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can someone explain what station allowance is? is it just extra pay because you live in Dubai?

canadiangal75 wrote:can someone explain what station allowance is? is it just extra pay because you live in Dubai?

It's a new one on me?

A station allowance is similar to a "hardship" allowance and is normally paid to members of the UN or other aid organizations when they are posted in difficult areas. The idea is to compensate the workers financially for the “hard living environment” as well as being removed from friends and family members; kind of, a civilian version of “danger pay”.

In earlier years people posted to the Middle East were paid a station allowance as well, bearing in mind that things were much different to what they are today (no roads, no A/C, no proper transport, medical etc.)

Station allowances are still paid to aid employees for work in areas like Afghanistan, Iran, Iraq, Dafur etc...

Dubai in my books is definitely no longer a "hardship" posting.

Thanks for the info. Just wanted to make sure this wasn't something hidden that wouldn't actually be in our pockets money. I guess it's just the way their contract is worded. It is for Dubai. I could be ancient wording that hasn't been changed...

ok, well if it's included in the contact it would normally be to your benefit.

i would suggest getting them to add it to your basic salary, instead of it being a "perk" - as a perk it would not form part of or be calculated in your final gratuity payment (gratuity = a bonus that you are entitled to at the completion of the full term of the contract).

for example if they offer you 1,000 AED basic and 2,000 AED "station allowance", your gratuity payment on conclusion of the full contract would only be based on the 1,000AED (not 3,000AED).