APSE Act 40Chapter VIII · Wages, Conditions for termination of services, appeals, suspension and terminal benefits

Section 40 · Deductions which may be made from wages

(1)

The wages of an employee shall be paid to him without deduction of any kind except those authorised by or under this Act.Explanation. - Every payment made by an employee to the employer shall, for the purposes of this Act, be deemed to be a deduction from wages.

(2)

Deductions from the wages of an employee shall be made only in accordance with the provisions of this Act and may be of the following kinds only, namely:-

(a)

fines and other penalties lawfully imposed;

(b)

deductions for absence from duty;

(c)

deductions for damages to, or loss of goods expressly entrusted to the employee 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 provided by the employer;

(e)

deductions for such amenities and services supplied by the employer as the Government may, by general or special order, authorise;

(f)

deductions for recovery of advances or for adjustment of over payments of wages;

(g)

deductions of income tax or profession tax payable by the employee;

(h)

deductions required to be made by order of a Court or other authority competent to make such order;

(i)

deductions for subscriptions to, and for repayment of advances from, any provident fund to which the Provident Funds Act, 1925 applies or any recognised provident fund as defined in Section 2 (38) of the Income-Tax Act, 1961, or any provident fund approved in this behalf by the Government during the continuance of such approval;

(j)

deductions for payments to co-operative societies approved in this behalf by the Government or any officer authorised by them in this behalf or to a scheme of insurance maintained by the Indian Post Office or the Life Insurance Corporation of India established under Life insurance Corporation Act, 1956;

(k)

deductions made with the written authorisation of the employee in furtherance of any savings scheme approved by the Government or the purchase of securities of the Central or State Government.

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