Employees across the UAE are increasingly asking for higher housing, transportation, and school allowances as living expenses continue to climb. Recruitment consultants say the rising costs of rent and transportation, especially in Dubai, are driving these demands.

Mayank Patel, Senior Vice President at Adecco, explained that many workers are now requesting adjustments to their salary packages to keep up with higher living costs. He noted that for senior-level executives, perks like education allowances and wellness benefits could become key strategies for attracting talent.

The cost of renting homes has surged significantly over the past four years, with demand outpacing supply in many areas. In some neighborhoods, rents have even doubled. On top of that, the introduction of two new Salik toll gates in Dubai and a new variable pricing system, with peak-hour rates at Dh6, have added to transportation costs.

Dina Tawfik, Vice President of Growth at Bayt.com, shared that employees are also seeking more flexible benefits. These include school fee support, travel allowances, and housing-related perks, which employers are addressing creatively to retain talent. Speaking to Khaleej Times, Tawfik explained that competitive packages help tackle real-life concerns like commuting and education expenses, leading to higher job satisfaction.

She added that companies offering health insurance, professional development, and wellness programs are better positioned to attract and retain employees in the UAE’s high-cost environment. While salaries remain a priority, holistic benefits and growth opportunities are becoming increasingly important for workers.

As living costs continue to rise, UAE employers may need to rethink compensation packages to stay competitive and meet employee expectations.