UAE Employer Salary Deductions: What Is Legal and How to Recover Illegal Ones

Many migrant workers in the UAE find deductions on their payslip that do not look right. Accommodation fees. Food charges. Transport costs. A deduction labelled uniform or medical test.

The question of whether UAE employer deduct accommodation food salary legal rules apply to your situation is one of the most common labour disputes in the country. Most online guides explain these rules from the HR perspective. This article is for you — the worker whose money is being taken.

If your full salary is also being withheld, read our guide on what to do if your full salary is not paid.

The Law: What Article 25 Actually Says

Federal Decree-Law No. 33 of 2021, Article 25 sets out an exhaustive list of permitted salary deductions. If a deduction is not on this list, it is not allowed.

The word exhaustive matters here. The law does not say these are examples. It says these are the only permitted deductions. Anything else is illegal — regardless of what your contract says.

Legal vs. Illegal Deductions: The Full Table

The 50% Cap: What It Means

Even for legal deductions, there is a hard limit. Total deductions cannot exceed 50% of your monthly wage in any single month.

Example: Your monthly basic salary is AED 2,000. Your employer approved a salary advance repayment. They can deduct a maximum of AED 1,000 in one month — not AED 1,200 or AED 1,500.

If your employer is deducting more than 50% of your wage in any month, that is a violation — even if the individual deduction types were otherwise legal.

The Housing Allowance in CTC Problem — Explained Clearly

This is one of the most common situations that confuses workers. Whether UAE employer deduct accommodation food salary legal rules are being violated often comes down to this exact scenario.

Your offer letter shows a Cost to Company (CTC) breakdown like this:

• Basic Salary: AED 1,500
• Housing Allowance: AED 500
• Total CTC: AED 2,000

Then your payslip shows:

• Basic: AED 1,500
• Housing: AED 500
• Accommodation Deduction: minus AED 500
• Net Pay: AED 1,500

Your employer argument: We give you a housing allowance, and we also provide housing. We just offset the cost.

This is illegal. The housing allowance is part of your agreed wage. It must be paid to you. The employer cannot call it an allowance and then deduct it back as a housing cost.

The correct legal situation: if your employer provides accommodation directly, the contract must say your salary is AED 1,500 with accommodation provided in kind. There should be no housing allowance column and no deduction column. The method used to disguise a deduction does not make it legal.

Verbal Agreements Do Not Count

Some workers are told verbally that the employer will deduct AED 300 per month for accommodation, and that the worker agreed when taking the job.

Under Federal Decree-Law No. 33 of 2021, verbal agreements about deductions do not count. For a deduction to be legally valid, it must:

1. Be one of the permitted types listed in Article 25
2. Be explicitly agreed in writing
3. Be filed with MOHRE for loan-type deductions

If the deduction is accommodation, food, transport, or uniform — it is illegal regardless of whether you agreed verbally. The law does not allow these deductions. A contract cannot override the law.

Worked Example: Calculating What You Are Owed

Situation: You have been working for 8 months. Your employer has deducted AED 400 per month for accommodation. Here is what you are owed:

• Illegal monthly deduction: AED 400
• Months worked: 8
• Total owed to you: AED 400 multiplied by 8 = AED 3,200

Check your payslips going back as far as 12 months. Add up every deduction that falls under the illegal category. That is the amount you can claim.

How to File a MOHRE Complaint

You have 1 year from the date of each deduction to file a claim. Do not wait.

1. Collect your payslips. Print them or screenshot them. Highlight the illegal deductions.
2. Write down the total amount deducted illegally, month by month.
3. Go to mohre.gov.ae and log in using your UAE Pass or Emirates ID.
4. Select Labour Complaints and file a wage-related complaint.
5. Or call 800-60 for assistance filing by phone.
6. Or visit the nearest MOHRE Customer Happiness Centre in person.

