Section 11 of The PAYMENT OF WAGES ACT, 1936
A deduction under clause (d) or clause (e) of sub-section (2) of section 7 shall not be made from the wages of an employed person, unless the house-accommodation amenity or service has been accepted by him, as a term of employment or otherwise, and such deduction shall not exceed an amount equivalent to the value of the house-accommodation amenity or service supplied and, in the case of a deduction under the said clause (e), shall be subject to such conditions as 2*** 1[appropriate Government] may impose.
Summary
- An employer can only take money from a worker's pay for housing or services if the worker has agreed to receive them.
- The amount of money deducted cannot be more than the actual value of the housing or service provided.
- For special services or benefits, the State Government has the power to set specific conditions on how these deductions are handled.
Practical examples
FAQ
1. Can an employer charge me more than what a service is worth under Section 11 of the Payment of Wages Act, 1936?
No, Section 11 of the Payment of Wages Act, 1936, says the deduction must not exceed the value of the house accommodation or service supplied to the worker.
2. Does a worker have to agree to a deduction for a canteen service under Section 11 of the Payment of Wages Act?
Yes, Section 11 of the Act states that deductions for services or amenities can only be made if they have been accepted by the employed person.
3. Who sets the rules for amenity deductions under Section 11 of the Payment of Wages Act?
The State Government may impose conditions specifically for deductions related to amenities and services under Section 11 of the Act.
Test yourself
Q1.Under Section 11 of the Payment of Wages Act, 1936, what is the maximum amount an employer can deduct for providing a service?
Q2.For an employer to legally deduct money for a house under Section 11 of the Payment of Wages Act, 1936, what must occur first?
Q3.According to Section 11 of the Payment of Wages Act, 1936, which authority can set conditions on deductions for services?
Q4.If an employer provides a library service but the worker never uses it or agrees to it, can the employer deduct fees under Section 11 of the Payment of Wages Act?