Transport allowance in the Gulf: a small but standard line

Transport allowance is a standard but modest fixed line in most Gulf packages, customary rather than required by law. It is usually a small fixed monthly amount, far below housing, and it forms part of total fixed cash.

How it behaves

Like housing, transport is paid as an allowance separate from basic. That keeps it outside the gratuity calculation in the UAE, where the award is based on basic alone, while in Saudi Arabia it feeds the award because the Saudi wage includes fixed allowances. The same basic-versus-allowance logic that governs housing applies here, just at a smaller scale.

How it is paid

Most employers pay a fixed monthly cash amount. Roles that require regular travel may instead get a fuel card or a company vehicle, which is a benefit in kind rather than allowance cash and is treated differently for cost and tax-equivalent purposes in the employee's home country. For most desk-based roles, transport is simply a line in total fixed cash.

What this means

Transport rarely moves a benchmarking decision on its own, but it is part of total fixed cash and should be counted there, not ignored. When comparing offers, fold it into the fixed-pay figure alongside housing, and remember it carries the same gratuity treatment as housing: out of the calculation in the UAE, in it for Saudi.