UAE law: Can the employer deduct any amount from worker’s wage?

Under the Federal Decree- Law No. (33) of 2021, the new labour law and its executive regulations confirmed the worker’s right to be paid on scheduled date and the right amount, as long as the worker executes the job and fulfills all legal obligations.

However, here are grounds where an employer may deduct any amount from worker’s salary:

  1. Redemption of loans granted to the worker, within the maximum limit of the monthly deduction percentage from the worker’s wage stipulated in this Article, after obtaining the worker’s written consent and without any interest;
  2. Redemption of the amounts paid to the worker in excess of his entitlements, provided that the amount deducted does not exceed (20%) twenty percent of the wage;
  3. Amounts deducted for the purposes of calculating the contributions in bonuses, retirement pensions and insurances plans according to the legislation in force in the State;
  4. Worker’s contributions to the Employees’ Provident Fund at the establishment or the loans payable to the Fund approved by the Ministry;
  5. Installments for any social security plans or any other benefits or services provided by the employer and approved by the Ministry, provided that the worker has agreed in writing to participate in the plan;
  6. Amounts deducted from the worker due to violations he/she commits, according to the regulation of penalties in force at the establishment and approved by the Ministry, provided that the deduction shall not exceed five percent (5%) of the wage;
  7. Debts due pursuant to a court judgment, without exceeding one quarter of the wage payable to the worker, except for the alimony awarded by the court, where more than one quarter of the wage may be deducted. In case of multiple debts, the amounts to be paid shall be distributed as per the entitlement categories;
  8. Amounts necessary to rectify the damage caused by the worker, as a result of his/her mistake or violation of the employer’s instructions, which led to the destruction, demolition or loss of tools, machines, products or materials owned by the employer, provided that the deducted amounts shall not exceed five days (5) of the wage per month. It is not permissible to deduct an amount greater than that except with the approval of the competent court.
  9. If there are many reasons for deduction or withholding from the wage, in all cases the percentage of deduction and/or withholding may not exceed fifty percent (50%) of the wage.

source: MOHRE

For more information and clarifications, please contact the Ministry of Human Resource and Emiratisation at 600590000

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