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Can an employer deduct from wages?

Any amounts of money may not be deducted from the employee's remuneration to recover particular rights, except in the following cases:

a. Repayment of advances or amounts of money paid to the employee in excess of his entitlement, provided that deduction in this case may not exceed 10% of the employee's periodic pay.

b. Installments which are payable by law by the employees from their remuneration, such as social security and insurance schemes.

c. Subscriptions of the employees in the saving fund or advances due for payment to the fund.

d. Installments in respect of any social scheme or other privileges or services provided by the employer and approved by the Labor Department.

e. Fines imposed upon the employee due to offenses committed by him.

f. Any debts payable in execution of court judgment provided that not more than a quarter of the employee's pay shall be deducted. In the event of numerous debts or creditors, half of the remuneration at the most may be deducted and the sums of money attached shall be divided pro rata among beneficiaries after payment of any legal alimony amounting to one quarter of the remuneration.

 

g. If the employee has caused the loss, damage or destruction to any tools, machines,equipment or products owned by or kept in custody of the employer, to the extent that involvement of the employee was due to his fault or violation of the employer's instructions, then the employer has the option to cut from the employee's pay the amount required for rectifying error or restoring the item to its original condition,provided that the amount to be deducted shall not exceed five day pay each month.The employer can apply to the competent court through the concerned Labor Department for authorizing him to deduct more than this amount if the employee is financially sound or has another source of money.

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