(1) Notwithstanding anything contained in any other law, the wages of an employee shall be paid to him without deductions of any kind except those authorized by or under this Code.
(2) Deductions may be made for: (a) fines imposed under section 19; (b) absence from duty; (c) damage or loss of goods expressly entrusted; (d) house accommodation; (e) amenities and services provided by employer; (f) recovery of advances; (g) recovery of loans; (h) income-tax or other statutory dues; (i) payment to co-operative societies or insurance premia.
Legal Commentary & Landmark Judgments: Section 18
Section 18 of the Code on Wages exhaustively enumerates the authorized deductions that an employer can lawfully make from an employee's wages, imposing an absolute aggregate ceiling of fifty percent.
Crucially, under sub-section (3), the total amount of deductions that may be made in any wage period shall not exceed fifty percent of the total wages payable to the employee.
The 50% statutory ceiling in Section 18(3) is absolute. Even if an employee has taken extensive company loans, advance salaries, or caused damage, the employer cannot deduct more than 50% of the net wages in any given month, guaranteeing that the employee retains at least half their earnings for basic subsistence.