Increments on 'other allowances'
I wonder why plenty of companies in Qatar adjusts their employee salary increase more on the 'other allowances' like (for those who claimed it in monetary equivalent out of the original company-provided necessities) transportation, accommodation, food, etc. and most of the time little to no salary adjustments on the basic salary itself. Say, for example, in some regular companies an accommodation money allowance (as they say) is around 1/3 of the basic salary. And yet for the next upcoming increment the increase adjusts more to the accommodation which now doesn't follow the 1/3-of-basic calculations. This is one somewhat illogical situation.
Sometimes I always doubt that maybe a company puts the increment on the 'other allowances' was maybe due to the 'advantages' of an employer when we talk about gratuity. I think it's like "if we can make the employee leave for good, we might as well give him/her a short gratuity benefit by not increasing the basic wage".
Not to be meant as politics, but isn't somewhat better that an honest worker's merit of service for his/her job well done should be focused/pushed more on the basic salary part rather on the 'other allowances'? It already disregards the ratio from the basic wage by increasing the other over it...plus any employee becomes vital to more professional eagerness of work as a basic wage is always much much necessary in living than the 'other allowances'.
So when starting a new job is it a good idea to negotiate a salary that is appropriate, not just for now, but for down the road? That is, don't immediately accept the lowest salary being offered in the hope that over the years it will increase because once it is agreed, it's pretty much fixed for the duration of the appointment...?
dear pay.....one reason is quite obvious ESB calculations.
I had been with MNC for almost 16 years and they were quite transparent in their policies and procedures.
They increased our salary under 'Dearness allowance' with clear explanation to all employees that due to volatile inflationery trends in Qatar they have increased; which could be subject to reverse effect when economical circumstances may change in near future.
If the increase reflect in Basic; employer can't change it later.
Be happy to see that our over all package 'Increased' ;)
this is the only reason why:
Quote:
"Sometimes I always doubt that maybe a company puts the increment on the 'other allowances' was maybe due to the 'advantages' of an employer when we talk about gratuity. I think it's like "if we can make the employee leave for good, we might as well give him/her a short gratuity benefit by not increasing the basic wage"."
By not involving any documented proof of basic wage increase, there's no need to update the contract submitted in the Labour Department that's why they can only put the increase on the allowances?
And how about those who didn't claim for the monetary equivalent of allowances? Would they not be subjected to their proper increase of wage and it will only be focused on the basic salary calculations?
"Everything in this book may be wrong." Illusions: The Adventures of The Reluctant Messiah by Richard Bach
Honest employers wouldn't need to bind their employees with the NOC either. There are very few companies here that can compete if the rules were like in an International Job Market.
Basic wage are considered as fixed income and can affect many compensation qouta, of which one as you say is the leaving service benefits and gratuity payment calculated as, year of service multiplies last drawn basic salary. Allowances on the other hand are normally non fixed and can be revised and reviewed at anytime. Given the above scenario, its no wonder that employer choose to increase allowances of which they will have no documented commitments in future.