Housing Allowance for UAE

Housing allowance depends on the grade and marital status of an employee.

The allowance can be a percentage (based on grade and marital status) or an amount (based on grade or marital status). In case of percentage based allowance, the calculated allowance amount can be subject to a maximum and minimum limit.

If the employee avails accommodation that is provided by the employer, then the monthly paid allowance is zero.

An override feature is provided where you can enter the amount of housing allowance and then no calculations are performed.

The following input is required to perform the calculation:

• Housing allowance is paid to employee if accommodation isn't provided by the employer. This information is tracked at a payroll relationship level and this value is defaulted to No in case there is no value entered at payroll relationship level.
• Marital status must be set for person in order to calculate the value of housing allowance and if no marital status is set, no allowance is paid to the employee. Marital status is retrieved from the legislative information section.
• Create range values for the seeded calculation value definition details Housing Allowance Grade Rate for Married and HousingAllowance Grade Rate for Single. In the value field of the range value UI, you can select the grade rate from the ones that have been defined as grade rates.
• Attach a Gratuity Salary formula, in theemployer gratuity PSU level calculation card, if not already attached. The value returned bythis formula is used to take the base monthly salary for this allowance if you have entered value of input value Rate Value to be used as Percent.
• Create range values for the seeded calculation value definition details Maximum Housing Allowance for Married, Minimum Housing Allowance for Married, Maximum Housing Allowance for Single and Minimum Housing Allowance for Single. In the value field for range value, enter minimum or maximum value depending on the marital status. These values are used to get the allowance amounts if you have entered value of input value Rate value to be used as Percent. More specifically, if this calculation option is selected, the rate is applied to this monthly salary basis. The resulting amount is compared with the Maximum and Minimum values of the allowance and, in case of being out of range, is adjusted.
• Override Amount
• Rate Value to be used as