Permissible deductions

by • 17/01/2013 • GeneralComments (0)450

Q-3:     Explain Permissible deductions.


Wages of an employed person shall, normally, be paid to him without deduction of any kinds except those authorized by law. Below is given a list of the deductions, which the employer is authorized to make from the wages.

1.         Fines, if any, imposed on the employee under the rules.

2.         Deduction for absence from duty.

3.         Deduction for damages or loss caused to the goods, which were specifically entrusted to the. employee for safe custody or for loss of money to which the employee is accountable and the loss must have been caused due to the negligence of the employee.

4.         Deduction for house accommodation provided by employer.

5          Deduction for amenities and services supplied to the employee, which are authorized by means of a general or special order of the Government.

6.         Deduction for recovery of advances or adjustment of overpayments made to employee.

7.         Deduction for income-tax payable by the employee.

8.         Deduction required to be made under the orders of the court or other authorities competent to make such order.

9.         Deduction for subscription to provided fund.

10.       Deduction for payment to cooperative societies approved by Provincial Government or to a scheme of insurance maintained by Pakistan Post Office.

Now, the important deductions out of the above are discussed in some details hereunder:


Fines [Sec. 8]

Under the law a employer is authorized to impose fine on an employee in respect of wrongful acts or omissions on his pan if following conditions are fulfilled:

(a)        Previous approval of Provincial Government or prescribed authorities has been obtained. Notice of wrongful acts and omissions has been exhibited,

(b)        Before any fine is imposed the employee must be given an opportunity to show cause against fine.

(c)        Amount of fine shall not exceed 3 paisa in the rupee of wages payable.

(d)        Fine imposed shall be recovered in lump-sum and not in installments.

(e)        Fine imposed shall become time-barred after the expiry of 60 days from the day of imposition.

(g)        Fine shall be deemed to have been imposed on the day of the wrongful act or omission.

(h)        All fines imposed shall be recorded in a register kept for the purpose.

(i)         All realizations shall be applied on the welfare of the employees.


Deduction For Absence From Duty [See. 9]

Absence from duty will be legally presumed when the employee though present within the premises of his duty is not attending to his job. This deduction must be proportionate to the period of absence from-work i.e. if an employee remains absent for one day out of eight days the deduction should only be l/8th and not more. In case the wage period is one month in which twenty-five are working days and the employees is absent for four days the deduction should not exceed 4/25th of the wages for that one month. (Sec. 9)


Deduction of Damages or loss [Sec. 10]

In this connection it must be kept in view that this deduction can only be made for the loss or damage caused to the property which was entrusted to the employee for being kept sure. The tools and instruments which are supplied to any employee for the purpose of his job can not to the employee for sure custody and the loss of any such thing will not entitle the employer to make any deduction. From this the natural inference is that for this the employee must be a storekeeper. (Sec. 10)


Deduction For Services Rendered [Sec. 11]

No doubt deduction for services rendered is a justified deduction i.e. the house accommodation provided, other amenities like electricity gas etc but for this too there is a condition that the employee must have accepted them of his free will as a term of employment and they must be limited to the value of such services. (Sec. 11)


Deduction For Advances [Sec. 12]

This deduction is governed by the rule that deduction of any advance given before the employee joints the employment must be made from the first payment of wages in respect of a complete wage period but an advance made as travelling expenses can not be deducted. In connection with advances to be made before employment they must be made upto a limit, which is permitted, by the Government and the installments for recovery are also according to the rules of the Government. (Sec. 12)


Deductions on Behalf Of Cooperative Societies [Sec. 13]

These deductions can be made as approved by the Government. Share with your friendscell phone monitoring software programs have been on the go these days

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