Workers Demand Better Housing and Commute Benefits
Employees Demand Higher Housing and Transportation Benefits Due to Rising Costs
The economic development of the United Arab Emirates and the excellent career opportunities attract professionals from all over the world. However, the continuous rise in the cost of living, particularly in rents and transportation expenses, presents new challenges to the workforce living there. Employees are increasingly requesting that employers increase allowances related to housing, transportation, and their children's education to keep pace with the rising costs.
Background of Rising Costs
The drastic increase in rent prices over the past four years has particularly affected residents in the UAE. The demand for new residential properties exceeds the supply, doubling rental prices in some areas.
Simultaneously, transportation costs have also increased. The Salik company has installed two new toll gates in Dubai and introduced a variable pricing system. Passing through the toll gates during peak hours costs Dh6, while at night, between 1:00 and 6:00 a.m., the toll is free. This new pricing model significantly affects the costs of daily commuters.
Employee Demands
According to research conducted by Bayt.com and Adecco, a significant portion of employees are requesting higher allowances to offset living costs. The demand for the following benefits has particularly increased:
1. Housing allowances: Rising rental prices have prompted workers to require greater financial support for maintaining their homes.
2. Transportation support: Increasing toll charges and fuel costs have elevated expenditures for commuters.
3. Educational support: Covering school fees poses significant expenses for expatriate families.
How Employers Can Respond
Mayank Patel, head of Adecco for Eastern and Central Europe, the Middle East, and Africa (EEMEA), highlighted that competitive salary and benefits packages can be key in attracting and retaining talent. "In addition to increasing housing and transportation allowances, introducing educational support and lifestyle-related benefits, such as wellness programs or flexible working hours, could also be appealing to leaders."
Dina Tawfik, vice president of Bayt.com, suggests that it can be advantageous for employers to rethink their compensation strategies and offer customized solutions that meet employees' expectations. This not only increases employee satisfaction but also enhances the company's competitiveness.
Conclusion
Employees working in the UAE face rising living costs driven by increased housing fees, toll charges, and basic daily expenses. It is more crucial than ever for employers to consider the needs of their employees and to develop benefits packages that meet these demands. Flexible and supportive benefits not only increase employee satisfaction in the long term but also strengthen the company’s reputation in the UAE.