HR Ministry cites special cases that permit cut in salary of workers

Saudi Arabia’s Ministry of Human Resources and Social Development (MHRSD) stated that it is permissible for employers; in order to cut salaries of workers in certain specific cases. In all other circumstances; it is not permissible to deduct any amount from the worker’s wages without his written consent.

The ministry explained that the specific cases include refunding loans provided by the employer; with a condition that the deduction does not exceed 10 percent of the wage; social insurance contributions and any other contributions due by law; the worker’s contributions to the provident fund, and the loans owed to the fund.

The ministry said that the deductions; also include the installments of any project that the employer implements to build housing for workers; the fines that the worker owes because of the violations that he had committed; as well as deductions; in terms of the compensation for the property destroyed by the worker.

According to the ministry, deduction can also be in salary to collect a debt in implementation of a court ruling; provided that monthly deductions do not exceed a quarter of the wage owed to the worker; unless the court ruling directs to collect an amount more than this amount.

The alimony debt shall be first, and then the debt of food, clothing and housing before other debts.

The ministry emphasized that it is not permissible, under all circumstances, the proportion of the deducted sums exceed the half of the worker’s wage, unless it is proven in the labor courts that it is possible to increase this percentage.