Which of the following deductions from wages can be made under the Payment of Wages Act, 1936?
1. Deductions for amenities and services supplied by the employer
2.Deductions for recovery of advances
3.Deductions for payments to co-operative societies
Select the answer using the codes given below:

Correct option is D

The correct answer is: (d) 1, 2 and 3

Explanation:

Section 7 of the Payment of Wages Act, 1936, explicitly lists the types of deductions that are "authorized." According to this section:

1. Deductions for amenities and services: Under Section 7(2)(e), deductions can be made for such amenities and services supplied by the employer as the appropriate Government may authorize. Examples include light, water, and medical attendance.
2. Deductions for recovery of advances: Under Section 7(2)(f), the employer can deduct amounts to recover advances of any nature (like travel or conveyance advances) or for the adjustment of over-payments of wages.
3. Deductions for payments to co-operative societies: Under Section 7(2)(j), deductions are allowed for payments to co-operative societies approved by the appropriate Government or to insurance schemes maintained by the Indian Post Office.

Since all three statements represent authorized deductions under the Act, Option D is the correct choice.

Information Booster:

The primary objective of the Payment of Wages Act is to ensure that employees receive their wages on time and without any unauthorized deductions.

• Section 7(3) - The Ceiling: The Act places a strict limit on the total amount that can be deducted in any single wage period:
• 75% of wages: If deductions are made for payments to co-operative societies.
• 50% of wages: In any other case.
• Written Consent: Most deductions (except for fines or statutory payments) require the written authorization of the employee or must be part of the terms of employment.