Statutory salary deductions and company specific deductions

Dear Questioner,

Please note that your employer cannot deduct a portion of your salary without valid reasons as mentioned in Article 60 of the Federal Law No. 8 of 1980 regulating Employment Relations in the UAE (the 'Employment Law'). It states as follows:

"No amount of money may be deducted from a worker's remuneration in respect of private claims, except in the following cases:

(a) the recovery of advances or amount of money paid to the worker in excess of his entitlements, on condition that the amount deducted in this case does not exceed 10 per cent of his periodic remuneration;

(b) contributions which the worker is required by law to pay from his remuneration, e.g towards social security and insurance schemes;

(c) the worker's contributions to a savings fund or repayment of advances repayable thereto;

(d) contributions towards any welfare scheme or in respect of any other privileges or services provided by the employer and approved by the labour department;

(e) fines imposed upon the worker for any offence he has committed;

(f) any debt payable in the execution of the judgement of a court of law, provided that the deduction shall not exceed one-quarter of the worker's remuneration. Where two or more debts are payable, the maximum shall be half the worker's remuneration and the sums of money attached shall be divided pro rata among the beneficiaries, after payment of any legal alimony at the rate of one-quarter of the worker's remuneration."

Please feel free to contact me to discuss anything further.

Thank you.

Regards,

Rajasree Ravivarma

+971544461746