Inflation in UAE: Firms consider allowing employees to work from home

UAE firms are considering inflation allowances for employees to offset the impact of inflation.

With inflation rising due to high fuel, food and rents rates, recruitment consultants suggested that employees can expect and should request to have more benefits, such as work from home days to help reduce fuel bills and provide training and development in additional skills that will increase their chances for promotions and increments in tough economic times.

Vineet Mehra, director of Sales at Adecco Middle East, a global recruitment firm, said companies in the UAE are still discussing inflation-related allowance internally in order to help employees beat inflation.

The UAE government recently introduced an inflation allowance for low-income citizens to support them against the rise in inflation occurring worldwide due to high oil and food prices. As part of this social support programme, the government doubled the budget to Dh28 billion.

Under this scheme, UAE citizens will get allowances for fuel, water and electricity and food.

“This is still being discussed internally and not confirmed yet. However, a few steps are being taken into consideration such as re-looking at the fuel reimbursement part for the employees who are out in the market. Companies are also ensuring that there is enough opportunity for the employees to plan their work from home, for the ones who can manage back-end operations from home,” added Mehra.

He said local firms are taking a wait-and-watch approach to understand how inflation is trending and then re-look at introducing any new incentives which not only benefit the employee but eventually give better results to the employer as well.

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