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      Question

      What is the maximum amount of deduction an employer can

      make from an employee's wages under the Payment of Wages Act, 1936?
      A 50% for all cases Correct Answer Incorrect Answer
      B 25% for all cases Correct Answer Incorrect Answer
      C 40% for all cases Correct Answer Incorrect Answer
      D 75% for cooperative societies, 50% for others Correct Answer Incorrect Answer

      Solution

      Section 7(3) of the Payment of Wages Act, 1936 specifies that deductions for cooperative societies cannot exceed 75% of wages, while for other cases, it cannot exceed 50%. This ensures that employers do not make excessive deductions that would significantly reduce the employee's take-home wages.

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