Question
What is the maximum amount of deduction an employer can
make from an employee's wages under the Payment of Wages Act, 1936?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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