Did you know what are the permissible deductions from wages?

Various labour welfare legislation has been enacted to protect the employees’ rights and prevent them from any injustice done by their employers. The Payment of Wages Act 1936 (PoW Act) was enacted to ensure timely payment of wages and to prevent unauthorised deductions thereof by the employers. The provisions of PoW Act are applicable to individuals employed in factories, railways and any other establishments which the Central or State Government may specify in this regard.
The benefit and protection accorded by the provisions of the PoW Act are available only to employees whose average monthly wage is less than Rs 24,000.
The PoW Act defines ‘wages’ to mean all remuneration expressed, or capable of being expressed in terms of money, which would be payable to the employee if the terms of employment are fulfilled, including:

• Any remuneration payable in accordance with any award or settlement between the parties or an order of a court;
• Overtime wages or any other additional remuneration payable under the terms of employment;
• Any sum which is to be paid by the employer, as per any contract or other law, upon termination of employment of the employee; and
• any other sum to which the person employed is entitled under any scheme framed under any law.

However, wages do not inter alia include bonus or any contribution paid by an employer to any pension fund or provident fund.
Source: Money Control