Salaries in the UAE often appear generous when compared with global markets, particularly because there is no income tax on individuals in the Emirates. This has helped attract global talent to the country.
But pay structures in the UAE can be complex, from housing allowances, insurance coverage to gratuity expectations.
Recruiters say many residents misunderstand how these components work, often to their financial detriment.
“From what I see speaking to people across the UAE, most salary mistakes aren’t about the number itself. They happen because people don’t look at the full picture,” says Nevin Lewis, chief executive of Black & Grey HR, a Dubai-based executive search and recruitment firm specialising in hiring C-suite and mid to senior-level talent across the Gulf region.
“Many still think tax-free income automatically means an easy life. It doesn’t. The UAE is expensive and there’s very little safety net. Rent, health care, school fees, transport, and daily living costs are mostly private.”
The National spoke to industry experts to understand some of the most common salary mistakes made by residents.
Not negotiating upfront
Some candidates feel uncomfortable about asking for a better package, particularly when dealing directly with employers, says Nicki Wilson, owner and managing director of Dubai consultancy Genie Recruitment.
In many cases there is room to negotiate, but it requires confidence and preparation. Factors such as current salary, responsibilities, employer budgets, market benchmarking and future salary progression should all be considered before accepting an offer, she advises.
Pedro Lacerda, senior vice president of TASC Outsourcing, cites how many candidates accept the first offer without realising that even a small increase can have a significant long-term impact, affecting not only monthly pay but also benefits such as end-of-service gratuity.
Focusing only on base salary instead of the bigger picture
Passing on strong opportunities because of a focus on monthly pay is a frequent mistake, Ms Wilson says.
A full compensation package should be assessed including flexible working, health insurance, commissions, bonuses, company culture, travel perks and long-term growth. These elements can deliver far greater value over time than a higher base salary alone, she suggests.
In the UAE, the split between basic salary, housing allowance and transport allowance is important and “often negotiable”. This structure affects end-of-service benefits and overall financial planning, yet many professionals do not review it carefully, Ms Wilson says.
“I also see people focus only on the offer stage. Anyone can pay well once. The better companies are the ones that can reward good performance again and again,” Mr Lacerda warns.
“You usually see this in how long people stay and how many grow internally, not in what’s promised during interviews.”
People tend to focus solely on the basic salary, often overlooking allowances, health insurance, housing support, and other perks that make up an important part of total compensation, he says.
“Some underestimate deductions or social contributions, which can affect take-home pay, while others prioritise immediate salary over opportunities that support long-term career growth, such as skill development or clear promotion pathways,” Mr Lacerda says.
“Increasingly, employees are looking beyond base salary and benefits, factoring in equity-based incentives like employee stock ownership plans or profit-sharing when negotiating offers, as these can meaningfully enhance long-term wealth and overall compensation.”
Not truly understanding your market value
One of the biggest mistakes is negotiating or accepting offers without really knowing what your role is worth in today’s UAE market, says Aws Ismail, director of recruitment at outsourcing and training provider Marc Ellis.
“Salaries here move fast, and relying on old information or what a friend earns often leads to being underpaid or pricing yourself out of opportunities. I always recommend that candidates should talk to one recruiter to gain an understanding of what the market is paying for their skillset,” he recommends.
Failing to benchmark salaries against the market can leave talented professionals underpaid compared to peers with similar experience, influencing both career satisfaction and financial planning, Mr Lacerda adds.
Mr Ismail says that when salary discussions are based on effort rather than impact, they usually go nowhere. Employers respond to measurable outcomes, revenue, growth, efficiencies and leadership. If a candidate can’t clearly articulate that, it becomes very difficult to justify an increase to their salary, he adds.
Candidates should always focus on showcasing their results to their leadership to ensure they are seen as a value-added asset and not a burden, he adds.
senior vice president, TASC Outsourcing
Misrepresenting your salary
Ms Wilson says that misrepresentation is unfortunately still common in the UAE. Many candidates are caught out at the final stages of the hiring process when reference checks are completed, which can damage credibility and cost them the role entirely, she warns.
Expecting higher pay without upgrading skills
The reality is that the highest salary jumps go to people who bring something new to the table, Mr Ismail explains.
“In-demand skills, leadership capability and industry knowledge are what move the needle in the UAE, not simply time served or loyalty alone, so those who invest in upskilling themselves are investing in their earnings,” he says.
“It is fundamental that candidates continuously upskill and showcase what they bring to the table that cannot be done better by artificial intelligence.”
Moving roles too frequently for small salary increases
Many professionals change jobs for an additional Dh1,000 ($272) to Dh2,000 per month, Ms Wilson states.
While tempting in the short term, the right leadership, mentorship, culture and development opportunities can deliver far greater long-term career and financial value.
Also, frequent moves on your CV will make you look less reliable and, therefore, less desirable to employ, she warns.
Not factoring in the true cost of living
Lifestyle matters more than people realise, Mr Lewis warns. The same salary can feel comfortable in one company and tight in another, depending on the industry, the way the business runs, and its margins.
Comparing offers without thinking about this often leads to short-term decisions that don’t work long term, he says.
“Many expats move to Dubai, often with families, without fully accounting for schooling, housing, healthcare upgrades, transport and lifestyle costs,” Ms Wilson says.
“The financial impact may not be felt immediately, but the reality can be a shock once these expenses add up. We are seeing an increasing amount of people just moving to Dubai and then having to leave within six to 12 months as the reality hits.”
Believing verbal promises instead of written commitments
Another mistake many candidates do is to stay in roles based on verbal promises such as, “we’ll review your salary soon” or “a promotion is coming”, without receiving any pledge in writing from the employer, Mr Ismail says.
These conversations rarely turn into action, and it is important to remember that clarity and documentation matter in a competitive market, he adds.
Mr Lewis says another common mistake is accepting roles that are not clearly outlined.
“The job sounds good, expectations sound exciting, but success isn’t properly defined. When that happens, people tend to promise too much just to secure the role. Over time, expectations keep changing, and performance and salary discussions become difficult,” he warns.
