Deductions which may be made from wages.

(1) The wages of an employed person shall be paid to him without deduction of any kind except those specified in sub-section (2). Explanation.—Every payment made by the employed person to the employer or his agent or the manager shall for the purpose of this Act be deemed to be a deduction from wages. (2) Deduction from the wages of an employee shall be of one or more of the following kinds namely:— (i) Fines; (ii) Deductions of absence from duty; (iii) Deductions for damage to or loss of goods expressly entrusted to the employed person for 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; (iv) Deductions for house accommodation supplied by the employer; (v) Deductions for such amenities and services supplied by the employer as the Government may by general or special order authorise; Explanation.—The words ‘amenities’ and ‘services’ in this clause do not include the supply of tools and protectives required for the purpose of employment. (vi) Deductions for the recovery of advances or for adjustment of over-payments of wages, provided that such advances do not exceed an amount equal to wages for two calendar months of the employed person and, in no case, shall the monthly instalment of deduction exceed one-fourth of the wages earned in that month; (vii) Deductions of income tax payable by the employed person; (viii) Deductions required to be made by order of a court or other competent authority; (ix) Deductions for subscription to, and for repayment of advances from, any provident fund to which the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) applies or any recognised provident fund as defined in section 2(38) of the Income-Tax Act, 1961 (43 of 1961) or any provident fund approved in this behalf by the Government during the continuance of such approval; (x) Deductions for payment to co-operative societies or to a scheme of insurance approved by the Government. (3) Any employer desiring to impose a fine on an employed person or to make a deduction for damage or loss caused by him shall explain to him personally and also in writing the act or omission or the damage or loss, in respect of which the fine or deduction is proposed to be imposed or made, and give him an opportunity to offer any explanation in the presence of another person. The amount of the said fine or deduction shall also be intimated to him. (4) The amount of fine or deduction mentioned in sub-section (3) shall be such as may be specified by the Government. All such deductions and realisations thereof shall be recorded in a register maintained in a form as may be prescribed. (5) The amount of fine imposed under sub-section (3) shall be utilised in accordance with the directions of the Government. (6) Nothing in this section shall be deemed to affect the provisions of the Payment of Wages Act, 1936 (4 of 1936).