Key takeaways
- Your wage must be written in your contract and paid on time, through the Wage Protection System (WPS) or another MOHRE-approved system (Decree-Law Art. 22; Regulation Art. 16).
- Wages are paid in dirhams, unless the contract agrees another currency (Art. 22(3)).
- An employer can deduct from your wage only in 8 listed cases, such as loans you agreed in writing, overpayments, court debts and penalties, and never more than 50% of the wage in total (Art. 25).
- If the employer does not give you work, it must still pay you. If that continues, MOHRE can cancel your permit and let you move to another employer while keeping your rights (Art. 26; Regulation Art. 17).
- A monthly-paid worker can only be moved to daily, weekly, hourly or piece-rate pay with their written agreement (Art. 24).
- The law lets the Cabinet set a minimum wage, for all workers or particular groups, but does not set a figure itself (Art. 27).
This chapter covers money: how your wage is fixed and paid, what can be deducted, and what happens if your employer stops giving you work. We go through each article in order: a short quote from the official text, then what it means in simple words.
This page explains what the law says. If your salary is late or missing, see: Salary not paid: what to do · How WPS works · WPS registration for employers.
Paying the wage
Fixing the wage and paying it on time
Federal Decree-Law 33/2021
“The wages shall be paid in AED, and they can be paid in another currency if it is agreed upon between the parties in the employment contract.”Federal Decree-Law No. 33 of 2021, Article 22(3)
In plain English
- The amount or type of wage goes in the contract. If it is missing, a court decides it as a labour dispute.
- The employer must pay wages on their due dates, through the systems MOHRE approves.
- Wages are paid in dirhams, or in another currency if the contract says so.
Example
A European engineer’s contract says he is paid in euros. That is lawful under Article 22(3) because both sides agreed it in the contract.
“On their due dates” means the date in your contract. A late salary is a breach you can raise with MOHRE. Our guide on what to do when salary is not paid walks through it.
All wages through WPS or another approved system
Cabinet Resolution 1/2022
“All establishments registered with the Ministry shall pay its workers’ wages on their due date through the Wage Protection System or any other system approved by the Ministry.”Cabinet Resolution No. 1 of 2022, Article 16(1)(b)
In plain English
Every company registered with MOHRE must pay wages on time, as agreed in the contract, through WPS or another system MOHRE approves. If wages are not paid, MOHRE can take the legal steps in the law and the Regulation against the company.
Example
A company pays some staff in cash “to save time”. That does not meet Article 16. Wages must go through WPS or another approved system, so the payment is recorded.
Employers: WPS compliance also affects your work permits. MOHRE can refuse new permits to companies that do not comply (Regulation Art. 7). Workers: WPS records are strong evidence if you ever need to claim unpaid salary.
Daily wage for piece-rate workers
Federal Decree-Law 33/2021
“calculated according to the average of what the Worker received for the actual working days during the six (6) months preceding the request or the lawsuit”Federal Decree-Law No. 33 of 2021, Article 23
In plain English
Workers paid by the piece (per item produced or delivered) have a daily wage based on the average of what they earned per working day over the last 6 months before a claim. That figure is used whenever a wage-related calculation is needed.
Example
A tailor paid per garment earned AED 24,000 over 120 working days in the last six months. His daily wage for any claim is AED 200.
If you are paid by the piece, keep your own records of what you were paid each day. They decide your gratuity and notice pay later.
Changing from a monthly wage needs your written consent
Federal Decree-Law 33/2021
“if the Worker agrees to this in writing, and without prejudice to the rights acquired by the worker during the period he spent working for monthly wage.”Federal Decree-Law No. 33 of 2021, Article 24
In plain English
An employer can move a monthly-paid worker to daily, weekly, hourly or piece-rate pay only with the worker’s written agreement. Rights earned while on the monthly wage are kept.
Example
After four years on a monthly salary, Kumar agrees in writing to move to an hourly rate. The gratuity he built up over the four monthly-paid years is not lost.
Do not sign a change of pay basis without checking what it does to your income. The law protects what you have already earned, not what you would earn afterwards.
