Cost of Living Adjustment for Expats in Dubai: What Nobody in HR Will Tell You
Cost of Living Adjustment for Expats in Dubai: What Nobody in HR Will Tell You
Your salary was set in 2022. Rent has increased 20%. School fees went up 8%. Groceries cost 12% more. And your employer has not mentioned a cost of living adjustment.
What COLA Is and Why UAE Employers Avoid It
In the UAE, there is no legal requirement for COLA. No collective bargaining. No mandatory salary indexing. Your employer can freeze your salary indefinitely without violating any law.
The Inflation Your Salary Is Not Keeping Up With
Dubai rental index increased 15-20% between 2023 and 2025. School fees increase 3-8% annually. A 3% annual increment against these numbers means your real purchasing power is declining by 2-5% each year.
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How to Request a COLA
Frame it as retention, not entitlement. Bring RERA rental index data, school fee comparison letters, and CPI data.
Propose a mechanism, not just a number. Suggest an annual housing allowance review tied to RERA data. Or a biennial total package review benchmarked against market data.
COLA is not a favour. It is an economic reality. Present the data. Make the ask.
I write about the decisions that actually shape careers, not the ones that look good on paper.
