Salary Deductions for Absence and Lateness in Saudi Labor Law 2025

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Introduction

The process of deducting salary for absence and lateness is among the important topics in the Saudi work environment, as it directly affects both employers and employees. On one hand, organizations need to implement deduction systems fairly according to Saudi Labor Law to ensure employee discipline and maintain productivity. On the other hand, employees need to understand their rights and obligations to avoid unpleasant surprises when receiving their dues.

Legal Framework for Salary Deductions

Permitted Cases for Deductions (Article 91)

According to Article 91 of the Saudi Labor Law, employers may not deduct any amount from an employee's wages except in the following cases:

1. Recovery of loans and advances - Maximum 10% of monthly salary
2. Social insurance contributions due from the employee
3. Health insurance contributions and other legally mandated contributions
4. Disciplinary fines imposed due to work regulation violations
5. Deductions for absence and lateness without legitimate excuse

Maximum Deduction Limit (Article 92)

Basic Rule: Deduction percentage must not exceed 50% of total monthly salary under any circumstances.

Exception: In special cases determined by the labor court, the percentage may exceed 50%, but the employee must receive no less than 25% of their basic salary.

Types of Absence Deductions

1. Full Daily Deduction

Deducting the complete daily wage for the absent day - the most common method for unjustified absence.

2. Hourly Deduction

Calculating hourly value and deducting absent hours - suitable for flexible schedules and lateness cases.

3. Progressive Deduction

Specific amounts that increase with repeated violations - to deter recurring violations.

4. Points System

Calculating negative points that convert to deductions upon reaching a certain limit.

Practical Calculation Examples

Absence Example

Data:

• Employee salary: 6,000 SAR monthly
• Absent days: 3 days without excuse

Calculation:

Daily wage = 6,000 ÷ 30 = 200 SAR
Deduction amount = 200 × 3 = 600 SAR
Net salary = 6,000 - 600 = 5,400 SAR

Lateness Example

Data:

• Employee salary: 12,000 SAR monthly
• Working hours: 8 hours daily
• Late hours: 4 hours total

Calculation:

Daily wage = 12,000 ÷ 30 = 400 SAR
Hourly wage = 400 ÷ 8 = 50 SAR
Deduction amount = 50 × 4 = 200 SAR
Net salary = 12,000 - 200 = 11,800 SAR

Deduction Rate Tables

Absence Deductions

Absence Duration	First Time	Second Time	Third Time	Fourth Time	Additional Consequences
One day	One day	Two days	3 days	4 days	Denied raise
2-6 consecutive days	Two days	3 days	4 days	5 days	Plus absence wage deduction
7-10 consecutive days	4 days	5 days	Denied promotion	Termination with bonus	Plus absence wage deduction
More than 15 consecutive days	Warning after 10 days	Contract termination after 15 days	-	-	Without bonus
More than 30 non-consecutive days	Warning after 20 days	Termination after 30 days	-	-	-

Lateness Deductions

Lateness Duration	First Time	Second Time	Third Time	Fourth Time
Less than 15 minutes	Written warning	5% of day	10% of day	20% of day
15-30 minutes	10% of day	15% of day	25% of day	50% of day
30-60 minutes	25% of day	50% of day	75% of day	Full day
More than 60 minutes	Written warning	Full day	Two days	3 days

Special Cases

Sick Leave (Article 117)

No deduction allowed from employee salary for sick leave certified by medical report:

• First thirty days: Full wage (100%)
• Next sixty days: 75% of wage
• Last thirty days: 50% of wage

Maternity Leave (Article 152)

No deduction allowed from female employee salary for maternity leave, where she is entitled to full wage throughout the leave period (10 weeks).

Delayed Salary Payment (Article 90)

Employers must pay wages on their due dates. In case of delay:

• Employee has the right to file a complaint with the labor office
• Employer may be required to pay compensation for the delay
• Financial penalties are imposed on violating establishments

Deduction Documentation Form

The salary deduction form must include the following elements:

✅ Employee data (name, job number, department)
✅ Reason for deduction with details
✅ Duration of absence/lateness in days and hours
✅ Deduction amount and percentage of salary
✅ Date of deduction implementation
✅ Signature of responsible authority
✅ Employee acknowledgment signature

Employee Rights When Objecting

Review Steps

1. Review with HR department and submit a reconsideration request
2. File complaint with labor office if no response
3. Investigation and mediation by the labor office
4. Amount recovery if deduction is proven incorrect

Mezan System for Deduction Management

Key Benefits

🔸 Automatic calculation of deductions according to specified regulations
🔸 Compliance assurance with current Saudi Labor Law
🔸 Automatic generation of payroll slips
🔸 Legal documentation of all deductions
🔸 Automatic calculation of delayed salary compensation
🔸 Protection from legal violations

Conclusion

Managing absence and lateness deductions requires precision in implementation and compliance with Saudi Labor Law provisions. Success lies in achieving balance between ensuring employee discipline and preserving their legal rights.

Utilizing advanced technical systems like Mezan ensures accurate and legal deduction implementation, providing a fair and productive work environment for everyone.

Legal References

📋 Saudi Labor Law - Ministry of Human Resources and Social Development
🔗 Official System Link

📅 Last Update: 2024 (effective in 2025)
🏛️ Source: Ministry of Human Resources and Social Development - Kingdom of Saudi Arabia

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For inquiries about payroll and deduction management solutions: Contact the Mezan team to discover how our accounting system can help you organize salaries in compliance with the law.