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Payment of Wages - UAE Labour Law

The following text comes straight from the UAE Ministry of Labourís UAE Labour Law and is applicable as of July 22 2015.

Payment of wages

Article 55

Wages shall be paid on a working day and at the work site, in the national currency of the State.

Article 56
Workers employed in return for an annual or a monthly wage shall be paid at least once per month. All other workers shall be paid at least once every fortnight.

Article 57
The daily wage of workers employed on the basis of the piece shall be calculated as the equivalent of the average daily wage received by the worker for the effective working days during the six months that precede the termination of the service.

Article 58

The payment to the workers of the wage due thereto, regardless of the value or nature thereof, may only be evidenced in writing or by means of admission or oath. Every agreement made in contrary thereto, even if made prior to the coming into force of the present Law, shall be deemed void.

Article 59
The worker may not be required to purchase food or other goods from certain stores or from the products of the owner.

Article 60
No sum may be deducted from the wage of the worker in return for special rights unless in the following cases:

a - The recovery of any advances or sums paid to the worker in excess of his entitlements , provided that the deducted sum does not exceed in such case 10 per cent of the periodical wage of the worker.

b - Installments legally payable by the workers from the wages thereof such as the social security and insurance systems.

c - Contributions of the worker in the saving fund or loans due thereto.

d - Installments of any social project or any other privileges or services granted by the employer and approved by the Labour Department.

e - Fines imposed on the worker for any breaches perpetrated thereby.

f - Every debt paid in application of a judicial ruling, provided that the sum deducted in application of the ruling does not exceed one quarter of the wage due to the worker. Should there be numerous debts or debtors, the maximum deduction shall be equal to half the wage, and the sums required for retention shall be proportionally distributed among the beneficiaries after the payment of the legal alimony debt at the rate of one quarter of the wage.

Article 61

As amended by Federal Law no. 12 dated 29/10/1986:

Should the worker cause the loss, damage or destruction of tools, machines, products or materials owned by the employer or under the custody thereof, and such due to a default or breach by the worker of the instructions of the employer, the latter may deduct from the wage of the worker the necessary sum for the repair or restoration thereof, provided that the sums deducted for such purpose do not exceed the wage of five days every month. The employer may request the competent court via the competent labour department the permission to deduct a longer sum should the worker have money or another source of income.

Article 62

The employer may not transfer a worker paid on a monthly basis to the corps of daily workers, or the corps of workers paid on a weekly, hourly or by piece basis, and such without a written consent therefrom.

Article 63

By virtue of a decree-law issued upon the proposal of the Minister of Labour and Social Affairs and the consent of the Cabinet, the minimum wage and cost of living index shall be determined either in general or for a particular area or a particular profession.

The Minister shall submit his proposal to determine or reconsider the minimum wages upon the consultation of the competent authorities and the professional entities of the employers and workers, if any, and based on the studies and tables of fluctuation of the cost of living set by the competent authorities in the State, in view of ensuring that the minimum limits are sufficient to fulfil the basic requirements of the workers and guarantee the livelihood thereof.

Article 64

The minimum wages or adjustments thereon shall enter into effect as of the date of publication of the determining decree thereof in the Official Gazette.

Source UAE Ministry of Labour

Call centre for any Labour issues: 800 665
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