Can it be allowed under Payment of Wages Act- deduction from wages/salary from employee ,for food taken in the canteen in any establishment mines/factory?
Acknowledge(0)
Amend(0)
1Acknowledge(0)Amend(0)
The employer is not bound to provide free food in any Act. Canteen run by the establishment on a subsidy or no-profit-no-loss basis. You can either pay directly at a counter or through food coupons or monthly deductions from wages.
From India, Lucknow
Acknowledge(0)Amend(0)
From India, Lucknow
Acknowledge(0)Amend(0)
Dear Debiprasad,
Please refer to the heading under 'DEDUCTIONS' in the Payment of Wages Act, 1936, which applies to establishments covered by the Factories Act, 1948, and the Mines Act, 1952.
Section 7(2)(e) of the PWA, 1936, authorizes the deduction towards the supply of statutory amenities provided by the employer. Beyond a certain threshold strength of employees, a canteen facility is mandatory under these Acts. Even otherwise, the shift working pattern as well as the continuous nature of work of these employees justify the provision for the supply of food and refreshments through a canteen or some other arrangement by the employer. However, the employer is not bound to provide them free of cost. Therefore, those employees availing these facilities need to pay back. Hence, the deduction in this regard from their wages is an authorized one under the above section.
The cost factor in this regard is to be determined based on the number of employees, the type of food, the financial position of the establishment with regard to indirect commitments, and the like. It can be on a subsidized rate basis in which the employer may bear a portion of the costs as a welfare measure or on a no-profit-no-loss basis.
From India, Salem
Acknowledge(0)Amend(0)
Please refer to the heading under 'DEDUCTIONS' in the Payment of Wages Act, 1936, which applies to establishments covered by the Factories Act, 1948, and the Mines Act, 1952.
Section 7(2)(e) of the PWA, 1936, authorizes the deduction towards the supply of statutory amenities provided by the employer. Beyond a certain threshold strength of employees, a canteen facility is mandatory under these Acts. Even otherwise, the shift working pattern as well as the continuous nature of work of these employees justify the provision for the supply of food and refreshments through a canteen or some other arrangement by the employer. However, the employer is not bound to provide them free of cost. Therefore, those employees availing these facilities need to pay back. Hence, the deduction in this regard from their wages is an authorized one under the above section.
The cost factor in this regard is to be determined based on the number of employees, the type of food, the financial position of the establishment with regard to indirect commitments, and the like. It can be on a subsidized rate basis in which the employer may bear a portion of the costs as a welfare measure or on a no-profit-no-loss basis.
From India, Salem
Acknowledge(0)Amend(0)
Dear Debiprasad,
In many companies, the canteen services of tea, snacks, and meals are available against coupons that are issued by either management or the canteen contractor. Workers have these coupon books whenever they need them, for which they need to submit a written requisition. The cost of the coupons is then deducted from their salary/wages. It is the cost of the coupon book and not what is consumed in the canteen. The coupons remain in balance at the end of the month, which workers can use in the next month.
If a worker is separating from the company, the remaining coupons are returned by the worker, and the cost is refunded to them. Sometimes, workers take coupons and sell them to other workers at a discount. This way, the selling worker gets immediate cash, and the buying worker gets the coupons cheaper.
Vibhakar Ramtirthkar.
From India, Pune
Acknowledge(0)Amend(0)
In many companies, the canteen services of tea, snacks, and meals are available against coupons that are issued by either management or the canteen contractor. Workers have these coupon books whenever they need them, for which they need to submit a written requisition. The cost of the coupons is then deducted from their salary/wages. It is the cost of the coupon book and not what is consumed in the canteen. The coupons remain in balance at the end of the month, which workers can use in the next month.
If a worker is separating from the company, the remaining coupons are returned by the worker, and the cost is refunded to them. Sometimes, workers take coupons and sell them to other workers at a discount. This way, the selling worker gets immediate cash, and the buying worker gets the coupons cheaper.
Vibhakar Ramtirthkar.
From India, Pune
Acknowledge(0)Amend(0)
Umakanthan Sir has explained in a very well manner, so i think no need to repeat the same again. Great Sir! Regards, Prashant
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
Thank you, Umakanthan.M, Sir, for your valuable inputs.
Do these deductions require a special order or permission from authorized officers of the State/Central Govt. under Section 7(2)(e) of the Payment of Wages Act, 1936.
