Explain the deductions that can be made from the wages of an employee under Payment of Wages Act, 1936.

CS Executive · Setting up of Business Entities and Closure · PYQS · December 2022
Explain the deductions that can be made from the wages of an employee under Payment of Wages Act, 1936.

Answer & Explanation:

The following deductions can be made from the wages of an employee under Section 7 of the Payment of Wages Act, 1936: Fines; Absence from Duty; Damage to or loss of goods expressly entrusted to the Employee; Housing Accommodation and Amenities provided by the Employer; Recovery of Advances or Adjustment of overpayments of Wages; Recovery of loans made from any Fund constituted for the welfare of labour in accordance with the rules approved by the State Government, and the interest due in respect thereof; Subscriptions to and for repayment of advances from any provident fund; Income-Tax; Payments to Co-operative Societies approved by Appropriate Government or any officer specified by it in this behalf or to a scheme of insurance maintained by the Indian Post Office; Deductions made with the written authorisation of the Employee for payment of any premium on his Life Insurance Policy or purchase of securities.

Topics: Labour Laws

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