In tough economy, UAE companies hold the line on employee benefits

Of note, 28% of companies also reported having some form of long-term incentive plan, a benefit not typical for employers in the region. This year, 54 companies representing a total of 31,000 employees participated in the survey.

"Given the economic conditions of the last 12 months, we may have expected companies to be cutting back on housing allowances, schooling support or medical insurance benefits, but we are not seeing those kinds of measures,"

said John Macdonald, Managing Director at ORC Worldwide.

"Quite sensibly, companies appear to be trying to do the best they can for the people that are still employed," he added.

The cost of providing children's schooling support continues to represent an increasing burden on employers. The survey found that the median cost of schooling support for local non-national managers was approximately $10,000 per child per year. Not surprisingly, this benefit is much more prevalent at the senior management level than elsewhere in these organisations.

The UAE sees continued growth in the provision of private medical insurance coverage, with approximately 80% of companies providing this benefit for management levels, and 50% providing it for support staff. It is a similar pattern with life insurance benefits. The provision of retirement or savings plans, however, was less common.

"We are seeing some growth in the take up of retirement and savings plans in the UAE, but clearly not on the scale seen in many other parts of the world," said Macdonald.

"The primary reason tends to be the good protection offered by UAE labour law in terms of the end-of-service gratuity to which all employees are entitled upon leaving their companies," he added.

Generally, such end-of-service gratuities for eligible employees are equivalent to 21 days pay for every year of the first five years of service and 30 days for every year thereafter. The gratuity is capped at two years' pay.

More than three-quarters (75%) of the organizations participating in ORC's survey were multi-nationals. Covered employees included both 'local nationals' (local residents employed by the company in their home country) and 'local non-nationals' (individuals employed locally who are not natives of the host country). The survey did not cover those on expatriate assignment conditions.

The 2009 SIRS Middle East Benefits Policies & Practices, United Arab Emirates, provides detailed data on bonuses and incentives, housing allowances, relocation support, annual leave, meal vouchers and more.