UAE Labour Law: Payment of wages

Understanding your employee rights is a very important part of living and working in the UAE.

Below is the labour law, as published by the UAE Ministry of Labour, with regards to the payment of wages.

Disclaimer: The following text comes from the UAE Ministry of Labour’s UAE Labour Law.

Section 4 - Payment of wages

Article 55

Remuneration shall be paid on a working day and at the place of work in the lawfully circulating national currency.

Article 56

Employees engaged on yearly or monthly remuneration shall be paid at least once a month. All other employees shall receive their remuneration at least once every two weeks.

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.

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.

Article 59

No worker shall be obliged to buy food or other commodities from specific shops or products manufactured by the employer.

Article 60

Any amounts of money may not be deducted from the employee's remuneration to
recover particular rights, except in the following cases:

a. Repayment of advances or amounts of money paid to the employee in excess of his entitlement, provided that deduction in this case may not exceed 10% of the employee's periodic pay.
b. Installments which are payable by law by the employees from their remuneration, such as social security and insurance schemes.
c. Subscriptions of the employees in the saving fund or advances due for
payment to the fund.
d. Installments in respect of any social scheme or other privileges or services
provided by the employer and approved by the Labour Department.
e. Fines imposed upon the employee due to offenses committed by him.
f. Any debts payable in execution of court judgment provided that not more than
a quarter of the employee's pay shall be deducted. In the event of numerous
debts or creditors, half of the remuneration at the most may be deducted and
the sums of money attached shall be divided pro rata among beneficiaries after
payment of any legal alimony amounting to one quarter of the remuneration.

Article 61
[Amended by Federal Law No. (24) of 1981 and amended for the second time by Federal Law No. (12) of 1986]

If the employee has caused the 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 option to cut from the 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.

Article 62

The employer may not transfer an employee from the monthly pay to the daily, weekly, hourly or piece work pay except with the latter's written consent.

Article 63

The minimum salary and the cost of living allowances payable generally or 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.

Article 64
Minimum salary and its amendments shall come into operation from date of publication of the specific decree in the Official Gazette.

Source UAE Ministry of Labour

Call centre For any Labour issues, call 800 665

Locate your nearest Ministry of Labour office

Gulf News is not responsible for any amendments made to the UAE Labour Law. All labour disputes must go through the Ministry of Labour. This article simply quotes the UAE MOL.