Department of Labour Relations

Deductions from wages are permitted only under certain conditions and always to the extent deemed necessary for the support of the employee and his family.

Deductions that can be made from wages are the following:

deductions prescribed by laws and regulations (social insurance, inland revenue, etc.);
deductions in accordance with regulations for retirement, provident and medical funds;
deductions prescribed by Court rulings;
deductions for the reimbursement of damage or loss to the employer are only authorized if they were caused intentionally or due to severe negligence on behalf of the employee;
deductions provided for by a collective agreement or general agreement between employers' organizations and employees representatives, for employees to whom they apply;
other deductions following the employee’s written and signed consent.

According to the Protection of Wages Law, any deductions made from the salary, due to damages suffered by the company, either intentionally or because of serious negligence, must take place after consultation with the employee representatives or the employee himself/herself, to determine the amount of compensation and how it shall be paid.

In general, salary deductions should be limited to the extent that the employee can support himself/herself and his/her family.