Remunerations (salary) as per UAE Labour Law

Remuneration as per UAE Labour Law

Remuneration as per the Chapter III Section 4 Article 55 shall be paid on a working day and at the place of work . It shall be paid  lawfully in national currency.

As per the Chapter III Section 4 Article 56, employees who are engaged on yearly or monthly remuneration shall be paid at least once a month. All other employees shall receive their remuneration at least once in every two weeks.

As per the Chapter III Section 4 Article 57, the daily remuneration of an employee on piece pay shall be computed on the basis of the average pay received for actual days of work during the period of six months prior to the termination of service.

As per the Chapter III Section 4 Article 58, settlement of the remuneration payable to employees irrespective of its amount or nature shall be evidenced only in writing, by declaration or oath. Any agreement to the contrary shall be null and void even if made before the effective date of this Law.

As per the Chapter III Section 4 Article 59, employees are not obliged to buy food or other commodities from specific shops or products manufactured by the employer.

As per the Chapter III Section 4 Article 60, any amounts of money may not be deducted from the employee’s remuneration to recover particular rights, except in the following cases:

  1. Any advance amount of money paid to the employees in excess of his entitlement. But deduction in this case may not exceed 10% of the employee’s period pay.
  2. Installments (such as social security and insurance schemes) which are payable by law by the employees from their remuneration.
  3.  Subscriptions of the employees in the saving fund or advances due for payment to the fund.
  4. Installments in respect of any social scheme or other privileges or services provided by the employer and approved by the Labour Department.
  5. Any fines imposed on employee due to offenses committed by him.
  6. Any debts payable in execution of court judgment provided that not more than a quarter of the employee’s pay shall be deducted.

As per the Chapter III Section 4 Article 61 If the employee has caused  any loss, damage or destruction to any tools, machines, equipment or products owned by or kept in custody of the employer, to the extent that involvement of the employee was due to his fault or violation of the employer’s instructions, then the employer has the right to deduct employee’s pay the amount required for rectifying error or restoring the item to its original condition, provided that the amount to be deducted shall not exceed five day pay each month.

The employer can apply to the competent court through the concerned Labour Department for authorizing him to deduct more than this amount if the employee is financially sound or has another source of money.

As per the Chapter III Section 4 Article 62, the employer may not transfer an employee from the monthly pay to the daily, weekly, hourly or piece work pay without any written consent .

As per the Chapter III Section 4 Article 63, the minimum salary and the cost of living allowances payable with respect to a certain area or a particular profession, shall be fixed by a Federal Decree issued pursuant to proposal made by the Minister of Labour and Social Affairs and approved by the Council of Ministers. The Minister’s proposal shall be made either for description or reconsideration of the minimum pay after consulting with the competent authorities and trade agencies if any for both employers and employees based on studies and schedules of the cost of living price fluctuations prepared by concerned authorities in the State. Such minimum pay shall in all cases be enough for the employee’s basic needs and to secure means of living.

As per the Chapter III Section 4 Article 63, minimum salary and its amendments shall come into operation from date of publication of the specific decree in the Official Gazette.

About Deepak 505 Articles
Deepak is a passionate blogger with interests in bitcoin, online marketing, and writing.
  • However the Article 60 does not explicitly prohibit `reduction` of salary but deductions based on sums spent for and employee`s behalf. Is there any other article ensuring the base salary cannot be reduiced by any means? let me give you an example: I am working for a foreign company`s Dubai branch on a delegation contract. Our company is in JAFZA therefore I also have signed local JAFZA contract besides my delegation contract. Due to my home currency based salary adjustment rule in my delegation contract, my local salary has been reduced by 5% in Dirhams basis 9as the home currency got weaker recently). This was in line with our central system which applies to all world-wide delegates the same way. FYI all my earning is paid in UAE in Dirhams, except some social security and pension contributions at home country. So my living expenses have increased in Dubai (inflation) whilst my earnings decreased. My question, since JAFZA has a wage protection system, is it allowed for a JAFZA registered employer to reduce salary from one year to another? Is there any Labor Law or article that can be used as a reference here? May I obtain this article somehow? Many thanks in advance

  • Hi Deepak,

    I have been paid an advance in salary at the time of joining 16,000 DHS. and an advance in commission for the past 3 months((9000 DHS monthly).

