The large differences in the ranking of each aspect of cost of living has important implications for people negotiating an expatriate salary in Dubai. The cost of accommodation (rent or mortgage and utilities) in Dubai is ranked 5th most expensive in the world for expatriates. There are 3 mainstream approaches to establishing salary levels for international assignments, the build-up approach, the salary purchasing power approach, and the cost of living allowance approach.Salary Build-Up ApproachThe build-up approach uses the expatriate’s home salary as the starting point and then builds up the salary package for an international assignment. Typical elements added to the salary are for cost of living differences, hardship differences and exchange rate. We compared purchasing power by comparing salary levels adjusted for cost of living differences, and relative hardship using Xpatulator. A salary of USD$75 000 in Dubai is equivalent to:•USD$67 980 in Beijing•USD$57 812 in Johannesburg•USD$96 089 in London•USD$71 239 in New Delhi•USD$79 533 in Paris FranceThis means that an organisation with a head office in Dubai, and an international office in New Delhi would pay a position that is paid USD$75 000 in Dubai, USD$71 239 in New Delhi in order to achieve the same salary purchasing power in each location.Cost of Living Allowance (COLA) ApproachOrganisations that make use of Cost of Living Allowances (COLA) use cost of living information to determine how much COLA to pay for international assignments.
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