Living in the UAE: Why Housing and Schooling Benefits Matter More Than Ever

Living in the UAE comes with its perks—but also high costs. From steep rent cheques to rising school fees, residents often feel the financial strain. While housing and education allowances can ease this burden, Mercer’s 2025 Middle East Housing and Schooling Report shows these benefits are now critical tools for employers aiming to attract and retain top talent.

Understanding these allowances can not only relieve financial pressure but also reduce stress and influence career choices. Here’s what UAE residents need to know about housing and schooling costs in today’s job market.

Housing Allowances: Widespread but Varied

According to Mercer, around 70% of UAE employers provide a separate housing allowance, while 25% include it in a consolidated salary package. The rest offer total cash packages. With rents continuing to climb, these allowances play a vital role in keeping employees financially secure, providing support for rent or mortgage payments.

Upfront Rent Support Can Be a Game-Changer

In a market where landlords often demand a year’s rent in advance, Mercer found that 52% of employers provide housing allowances upfront rather than monthly. This approach gives employees breathing room at the start of the year, reducing the need for loans or dipping into savings.

Allowance Reviews Are Not Always Automatic

Housing allowances increased by just 4% on average from 2024 to 2025. Most companies (59%) review policies only when necessary, while only 20% conduct annual reviews.

Schooling benefits show a similar trend. Only 19% of organizations updated education support in 2025, usually due to competitiveness (72%) or rising tuition fees (44%).

Practical Tip:
Check with your HR whether your housing allowance is benchmarked to market trends to avoid unexpected out-of-pocket costs if rent rises.

Schooling Benefits Shape Family Choices

Nearly 9 in 10 UAE employers offer schooling coverage. Policies often vary by seniority or role, with 36% applying the same benefits across all staff and 64% differentiating.

Understanding the details of your schooling benefits is essential for families planning long-term education and managing budgets effectively.

Why These Benefits Matter

Andrew El Zein, Mercer’s UAE Career Products Leader, emphasizes:
"Top talent is at a premium in the UAE. Allowances and benefits now influence outcomes at every stage of hiring and retention. When housing and schooling policies are market-aligned and communicated clearly, organizations gain a competitive advantage in attracting and retaining talent."

Key Takeaways for UAE Residents

1. Ask if your housing allowance can be paid upfront to manage rent obligations.

2. Check how frequently your housing allowance is reviewed and if it’s linked to market trends.

3. Understand your schooling coverage—what’s included, what isn’t, and whether there are tiered differences.

4. Use this information to plan your finances, school choices, and long-term family budget with confidence.

Conclusion

Housing and schooling allowances are no longer just perks—they’re central to financial stability, career planning, and quality of life in the UAE. Being informed about these benefits can help residents make smarter financial decisions, reduce stress, and even shape career trajectories.