Payment of Wages Act, 1936

Section - 7 - Deductions which may be made from wages

Deductions which may be made from wages.

7.   (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 authorized 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 :—

  (i)  the withholding of increment or promotion (including the stoppage of increment at an efficiency bar);

 (ii)  the reduction to a lower post or time scale or to a lower stage in a time scale; or

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