Dinesh DivekarDear friend,
Please note the following:
[(Gross salary) - (statutory deductions + other deductions like staff cafe, housing charges etc) - (loan amount)] = net salary.
The net salary is also called as "Take Home Salary".
A loan deduction can be done while processing the salary. However, please make sure that you have done proper documentation before disbursement of the loan. Secondly, please make sure that after all the deductions, take home salary does not go below 50% of the gross salary.
From India, Bangalore
Babu AlexanderLoan deduction to be approved by the Inspector of Factories. List of deduction like Fines, loan, co-operative society loan recovery have to be approved by Inspector of Factories.
From India, Madras
rkn61Loans, Salary advances etc could be deducted from the gross salary of employees. Net salary is, as our colleague perfectly defined as, Take hom salary only.
From India, Aizawl
R.RAJASEKARYou better deduct the loan amount from their salary, as it would easy to track the loan balances at any time. But ensure that their deduction not beyond 50% of their Gross Salary, if in case there is no society.
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