Section 21. Deductions for damage or loss

In force since 21 Nov 2025Chapter III — Payment of Wages

Official text

(1) A deduction under clause (c) or clause (n) of sub-section (2) of section 18 for damage or loss shall not exceed the amount of the damage or loss caused to the employer by negligence or default of the employee.
(2) A deduction shall not be made under sub-section (1) until the employee has been given an opportunity of showing cause against the deduction or otherwise than in accordance with such procedure as may be prescribed for the making of such deductions.
(3) All such deductions and all realisations thereof shall be recorded in a register to be kept in such form as may be prescribed.

Source: The Code on Wages, 2019, Act No. 29 of 2019 — Gazette of India, p. 12 of the PDF. Open our copy at p. 12 · official download · all sources

Explained simply in: Paying wages: deadlines, deductions and fines guide

Commencement In force since 21 Nov 2025

Notification wording (1)

S.O. 5322(E), in force from 21 Nov 2025: “sections 1 to 41”