Payment of wages act - deductions
Querist :
Anonymous
(Querist) 13 May 2010
This query is : Resolved
Sirs,
The deductions from the salary are detailed in the Section 7 (2) (a) to (q) of Payment of Minimum Wages Act, 1936.
As per Sec. 7(3), the total deductions i.e. u/s 7(2)(a) to (q) should not exceed 50% of wages.
My query is the employees gross salary is 20,000/- and his deductions u/s 7(2) (a) to (q) are 9,000/-.
If the employee, voluntarily gives declaration to contribute to voluntary P.F. 2,000/- and wish to get 2,000/- deducted towards repayment of a bank loan, can the employer deduct this 4,000/-, though it would 50% of wages ?
Guidance solicited from learned friends.
Thanking you,
Raj Kumar Makkad
(Expert) 13 May 2010
Yes. This can be done as this deduction is within limitation.
Querist :
Anonymous
(Querist) 14 May 2010
Sir,
This deduction of 4,000/- would exceed the limit of 50% of wages as the deduction would be Rs. 13,000/- against the monthly gross salary of 20,000/-. The word 'exceed' missed in my query.
Kindly clarify.
Thank you,
Querist :
Anonymous
(Querist) 24 May 2010
Sir,
With the deduction of 4,000/-, the total deduction of Rs. 13,000/- would exceed the monthly 50% of gross salary of Rs. 20,000/-.
Is it permissible. If so relevant legal provision may kindly be intimated.
Thanking you.
Guest
(Expert) 24 May 2010
NANDKUMAR B.SAWANT.M.COM.LL.B.(MUMBAI),ADVOCATE
MOBILE.9271971251, 9960223100
e.mail.adv.nbsawant@yahoo.co.in
e.mail.nandkumarbs@sify.com
REGARDING DEDUCTION FROM SALARY KINDLY NOTE THAT.
1.YOU MAY KINDLY NOTE THAT YOU HAVE NOT MENTIONED YOUR DESIGNATION AND HENCE WHETHER YOU ARE WORKMAN AS PER INDUSTRIAL DISPUTES ACT AND FACTORIES ACT AND WHETHER PROVISIONS OF PAYMENT OF WAGES ACT ARE APPLICABLE TO YOU SHOULD BE DECIDED FIRST.
2.IN GENERAL EMPLOYER HAS TO PROTECT ONE THIRD SALARY OF EMPLOYEE AS TAKE HOME PAY.
BUT ALL STATUTORY DEDUCTIONS LIKE INCOME TAX, PROFESSION TAX,P.F.,ESI AND OTHER GOVT RECOVERIES ARE RECOVERED IN PRIORITY TO OTHER RECOVERIES AND OTHER RECOVERIES OF INSURANCE,ADDL P.F. LOAN AND OTHER SOCIETIES ARE RECOVERED SUBSEQUENTLY AND ONE THIRD SALARY IS PROTECTED.BUT IN CASE EMPLOYEE HAS GIVEN WRITTEN AUTHORITY THEN IT IS AN EXCEPTION.
3.YOUR CASE YOU ARE DRAWING GROSS SALARY OF 20000/-AND HENCE IN OFFICER / SUPERVISORY CATEGORY AND YOUR RECOVERY IS PERFECTLY IN LEGAL LIMIT.PLEASE NOTE.
YOU MAY KINDLY SEND DETAILS FOR ANY FURTHER HELP.
WITH BEST REGARDS TO YOU YOUR FAMILY AND FRIENDS.
THANKS.
