How Much Salary Do You Need to Live in Dubai?
Living costs in the UAE are high, and if you’re moving from another country to work here, you’ll need to set aside additional money for housing and other essentials. Newcomers to Dubai will also need to think about renting a place or buying a house.
The housing market is competitive, so it’s important to do your research before making an offer on a property. With that said, how much salary do you need to live in Dubai?
Hopefully, the answer is “enough!” But with the average rent for a one-bedroom apartment in Dubai hitting $2,300 per month in 2020 (according to CNN), it doesn’t hurt to have an idea of what your realistic budget should be.
(1)What is the Living Wage in Dubai?
A living wage is the minimum amount of income needed to meet basic needs. It’s different from a minimum wage, which is a legally mandated hourly rate. In the UAE, the minimum wage is currently $3.85 per hour for most occupations.
A living wage for Dubai would take into account the high cost of living. In 2018, the living wage in Dubai was estimated at $18.29 per hour for one person.
That’s up from $16.92 in 2017, an increase of nearly 11%—not surprising given that Dubai’s cost of living has risen sharply in recent years. For a couple with two children, the living wage is $39.70 per hour.
(2)How Much Does it Cost to Live in Dubai?
The cost of living in Dubai is high. According to the latest Global Cost of Living Index, Dubai is the 15th most expensive city in the world.
In the UAE, Abu Dhabi is the most expensive city to live in, followed by Dubai in second place.
The high cost of living in the UAE is due to several factors, including the weak dirham, rising oil and gas prices, and increased demand for goods and services as the country grows. In fact, inflation hit an all-time high in 2018, with the Consumer Price Index increasing by 4.4%. The biggest single expense for expatriates living in Dubai is likely to be housing.
Rents in Dubai are among the highest in the world. As of early 2019, the average rent for a one-bedroom apartment in Dubai was $3,600 per month. For a two-bedroom apartment, expect to pay about $4,800 per month.
(3)How Much Should You Earn in Dubai?
Every salary negotiation is different, but if you’re earning below the living wage in Dubai, you’ll probably want to increase your salary.
The good news is that salaries in the UAE are typically very high, so it’s not uncommon for people to earn well above the living wage.
The bad news is that salaries in Dubai increased by 15% in 2018, the highest in the GCC. We expect salaries to rise even higher in 2019 and 2020, as the UAE struggles to deal with a dwindling supply of skilled workers. As with any negotiation, it’s important to have the right information to help you get the salary you deserve.
Conclusion
The cost of living in Dubai is high, and you’ll definitely want to earn enough to meet your expenses. As with any salary negotiation, you’ll want to do your research to make sure you’re paid what you’re worth.
Additionally, if you’re moving to Dubai from abroad, you’ll want to consider the expenses associated with relocating, including transportation and visa costs.
All in all, you’ll want to make sure you have the right salary for your situation. While meeting expenses is important, it’s even more important to be happy with your job. If you’re not happy, you’re unlikely to perform well, which could impact your future earning potential.
