Section 7 – Deductions Which May Be Made From Wages

(1) Notwithstanding the provisions of the Railways Act, 1989 (24 of 1989), the wages of an employed person shall be paid to him without deductions of any kind except those authorised by or under this Act. Explanation I - Every payment made by the employed person to the employer or his agent shall, for the purposes of this Act, be deemed to be a deduction from wages. Explanation II - Any loss of wages resulting from the imposition, for good and sufficient cause, upon a person employed of any of the following penalties, namely:

1. the withholding of increment or promotion (including the stoppage of increment at an efficiency bar):
2. the reduction to a lower post or time scale or to a lower stage in a time scale: or
3. suspension, shall not be deemed to be a deduction from wages in any case where the rules framed by the employer for the imposition of any such penalty are in conformity with the requirements, if any, which may be specified in this behalf by appropriate Government by notification in the Official Gazette.

(2) Deductions from the wages of an employed person shall be made only in accordance with the provisions of this Act, and may be of the following kinds only, namely:

1. fines;
2. deductions for absence from duty;
3. deductions for damage to or loss of goods expressly entrusted to the employed person for custody, or for loss of money for which he is required to account, where such damage or loss is direct… Read the complete text with KanoonGPT Pro.