MOHRE will schedule a conciliation session with your employer. If no agreement is reached, MOHRE refers the case to the labour courts. Labour Court cases are free to file for workers.

What If Your Contract Says These Deductions Are Allowed?

A contract clause that contradicts UAE labour law is void. It has no legal effect.

Federal Decree-Law No. 33 of 2021 is a mandatory law. You cannot sign away rights that the law gives you. If your contract says the employee agrees to a monthly accommodation deduction — that clause is unenforceable. You can still claim the money back.

The question of whether UAE employer deduct accommodation food salary legal is clear: Article 25 lists what is permitted. Accommodation, food and transport are not on the list. A contract cannot change this.

For more on what your contract must include, read our guide on what your contract must legally include.

Common Mistakes Workers Make

• Assuming the deduction must be legal because it is in the contract. Contracts cannot override the law. Article 25 is clear.
• Not keeping payslips. You need payslips to calculate and prove your claim. Save them from day one.
• Waiting more than 1 year. MOHRE has a strict 1-year time limit. Deductions older than 12 months cannot be claimed.
• Accepting a partial fix without backdated repayment. If your employer offers to stop deducting going forward without paying back what was already taken, that is not a resolution.
• Not knowing what basic salary means. Allowances paid regularly become part of the wage for calculation purposes.

What Usually Happens Next

When you file a MOHRE complaint about illegal salary deductions:

1. MOHRE logs your complaint and invites both parties to a conciliation session.
2. In many cases, the employer pays the owed amount at this stage to avoid court.
3. If the employer disputes, the case goes to the UAE Labour Court.
4. Most straightforward deduction cases are resolved within 2 to 4 months.

In practice: Employers who deduct accommodation, food, or transport costs often settle quickly when a formal complaint is filed. Filing alone is often enough to trigger repayment.

Frequently Asked Questions

Can my employer deduct accommodation costs from my salary in UAE?

No. Deducting accommodation costs is illegal under Federal Decree-Law No. 33 of 2021, Article 25. This applies even if the deduction is written into your contract — a contract clause that violates UAE labour law is void and unenforceable.

My contract says I agreed to the accommodation deduction. Does that make it legal?

No. The law is mandatory. You cannot sign away rights the law gives you. A contract clause authorising an accommodation, food, or transport deduction has no legal effect. You can file a MOHRE complaint and claim back every dirham deducted, regardless of what you signed.

My employer deducted AED 400 per month for the last 10 months. Can I recover all of it?

Yes, provided you file within the time limit. MOHRE gives you 1 year from the date of each deduction to file a claim. Add up the total — AED 4,000 in this example — and include all payslips as evidence when you file at mohre.gov.ae or call 800-60.

I don’t have payslips. Can I still file a MOHRE complaint?

Yes, though your case is easier with evidence. Request copies of your payslips from your employer — they are legally required to provide them. If they refuse, state this in your MOHRE complaint. MOHRE can compel the employer to produce salary records during the conciliation process.

Can my employer deduct visa fees, medical test costs, or recruitment fees from my salary?

No. UAE law requires the employer to cover all visa, medical test, and recruitment fees. Passing these costs to the worker — whether through direct deduction or requiring the worker to pay upfront without reimbursement — is illegal under the zero-cost recruitment policy.

What is the maximum total deduction allowed in any one month?

Total deductions — even legal ones like approved loan repayments — cannot exceed 50% of your monthly wage in any single month. If your employer deducts more than half your salary in any month, file a MOHRE complaint even if the individual deduction types appear legal.

My employer stopped the illegal deductions but refuses to repay past amounts. What can I do?

File a MOHRE complaint immediately. Stopping the deduction going forward is not a settlement — you are entitled to recover all illegally deducted amounts going back up to 12 months. MOHRE will schedule a conciliation session. If the employer disputes, the case goes to the Labour Court, which is free to file for workers.

This article is for general information only and is not legal advice. Rules can change. Always confirm with MOHRE or a qualified legal professional.