Staff loans and salary advances
Issue an advance, set the instalment, and let payroll recover it — inside the ceilings UAE law puts on what you may take from a wage.
Why this is not just a spreadsheet column
The 20% ceiling is enforced, not remembered
A loan or advance repayment may not exceed 20% of the wage and needs the worker’s written consent. The ceiling is applied by the system, every month, rather than trusted to whoever runs payroll.
And the 50% ceiling above it
Everything deducted from one wage — loan, court order, alimony, damage, disciplinary — is capped at 50% in total. A second deduction cannot quietly push the first one past what the law allows.
Excess carries, it does not vanish
When an instalment would breach a ceiling the surplus is withheld and re-tested next month. You recover the whole debt; the employee is never deducted more than the law permits.
One figure, three documents
The repayment shown on the loan, the amount on the payslip and the figure in the WPS file come from the same calculation. Payroll disagreeing with the payslip is exactly the kind of error that ends up at MOHRE.
Approval is recorded
Who approved the loan and when is stored on the record, alongside the reason it was issued and the month recovery starts.
Expense claims, kept separate
Reimbursements are a different screen and move the opposite way: an approved claim is added to the payslip, not deducted from it.
It lands where payroll can see it
An advance that payroll does not know about is a reconciliation problem three weeks later. Instalments appear in the same adjustments panel as every other change to a wage, and flow through to the payslip and the WPS file without anybody re-keying them.
Frequently asked questions
For a loan or advance the ceiling is 20% of the wage, and written consent from the worker is required. Every deduction of every kind together can never exceed 50% of the wage.
The excess is withheld and carried into the next month, not written off. It is re-tested against the ceiling each month until it is recovered, so the debt survives without the deduction ever becoming unlawful.
Yes. An approved loan generates monthly instalments that feed the payroll deduction, the payslip and the WPS file from the same figure. They cannot disagree with each other.
No, and they are a separate screen. A claim is money the employee spent on your behalf and is owed back; approved claims are added to the payslip rather than deducted from it.
Loans and advances are on the Growth plan and above.
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