    The advance in commission was offered to me when i asked for a raise as my job requires me to travel a lot.

    My company has changed my commission structure 2 times since i have joined and i have been put on various projects(some which are not paying) and deals that were allotted to me were reallocated to my boss.

    Because of the above situation i am unable to earn any commissions back. My work environment is very hostile and unpredictable . I would like to quit immediately.

    Please do let me know if i have to pay the advance back at the time of leaving?

    Your advice is much appreciated.

    Thank you.

  • Hi Deepak, I am a filipina domestic helper here in sharjah, i decided to leave in my employers premises because for 8months working with them theyt didnt increase my salary..(1000aed monthly)they promise to increase after 3months but until now tget didnt..i dont have a copy of contract and they say i need to pay back them.and their going to cancel my visa..do i have to pay them once my visa is cancelled? Because they are not going to giv my pasport if i didnt pay them.. My employer ask me to pay the amount of 9550 for the expenses they paid for my sponsor? Is this lawful? Can i file a case againts them.

    • Shalani,
      You do not have to pay anything to the employers upon cancellation of visa.
      You could call call 800MOL and file a complaint.

  • I was given an offer by a company to work with them. I was in the Philippines at the time so they said they will givee free plane ticket going to the UAE. Now i noticed that they are deducting it in my salary. Is that legal?

    • Rodel,
      There is nothing with regard to this in the labour law.
      However, if you have something in writing, you should talk to them.
      Also directly talk with the HR.

  • Hi Deepak

    We have an employee who joined mid month. How do I calculate his first salary. Do I divide the monthly agreed salary by the number of working days in a month or by calendar days in a month to arrive at his daily rate?

    Thanks

    • Jasmine,
      1 month is 30 days. and you should divide the salary by 30 and multiply with number be calendar days worked.

  • Hi, Deepak.

    I have this concern, hope you can help me to go through with this. We have an employee who took his leave on the 1st week of this month and resumed on his work 3rd week of the same month. How would i compute his days, would it be divided in 30 or 31 days (July 2015) multiply by (the number of his worked days)? should i deduct the weekend off or what? we do monthly salary not a daily wage basis..

    For instance:
    Last work: July 6
    Resumed work: July 22

    Would it be like this? 6500/30 = 217 x 13 = 2,821.00 ? OR
    6500/30 = 217 x 16 = 3,472.00

    Which is correct? Please correct me if i am wrong.

    Thanks.

    • Red,
      As per UAE Labour Law, 30 days should be considered for calculation.
      16 days is correct. How did you get 13 days?

  • Hi deepak I am anwar I am working 3 days a week more than 9 hr but I am not getting any allowenvse just my basic salary not only me everyone in my cafe almost 200 prsn, what I shall do know that too we don’t have any proof that v r working mre thn 9 hr because we don’t have any entriee timing ex- fingerprint timing in or singing or punching card we just go to cafe and stsrt our work plz help me out in this,

    • Anwar,
      Certain categories are exempt from overtime.
      But if you think you are eligible, you must ask your HR about it.

  • i just want to ask about my husband situation his salary is 2500 1800 basic and the rest for housing and transpo…last eid he did not come to office then his boss told them that was counted as absent so he has 1 absent then now when he saw his salary his deduction was 418 and he dont know why…can we go to labour and report his boss?

    • Clyde,
      Yes, Eid is official day off as per Labour Law.
      You could first ask payslip from the company and if they do not provide clarity, you could visit MOL and file a complaint.

