% Of Minimum Dedction From Salary - CiteHR
Partner - Risk Management
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Dear HR Professionals..
Kindly Let us know how much % of Salary Deduction can be made in Gross Salary.
Is there any clause in the Provision of Act for deducting the Salary? i.e.40%/30%/20% of Gross salary Advance etc like.....
Your advice in this regard is highly solicited.
Asst. Manager HR & Admin

Dear Chitrappa,

I would like to share you some of the points here below:-

1. Generally it is a mutual agreement between the company & the respective employees. {if any employees wants the salary advance, he/she has to submit the request letter to HR, the letter stating that the reason for salary advance, if the reason is genuine, the departmental head have to signed in that request letter & send the same to HR for approval}.

2. The amount of calculation for salary advance, based on his/her numbers of days he/she worked in that month, while the time of asking salary advance & amount of his full & final as on date of request letter submitted by the employee.

3. Once the approval given by the HR, the mode of repayment may furnished in that request letter itself, {it may furnish in one installment or more than one installments as per the employee's option & management policy}

4.In that request letter itself employees have to furnish he will be continually working with the company till the completion/refund/deduction of his/her salary advance, if any situation arise to resign his/her job, whether he has to refund the salary advance or the salary advance may adjusted against his full & final settlement.

5. Lets others/seniors may add more points on your above subject.

If payment of wages Act is applicable,the total deduction up to 75% of wages is possible if recovery towards co-operative society also is involved.If co-op recovery is not there only 50% is possible.In cases where POW Act is not applicable there is no limit under labour laws.
Varghese Mathew

In addition to Mr. Mathew point, there are also provisions in Payment of wages act with regards to amount of advance that can be given and how it is to be recovered.
Where payment of wages act does not apply (₹18000 salary limit), it is a good idea to stay within the 50% limit to ensure that the concerned employee has subsistence wages.

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