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Post by baedaebok on Apr 14, 2012 20:24:39 GMT
I know Aramco has been charging rent for their housing for a long time and everyone takes this for granted. But...where did this concept originate from? This isn't the US or the UK.....it is KSA! From what I have read in the Saudi Labour Law, employers normally need to provide furnished accomodation free of charge to foreign employees. This is the case in all the places I have worked in the Gulf.
Why did Aramco start charging for their housing?
BDB
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Post by David_and_Nita on Apr 14, 2012 21:10:32 GMT
I thought it was a tax thing. If they dont charge rent then the value of the free housing is counted as taxable income or some such.
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Post by Twofeets on Apr 15, 2012 6:58:27 GMT
I had heard the same, if they dont charge rent some countries <cough> <US> <cough> will tax it as income...
regardless, the amount you pay really isnt much. For a 3 bedroom, 2 1/2 bath townhome, complete with utilities and maintenance, I pay 1/3 of what I was paying in Florida.
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Post by azraeil on Apr 15, 2012 11:13:03 GMT
I have not heard of companies in the Gulf providing free accommodation to their foreign employees. Qatar Petroleum gives housing allowance of close to 15 thousand riyal a month for rent, ADNOC gives about the same amount and in fact Aramco also gives around 170K (3 months salary plus 50K extra based on the new policies .... or is that just for the pound sterling payroll ...) riyal if you choose to live outside of the compound.
If you live in the compound, you are charge on avee SAR1800 for the rent a month where you get the house, 24 hours air-conditioning, free maintenance, free electricity, free water. The only thing you have to pay is for the light bulbs.
If I was an American (which I am not), I would take to paying the SAR1800 a month rent rather than pay taxes on the 170K housing allowance given to me. That's just me.
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Post by GroveWanderer on Apr 15, 2012 11:16:13 GMT
That's right - if you got free accommodation as part of your employment package, then under certain tax laws it would be taxable. At least in the UK, this is known as a "benefit-in-kind." Same reason (I would imagine) why company cars are not for your personal use.
The following is taken from a tax advice website:
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Post by GroveWanderer on Apr 15, 2012 11:23:04 GMT
I also don't think it's in the Saudi Labour Law that employers need to provide free accommodation. In fact it can't be, because the four companies I have worked for in Saudi (other than Aramco) all gave me a rental allowance. One gave me an option of free accommodation but I didn't like the compound they had, so I took the money instead.
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sss
Member
Posts: 41
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Post by sss on Sept 18, 2013 13:30:27 GMT
Grovewanderer and others: Would Aramco pay a housing / school allowance for a US citizen who preferred not to live in one of the Aramco compounds?
Sorry if this question has already been answered elsewhere.
Thanks
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Post by gun420 on Sept 19, 2013 5:14:30 GMT
in my opinion its called rent but its in fact maintenance fee for the house and all other amenities like swimming pool ,schools,buses, security etc...
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Post by vpainter on Sept 20, 2013 20:54:19 GMT
SSS, any off camp housing allowance must be approved by your department manager. So the answer could be yes or no.
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Buster
Senior Member
Posts: 106
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Post by Buster on Nov 2, 2013 5:45:55 GMT
Hey forum experts,
Need to try and clarify "Housing Allowance"
Am I correct in saying
Base monthly salary (i.e. $500) each month X 3 = this is the amount you would be given as housing allowance.
I'm aware of the proposed changes under Global Pay - removal of caps, and increased amount for families (not singles) but want to clarify the base line.
And if there are any additional payments? I saw someone mention extra on this post
Thanks
Buster
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Post by vpainter on Nov 2, 2013 6:07:40 GMT
Direct hire Aramco Employees do not have a housing allowance. You must be a contractor?
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Buster
Senior Member
Posts: 106
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Post by Buster on Nov 2, 2013 7:26:41 GMT
Nope, direct hire - I believe most nationalities apart from Canadian & US dollars can obtain housing allowance if they wish to live outside Aramco compound. We've got the opposite scenario, we want to live in a compound!!
Aramco compounds only exist in the Eastern Province. Here in Yanbu, we don't get the luxury of living inside a compound. There are 2 compounds here but are very, very expensive - guys with families are out of pocket quite a bit each year to try and keep their families happy. For the rest of us, it's only a dream :roll:
Hopefully the families will be redressed under the new Global Payroll but it doesn't seem to catch singles. Even if you see the Town Hall sessions for the new rollout, you will see that there is nothing over here in the west.
The Aramco that you know is very different to the Aramco that we know. So if anyone can help with the original question, I'd be grateful
Thanks
Buster
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Post by Flash on Nov 2, 2013 10:52:55 GMT
Hi Buster,
I have been given the same offer (I won't say 'option' as no choice in the matter). - I would have also preferred a compound for family to be provided.
i.e. Base monthly salary (i.e. $x) each month X 3 = this is the amount you would be given as housing allowance.
I am also a DIRECT hire by Aramco and not a through a contractor.
I am still awaiting my visa block number.
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Post by GroveWanderer on Nov 2, 2013 12:01:53 GMT
According to the last email issued by Personnel referring to the rental assistance allowance (RAA):
I used to work in Yanbu and while it is true that there is not a company compound as such, there is (or was at least) a separate section of the Royal Commission housing for Aramco employees with its own recreation facilities etc. To the best of my knowledge, that is still the arrangement.
I knew people who lived in the Arabian Homes compound but I did not find a lot of advantages to it (especially considering the cost) and we found it more pleasant and much more convenient to stay in the Royal Commission in the company-provided housing.
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Buster
Senior Member
Posts: 106
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Post by Buster on Nov 2, 2013 15:39:13 GMT
Thanks for you input.
Flash, life in Yanbu is pretty good - the people are nice, the traffic isn't as bad as the big cities and you have mountains/desert on one side with the beautiful Red Sea on the other. Security isn't an issue, the Royal Commission is pretty well structured with everything you'll need and the housing provided for families is huge! There is a brand new recreation centre under construction as we speak.
GroveWanderer, I'm still confused with all the Aramco speak - I guess we'll find out over the next few weeks what it all means. The new Global Pay seems to have it's benefits but if you want them, you have to sacrifice sterling for dollars. The main benefit for families is that in a compound you can all go to the pool/gym together and there's a lot more outside space where you can wander without your abaya and there may be some social entertainment. None of which is the end of the world and you know what you're getting before signing up, but it's not to say you can't have a wish list. Aramco employees in Jeddah are placed directly in to Arabian Homes.
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