Deductions from Salary or Wages

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1

Hello Community-

Need suggestions on the question-

What are some of the eligible deductions that an employer can make from the employees salary under the Payment of Wages Act?

Thank you.
Ann

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2

Hi Ann,

The mandatory salary deductions are as under:

  1. Professional Tax (As per State if Applicable)
  2. Provident Fund
  3. ESI (if Applicable)
  4. Income Tax(If Applicable)

I hope this information will help you.

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3

Agree with @Arpana

These are the common ones as per the statutory act.

Note: even if you have other deductions like LOAN / Penalties / FINES etc., remember the net deduction should not cross 50% of the wages - i.e total earnings

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