What is deduction
anshul sangal
(Querist) 09 October 2009
This query is : Resolved
What is authorised deduction and what penalties not deemed to be deduction under Payment of Wages Act 1936.
Arul Kumar
(Expert) 09 October 2009
Dear Mr. Anshul,
Authorized deduction:
1. Any Fines imposed on an employee as penalty under sec.8. The maximum fine imposed should be 3% of the wages.
2. Deduction for Absence from duty as per Sec.9.
3.Deduction for Damage or Loss caused by the employee under sec.10. Such deduction shall not exceed the amount of damage or loss.
4.Deduction for services rendered such as House accommodation, amenities and services. Sec. 11 and 7(2).
5. Deduction for Recovery of Advances or Loans paid to the employee. Sec.12.
6. Deductions for Payment to Co-op. Societies and Insurance Schemes, Post office Saving fund, membership fees to trade union.
7. Contribution to the Prime Minister’s National Relief Fund.
