Ministry of Labor: 10% is the maximum limit for employer deductions from worker's salary
General Authority for Manpower confirms prohibition of salary reduction and sets deduction percentages
Translated by Qiyas from الأنباء — Original source
Zaki Amir: The Public Authority for Manpower has confirmed that it is impermissible to reduce the agreed-upon wage throughout the duration of the employment contract, emphasizing the necessity of adhering to the legal regulations governing financial deductions from workers’ wages.
In an awareness notice, the Authority clarified that Article 28 of the Labor Law prohibits reducing the agreed-upon wage during the term of the contract.
It further explained that Article 59/A sets the maximum limit for deducting from a worker’s wage to settle debts or loans owed to the employer at 10%, while prohibiting the collection of any interest on such amounts.
Additionally, Article 59/B establishes a maximum limit of 25% for garnishing a worker’s wage, assigning it, or deducting from it to settle debts, including those owed to the employer, while observing the priority granted to alimony debts in cases of competing claims.
The Authority affirmed that these regulations aim to protect workers’ rights and ensure the implementation of the provisions of the Labor Law, thereby enhancing the stability of the relationship between the worker and the employer.
