United Arab Emirates, 29^th April 2014: Companies across the GCC are recognizing the need to introduce new measures and are starting to shift their budget allocation to employee allowances and benefits. This is according to the latest GCC Allowances and Benefits Survey conducted by Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON).

The largest report of its kind in the GCC, the Aon Hewitt Allowances and Benefits Survey is based on an analysis of over 100 companies across different sectors. The findings revealed that:

Children’s education allowance:  

• Children’s education assistance is currently highest in Qatar and Kuwait; this can be as high as US$17,000 and US$16,000 per child respectively.
• Children’s education assistance eligibility has also increased dramatically in the GCC, with almost half of the companies across the region now providing children’s education assistance to other staff as well as management
• Children’s education assistance is usually capped
• Approximately one third of companies across the GCC award the allowance as a cash payment, the remainder settling school fees directly.

Housing allowance:  

• Housing allowance across the GCC is highest in Qatar and ranges between US$21,000 and US$53,000; this is closely followed by the UAE which ranges between US$20,000 and US$53,000.
• Housing allowance is approximately 25% of the basic pay across the GCC; however this is 35-40% in the UAE and Qatar. 
• According to the survey, housing allowance remains stable despite rental prices across the region increasing.

Other:

• The most commonly provided allowances and benefits in the GCC are housing, transportation, children’s education assistance and home leave benefits. The survey found that 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.
• The home leave benefit is usually provided as a ticket once per year to the country of origin covering the employee, spouse and children. Some organizations also provide the benefit as a cash payment in which case the payment is based on the average cost of the ticket.
• Across the GCC allowances are typically provided based on seniority, with the amount varying by up to 100%, based on employee category.

Robert Richter, Compensation Survey Manager at Aon Hewitt Middle East, said: “It is clear that inflationary pressures are being felt throughout the GCC and companies are starting to rethink their allowances and benefits allocation strategy. At Aon Hewitt we help companies attract and retain the right talent and inevitably some companies will not be able to afford to keep up with the change in demand, resulting in the migration of talent between organizations. However, we do anticipate that organizations will start revising their allowances such as housing in the interest of talent retention.”

The report also measures, 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.  

To purchase the full report please contact Aon Hewitt on: (971) 43896300.

About Aon Hewitt

Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness.  Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. 

For more information on Aon Hewitt, please visit www.aonhewitt.com.

About Aon

Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 66,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon’s global partnership and shirt sponsorship with Manchester United. 

Media Contact:

Joanna MacAdie
DABO & CO
+97150 9843473
joanna.m@daboandco.com