Allowances

In the Middle East, Africa and beyond, allowances are a significant component of total compensation, often exceeding 30–40% of base pay in some markets. Yet many organisations struggle to strike the right balance between competitiveness, fairness, cost efficiency, and compliance. At The Reward Consultant, we help you design and optimise allowance frameworks that reflect your workforce needs, market practices, and business strategy.

We start by reviewing your current approach to core allowances such as housing, transportation, mobile, education, relocation, and cost of living. Using market benchmarking and internal equity analysis, we identify opportunities to streamline structures, reduce unnecessary spend, and improve employee perception of fairness and clarity.

We also advise on when to use consolidated vs itemised allowances, how to treat fixed vs variable components, and how to apply policies based on grade, location, or family status particularly important in the GCC’s diverse and multinational workforces.

For companies dealing with legacy inconsistencies or merging multiple allowance policies (e.g., after an acquisition or rapid growth), we support in harmonising frameworks while managing internal change sensitively. The Reward Consultant has navigated a number of M&A's and is one of our core expertise.

With growing scrutiny from finance teams and increasing expectations from talent, a well-structured allowance strategy can reduce administrative burden, support mobility, and enhance your EVP.

Let us help you make your allowance strategy simple, scalable, and strategic, fit for your people and your bottom line. Get in touch today to discuss!