  • Hi,

    When is salary due to be paid in uae?
    After my probation period are my sick leaves paid?
    My boss is trying to push me to resign after giving me 2 warning letters in two days, a week after my probation period has ended, is he allowed to do that?

  • Dear Deepak,

    Can you please advise till when the employers are allowed to pay the salary according to labour law?I mean for month of September they should legally allowed to pay till which date of October?

    Thanks,
    Sana

  • I WANT TO KNOW IF PERSON WORKING IN JAFZA HAVING SALARY OF 15000 BUT AFTER 8 MTH EMPLOYER REDUCE A SALARY TO 7000 BY SENDING A MAIL THAT HIS PERFORMANCE IS NOT UP TO MARK AS PER EMPLOYEER. BUT EMPLOYEE HAS PROOF THAT HIS PERFORMANCE IS SATISFACTORY. PLEASE ADVICE

  • Hi Mr. Deepak,

    I am working in Sharjah as Secretary. My salary since I joined the Company is not given on time. They don’t even inform the employees when the salary gets delayed. Few months back they use to give partial salary only and they use to deduct for every mistake I made like ticket booking and other transactions which only happened because of too much load and keep me do transactions at the last minute. I signed offer letter for Secretary but I am doing at the same time reception and Administrative works. For mistakes on booking more or less AED 1500 had been deducted from my salary. I have no choice because in the first place it was really my mistake so I got to pay back.
    ***There was AED 500 and they deducted full from my salary at one time only. It was for electrical supply booked for our exhibition they said it was not required but still they utilize the said supply during the exhibition days.
    ***For every violations as per their company rule they issue memo and automatically deduct AED 25 for each. Let’s say last November 2015 I got 2 memos so AED 50 was deducted on my November Salary.
    ***There was Company party and my husband was also invited but due to an emergency on the last minute I have informed my Manager that I cant able to attend the party and for that they have deducted AED 150 because they said the company paid per person and each costs AED75 (75*2 me and my husband = AED150)
    They are not informing as well that they are deducting certain amount from the salary, you will be only surprise that there is deductions made by them. No any pay slip is given.
    **** I came almost half day on September month but still they deducted whole day even there was prior information conveyed to them.
    **** We are not also availing sick leave, if you are sick and absent for minimum 2 days we are providing medical certificate but still they deduct the salary for how many days you were absent even you have already completed your probationary period.
    ****Our office timing is from 8am – 7pm from Saturdays through Thursdays only one day off and early 2015 they reduced one hour from 7pm to 6pm. Still we are working for roughly 10 hours a day less one hour break.
    **** The boss also used to give us abusive words.

    Do we have the right to complain with this kind of system? I am finishing my contract but I am concern with other employees working here and those who will be joining.

    Thank you for your time.

  • Hi hello here’s my question that now am going quit a comment and then there’s no ban but can I join the company without going back to my country pls in from me so that I can do has the information

  • Hello,
    I just want to asked if my company had the to change our salary because ou salary was increased last jan.2015 then i was in rmergency leave in april 2015 and they advice to take 4 months emergency included vacation and that time ill come back because around june our c9mpany was not renewe by the hospital. And that tine ill come back sept. I assigned to another hoapital in ras alkhaima instead beforw im waitress but now im office since my salary still same which we uncreesed oir salary from oct. To dec 2015 but in following month in jan to feb 2015 was changed they less my salary evrrymonth in 100 aed something. I tried to communicate thwy said just check in next month salary then now our salary coming only this month they me aame my last year increased salary but hte jan to feb dont have the hr coordinator said the salary has been revised. From all previous waitress to officr girl porter and ward aide starting this minth the effect of increase it will not be applied retroactively rest assured that your salary will be same as requested starting this month … .. pls give me advice and before we have free food now no,,. It will less again our salary there but my contract still waitress and we hve free fiod right

  • Hello I just want to ask if the employers have the right to deduct salary just because of their subjective reasoning? Like they thought something is missing on my documentation? It should be a warning? Or fine? Or do they have the right to decide the amount and what to do? Because they are deducting 1000aed. I think that is abuse of power and unjust to our hard earned money.

