CANTEEN DEDUTION

svimal1985
i am working at manufacturing industry, present working 120 employees, Please explain me canteen deduction details(employee share and employer share/ CTC wise dedection).
Kumaran Praveen
Hi Buddy,
There is nothing like % of share for canteen deduction specified in factories act or rules but according to the factories act-1948 if employer provide canteen facilities to employees than that facilities has to be run no profit no loss basis and employer can charge a minimum amount for a meal which employee can afford to pay and rest of the amount can be borne by employer.
With Regards
Mr.Thumbs Up
saswatabanerjee
A slight correction to praveen's post :
The factory act specifies that a canteen should not be run at a profit. That means that the company owning the factory or any of its related parties should not make a profit on canteen operations. Nothing states that the contractor can not make money. In the books of the factory, the canteen operations should not be at a profit.
The factory act requires you to,provide a canteen when you have more than 250 workers. But nothing states it needs to be free or cost a particular amount. So you are not required to do free.
saiconsult
I have not heard of employers deducting certain amount from wages of workers towards 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 on loss and the food cannot be served free and at the same time, it shall be made available at cheaper rates as it is a welfare facility , the employers usually subsidize the charges of food items from their budget.
B.Saikumar
navi Mumbai
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