Additional Emoluments (Compulsory Deposit) Act,1974

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Act No : 37


Section : Duty of employer or other person to make deductions of additionalwages and additional dearness allowance from emoluments.

6. Duty of employer or other person to make deductions of additional wages and additional dearness allowance from emoluments. (1) For the purposes of this Act, the deductions specified in sub- section (2) shall be made,- (a) in the case of additional wages, for a period of one year from the appointed day; and (b) in the case of additional dearness allowance, for a period of 1[three years] from the appointed day. (2) On the commencement of this section,- (a) every employer, who draws, from the Consolidated Fund of India or of any State or of any Union territory having a Legislative Assembly, and disburses, after the appointed day, emoluments of an employee to whom this Act applies, shall, as and when emoluments are disbursed by him for any period, deduct from the emoluments so disbursed, the whole of the additional wages and one-half of the additional dearness allowance and credit the amount so deducted, in accordance with the scheme, to the Additional Wages Deposit Account and the Additional Dearness Allowance Deposit Account, respectively; (b) every other employer, who disburses, after the appointed day, emoluments to any employee to whom this Act applies, shall, as and when emoluments are disbursed by him for any period, deduct from the emoluments so disbursed, the whole of the additional wages and one-half of the additional dearness allowance, and shall remit, in accordance with the scheme, the amounts so deducted to the nominated authority and on receipt of such amounts the nominated authority shall credit the amounts so received to the Additional Wages Deposit Account and the Additional Dearness Allowance Deposit Account, respectively ---------------------------------------------------------------------- 1 Subs. by Act 74 of 1976, s. 2 (w.e.f. 11.6.1976). ---------------------------------------------------------------------- 504 (c) any employee, to whom this Act applies, who draws, after the appointed day, his own emoluments shall,- (i) if he is employed in an establishment owned or maintained by Government, make deductions from his salary bill in respect of the whole of the additional wages and one-half of the additional dearness allowance and the specified authority shall credit the amount so deducted, in accordance with the scheme, to the Additional Wages Deposit Account and the Additional Dearness Allowance Deposit Account, respectively; (ii) if he is employed in any other establishment, remit the whole of the additional wages and one-half of the additional dearness allowance, in accordance with the scheme, to the nominated authority, and on receipt of such amount, the nominated authority shall credit the amount so received to the Additional Wages Deposit Account and the Additional Dearness Allowance Deposit Account, respectively. Explanation.-In computing the amount to be credited to the Addi- tional Wages Deposit Account and the Additional Dearness Allowance Deposit Account. the amount contributed [in relation to such additional wages or additional dearness allowance shall not- (a) to the extent of the contribution which is compulsorily required to be made to any provident or other fund under any law for the time being in force; or (b) to the extent of the contribution made to any other provident fund, recognised under any other law for the time being in force, at a rate 'not exceeding the rate at which such contribution was being made immediate before the appointed day, be taken into account. (3) The specified authority shall, as soon as may be practicable after the end of each year, prepare separately, in relation to the amounts credited to the respective Deposit Accounts to the credit of each employee, and furnish to the employee a copy of the said accounts showing therein the amounts credited thereto in relation to the employee.


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