Dear Colleague,
Section 7 of Payment of Wages Act 1936 applies to the Contractor and their Employer who is responsible for Payment of Wages in the same manner as it applies to any other class of employees in organizations:
7(a)fines;
(b) deduction for absence from duty;
(c) deductions for damage to or loss of goods expressly entrusted to the employed person or custody; or for loss of money for which he is required to account, where such damage or loss is directly attributable to his neglect or default;
3[(d) deductions for house-accommodation supplied by the employer or by Government or any housing board set up under any law for the time being in force (whether the Government or the board is the employer or not) or any other authority engaged in the business of subsidizing house-accommodation which may be specified in this behalf by [the appropriate Government] by
notification in the Official Gazette;]
(e) deductions for such amenities and services supplied by the employer as the 5[***] State Government 6[or any officer specified specified by it in this behalf] may, by general or special order authorize deductions for recovery of loans made from any fund constituted
for the welfare of labour in accordance with the rules approved by the State Government, and the interest due in respect thereof;
(fff) deductions for recovery of loans granted for house-building or other purposes approved by the State Government and the interest due in respect thereof;]
(g) deductions of income-tax payable by the employed person;
(h) deductions required to be made by order of a Court or other authority competent to make such order;
(i) deductions for subscriptions to, and for payment of advances from any provident fund to which the Provident Funds Act, 1925 (19 of 1925), applies or any recognised provident fund as defined
1[in clause (38) of section 2 of the Income-tax Act, 1961 (43 of 1961) or any provident fund approved in this behalf by 2[the appropriate Government], during the continuance of such
approval;
(j) deductions for payments to co-operative societies approved by 4[the appropriate Government] 5[or any officer specified by it in this behalf] or to a scheme of insurance maintained by the
Indian Post Office; 6[and];
8(k) deductions, made with the written authorisation of the person employed for payment of any premium on his life insurance policy to the Life Insurance Corporation of India established
under the Life Insurance Corporation Act, 1956 (31 of 1956), or for the purchase of securities of the Government of India or of any State Government or for being deposited in any Post Office Savings Bank in furtherance of any savings scheme of any such Government;]
9[(kk) deductions made, with the written authorisation of the employed person, for the payment of his contribution to any fund constituted by the employer or a trade union registered under
the Trade Unions Act, 1926 (16 of 1926) for the welfare of the employed persons or the members of their families, or both, and approved by 10[the appropriate Government], or any officer
specified by it in this behalf, during the continuance of such approval;
(kkk) deductions made, with the written authorisation of the employed person, for payment of the fees payable by him for themembership of any trade union registered under the Trade Unions Act, 1926 (16 of 1926);
1[(l) deductions for payment of insurance premia on Fidelity Guarantee Bonds;
3[(q) deductions for contributions to any insurance scheme framed by the Central Government for the benefit of its employees.]
4[(3) Notwithstanding anything contained in this Act, the total amount of deductions which may be made under sub-section (2) in any wage-period from the wages of any employed person shall not exceed-
(i) in cases where such deductions are wholly or partly made for payments to co-operative societies under clause (j) of sub-section
(2), seventy-five per cent of such wages, and (ii) in any other case, fifty per cent of such wages:
Provided that where the total deductions authorised under sub-section (2) exceed seventy-five per cent or, as the case may be, fifty per cent of the wages, the excess may be recovered in such manner as may be prescribed.
(4) Nothing contained in this section shall be construed as precluding the employer from recovering from the wages of the employed person or otherwise any amount payable by such person under any law for the time being in force other than 5[the Railways Act, 1989 (24 of 1989)].
From India, Chennai
309Section 7 of Payment of Wages Act 1936 applies to the Contractor and their Employer who is responsible for Payment of Wages in the same manner as it applies to any other class of employees in organizations:
7(a)fines;
(b) deduction for absence from duty;
(c) deductions for damage to or loss of goods expressly entrusted to the employed person or custody; or for loss of money for which he is required to account, where such damage or loss is directly attributable to his neglect or default;
3[(d) deductions for house-accommodation supplied by the employer or by Government or any housing board set up under any law for the time being in force (whether the Government or the board is the employer or not) or any other authority engaged in the business of subsidizing house-accommodation which may be specified in this behalf by [the appropriate Government] by
notification in the Official Gazette;]
(e) deductions for such amenities and services supplied by the employer as the 5[***] State Government 6[or any officer specified specified by it in this behalf] may, by general or special order authorize deductions for recovery of loans made from any fund constituted
for the welfare of labour in accordance with the rules approved by the State Government, and the interest due in respect thereof;
(fff) deductions for recovery of loans granted for house-building or other purposes approved by the State Government and the interest due in respect thereof;]
(g) deductions of income-tax payable by the employed person;
(h) deductions required to be made by order of a Court or other authority competent to make such order;
(i) deductions for subscriptions to, and for payment of advances from any provident fund to which the Provident Funds Act, 1925 (19 of 1925), applies or any recognised provident fund as defined
1[in clause (38) of section 2 of the Income-tax Act, 1961 (43 of 1961) or any provident fund approved in this behalf by 2[the appropriate Government], during the continuance of such
approval;
(j) deductions for payments to co-operative societies approved by 4[the appropriate Government] 5[or any officer specified by it in this behalf] or to a scheme of insurance maintained by the
Indian Post Office; 6[and];
8(k) deductions, made with the written authorisation of the person employed for payment of any premium on his life insurance policy to the Life Insurance Corporation of India established
under the Life Insurance Corporation Act, 1956 (31 of 1956), or for the purchase of securities of the Government of India or of any State Government or for being deposited in any Post Office Savings Bank in furtherance of any savings scheme of any such Government;]
9[(kk) deductions made, with the written authorisation of the employed person, for the payment of his contribution to any fund constituted by the employer or a trade union registered under
the Trade Unions Act, 1926 (16 of 1926) for the welfare of the employed persons or the members of their families, or both, and approved by 10[the appropriate Government], or any officer
specified by it in this behalf, during the continuance of such approval;
(kkk) deductions made, with the written authorisation of the employed person, for payment of the fees payable by him for themembership of any trade union registered under the Trade Unions Act, 1926 (16 of 1926);
1[(l) deductions for payment of insurance premia on Fidelity Guarantee Bonds;
3[(q) deductions for contributions to any insurance scheme framed by the Central Government for the benefit of its employees.]
4[(3) Notwithstanding anything contained in this Act, the total amount of deductions which may be made under sub-section (2) in any wage-period from the wages of any employed person shall not exceed-
(i) in cases where such deductions are wholly or partly made for payments to co-operative societies under clause (j) of sub-section
(2), seventy-five per cent of such wages, and (ii) in any other case, fifty per cent of such wages:
Provided that where the total deductions authorised under sub-section (2) exceed seventy-five per cent or, as the case may be, fifty per cent of the wages, the excess may be recovered in such manner as may be prescribed.
(4) Nothing contained in this section shall be construed as precluding the employer from recovering from the wages of the employed person or otherwise any amount payable by such person under any law for the time being in force other than 5[the Railways Act, 1989 (24 of 1989)].
From India, Chennai
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.
Applied Human Capital Management.pdf
Rules for Statutory Deductions Exemptions Perquisites-Pay roll.doc