Acknowledge(0)Amend(0)
Do these deductions require a special order or permission from authorized officers of the State/Central Govt. under Section 7(2)(e) of the Payment of Wages Act, 1936.
Acknowledge(0)Amend(0)
Not at all necessary. Employer is the final authority for such deductions. But if you are working in a factory, you can maintain Register of Deductions, in the prescribed format .
From India, Aizawl
Acknowledge(0)Amend(0)
From India, Aizawl
Acknowledge(0)Amend(0)
Mr. Mishra,
There is no need to take approval for the deduction. However, assuming it is a factory, there must be a canteen committee that approves the prices. The canteen must not be making a profit (the canteen contractor will make a profit, of course, but the factory must not make a profit from canteen operations) unless run by a coop of the workers, in which case, they can make a 5% profit.
I disagree with Mr. Nair; this does not go into the register of deductions, which is for losses and damages, not for canteen deductions. However, ensure that the total deduction from salary (including all deductions) does not exceed 50% of gross wages.
The canteen must keep details of deductions and costs and must maintain canteen books of accounts at the end of each year (but preferably at the end of each month).
From India, Mumbai
Acknowledge(0)Amend(0)
There is no need to take approval for the deduction. However, assuming it is a factory, there must be a canteen committee that approves the prices. The canteen must not be making a profit (the canteen contractor will make a profit, of course, but the factory must not make a profit from canteen operations) unless run by a coop of the workers, in which case, they can make a 5% profit.
I disagree with Mr. Nair; this does not go into the register of deductions, which is for losses and damages, not for canteen deductions. However, ensure that the total deduction from salary (including all deductions) does not exceed 50% of gross wages.
The canteen must keep details of deductions and costs and must maintain canteen books of accounts at the end of each year (but preferably at the end of each month).
From India, Mumbai
Acknowledge(0)Amend(0)
Mr. Banerjee,
As far as I understand, two registers, the Register of Deductions, and the Register of Fines are maintained in establishments. For losses or damages, the details of fines or penalties levied are entered in the Register of Fines.
From India, Aizawl
Acknowledge(0)Amend(0)
As far as I understand, two registers, the Register of Deductions, and the Register of Fines are maintained in establishments. For losses or damages, the details of fines or penalties levied are entered in the Register of Fines.
From India, Aizawl
Acknowledge(0)Amend(0)
Register of Deduction is a register of deduction for damages and losses. It is not for the recovery of canteen charges, which are neither a recovery for loss nor a recovery for damages done by the employee.
Sec. 10 refers to the register of deduction as below:
10. Deductions for damage or loss - [(1) A deduction under clause (c) or clause (o) of sub-section (2) of section 7 shall not exceed the amount of the damage or loss caused to the employer by the neglect or default of the employed person. (1A) A deduction shall not be made under clause (c) or clause (m) or clause (n) or clause (o) of sub-section (2) of section 7 until the employed person has been given an opportunity of showing cause against the deduction, or otherwise than in accordance with such procedure as may be prescribed for the making of such deductions.] (2) All such deductions and all realizations thereof shall be recorded in a register to be kept by the person responsible for the payment of wages under section 3 in such form as may be prescribed.
Therefore, the register is for the recovery of losses caused by the employee.
From India, Mumbai
Acknowledge(0)Amend(0)
Sec. 10 refers to the register of deduction as below:
10. Deductions for damage or loss - [(1) A deduction under clause (c) or clause (o) of sub-section (2) of section 7 shall not exceed the amount of the damage or loss caused to the employer by the neglect or default of the employed person. (1A) A deduction shall not be made under clause (c) or clause (m) or clause (n) or clause (o) of sub-section (2) of section 7 until the employed person has been given an opportunity of showing cause against the deduction, or otherwise than in accordance with such procedure as may be prescribed for the making of such deductions.] (2) All such deductions and all realizations thereof shall be recorded in a register to be kept by the person responsible for the payment of wages under section 3 in such form as may be prescribed.
Therefore, the register is for the recovery of losses caused by the employee.
From India, Mumbai
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Clarification On PF Deduction For Indian Employees (International Workers) Returning From Foreig.pdf
PMRPY-DEDUCTION -SOLUTION.xls
Job Work-outwork employees.docx