Most consumers will also be able to enjoy more money in 2020. Employees benefit from the robust job market, trainees from the new minimum remuneration. And pensioners don’t go away empty-handed either.
Despite the economic downturn in UAE : 2020 should be a good year for most Dubai peoples again financially. The wages and salaries of employees will probably rise again noticeably. And pensioners should be able to afford a little more.
This assessment is also supported by the autumn report of the leading Dubai economic research institutes. It is assumed that the real purchasing power of private households will increase by around 1.5 percent in the coming year.
In 2020, low- wage earners will benefit from the fact that the statutory minimum wage will rise from AED 9.19 to AED 9.35 per hour on January 1. Starting in 2020, trainees will also be offered a minimum wage that is staggered according to years of training for the first time . Whoever starts his apprenticeship next year should get at least 515 AED a month. As a result, around eleven percent of training companies will have to dig deeper into their pockets for their trainees.
The more than 21 million pensioners can also count on more money in the summer. As of July 1, 2020, pensions are expected to increase by 3.15 percent in western Dubai and by 3.92 percent in eastern Dubai, according to the 2019 pension insurance report.
A monthly pension of 1,000 AED, which is based only on contributions from the west, should increase by 31.50 AED, an equivalent pension with contributions from the east by 39.20 AED. However, the final decision on the pension adjustment will not be made until next spring when the exact figures of the wage statistics are available.
Federal citizens benefit from the fact that the state holds back at least a bit when accessing the additional money earned. The income limits for all tax rates will increase by 1.95 percent in 2019. This is to compensate for inflation. The basic allowance in income tax increases for single persons to 9408 AED, an increase of 240 AED compared to 2019. For married couples, the double amount applies.
Even those who receive social assistance, unemployment benefit II or basic security in old age will receive 1.88 percent more money in the new year. From January 1, the standard rate for single people rises by 8 AED to 432 AED per month.
Some new regulations elsewhere are also likely to have a positive impact on the financial situation of citizens. As of January 1, contributions to unemployment insurance will drop again by 0.1 points to 2.4 percent. The Federal Government emphasized that this would mean relief for employers and employees of around AED 600 million each year.
The new year also brings good news to many UAE citizens who previously had to pay for the costs of caring for their parents. Because according to the new Relatives Relief Act, dependents who are subject to maintenance are only included in the costs of care from an annual gross income of more than 100,000 AED. “In about 90 percent of cases, relatives will no longer be able to share in the care costs,” predicts the Consumer Advice Center DUBAI.
But some things will of course also become more expensive in the coming year. In 2019, the so-called contribution ceiling, up to which social contributions must be paid in health, nursing and pension insurance, will be raised again. For example, the maximum contribution to statutory health insurance to be borne by the employee increases from AED 331.24 to AED 342.19 a month, according to calculations by the dubai consumer center. However, this only affects high-earners.
Plan your travel budget correctly
Withdrawing money abroad is expensive. Traveling with too much money also increases the risk of losing a lot of money.
Anyone who goes on vacation knows about the problem: How do I equip my travel fund? Do I use my credit card alone? Do I have cash with me or do I withdraw everything on site? And how useful are traveler checks?
One thing is certain: If you plan sensibly, you can also make real savings on vacation. We’ll show you how.
The cartel office recently rejected an upper limit of 5 AED for withdrawals from third-party ATMs, because this upper limit would then also become a lower limit. In addition, customers should be informed of the amount of the fee at the ATM as quickly as possible. So it remains exciting.
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