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-   -   Salary package offer - Your opinion please! (https://www.expatforum.com/expats/abu-dhabi-other-uae-expat-forum-expats-living-uae/83123-salary-package-offer-your-opinion-please.html)

dimkatsar 4th July 2011 12:40 PM

Salary package offer - Your opinion please!
 
Good evening everyone.
Recently i got an offer from a european company located in Dubai.They offered me a UAE contract with duration of 18months for a project that will be held on behalf of a company located in UK.
This means that i am going to be employed with a UAE contract by the company in Dubai and get paid by the "customer" company located in UK.

I am 34yrs, i am an Electrical and Electronic Engineer and i also have an MSc in Telecomms and Computer Networks. Moeover i have 9yrs of experience in the telecomms and networking sector, i possess several vendors certifications such as Cisco,MCP and Huawei and currently i work in one of the biggest ISP company here in Greece.

So the offer that i would like to have your opinion is that one follows:
1.Basic Gross Salary of 18,089 AED/month (Shouldnt be tax free as it is a UAE contract!!!???)
2.Medical insurance (the contract states that i will be also entitled to participate at the 3Company’s expense in the Company’s private medical expenses insurance)
3.A repatriation Insurance covered by the company
4.End of service benefit of 1 month salary for each working year accordingly to the U.A.E Laws.
5.Sick leave and an Annual leave of 22 working days.

As you can notice no allowances are provided at all, like house allowances,car allowances etc.
That thing that really makes me a little bit confused is the fact that despite a UAE contract is offered to me, the contract clearly states that "The Employee will be responsible for paying all employee tax and social security payments".
Can you tell me if this is legal or not?. I thought that a UAE contract means generally a tax free income!. Am i wrong or not?.
Is it legal for someone to be offered a UAE contract , working in UK company and pay taxes as a UK citizen?. Is it againt the UK Laws for someone not to pay taxes even if a uae contract has been offered to him?.

I really would like to have your opinion if i have to say yes or no to this kind of little bit "strange" contract.
Please advice me in order to take my final decision.

Warold 5th July 2011 05:01 AM

Actually because your getting paid in the UK through the UK finance office you will be charged Tax... Its the same with alot of expat companies (Shlumberger , Halliburton etc). Some big companies have their finances at locations where the tax is minimal (10%). But yea it sometimes happens.

But the wording is a bit generic.. some home countries require you to pay tax even tho your getting paid outside the country. I think they say it just for legal reasons that they are not responsible for your tax payments. I think US citizens have to pay tax even tho they are earning the money outside the US.

dimkatsar 5th July 2011 06:31 AM

yes but suppose i will be a UK resident having a uae contract.will i still pay taxes in uk?.i say this because as you know there are no taxes at all in uae countries.

Warold 6th July 2011 02:27 AM

You would probably need to ask a tax office in the UK for that.

dimkatsar 21st May 2012 07:01 AM

Good morning everyone.
I would like to have your opinion about the following salary package from a company located in Dubai.I am currently living with my wife, no children,so will be both of us when coming to Dubai hopefully.

The salary package is this one.

Basic:9607aed
general allowance:9607aed
Total: 19214aed

Benefits:
22working days
one yearly return ticket for self,spouse and children
medical insurance for self,spouse and children.
Accomodation allowance will be nearly 12k/year.

Do you believe this salary package would be good for 2 persons. Are we going to struggle or having a normal life doing some savings as well?.
Also,i would like to ask, in case i need to pay for my wife`s entry permit/residence visa, then how much it normally costs?.

thank you and i will be waiting for your answers soon please!

bornrelics 6th June 2012 02:14 PM

Hi,

I have accepted a job offer as a software developer and would like to know if my offer is any good and if I will be able to save some money.

I have a wife and 7 month old baby.

My Package consists of:

Basic : 240,000 AED
Housing : 112,000 AED (I don't have to spend all on housing)
Bonus : 15,000 AED

Medical Insurance for me only (Insurance for my wife and baby will cost me extra 5,000 AED "Bupa Gold Cover")
Holiday : 30 days
Flights : 1 Return ticket per year (up to 4,000 AED)

Thanks

p830335 10th June 2012 06:48 PM

So that's a good 50% down on what you should be looking for. Bloody hell, even I earn more than that. Stay in SA and aim for another strike, because for that amount it's not worth uprooting your family.

Spoken from experience,

Paul

Quote:

Originally Posted by bornrelics (Post 804318)
Hi,

I have accepted a job offer as a software developer and would like to know if my offer is any good and if I will be able to save some money.

I have a wife and 7 month old baby.

My Package consists of:

Basic : 240,000 AED
Housing : 112,000 AED (I don't have to spend all on housing)
Bonus : 15,000 AED

Medical Insurance for me only (Insurance for my wife and baby will cost me extra 5,000 AED "Bupa Gold Cover")
Holiday : 30 days
Flights : 1 Return ticket per year (up to 4,000 AED)

Thanks


bornrelics 10th June 2012 09:01 PM

Quote:

Originally Posted by p830335
So that's a good 50% down on what you should be looking for. Bloody hell, even I earn more than that. Stay in SA and aim for another strike, because for that amount it's not worth uprooting your family.

Spoken from experience,

Paul

Hi Paul,

So do you earn more than that in Dubai or you do still live in SA? Because currently there is no way I will be able to earn 360,000 AED (convert to Rands +- R800,000) in SA. Also I am relocating my family from the UK, where we have been for last 8 years.

Had a few replies saying that is a good wage and I will be able to live comfortably.

So I am bit confused, unless someone else can give their opinion.

Thanks

mrschestnuts 12th June 2012 06:42 AM

Quote:

Originally Posted by Warold (Post 557891)
Actually because your getting paid in the UK through the UK finance office you will be charged Tax... Its the same with alot of expat companies (Shlumberger , Halliburton etc). Some big companies have their finances at locations where the tax is minimal (10%). But yea it sometimes happens.

But the wording is a bit generic.. some home countries require you to pay tax even tho your getting paid outside the country. I think they say it just for legal reasons that they are not responsible for your tax payments. I think US citizens have to pay tax even tho they are earning the money outside the US.

:)hi, I would check everything out with your employer prior to signing any contract or moving out. ask them directly what it includes or doesnt. because once your out here its very hard to change anything. my husband works for a uk company but it has an international status, meaning he gets tax free. im sure yours would be if your getting paid in the uae. if you getting paid into your uk account then your get taxed.

just be upfront and ask is this tax free.

good luck and welcome.. if your coming from the uk, be prapared for a challenge. things do not work the same as they do in the uk.. but its a good experience.:confused2:

Geke 14th June 2012 01:30 PM

Quote:

Originally Posted by mrschestnuts (Post 809992)
:)hi, I would check everything out with your employer prior to signing any contract or moving out. ask them directly what it includes or doesnt. because once your out here its very hard to change anything. my husband works for a uk company but it has an international status, meaning he gets tax free. im sure yours would be if your getting paid in the uae. if you getting paid into your uk account then your get taxed.

just be upfront and ask is this tax free.

good luck and welcome.. if your coming from the uk, be prapared for a challenge. things do not work the same as they do in the uk.. but its a good experience.:confused2:

I work for a UK company and get paid in the UK but as I am working and living out here I am classed as a non resident so my tax code is NT (no tax). All you have to do is contact the tax office, fill out a form and they advise your company of your NT tax code. If you do not do this then you will be taxed as the company will go by your tax code on your P45 from your previous employer. You will however have to pay full national insurance for a minimum of 12 months from the dae you leave the UK.


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