  • hi
    I was here in uae on visa I got a job company promised to pay me insentives ainsentivesaver time n its only 1 month I have completed in the company during ramadan. our shift was for 7hours with out offs for the full month and now the my co is telling that they pay the over time and asking us is an emaitherl sent to you for the time how ever ther are cc camera instaledI so please suggest me what to do.. and I am still under probation period

  • I was here in uae on visa I got a job company promised to pay me insentives n over time n its only 1 month I have completed in the company during ramadan. our shift was for 7hours with out offs for the full month and now the my co is telling that they will not pay the over time and asking us is an email sent to you about the scheduled as we were informed over the call and n whatts app msg was sent,how ever ther are cc camera instaledI that proves we have been working so please suggest me what to do.. and I am still under probation period

  • Hi Sir,
    I wanna know, is marine labour/ships crew which is under seaman visa (not resident) is under same protection of labour ministry? I have been work for 6 months without payment and more persons are have same situation with me, some of them more than 1 year not being paid. What should we do to get our rights? Now we are stuck in Sharjah Port UAE without proper hospitality.
    Your kindly feedback I highly appreciated. Thanks.

  • Hi mr. Deepak I’m a Filipina working in a cleaning company I would like to ask about my problem on my company I’m on a 1 month leave now and I already sign a 1 month leave but they let me force to work and if I will not go to work they deduct on my salary 500 AED is it right to deduct me? And one more thing if you are going on an annual leave the company will pay you upon the start of your leave but in our case we only receive our salary after the 1month leave, only the basic salary is it right sir? I really need your advice thank you

  • Hello good evening sir, deepak I have a promlem I am working a salon I need a advice.. My story is a have a client asking me a house made coz her. House made is in vacation right now. So I said to her yes I know one. And that my colleague and I get the number of client but I never give my number or my colleague number and that client back the next day and asking me but I was not there so she ask my colleague and that time my area manger it was there so she ask that client what is it ? and now. They are accusing me that I am giving me a partym to that client like a manicure pedicure. While my colleague is cleaning, which is not true. And my area manager talk already to my colleague and told she give a 4days deduction to my colleague . I would like to know is possible can do a termination for me. . Thank you for your time…

  • हमारे कंपनी मे एक दिन छुट्टी करने पर दो दिन कटिंग करतेहैं क्या ये सही है ???

  • Hello I would like to know if we prepare the payroll and an employee is absent for one week and we need to deduct his salary will we include Friday also in that or Friday will be paid?

  • hi i just wanted to ask if the employer closed his/her shop business but the name of the company was not under by his/her name and there will be another employer will take over of it in short changed management, and tje staff sales visa was under the name of the said company still ,what would be the rights and benefits of the said employee?
    as per the record the employee was already finished 1 year of service.
    the employee had a basic salary of 1500aed but the salary was 2200 aed before but when the employee asked the emirates id from the old employer they reduced the employee salary for 1500 which is the basic salary only.is that right? or does the employee can claim the exceeding 700 aed from the employer? can the employee claim as well the annual leave and 1 month salary and the ticket?

  • I resigned on 2nd Nov, 2016 and notice period ended on 01.12.16 and the HR manager told me not to come to office after 1st Dec. Upto when can I am eligible for salary . till 1st Dec of till cancellation of my visa ?

  • hi Mr. Deepak,
    I am on new outsource agency right now. I have an emegency back in the Philippines. I asked my outsource agency if I can get a salary advance from them to cover up the emergency expenses back home. But they refused to grant my request as I even told to get the approval from my direct manager and he approves. The company is saying that they don’t have any provision of Salary advance. As i did try to appeal with them because my salary is only my hope to cope up with my financial problem. Please advise is there any chances that I can also base my request according to UAE labor Law regarding Salary advance? Appreciate your reply. Thank you!