Payroll Deductions - Can we deduct an Employee's salary advance at a time from His/Her net pay?

Hello Team,

Can we deduct an Employee's salary advance at a time from His/Her net pay?

Example: For suppose Some X Person will get Net pay of 80K P.M and She/He has taken salary advance of 1.60 L, so can an employer deduct 80 K and 80 K in two installments to recover the complete salary advance, if we do so She/He will get "0" Net Pay for two Months, Is it is okay in legal terms or is there any provision saying that employer cannot deduct the complete net pay amounts.

Kindly Help me in knowing the complete information on above query.

Thank You!

Regards,
Satya

Hi

Then what the employee will do for survival. There is some provisions for salary deductions in the Act. The total amount of deductions cannot exceed: 75 percent of the wages.

Salary deduction has limit under Payment of Wages Act. In normal condition it may be possible to deduct up to 50% but with Co-operative deduction it may go up to 75%.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
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