Deductions
The 8 cases where your wage can be cut, and the 50% cap
Federal Decree-Law 33/2021
“If there are multiple reasons for deduction from the wage, it is not permissible in all cases for the percentage of deduction to exceed fifty percent (50%) of the wage.”Federal Decree-Law No. 33 of 2021, Article 25(2)
In plain English
Nothing may be deducted from a wage except in these cases:
| Reason | Limit or condition |
|---|---|
| Repaying a loan from the employer | Worker’s written consent; no interest; within the overall cap |
| Recovering an overpayment | Up to 20% of the wage |
| Pension, bonus and insurance contributions | As the law in force requires |
| Company savings fund contributions or loans | Fund approved by MOHRE |
| Welfare scheme or employer benefit instalments | Scheme approved by MOHRE; worker agrees in writing |
| Penalties for violations | Under the company’s MOHRE-approved penalty rules; up to 5% of the wage |
| Court-ordered debts | Up to a quarter of the wage, except maintenance (alimony), which can be more |
| Repairing damage the worker caused | Up to 5 days’ wage a month; more only with a court’s approval |
However many reasons apply at once, the total deducted can never exceed 50% of the wage.
Example
Grace has an employer loan instalment, a court-ordered debt and a damage repair all in the same month. Even combined, her employer can deduct no more than half of her wage that month.
A deduction that is not on this list is unlawful, for example charging you for your own visa (also banned by Article 6(4)). Ask for a payslip showing every deduction and its reason.
When there is no work, and minimum wage
No work given still means wages paid
Federal Decree-Law 33/2021
“the Employer is obligated to enable the Worker to perform his work, otherwise he is obligated to pay his wage agreed upon.”Federal Decree-Law No. 33 of 2021, Article 26(1)
In plain English
The wage is paid in exchange for work, so the employer must let the worker do the job. If it does not, it still has to pay the agreed wage. The Regulation sets out how the worker can leave in that situation.
Example
A construction company loses a contract and tells its workers to “wait at the camp” without work for two months. It must keep paying their wages for those two months.
Being sent home without work is not unpaid leave unless you agree to unpaid leave. Unpaid leave needs your consent under Article 33.
What happens if the employer keeps you from working
Cabinet Resolution 1/2022
“the Ministry may cancel the worker’s employment permit and allow him to transfer to another establishment without prejudicing his rights with the employer.”Cabinet Resolution No. 1 of 2022, Article 17(4)
In plain English
- The employer must let the worker work, or pay the agreed wage.
- If something outside the employer’s control stops the work, the employer must tell the worker and still pay.
- A worker who wants to leave tells the employer and can file a labour claim.
- MOHRE can contact the employer and give it time to provide work. If the employer does not respond, MOHRE can cancel the work permit and let the worker transfer to another employer, keeping all rights against the old one.
Example
A company stops giving Peter work and ignores MOHRE’s request to resolve it. MOHRE cancels his permit, he joins a new employer, and his claim for the unpaid wages continues against the old company.
You are not trapped with an employer that gives you neither work nor pay. Start with a MOHRE claim. Our complaint guide shows the steps.
Minimum wage
Federal Decree-Law 33/2021
“The Cabinet may … issue a resolution setting the minimum wage for Workers, or any category of them.”Federal Decree-Law No. 33 of 2021, Article 27
In plain English
The law does not set a minimum wage figure. It gives the Cabinet the power to set one, on the Minister’s proposal, for all workers or for a particular group.
Example
The Cabinet could set a minimum wage for one group, such as UAE nationals in the private sector, without setting one for everyone.
Any minimum wage comes from a separate Cabinet resolution, not this article. Salary thresholds you may have heard of, such as for sponsoring family, are visa rules, not a minimum wage. See our guide on the family visa salary requirement.
Salary deduction checker
Article 25 sets a separate limit for each type of deduction, and a 50% cap on the total. Enter what was deducted this month to see what the law allows.
Your resultExample
Overpayment up to 20% of the wage, penalties up to 5%, court debts up to 25%, damage up to 5 days' wage a month, and never more than 50% in total.
AED 250deducted above the legal limits
A loan needs your written consent and no interest. Maintenance orders are not included.
- Total deducted
- AED 1,500
- Most the law allows
- AED 1,250
- Over the legal limits
- AED 250
- Lowest lawful take-home
- AED 3,750
File check AED 100 (5% VAT included), credited to your fee if you go ahead.
Law text checked 1 Oct 2026 (uaelegislation.gov.ae). Estimate, not legal advice; the authority's payment screen and decision are final.
Full breakdown
| Total deducted | AED 1,500 |
|---|---|
| Most the law allows | AED 1,250 |
| Over the legal limits | AED 250 |
| Lowest lawful take-home | AED 3,750 |
| Item limits hit | penalty 5% |
Not included in this figure
- The law does not say which item is reduced first.
