Hi,
go through below as per law when employer can deduct.......
Deductions from Wages allowable under the Act
Deductions from the wages of an employed person shall be made only in accordance with the
provisions of this Act, and may be of the following kinds only, namely:
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(a) Fines: The total amount of fine which may be imposed in any one wage-period on any
employed person shall not exceed an amount equal to 3% of the wages payable to him in
respect of that wage-period. No fine shall be imposed on any employed person who is under
the age of fifteen years. Every fine shall be deemed to have been imposed on the day of the
act or omission in respect of which it was imposed. No fine imposed on any employed
person shall be recovered from him by instalments or after the expiry of 90 days from the
day on which it was imposed
(b) Deductions for absence from duty;
(c) 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;
(d) Deductions for house-accommodation supplied by the employer or by government or
any housing board set up under any law for the time being in force (whether the
government or the board is the employer or not) or any other authority engaged in the
business of subsidizing house- accommodation which may be specified in this behalf by the
State Government by notification in the Official Gazette;
(e) Deductions for such amenities and services supplied by the employer as the State
Government or any officer specified by it in this behalf may, by general or special order,
authorize.
Explanation: The word "services" in 23[this clause] does not include the supply of tools and
raw materials required for the purposes of employment;
(f) Deductions for recovery of advances of whatever nature (including advances for traveling
allowance or conveyance allowance), and the interest due in respect thereof, or for
adjustment of over-payments of wages. Recovery of an advance of money given before
employment began shall be made from the first payment of wages in respect of a complete
wage-period, but no recovery shall be made of such advances given for traveling-expenses.
(ff) deductions for recovery of loans made from any fund constituted for the welfare of
labour in accordance with the rules approved by the State Government, and the interest due
in respect thereof;
(fff) deductions for recovery of loans granted for house-building or other purposes approved
by the State Government and the interest due in respect thereof;]
(g) Deductions of income-tax payable by the employed person;
(h) Deductions required to be made by order of a court or other authority competent to
make such order;
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(i) Deductions for subscriptions to, and for repayment of advances from any provident fund
to which the Provident Funds Act, 1925 (19 of 1925), applies or any recognized provident
fund as defined or any provident fund approved in this behalf by the State Government,
during the continuance of such approval;
(j) deductions for payments to co-operative societies approved by the State Government or
any officer specified by it in this behalf or to a scheme of insurance maintained by the Indian
Post Office, and
(k) deductions, made with the written authorization of the person employed for payment of
any premium on his life insurance policy to the Life Insurance Corporation Act of India
established under the Life Insurance Corporation Act, 1956 (31 of 1956), or for the purchase
of securities of the Government of India or of any State Government or for being deposited
in any Post Office Savings Bank in furtherance of any savings scheme of any such
government.]]
(kk) deductions, made with the written authorization of the employed person, for the
payment of his contribution to any fund constituted by the employer or a trade union
registered under the Trade Union Act, 1926 (16 of 1926), for the welfare of the employed
persons or the members of their families, or both, and approved by the State Government
or any officer specified by it in this behalf, during the continuance of such approval;
(kkk) deductions, made with the written authorization of the employed person, for payment
of the fees payable by him for the membership of any trade union registered under the
Trade Union Act, 1926 (16 of 1926);
(l) Deductions, for payment of insurance premium on Fidelity Guarantee Bonds;
(m) Deductions for recovery of losses sustained by a railway administration on account of
acceptance by the employed person of counterfeit or base coins or mutilated or forged
currency notes;
(n) Deductions for recovery of losses sustained by a railway administration on account of the
failure of the employed person to invoice, to bill, to collect or to account for the appropriate
charges due to that administration whether in respect of fares, freight, demurrage, wharfage
and carnage or in respect of sale of food in catering establishments or in respect of sale of
commodities in grain shops or otherwise;
(o) Deductions for recovery of losses sustained by a railway administration on account of any
rebates or refunds incorrectly granted by the employed person where such loss is directly
attributable to his neglect or default;]
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(p) Deductions, made with the written authorization of the employed person, for
contribution to the Prime Minister’s National Relief Fund or to such other Fund as the
Central Government may, by notification in the Official Gazette, specify;]
(q) Deductions for contributions to any insurance scheme framed by the Central
Government for the benefit of its employees.
The total amount of deductions which may be made above in any wage-period from the
wages of any employed person shall not exceed-
(i) in cases where such deductions are wholly or partly made for payments to co-operative
societies under clause (j) above, 75% of such wages, and
(ii) in any other case, 50% of such wages:
Where the total deductions authorized exceed 75% or, as the case may be, 50% of the
wages, the excess may be recovered in such manner as may be prescribed.