Can Employers Deduct Gratuity in UAE?

TL;DR:

Deductions need proof. Usual reasons: unpaid salary, a signed loan, or a proven fine.

Total cuts cannot pass 50% of your gratuity.

No cuts for visa costs, uniforms, or normal wear.

Ask for a written list. If it seems wrong, report to MOHRE.

Legal vs Illegal Deductions

| Deduction Type | Legal? | Conditions | |---|---|---| | Unpaid salary | | Show dates and amounts | | Employer loans | | Signed loan paper | | Proven misconduct fine | | Max 50% of gratuity | | Damaged equipment | | Proof of damage and cost | | Absence/abscondence | | Only if gone 10+ days without permission | | Training bond/contract | | Must be in the contract | | Visa/sponsorship costs | | Employer pays this | | Uniform/equipment | | Employer pays this | | Absence bonus penalty | | Not allowed | | General "damages" | | Not allowed without proof | | Performance penalty | | Not allowed |

Your Rights If Deductions Occur

If your employer takes money:

Ask for a list in writing
Ask for proof of each cut
Check your own records (payslips, loans)
Use our calculator to check the right amount
Compare what they gave you

If the numbers don't match:

Email your employer to object (keep a copy)
Call MOHRE at 16000
Bring: your contract, settlement letter, payslips, and your calculation
MOHRE will look into it and order your money back if the cut was wrong

Deduction Checklist

Before you accept a settlement:

[ ] Each cut shows the amount and reason
[ ] Each cut has proof (loan paper, payroll, etc.)
[ ] Total cuts are not more than 50% of gratuity
[ ] Cut reasons are legal (not banned)
[ ] I know why each cut was made
[ ] Settlement letter shows final gratuity amount clearly

Verify Your Gratuity Deductions

Use our calculator to check if your settlement deductions are fair and legal.

Calculate Now

For an instant end-of-service estimate, use our online gratuity calculator UAE.

Disclaimer: This reflects MOHRE law as of 2025. For disputes, file a MOHRE complaint (16000).

Can Employers Deduct Gratuity in UAE?