The biggest salary mistakes people make in the UAE

Salaries in the UAE often appear generous when compared with global markets, particularly because there is no income tax on individuals in the Emirates. This has helped attract global talent to the country.

But pay structures in the UAE can be complex, from housing allowances, insurance coverage to gratuity expectations.

Recruiters say many residents misunderstand how these components work, often to their financial detriment.

“From what I see speaking to people across the UAE, most salary mistakes aren’t about the number itself. They happen because people don’t look at the full picture,” says Nevin Lewis, chief executive of Black & Grey HR, a Dubai-based executive search and recruitment firm specialising in hiring C-suite and mid to senior-level talent across the Gulf region.

“Many still think tax-free income automatically means an easy life. It doesn’t. The UAE is expensive and there’s very little safety net. Rent, health care, school fees, transport, and daily living costs are mostly private.”

The National spoke to industry experts to understand some of the most common salary mistakes made by residents.

Not negotiating upfront

Some candidates feel uncomfortable about asking for a better package, particularly when dealing directly with employers, says Nicki Wilson, owner and managing director of Dubai consultancy Genie Recruitment.

In many cases there is room to negotiate, but it requires confidence and preparation. Factors such as current salary, responsibilities, employer budgets, market benchmarking and future salary progression should all be considered before accepting an offer, she advises.

Pedro Lacerda, senior vice president of TASC Outsourcing, cites how many candidates accept the first offer without realising that even a small increase can have a significant long-term impact, affecting not only monthly pay but also benefits such as end-of-service gratuity.

Focusing only on base salary instead of the bigger picture

Passing on strong opportunities because of a focus on monthly pay is a frequent mistake, Ms Wilson says.

A full compensation package should be assessed including flexible working, health insurance, commissions, bonuses, company culture, travel perks and long-term growth.