Dear All, I have a question, and it would be very helpful if anybody answers this. So, my question is: should any company have the right to deduct salary directly from basic pay?
In our company (which is based in the steel industry), they regularly deduct a portion of the salary from the basic pay if an employee goes on leave without pay. This happened to me last month. My basic pay is Rs. 10,201, and they deducted a lump sum amount due to leave without pay. The details are as follows:
- My Basic - 10,201
- HRA - 4,080
- Medical - 1,020
Gross salary = Rs. 15,301.
If I divide the gross salary by 30 days, then my daily wage is Rs. 510. In March 2021, I was on leave without pay for 3 days. Now, our company deducted Rs. 1,020 from the Basic pay, Rs. 408 from the HRA Allowance, and the remaining Rs. 102 from the Medical Allowance. In total, they deducted Rs. 1,530 for the 3 days of leave without pay. Is this deduction process legal as per wage laws? I need legal assistance so I can approach the HRD Dept regarding this issue.
I have attached a snapshot of my March and April salary slips.
Thanks & Regards
Acknowledge(0)
Amend(0)
In our company (which is based in the steel industry), they regularly deduct a portion of the salary from the basic pay if an employee goes on leave without pay. This happened to me last month. My basic pay is Rs. 10,201, and they deducted a lump sum amount due to leave without pay. The details are as follows:
- My Basic - 10,201
- HRA - 4,080
- Medical - 1,020
Gross salary = Rs. 15,301.
If I divide the gross salary by 30 days, then my daily wage is Rs. 510. In March 2021, I was on leave without pay for 3 days. Now, our company deducted Rs. 1,020 from the Basic pay, Rs. 408 from the HRA Allowance, and the remaining Rs. 102 from the Medical Allowance. In total, they deducted Rs. 1,530 for the 3 days of leave without pay. Is this deduction process legal as per wage laws? I need legal assistance so I can approach the HRD Dept regarding this issue.
I have attached a snapshot of my March and April salary slips.
Thanks & Regards
Acknowledge(0)Amend(0)
Pay Calculation Details
The pay worked out is proper, as may be seen from the table below:
Monthly Pay | Pay for one day | Pay for 27 days | Difference
Basic Pay 10201 | 340.0333333 | 9180.9 | 1020.1
HRA 4080 | 136 | 3672 | 408
Medical Allowance 1020 | 34 | 918 | 102
Gross Pay 15301 | 510.0333333 | 13770.9 | 1530.1
The deduction is made proportionately. HRA is 40% of the Basic Pay, and Medical Allowance is 10%. It is maintained.
From India, Mumbai
Acknowledge(0)Amend(0)
1593The pay worked out is proper, as may be seen from the table below:
Monthly Pay | Pay for one day | Pay for 27 days | Difference
Basic Pay 10201 | 340.0333333 | 9180.9 | 1020.1
HRA 4080 | 136 | 3672 | 408
Medical Allowance 1020 | 34 | 918 | 102
Gross Pay 15301 | 510.0333333 | 13770.9 | 1530.1
The deduction is made proportionately. HRA is 40% of the Basic Pay, and Medical Allowance is 10%. It is maintained.
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Salary Break Up - Performance Pay.xls
Leave & Salary Application Format.doc