Hello Team, Can we deduct an employee's salary advance at once from his/her net pay? For example, let's say an individual, Person X, receives a net pay of 80K per month and has taken a salary advance of 1.60 Lakh. Can the employer deduct 80K in two installments to recover the full salary advance? If this approach is taken, Person X will receive "0" net pay for two months. Is this permissible in legal terms, or is there a provision stating that the employer cannot deduct the entire net pay amount?
I would appreciate your assistance in providing comprehensive information regarding the above query.
Thank you!
Regards, Satya
Acknowledge(0)
Amend(0)
I would appreciate your assistance in providing comprehensive information regarding the above query.
Thank you!
Regards, Satya
Acknowledge(0)Amend(0)
Hi Then what the employee will do for survival. There is some provisions for salary deductions in the Act. The total amount of deductions cannot exceed: 75 percent of the wages.
From India, Madras
Acknowledge(0)Amend(0)
1015From India, Madras
Acknowledge(0)Amend(0)
Salary Deduction Limits Under the Payment of Wages Act
Salary deduction has a limit under the Payment of Wages Act. In normal conditions, it may be possible to deduct up to 50%, but with cooperative deduction, it may go up to 75%.
S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions
[Phone Number Removed For Privacy-Reasons]
[Email Removed For Privacy Reasons]
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
Acknowledge(0)Amend(0)
Salary deduction has a limit under the Payment of Wages Act. In normal conditions, it may be possible to deduct up to 50%, but with cooperative deduction, it may go up to 75%.
S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions
[Phone Number Removed For Privacy-Reasons]
[Email Removed For Privacy Reasons]
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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