Understanding Canteen Deductions: How Are Employee and Employer Shares Calculated in CTC?

I am working in the manufacturing industry. Currently, we have 120 employees. Can you please explain the canteen deduction details to me? Specifically, I would like to understand the employee's share and employer's share in terms of CTC-wise deduction.

Thank you.

Hi Buddy,

There is nothing like a percentage of share for canteen deduction specified in the Factories Act or rules. However, according to the Factories Act of 1948, if an employer provides canteen facilities to employees, then those facilities have to be run on a no-profit, no-loss basis. The employer can charge a minimum amount for a meal that the employee can afford to pay, and the rest of the amount can be borne by the employer.

With Regards,

Mr. Thumbs Up

I have not heard of employers deducting a certain amount from the wages of workers toward providing a canteen facility, even if it is non-statutory. If the canteen is run by a contractor and since he is not expected to run it at a loss, and the food cannot be served free. At the same time, it shall be made available at cheaper rates as it is a welfare facility. Employers usually subsidize the charges of food items from their budget.

B. Saikumar

Navi Mumbai