Anonymous
Our company wants to form a policy of mandatory one-day salary deduction from the paycheck of all employees towards a voluntary contribution to be given to the legal heir in case of the death of any employee. This deduction would be applicable in the month of the death of any employee. I want to know if, since it is in the nature of a voluntary contribution, can this be made as a mandatory deduction by including it in the company policy and making all the employees (willing or unwilling) binding for this contribution.
From India, Pune
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No, this deduction / contribution is illegal under Sec 6 & 7 of Payment of Wages Act.
From India, Mumbai
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