Your salary is your most important right as an employee, which is why UAE Labour Law sets clear rules that protect wages from arbitrary deductions. Even so, we often hear the same question from employees in Abu Dhabi: "My company deducted money from my salary this month. Is that allowed?"
This article explains the general rule, the cases where deductions are allowed, the legal cap, the conditions for disciplinary deductions and the practical steps to take if you find a deduction you do not understand.
1. The general rule: your wage is your right
Federal Decree-Law No. 33 of 2021 Regulating Labour Relations and its Executive Regulations govern the relationship between employees and employers in the private sector. The starting point is that the wage agreed in your employment contract belongs to you. It must be paid on time and through the approved method, and the employer may not deduct from it except in the cases set by law.
Most private-sector salaries are paid through the Wage Protection System (WPS), an electronic system the Ministry of Human Resources and Emiratisation (MOHRE) uses to monitor that salaries are paid on time. Your bank statement and payslips are therefore important evidence of what you actually received.
2. When deductions are allowed
The law and its Executive Regulations allow deductions from wages in specific cases, including:
Recovering an advance or loan the employer gave you, within the percentage the law allows per instalment.
Recovering amounts paid to you by mistake in excess of your entitlement.
Enforcing a court judgment against you, such as a debt or maintenance judgment.
A disciplinary deduction listed in an approved disciplinary regulation and applied through its procedures.
Compensation for damage you caused by your own fault to work tools or company property, under the conditions and procedures set by law.
Contributions you are legally required to pay, such as pension contributions for UAE nationals, or deductions you agreed to in writing.
Any deduction outside these cases needs a clear legal basis; otherwise you have the right to object.
3. Is there a cap?
Yes. Even when a deduction is allowed, it is not left to the employer's discretion. The law caps the total amount that may be deducted from the wage at 50%, so the employee keeps enough to live on. Some cases, such as loan instalments, have their own specific limits.
4. Disciplinary deductions: the conditions
A deduction can be a disciplinary penalty for a violation, but the law sets conditions that protect the employee:
The violation and the penalty must be listed in an approved disciplinary regulation that has been made known to employees.
The employee must be notified in writing of the alleged violation, and must be heard and investigated before the penalty is imposed.
The penalty must be proportionate to the violation and within the limits the law allows.
A sudden deduction labelled as a "penalty" without notice or an investigation may therefore be challenged.
5. Examples of deductions that may not be lawful
A deduction with no written reason or notice.
Charging the employee recruitment or employment fees, which the law prohibits employers from collecting from workers.
A deduction above the legal cap.
A disciplinary deduction that is not in the disciplinary regulation, or imposed without an investigation.
Withholding the whole salary or paying it late without a lawful reason.
6. What to do, step by step
Step 1. Ask for the reason in writing: email HR and ask them to explain the deduction and its basis.
Step 2. Keep the evidence: payslips, bank statements, your employment contract and any messages or decisions about the deduction.
Step 3. Try to settle it amicably: many deductions are administrative errors that are corrected after a written request.
Step 4. File a complaint with MOHRE through its app, website or approved service centres, or by calling 600590000. MOHRE first tries to settle the dispute amicably; if that fails, the dispute may be referred to the labour court.
Step 5. Watch the deadline: the law sets a time limit for labour claims of one year from the date the claim became due, so do not delay.
Frequently asked questions
Can my employer deduct for days I was absent? Absence without permission or an acceptable excuse can mean you are not entitled to pay for those days, and it may be a violation under the disciplinary regulation. What matters is that the calculation is correct and documented.
Can my employer deduct the cost of a damaged device or car? Only if it is proven that the damage was caused by your fault, and in line with the procedures and limits set by law, not automatically.
Will I lose my job if I complain? The law treats dismissing an employee for filing a serious complaint as a form of arbitrary dismissal. It is best to start with a written request and keep copies of all correspondence.
How BlackRobe can help
At BlackRobe Legal Services in Abu Dhabi, we review your payslips and employment contract with you, explain whether a deduction is lawful and help you draft your request or complaint and prepare your documents. Message us on WhatsApp at +971526562083.
Disclaimer: this article is general information, not legal advice. Laws and procedures change from time to time, so check with the competent authority or consult a specialist before making any decision.