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April 25, 2024 - BY Mohamed Abdulaziz

Ensuring Financial Justice: Understanding the Maximum Deduction Clause in the Saudi Labor Law

When considering Article 93 of the Saudi Labor Law, clear and decisive rules governing the relationship between workers and employers emerge, aiming to protect workers' rights. The article stipulates that under no circumstances should the proportion of deductions exceed half of the worker's due wage, unless the competent authority proves the possibility of exceeding this proportion, or the worker's need for an amount exceeding half of their wage.


This text reflects the dedication of Saudi legislation to protecting workers' rights by preventing excessive financial exploitation. In other words, the system aims to establish clear boundaries for deductions from workers' wages and imposes strict conditions to ensure that these deductions are legal and justified.


The importance of this article lies in promoting the principle of social justice and providing guarantees for workers to receive a reasonable portion of their wages without being subjected to excessive exploitation. If there is a need to deduct amounts exceeding half of the worker's wage, the employer must prove this to the relevant authorities and provide sufficient evidence to justify the increase.


It is worth noting that the article sets a maximum limit for deductions, where the worker is not entitled to receive more than three-quarters of their wage, even in cases where the need for an amount exceeding half of their wage is established. This reflects the balance that the system seeks to achieve between the interests of workers and employers, preserving the rights of both parties without excess or deprivation.


In summary, Article 93 of the Saudi Labor Law is a fundamental cornerstone in ensuring workers' rights and regulating the employment relationship to ensure equality and justice, embodying the Kingdom of Saudi Arabia's commitment to providing a fair and stable work environment for all workers in the country.