Maximum amount employer can deduct from salary? | ExpatWoman.com
 

Maximum amount employer can deduct from salary?

328
Posts
EW EXPLORER
Latest post on 12 April 2011 - 10:52

Does anyone know the UAE Labour Laws maximum deduction permitted for an employer to deduct from an employees salary? In my head I thought it was 10% but I might be wrong ..... TIA

308
Posts
EW EXPLORER
Latest post on 12 April 2011 - 12:57
As per the UAE labour court a deduction cannot be more than 5 days of the monthly salary however if you have signed a housing loan form it is a little shaky - given all of that all the cases that I have known recentley the UAE court have ruled in favor of the employee
1579
Posts
EW EXPERT
Latest post on 12 April 2011 - 12:14
Is this correct? - A housing allowance of eg. 50,000 was provided. The accommodation cost eg. 62,000 and the company paid the full amount therefore the employee owes the employer 12,000. While many companies will deduct it over the entire year eg. 12,000/12=1,000pm I do not believe they are required to do so by law as it is my understanding that the deduction of advances/allowances do not fall under the gamut of the labour law areas as it is seen, as madolecow said, as a benefit. I would check your HR policies, contract and anything you have signed. For interests sake what is the amount and how much do they want to deduct (%)?
374
Posts
EW EXPLORER
Latest post on 12 April 2011 - 11:57
It should be taken in installments over the period of the laon so if you take 90,000 extra over the year then they should deduct 7,500 per month but this is not a legal requirement. A housing loan is a benefit so they can do as they like
4747
Posts
EW MASTER
Latest post on 12 April 2011 - 11:33
Hopefully not tax - yet!! Yes housing allowance deductions for accommodation provided above monthly cash allowance entitlement. Sorry, I should have been more specific. I think that the employee has to sign an agreement to the deductions if this is above the labour laws stated deduction amounts and the monthly accommodation allowance .... but not sure how legal this is? no they can take off what they like, a lot of the salaries is basic and then you add the allowance for car and housing etc etc, and they do this so that you only get your EOSB on your basic salary. i would say that a lot of the allowances would be well over 10%
328
Posts
EW EXPLORER
Latest post on 12 April 2011 - 11:26
Hopefully not tax - yet!! Yes housing allowance deductions for accommodation provided above monthly cash allowance entitlement. Sorry, I should have been more specific. I think that the employee has to sign an agreement to the deductions if this is above the labour laws stated deduction amounts and the monthly accommodation allowance .... but not sure how legal this is?
4747
Posts
EW MASTER
Latest post on 12 April 2011 - 11:15
Why would they be deducting from your salary? Just interested as I thought it was tax free in Dubai?? tax free lol what she is meaning perhaps is all the allowances?
 
 

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