Dear Sir,
In our company, one employee has taken company loan and deduction will be start from next month. He is telling that please deduct 80% amount from my gross salary.
So, I would like to know that is it ok according to labour law??
Best regards,
Parimal
From India, Ahmadabad
4In our company, one employee has taken company loan and deduction will be start from next month. He is telling that please deduct 80% amount from my gross salary.
So, I would like to know that is it ok according to labour law??
Best regards,
Parimal
From India, Ahmadabad
If his salary is above Rs18000/-pm,no labour law will be violated if you deduct the amount as agreed by the employee. VARGHESE MATHEW
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Hi Mathew, Will pls send the any act or law pertaining to the same.? if it is there
From India, Hyderabad
From India, Hyderabad
Pl refer to sec 7(3) of the Payment of wages Act ,1936.This is the Act which regulate the payment, deductions of wages.The Act restrict the total recovery to 50% of the wages.(75% in cases where recovery is partly to Co-op society).This law is applicable only to wages below Rs 18001/ pm.
Varghese Mathew
From India, Thiruvananthapuram
Varghese Mathew
From India, Thiruvananthapuram
Dear Mr. Varghese,
I go though the clause 7 (3) of the payment of wages act, 1936.
I have found the same as you mentiong but now i have query that in 50% value, all statutoru deductions are included?? (like PF, ESI, PT, etc..)
Please clarigy urgently if possible.
Best regards,
Parimal
From India, Ahmadabad
I go though the clause 7 (3) of the payment of wages act, 1936.
I have found the same as you mentiong but now i have query that in 50% value, all statutoru deductions are included?? (like PF, ESI, PT, etc..)
Please clarigy urgently if possible.
Best regards,
Parimal
From India, Ahmadabad
No,Parimal all statutory deductions are not included. What is included are those listed in sub section 2 of sec 7 only. Varghese Mathew 9961266966
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Dear Parimal,
Concerned employee is giving in writing to deduct his 80% of salary there is no issue. On your own you cannot deduct salary more than 1/3 of salary. Keep the letter in his personal file.
Regards==S.Rao
From India, Hyderabad
Concerned employee is giving in writing to deduct his 80% of salary there is no issue. On your own you cannot deduct salary more than 1/3 of salary. Keep the letter in his personal file.
Regards==S.Rao
From India, Hyderabad
Total deduction from wages or salary can not exceed 50% of gross wages / salary
(75% where it includes amount of contribution to coop society or repayment of loan to coop society). This includes all statutory dues (except perhaps income tax).
However, only items listed as deductible under sec 6 and 7 of the pay,net of wages act can be deducted from salary. Any other amount deducted, even if below 50% is illegal
As stated by others, payment of wages act applies only up to a salary of 18000 per month. However, it is good practice to follow similar rules for employees with salary beyond that also. It ensures the person has enough to sustain himself during the month.
From India, Mumbai
(75% where it includes amount of contribution to coop society or repayment of loan to coop society). This includes all statutory dues (except perhaps income tax).
However, only items listed as deductible under sec 6 and 7 of the pay,net of wages act can be deducted from salary. Any other amount deducted, even if below 50% is illegal
As stated by others, payment of wages act applies only up to a salary of 18000 per month. However, it is good practice to follow similar rules for employees with salary beyond that also. It ensures the person has enough to sustain himself during the month.
From India, Mumbai
If you are making cash payment, do not show deduction in pay sheet. While making salary payment, deduct the loan amount and give him separate receipt.
If you are making salary by cheque or net payment, you make entire salary and take separate cheque from him towards repayment and give him separate receipt.
Regards
Pramod Thakar
From India, Pune
If you are making salary by cheque or net payment, you make entire salary and take separate cheque from him towards repayment and give him separate receipt.
Regards
Pramod Thakar
From India, Pune
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