How Much DEDUCTIONS Should Be Done From Ones Salary?

Dear all,
Suppose a person's gross salary is Rs.8000/-. Now he has taken loan, advance etc..Now to recover this I have to deduct some amount from his salary towards loan and advance, also PF,ESI, PT has to be deducted and also he has to be paid some salary for the month worked. So my question is...
a) How much to deduct? Because after deduction very less is left over as his take home salary?
b) Is there a minimum level after which one cannot deduct?

Again not to forget that I cannot deduct the whole salary.
Please help.

it is compulsory to effect stautory deductions like P.F.ESI,Professional tax,labour welfare fund, and deductions towards coop.society etc. on first priority.In terms of Payment of Wages Act 1936, the dedcutions shall not exceed 50% of the wages and if coop.society deductions are includes, it shall not exceed 75% of the wages.
B.Saikumar
Mumbai

Mr Sinha,
Professional Tax (PT) always to be deducted on Earning Gross Salary only. Not on Net Salary.
That means to say, after calculating a person Salary as per his attendance in a month, it arrives Gross Earned salary. On that only PT is to be deducted.
Hope the above my statement is correct.
Regards
Murali

Dear sinha,
Greetings. The statutory deductions have to be made from the gross salary and then out of the balance othe deductions towards loans and advances etc can be made and the net salary should not fall below 40percent including all deducions.
Hope you are niw clear.
with regds,
ramanathan
advocate and labour law consultant

dear friend
Payment of wages act has given some important guidelines for salary deduction i.e., statutory. general etc. In this regard, it is better to have a glance in payment of wages act, deductions in particular to have detailed deductions

Dear All,

I needed clarity on points how munch advance deduction can be made from workers monthly salary, suppose his gross monthly salary is Rs. 10474 and PF deduction is Rs. 1257, Employee ESI deduction is Rs. 79. Then can he is eligible to deduction advance amount Rs. 4000 including all statutory deduction PF & ESIC.

what is the provision of deduction as per the act in above cases. Worker has given consent for deduction from his monthly salary.

The deduction shall not be more than 50 % of the salary for all employees

Dear All,

I needed clarity on points how munch advance deduction can be made from workers monthly salary, suppose his gross monthly salary is Rs. 10474 and PF deduction is Rs. 1257, Employee ESI deduction is Rs. 79. Then can he is eligible to deduction advance amount Rs. 4000 including all statutory deduction PF & ESIC.

what is the provision of deduction as per the act in above cases. Worker has given consent for deduction from his monthly salary.

What the act said the payment of wages act and what was the calculation in above case

From the gross salary of Rs 10474, the permissible deduction is Rs. 5237/- as per the Payment of Wages Act 1936. So after deducting PF & ESI, Rs 3901 only can be deducted for all other purposes.