sudipta-bhadra
What percentage of net salary can an employee take as a loan? Interested to know if there is any such rule.
From India, Patna
umakanthan53
6016

Dear Sudipta,

Would have been better had you mentioned the type of the establishment such as a factory or shop or other type of establishment for the reason that as of now the process of payment of wages including deductions on certain specific heads has been covered by the special enactment viz., the Payment of Wages Act,1936 the applicability of which is restricted vide sub sections (4)(5) and(6) of its section 1. Moreover, the limit on the amount of loans and advances is subject to the provisions of the establishment-specific law applicable to the employee.

Yet, the subject-matters of authorised deductions including those of loans and advances to the employees coming under the purview of the Act and the extent of deductions from their monthly wages have been elaborately dealt with u/s 7 of the Act. The same thing is covered by section 18 of the yet to be implemented Code on Wages,2019. You may, please, go through it and ascertain for yourself.

From India, Salem
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR

All Copyright And Trademarks in Posts Held By Respective Owners.