Wages to be disbursed before 7th of the Month for Establishments employing 1000 & less Employees
Wages to be disbursed before 10th of the Month for Establishments employing MORE THAN 1000 Employees
The Payment of Wages Act, 1936 guarantees payment of wages on time and without any deductions except those Authorized under the Act.
What type of deductions can be made from Wages:
The following mentioned are the main deductions that are allowed under the Payment of Wages Act, 1936:
Deduction for the period of absence
Deduction for the damage or loss of goods expressly entrusted to the employed person;
Deduction for house accommodation;
Deduction for the amenities and service supplied by employer with agreement to the employee;
Deduction for recovery of advances and interest, and adjustment of overpayment;
Deductions for recovery of loans from any fund constituted for the welfare of labour as agreed between employer and employee;
Deduction for income tax;
Deduction on orders of a court or other authority;
Deduction for subscription and repayment of advance from any Provident Fund;
Deduction for payments to cooperative societies as agreed between employer and employee;
Deduction of premium for LIC policy on written authorization of the employed person; or any other investment for Post Office Saving Schemes;
However, as mentioned in section 7 of the Act, the total amount of deductions should not exceed 75% of wages of the employee in any wage period if whole or part of the deductions is meant for the payments to cooperative societies. In other cases it should not exceed 50%.
As per Payment of Wages Act, what are the procedure and provisions relating to fine deduction from the pay?
Incase of fines that need to be imposed on the employee, it should only be for the acts and omissions that are mentioned in the list of which has been approved by the appropriate Government. Fines should not exceed 3% of the wages in a month. This needs to be recovered within 90 days of the date of act or omission, be imposed after a proper show cause procedure and cannot be imposed on an employee of less than 15 years of age.
From India, New Delhi