Sources
Save or share
Limits from Decree-Law Article 25: overpayment up to 20% of the wage, penalties up to 5%, court debts up to 25% (maintenance can be more and is not included), damage up to 5 days’ wage a month, and never more than 50% in total. A loan needs your written consent and no interest. The law does not say which item is reduced first. An estimate, not a ruling on your case.
Which wage counts? Basic wage or full wage
Different entitlements across the labour law are calculated on different figures. This is why the split between basic wage and allowances in your contract matters.
| Entitlement | Calculated on | Where |
|---|---|---|
| End-of-service gratuity | Last basic wage | Decree-Law Art. 51 |
| Unused annual leave paid when the job ends | Basic salary | Regulation Art. 19(2) |
| Death compensation after a work injury | 24 months’ basic wage | Decree-Law Art. 37(3) |
| Annual leave cashed in during employment | Wage, by agreement | Regulation Art. 19(1) |
| Pay while off work after a work injury | Wage: full, then half | Decree-Law Art. 37(2) |
| Notice allowance | Wage for the notice period | Decree-Law Art. 43 |
| Unlawful dismissal compensation | Up to 3 months’ wage (last wage) | Decree-Law Art. 47 |
| Piece-rate workers | Average daily wage over the last 6 months | Decree-Law Art. 23 |
- A low basic wage shrinks the biggest end-of-service sums. Gratuity, leave paid at exit and death compensation all use the basic wage. A package of AED 10,000 with a basic of AED 4,000 earns gratuity on AED 4,000, not AED 10,000.
- Two penalty limits sit in two articles. Article 25 limits penalty deductions to 5% of the wage. Article 39 lists a penalty of up to 5 days’ wage a month. If a penalty deduction is above 5% of your wage in a month, ask the employer in writing which article it relies on.
- “No work, no pay” is not the rule. If the employer does not give you work, it still pays the agreed wage (Art. 26). Being sent home is unpaid leave only if you agree to unpaid leave (Art. 33).
Quick reference: the numbers in this chapter
| Rule | Figure | Where |
|---|---|---|
| Total deductions in any month | Max 50% of the wage | Decree-Law Art. 25(2) |
| Recovering an overpayment | Max 20% of the wage | Decree-Law Art. 25(1)(b) |
| Penalty deductions | Max 5% of the wage | Decree-Law Art. 25(1)(f) |
| Court-ordered debts | Max a quarter of the wage (more for maintenance) | Decree-Law Art. 25(1)(g) |
| Damage repair | Max 5 days’ wage a month | Decree-Law Art. 25(1)(h) |
| Piece-rate daily wage | Average over the last 6 months | Decree-Law Art. 23 |
| Payment system | WPS or another MOHRE-approved system | Regulation Art. 16 |
Wages and deductions: frequently asked questions
How much can my employer deduct from my salary in the UAE?
Only for the eight reasons in Article 25 of Federal Decree-Law No. 33 of 2021, each with its own limit, and never more than 50% of the wage in total, however many reasons apply.
Can my UAE employer deduct a penalty from my salary?
Yes, but only under the company’s MOHRE-approved penalty rules and only up to 5% of the wage (Article 25(1)(f)). As a disciplinary sanction, a deduction cannot exceed five days’ wage a month (Article 39).
Can my salary be paid in a currency other than dirhams?
Yes, if your employment contract says so. Otherwise wages are paid in UAE dirhams (Article 22(3)).
Is there a minimum wage in the UAE private sector?
The labour law does not set a figure. Article 27 allows the Cabinet to set a minimum wage for all workers or for a particular group by separate resolution.
Does my employer have to pay me if there is no work?
Yes. Under Article 26, the employer must let you work or pay your agreed wage. If it still does not provide work, MOHRE can cancel your permit and let you move to another employer, keeping your rights (Regulation Article 17).
Do all UAE companies have to pay salaries through WPS?
Every establishment registered with MOHRE must pay wages on time through the Wage Protection System or another system MOHRE approves (Regulation Article 16).
Is gratuity calculated on basic salary or full salary in the UAE?
On the last basic wage (Article 51). Unused leave paid at the end of the job and work-injury death compensation also use the basic wage, while notice pay and unlawful dismissal compensation use the wage.
What is the maximum penalty deduction from salary in the UAE?
Article 25 limits deductions for penalties to 5% of the wage, and all deductions together can never exceed 50% of the wage.
Please note. Quotes are from the official English translation on the UAE Legislation portal, checked on 1 October 2026; the Arabic text in the Official Gazette prevails. Examples use invented names and are illustrative. This page is general information, not legal advice; MOHRE’s or a court’s decision on your own case is final.
