What is the limit on deductions from wages?
- All deductions together cannot be more than fifty per cent of your wages for the wage period s. 18(3).
- Your employer can deduct only for reasons the Code allows, such as fines, absence, loss caused by your own neglect, advances and loans, taxes and provident fund s. 18(2).
- For damage or loss, the cut cannot be more than the actual loss, and you must be allowed to explain first s. 21(1)–(2).
Last checked 1 Nov 2026 · written from the official text · not reviewed by a lawyer. This explains the law in general and does not decide your case.