A UAE private-sector employer may deduct from your wage only in the cases listed in Article 25 of Federal Decree-Law No. 33 of 2021, such as recovering a loan or an overpayment, or a court-ordered debt. Each case has its own limit, and all deductions together may never exceed 50% of the wage. An employer may not charge you recruitment or employment costs at all (Article 6(4)). If a deduction looks wrong, you can complain to the Ministry of Human Resources and Emiratisation (MoHRE).
Who this guide is for
This guide is for employees of private-sector companies on the UAE mainland who see money taken from their salary or end-of-service pay and want to know if it is allowed. It follows Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (the Labour Law) and Cabinet Resolution No. 1 of 2022.
DIFC and ADGM employees have their own employment laws. Domestic workers are covered by Federal Decree-Law No. 9 of 2022.
The lawful deductions and their limits
Article 25(1) says no amount may be deducted from a worker's wage except in these cases. "Wage" here means the basic wage plus allowances, as defined in Article 1.
| Reason for the deduction | Condition or limit |
|---|---|
| Repaying a loan from the employer | Your written consent, no interest, and within the article's monthly deduction limit |
| Recovering money paid to you by mistake | No more than 20% of the wage |
| Pension, retirement and insurance contributions | As set by the laws in force |
| Savings fund contributions or loans | The fund must be approved by MoHRE |
| Instalments for a social scheme or other benefit from the employer | Approved by MoHRE, and you agreed in writing to join |
| Fines for workplace violations | Under a penalties regulation approved by MoHRE, and no more than 5% of the wage |
| Debts under a court judgment | No more than a quarter of the wage, except court-ordered maintenance (nafaqa), which may exceed a quarter |
| Repairing damage you caused by error or by breaking instructions | No more than five days' wage a month. More needs the approval of the competent court |
The overall cap. If there are several reasons for deductions, the total may not exceed 50% of the wage in any case (Article 25(2)).
Is there a separate cap for loans?
Article 25 does not state its own percentage for loan repayments. It says loans must be recovered within "the maximum monthly deduction percentage stipulated in this article", with written consent and without interest. Cabinet Resolution No. 1 of 2022 does not add a loan or housing loan percentage. Figures you may see online, such as 20% for loans, are not written that way in the law. If a loan deduction feels too high, check it with MoHRE.
Can my employer charge me visa or recruitment costs?
No. Article 6(4) prohibits an employer from charging a worker the fees and costs of recruitment and employment, or collecting them, whether directly or indirectly. The UAE Government portal also states that charging recruitment fees to prospective employees is illegal.
If you move to a new UAE employer during probation, Article 9(3) says the new employer compensates the original employer for recruitment or contract costs, unless agreed otherwise. The law does not put that cost on the worker.
Disciplinary deductions and deductions from gratuity
Penalties. Article 39 lets an employer impose a deduction of up to five days' wage a month as a disciplinary penalty. Before any penalty, the worker must be told in writing what they are accused of, be heard and have the investigation recorded (Article 24 of Cabinet Resolution No. 1 of 2022). Article 25 separately caps deductions for violations at 5% of the wage. The two limits are measured differently, so if a penalty deduction seems large, ask MoHRE how they apply to you.
End of service. An employer may deduct amounts due by law or court judgment from your end-of-service gratuity (Article 51(7)). Cabinet Resolution No. 1 of 2022 (Article 29) limits this to loans, overpayments, contributions, fines, court debts and damage. For fines and damage, the employer must have followed the legal procedure. Article 29 also says the amount must not have been due for more than three months, unless agreed otherwise. Our gratuity calculator helps you check the starting figure.
Is this deduction lawful? A quick checklist
- Does it match one of the eight reasons in Article 25(1)?
- Is it within that reason's limit (20%, 5%, a quarter, or five days' wage)?
- Are all deductions this month together at or below 50% of your wage?
- For a loan or a benefit scheme, did you agree in writing?
- For a fine, is there a MoHRE-approved penalties regulation, and were you investigated in writing first?
- For damage, is there proof that you caused it by error or by breaking instructions?
- Is it a recruitment, visa or employment cost? If so, it cannot be charged to you.
- Is it shown clearly on your payslip or in writing?
If the answer to any of these is no or unclear, write to your employer and keep a copy.
Step by step
- Collect your payslips. Mark each deduction, its amount and the reason given.
- Work out the percentages. Divide each deduction by your total monthly wage.
- Ask for the basis in writing. Request the reason, the agreement or the court order behind it.
- Check your bank statements. They show what actually reached your account through the Wage Protection System (WPS).
- Plan your next steps. The unpaid salary action plan can help you list the amounts and options.
- Get free advice. MoHRE's Labour Claims and Advisory Call Centre is on 80084.
- Complain in time. MoHRE guidance and Ministerial Resolution No. 782 of 2023 refer to filing within 30 days of the breach, through the MoHRE app, website or 600590000. Our unpaid salary checklist covers the complaint itself.
Documents checklist
- Employment contract and any salary advance or loan agreement
- Payslips showing each deduction
- Bank statements for the same months
- Any penalty notice, investigation record or warning letter
- Any damage report or invoice the employer relies on
- Court order, if the deduction is for a judgment debt
- Emails asking for, and giving, the reason for each deduction
Common mistakes
- Accepting unexplained deductions. Ask for the reason in writing each time.
- Signing blank or open-ended consent forms. Loan deductions need your written consent, so read what you sign.
- Paying back visa or recruitment costs. The law says these cannot be charged to you.
- Looking at one deduction only. The 50% cap applies to all deductions together.
- Waiting months to raise it. The MoHRE complaint window is short.
When to speak to a licensed lawyer
Consider advice if large sums are being taken from your final settlement, if the employer claims damage or misconduct, or if a court debt is involved. The free case check can help you set out the facts first, and CaseDaleel can introduce an independent licensed professional only if you choose.
Frequently asked questions
What is the maximum my employer can deduct from my salary?
All deductions together may not exceed 50% of the wage in any month (Article 25(2)).
Can my employer deduct visa costs from my salary?
No, Article 6(4) bans charging a worker recruitment and employment fees or costs, directly or indirectly.
How much can be deducted to recover an overpayment?
No more than 20% of the wage (Article 25(1)(b)).
Can my employer deduct for damage I caused?
Only for damage from your error or breach of instructions, up to five days' wage a month, and more only with a court's approval.
Can my employer charge interest on a salary advance?
No, loan recoveries must be without interest and need your written consent.
Can deductions be taken from my gratuity?
Yes, in limited cases set by Article 51(7) and Article 29 of Cabinet Resolution No. 1 of 2022.
Does a salary deduction count as late payment under WPS?
MoHRE treats a worker who receives at least 85% of the wage as paid if the difference comes from lawful deductions, as explained in our WPS salary deadline guide.
Official sources
- UAE Legislation — Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (Arabic)
- UAE Legislation — Cabinet Resolution No. 1 of 2022, Executive Regulation of the Labour Law (Arabic)
- UAE Government portal — Protection of workers' rights
- MoHRE — Ministerial Resolution No. 340 of 2026 concerning the Wage Protection System (PDF)
- MoHRE — Register labour complaints (private sector employees)
General information, not legal advice. CaseDaleel is not a law firm.