How much can a UAE employer deduct from a worker's salary?
Only for the reasons Article 25 of Federal Decree-Law No. 33 of 2021 lists, and in total never above half the wage. Within that limit, overpayment recovery is capped at 20% of the wage, disciplinary fines at 5%, damage at five days' wage a month, and court debts at a quarter of the wage.
The permitted reasons
Loans to the worker, with written consent and no interest. Amounts paid in excess of entitlement. Pension and insurance contributions. Savings fund contributions. Instalments for approved employer schemes the worker joined in writing. Penalties under an approved penalty regulation. Court-ordered debts. Repairs for damage the worker caused by mistake or breach of instructions.
Anything outside this list cannot be deducted, however reasonable it looks to the employer.
Applying the 50% ceiling
When several deductions apply in the same month, their total cannot exceed half the wage. The excess has to wait for later months. This is why loan schedules matter: a schedule that ignores other deductions can push a month over the cap.
How SupaJack Construct records deductions
Salary advances are recovered from a dated instalment schedule, and each payslip deduction is an itemised line linked to its source. A recovered instalment is marked with the payroll run that took it, so it cannot be taken twice.
Related tools and guides
See the UAE labour law guide for contractors, the final settlement calculator, the gratuity calculator, the annual leave calculator, the unpaid leave deduction calculator, payroll and WPS in SupaJack Construct, time and attendance and the meaning of basic salary.
Worked example
A driver's wage is AED 3,000, so total deductions in a month are capped at AED 1,500. In March the employer wants to take a AED 1,000 advance instalment, an AED 800 overpayment and a AED 200 fine. The overpayment is capped at AED 600 (20%) and the fine at AED 150 (5%). That makes AED 1,750, so AED 250 of the advance instalment moves to April.
Questions people ask
Can an employer charge interest on a salary advance?
No. Article 25 requires loans to be recovered without interest.
What is the overall cap?
50% of the wage when there are several deductions.
Can the employer deduct for damaged tools?
Yes, up to five days' wage a month unless a court approves more.