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    Question

    What is the maximum amount of deduction an employer can

    make from an employee's wages under the Payment of Wages Act, 1936?
    A 50% for all cases Correct Answer Incorrect Answer
    B 25% for all cases Correct Answer Incorrect Answer
    C 40% for all cases Correct Answer Incorrect Answer
    D 75% for cooperative societies, 50% for others Correct Answer Incorrect Answer

    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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