Budget allocation to employee allowances and benefits continues to rise across the Gulf states, according to the latest GCC Allowances and Benefits Survey conducted by Aon Hewitt, the global talent, retirement and health solutions business of Aon.
 
The survey is based on an analysis of over 90 companies across different sectors.  

Children’s education assistance is currently highest in Qatar and Kuwait, which can be as high as $15,000 per child, it said.

Children’s education assistance eligibility has increased dramatically in the GCC, with almost half of the companies across the region now providing children’s education assistance mid-level employees as well as management and this is usually capped, said the report.

About one third of companies across the GCC award the allowance as a cash payment, the remainder settling school fees directly, it said.

The housing allowance across the GCC is highest in Qatar and ranges between $25,000 and $63,000 and is closely followed by the UAE which ranges between $23,000 and $59,000.

It is approximately 25 per cent of the basic pay across the GCC, while its is about 35 to 40 per cent in the UAE and Qatar. 

According to the survey, housing allowance remains stable despite rental prices increasing across the region.
 
It found that most commonly provided allowances and benefits in the GCC are housing, transportation, children’s education assistance and home leave benefits.

Housing and transportation is typically provided on a monthly basis as a cash payment whereas children’s education assistance and home leave benefits are usually provided at actual cost of the school fees or the cost of the ticket respectively, it said.

The home leave benefit is usually provided as a ticket once per year to the country of origin covering the employee, spouse and children, said the survey.

Some organisations also provide the benefit as a cash payment in which case the payment is based on the average cost of the airline ticket.

Across the GCC allowances are typically provided based on seniority, with the amount varying by up to 100 per cent, based on employee category.
 
Robert Richter, compensation survey manager at Aon Hewitt Middle East, said: “Since our survey in 2014, companies have continued to rethink and their allowance and benefits allocations strategy with many increase either the eligibility or the amount.

“As inflation continues to rise many employers need to think about how they can attract and retain the right talent as inevitably many employees will be looking to migrate in order to cope with the cost of living.

“Going forward it will be interesting to see to what extent the low oil price will affect companies predictions of the GCC market and if and how this will lead to salary fluctuations.”
 
The report also measured furniture and relocation allowance, end of service benefits, life and accident assurance, long term disability, private medical benefits, loans, mobile phones, and annual leave entitlements. - TradeArabia News Service