expecting AED 18 000 / month. Normal life for us means cooking at home and go out to eat maybe once per week. No excessive spend on anything, no nanny, just the needful. Weekend fun with the kids, eg aquapark. Extra curricular activities for kids at school, maybe 2 per kid. Not much partying, no expensive gadgets or jewellery. Especially in the first months, since we dont know how we can get on our salary. Of course I need the lady stuff: hairdressers, waxing, manicure-pedicure, facials. But thats all.

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Old 21st March 2011, 03:50 PM
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So are you expecting 18,000 + housing + schooling for 1 child + medical insurance for family ?
1. Schooling for the other child - expect to pay maybe 35-40,000 per year (not term) for a good school. For top schools, expect to pay 1.5 to 2 times this amount. So that is c. 3,000 per month
2. utilities - if you are in a villa, I would think that the monthly bill would be c. 500 to 1000 per month
3. car - for one car, if rented, min is 1800-2,000 per month. If owned, minimum cost (if you get a loan) would still be 1000-1500 per month
4. Phone - depends, but maybe 500 Dhs per month if usage is between phone + skype
5. groceries - if you mostly cook, i would still expect up to 1500-2000 per month for a family of four
So you are down about 9000 (at the higher end of the above numbers) already.
Then factor in costs like taxis (in case you have one car), going out (assuming you go to a brunch), you may spend c. 500 Dhs in one day - obviously you can spend much less (say going to a free beach) or much more (say going to a water park in the Atlantis at 275 Dhs per adult + kids' charges). Beauty parlour - i am guessing 200 Dhs at the minimum for one session of whatever have you. Then there are small things which add up for a family of four during the month
Obviously it depends on how lavishly or frugally you choose to live. I know people who can easily live on 18000 and save, and know people who will not be able to survive on this amount.

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Old 21st March 2011, 03:55 PM
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Thanks rsinner - just realised I had put school fees per term meant annual!

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Old 22nd March 2011, 08:33 AM
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Thanks a lot Rsinner - this is great help! I did some calculations based on what you said and looks like AED 18 000 would only be enough if the company covered both children's tuition. We are not big spenders but want to live a comfortable life and not think twice if I can afford to buy fruit to the children or not.

One more question please: how do you guys sort out your pension? Since there is no tax in the UAE... In Hungary the governmet deducts from your gross salary a % for pension... how does this work in the UAE? Do you have private pension savings?

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Old 22nd March 2011, 09:19 AM
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Quote:
Originally Posted by Sziszi View Post
Thanks a lot Rsinner - this is great help! I did some calculations based on what you said and looks like AED 18 000 would only be enough if the company covered both children's tuition. We are not big spenders but want to live a comfortable life and not think twice if I can afford to buy fruit to the children or not.

One more question please: how do you guys sort out your pension? Since there is no tax in the UAE... In Hungary the governmet deducts from your gross salary a % for pension... how does this work in the UAE? Do you have private pension savings?
To be honest I do think 18,000 is a bit tight if you want to save as well (aren't we all here in the middle of the desert to save some money as well?)

From what I know, there is no govt. pension scheme. It is governed by the Labour Law (which is a bit fuzzy to me), but in short, if you have spent more than 2 years in a company, you will get 3 weeks of salary for every year worked. I may be wrong on the numbers, but this is the concept and this is all you get. So in case you want to build your retirement fund, you will have to plan for it yourself and set aside some money. There is no deduction from the salary.

However, i DO know that there are some companies which may have a PF scheme. So there is an x% deduction from the salary, and the employer (not the govt.) also contributes x% to the pension fund of the employee. So also check with your potential employer if they have such a scheme


Last edited by rsinner; 22nd March 2011 at 09:21 AM. Reason: To add about the pension scheme of companies
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