.-(1) Notwithstanding the provisions of [the Railways Act, 1989 (24 of 1989)] [ Substituted by Act 41 of 2005, Section 6, for " sub-Section (2) of Section 47 of the Indian Railways Act, 1890 (9 of 1890)" .], the wages of an employed person shall be paid to him without deductions of any kind except those authorised by or under this Act.

[ Explanation I ] [ Explanation renumbered as Explanation I thereof by Act 68 of 1957, Section 5 (w.e.f. 1.4.1958).].-Every payment made by the employed person to the employer or his agent shall, for the purposes of this Act, be deemed to be a deduction from wages.

the withholding of increment or promotion (including the stoppage of increment at an efficiency bar);

the reduction to a lower post or time-scale or to a lower stage in a time scale; or

suspension, shall not be deemed to be a deduction from wages in any case where the rules framed by the employer for the imposition of any such penalty are in conformity with the requirements, if any, which may be specified in this behalf by ] [the appropriate Government] [ Substituted by Act 41 of 2005, Section 3, for " the State Government " (w.e.f. 9.11.2005).][by notification in the Official Gazette.] [ Inserted by Act 68 of 1957, Section 5 (w.e.f. 1.4.1958).]

(2)

Deductions from the wages of an employed person shall be made only in accordance with the provisions of this Act, and may be of the following kinds only, namely:-

(a) fines;

(b) deductions for absence from duty;

(c) deductions for damage to or loss of goods expressly entrusted to the employed person for custody, or for loss of money for which he is required to account, where such damage or loss is directly attributable to his neglect or default;

(d) [ deductions for house-accommodation supplied by the employer or by Government or any housing board set up under any law for the time being in force (whether the Government or the board is the employer or not) or any other authority engaged in the business of subsidising house-accommodation which may be specified in this behalf by ] [Substituted by Act 68 of 1957, Section 5, for Clause (d) (w.e.f. 1.4.1958). ][the appropriate Government] [ Substituted by Act 41 of 2005, Section 3, for " the State Government " (w.e.f. 9.11.2005).][by notification in the Official Gazette;] [Substituted by Act 68 of 1957, Section 5, for Clause (d) (w.e.f. 1.4.1958). ]

(e) deductions for such amenities and services supplied by the employer as the [* * *] [ The words " Governor-General in Council or " omitted by A.O. 1937.] State Government [or any officer specified by it in this behalf] [ Inserted by Act 53 of 1964, Section 6 (w.e.f. 1.2.1965).] may, by general or special order, authorise;

(f) [ deductions for recovery of advances of whatever nature (including advances for travelling allowance or conveyance allowance), and the interest due in respect thereof, or for adjustment of over-payments of wages; [Substituted by Act 53 of 1964, Section 6 for Clause (f) (w.e.f. 1.2.1965). ]

(g) deductions of income-tax payable by the employed person;

(h) deductions required to be made by order of a Court or other authority competent to make such order;

(i) deductions for subscriptions to, and for repayment of advances from, any provident fund to which the Provident Funds Act, 1925 (19 of 1925), applies or any recognised provident fund as defined [in clause (38) of section 2 of the Income-tax Act, 1961 (43 of 1961)] [ Substituted by Act 41 of 2005, Section 7, for " in Section 58-A of the Indian Income-tax Act, 1922 (11 of 1922)" (w.e.f. 9.11.2005).], or any provident fund approved in this behalf by [the appropriate Government] [ Substituted by Act 41 of 2005, Section 3, for " the State Government " (w.e.f. 9.11.2005).], during the continuance of such approval; [*] [ The word " and " omitted by Ordinance 3 of 1940, Section 2.]

(j) deductions for payments to co-operative societies approved by [the appropriate Government] [ Substituted by Act 41 of 2005, Section 3, for " the State Government " (w.e.f. 9.11.2005).][or any officer specified by it in this behalf] [ Inserted by Act 53 of 1964, Section 6 (w.e.f. 1.2.1965).] or to a scheme of insurance maintained by the Indian Post Office; [and] [ Added by Ordinance 3 of 1940, Section 2.]

(k) [ deductions, made with the written authorisation of the person employed for payment of any premium on his life insurance policy to the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956), or for the purchase of securities of the Government of India or of any State Government or for being deposited in any Post Office Savings Bank in furtherance of any savings scheme of any such Government;] [ Substituted by Act 68 of 1957, Section 5, for Clause (k) (w.e.f. 1.4.1958).]

(l) [ deductions, for payment of insurance premia on Fidelity Guarantee Bonds; [ Inserted by Act 53 of 1964, Section 6 (w.e.f. 1.2.1965).]

(m) deductions for recovery of losses sustained by a railway administration on account of acceptance by the employed person of counterfeit or base coins or mutilated or forged currency notes;

(n) deductions for recovery of losses sustained by a railway administration on account of the failure of the employed person to invoice, to bill, to collect or to account for the appropriate charges due to that administration; whether in respect of fares, freight, demurrage, wharfage and cranage or in respect of sale of food in catering establishments or in respect of sale of commodities in grain shops or otherwise;

(o) deductions for recovery of losses sustained by a railway administration on account of any rebates or refunds incorrectly granted by the employed person where such loss is directly attributable to his neglect or default;]

(p) [ deductions, made with the written authorisation of the employed person, for contribution to the Prime Minister's National Relief Fund or to such other Fund as the Central Government may, by notification in the Official Gazette, specify;] [ Inserted by Act 29 of 1976, Section 4 (w.r.e.f. 12.11.1975).]

(q) [ deductions for contributions to any insurance scheme framed by the Central Government for the benefit of its employees.] [ Inserted by Act 53 of 1964, Section 6 (w.e.f. 1.2.1965).]

(3)

[ Notwithstanding anything contained in this Act, the total amount of deductions which may be made under sub-section (2) in any wage-period from the wages of any employed person shall not exceed-

(i) in cases where such deductions are wholly or partly made for payments to co-operative societies under clause (j) of sub-section (2), seventy-five per cent. of such wages, and

(ii) in any other case, fifty per cent. of such wages:

(4)

Nothing contained in this section shall be construed as precluding the employer from recovering from the wages of the employed person or otherwise any amount payable by such person under any law for the time being in force other than ] [ Inserted by Act 19 of 1977, Section 2 (w.e.f. 30.6.1977).][the Railways Act, 1989 (24 of 1989)] [ Substituted by Act 41 of 2005, Section 6, for " the Indian Railways Act, 1890 (9 of 1890)" (w.e.f. 9.11.2005).].] [ Inserted by Act 68 of 1957, Section 5 (w.e.f. 1.4.1958).]