Companies in the Middle East usually offer different compensation packages to different employee segments. Nationals, Western expatriates, and Asian and Arab expats. In some industries Westerners are then further segmented by country for example South African and American expatriates would be paid different wages.
Market benchmarking was not usually the norm in the Middle East and companies generally paid their salaries based on the “ability to pay” An example would be, an oil company may compensate staff members above the normal market as it has the capacity to do so, however recently market benchmarking does seem to be on the increase.
Organizations in the Middle East do however generally allow for a substantial amount on allowances, such as housing, schooling, medical expenses (not dental) and yearly tickets back home. The huge draw to the Middle East for employment is due to the fact that employee’s pay zero income tax, however one must consider that the employers do not make social security contributions either and expats working in the Middle East generally receive no pension. Some organizations do allow for an end-of service payment.
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