Anonymous
Hi All, In our organisation, for very few employees, we sometimes help on the form of loans which are interest free and the total amount is settled on monthly basis as a 1000 or 2000 or 500 rupees deduction.
Please advise if, for the above nature of the deduction, it is ok to deduct from either ON HAND salary or GROSS SALARY?

From India, Coimbatore
Dinesh Divekar
7879

Dear friend,
Please note the following:
[(Gross salary) - (statutory deductions + other deductions like staff cafe, housing charges etc) - (loan amount)] = net salary.
The net salary is also called as "Take Home Salary".
A loan deduction can be done while processing the salary. However, please make sure that you have done proper documentation before disbursement of the loan. Secondly, please make sure that after all the deductions, take home salary does not go below 50% of the gross salary.
Thanks,
Dinesh Divekar

From India, Bangalore
Babu Alexander
294

Loan deduction to be approved by the Inspector of Factories. List of deduction like Fines, loan, co-operative society loan recovery have to be approved by Inspector of Factories.
From India, Madras
rkn61
625

Loans, Salary advances etc could be deducted from the gross salary of employees. Net salary is, as our colleague perfectly defined as, Take hom salary only.
From India, Aizawl
R.RAJASEKAR
4

You better deduct the loan amount from their salary, as it would easy to track the loan balances at any time. But ensure that their deduction not beyond 50% of their Gross Salary, if in case there is no society.

Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.