Relocating from the UAE to the UK isn’t just a career move; it’s a financial recalibration. While a Dubai to London flight is a one-time expense, the real differences emerge in monthly housing costs, tax obligations, and what your employment package does or doesn’t include.
Whether you’re chasing higher base pay or long-term stability, understanding how salary structures and benefits compare is essential before signing a new contract.
1. Base Salaries: What Hits Your Bank First
London: The typical full-time worker in Greater London earns around £853 per week, or roughly £44,356 per year, according to the UK’s Office for National Statistics. That’s about 17% more than the UK average.
Dubai: On average, professionals earn about AED 15,800 per month. While this might seem slightly lower than London salaries when converted to dollars or pounds, there’s no income tax in the UAE, so most expats end up with more money in their pocket overall.
2. Allowances & Bonuses: The “Hidden” Compensation
HousingIn Dubai, many employers provide a housing allowance worth 35–40% of your base salary, helping offset high rental costs. In contrast, UK employers rarely offer rent support. Some public sector roles include a small “London weighting”, typically around £1,045 per year, to account for the city’s higher living expenses.
Transport and Annual FlightsUAE contracts often include commuting allowances and an annual flight home, usually in economy class. In the UK, such perks are far less common. Some employers offer season-ticket loans for public transport, but full reimbursements or flight benefits are rare.
Performance BonusesBonuses in London’s finance sector can range from 10% to 30% of annual salary, though the national average across all industries is closer to 6%. In Dubai, bonus structures vary widely. For example, sales and marketing professionals typically earn AED 18,000 per month before commissions, with top performers potentially doubling their income through incentive plans.
- Housing – UAE employers commonly add a housing allowance equal to 35-40 % of basic pay, reflecting Dubai’s rental market. By contrast, UK firms rarely subsidise rent, offering only a modest London-weighting allowance (about £1,045 yearly in local government roles).
- Transport & Annual Tickets – Many UAE contracts reimburse commuting costs and include an annual airfare to the employee’s home country, typically in economy class. High-skilled UK packages seldom match this; travel perks are usually limited to season-ticket loans.
- Performance Bonuses – City of London finance roles often pay 10–30 % annual bonuses, but across all sectors, the UK median bonus is closer to 6 %. Dubai’s private sector varies widely; sales and marketing professionals average AED 18,000 in monthly pay before commissions, with top performers doubling that via incentive plans.
3. Perks & Benefits: Where the Regions Truly Diverge
- Taxation – No personal income tax in the UAE gives every dirham an extra bite. UK residents face a progressive system starting at 20 % on earnings above £12,570.
- End-of-Service Gratuity (UAE) – Under Federal Decree-Law 33/2021, full-time staff accrue 21 days of basic pay per year for the first five years, rising to 30 days thereafter, payable as a lump sum when the contract ends or via the new voluntary savings scheme.
- Pensions (UK) – All UK employers must auto-enroll staff and contribute at least 3 % of qualifying earnings to a workplace pension; total minimum contributions sit at 8%. UAE firms are not required to offer retirement plans beyond the gratuity.
- Family Support – The UK mandates up to 39 weeks of statutory maternity pay and up to 2 weeks of paternity leave. Dubai provides 45 days fully-paid maternity leave (with conditions) and 5 days parental leave, but many large employers top this up.
4. Working Hours at a Glance
- Dubai: The UAE Labour Law caps private-sector work at 48 hours per week (8 hours per day), with overtime premiums above that.
- London: UK law limits average working time to 48 hours per week over 17 weeks, though employees may opt out; typical office roles hover around 37–40 hours.
5. Negotiation Takeaways
- Calculate net, not gross. Tax-free AED can outweigh a higher sterling salary once deductions kick in.
- Ask for (or benchmark) housing. If your Dubai offer lacks a housing stipend, you’re missing a third of local market value.
- Value long-term wealth. A UK pension match can compound faster than a one-off gratuity; run the numbers before deciding.
- Factor flights and visas. In the UAE, company-paid visas and annual tickets can save thousands; in the UK, visa fees often fall on the employee.
- Check the clock. London’s shorter typical workweek may balance out a smaller headline package for work-life-focused professionals.
Bottom line:
London leads on headline pay, structured pensions, and regulated hours. Dubai counters with tax-free earnings, substantial allowances, and a built-in gratuity. Put both the visible and invisible pieces of each offer on the table. Only then can you chart the real cost (and value) of your next career move across continents.
