Respected Sir / Madam, My question is Pay cut ( Salary or Attendance) is legal or illegal as per labour law. How to process for pay cut or amount deduction process in employee salary or attendance?
From India, Jamshedpur
Management Consultancy
+2 Others

Use factoHR and automate your HR processes

Mobile-first hire to retire HR and Payroll software that automates all HR operations and works as a catalysts for your organisational growth.


Basic principle to follow is 'no work, no pay'. Divide employee monthly gross by 26 days or actual calendar days & multiply by number of days s/he worked in that month.
Don't confuse deduction with non-payment.

From India, Mumbai

Section 7(2) (b) & Section 9 of the Payment of Wages Act 1936 provides for deduction of wages in proportion to the absence, including for refusal to work. So based on actual absence salary can be deducted in the same ratio.
From India, Mumbai

Dear Sudipta
The pay cut is something diffrent from deductions from salary and wages. The word pay cut arises when an organisation goes for lay-off. I do not think your question is directing for lay-off. If Pay cut has to be administered then the organisation has to obtain permission from the government or otherwise will be treated illegal.
There can be reduction in salary and wages if there is less attendance. Further, fines and penalty and deduction due for EPF,ESI & Advance as well as other deductions for which employee has given his consent. All these deduction is legal or illegal.

From India, Mumbai
pay cut in your statement sounds like how well you have accounted for employee related issues like;
TIME & attendance,company policy on the management of employee organization culture related to the problem you have raised.if this is the fault you have discovered in that employee within the short term of your relation ship with the relative employee. you as comp nay need to remedy that pay cut in the policy before you do the actual deduction. otherwise having an employee being introduced to company policy related to procedures leading to pay cut in 3months and above,warrants the company to discipline that employee inform of pay cut.

From Zambia, Nchelenge

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views.

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2022 CiteHRŽ

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server