Discuss the provisions under the payment of wages Act, 1936 in relation to mode of payment of wages and deductions which may be made from the wages.

Mode of Payment of Wages [Section 6]: All wages must be paid in current coins or currency notes. However, the employer may, after obtaining written authorization of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account. (Section 6).

Deduction from Wages [Section 7]: The wages of an employed person shall be paid to him .without deductions of any kind except those authorized by the Act (Section 7 (i)).

Deduction from the wages are the most important aspect of wages. Deductions from the wages must be made only in accordance with the provisions of the act, and may be of the following kinds only, namely:

1. Fines,
2. Deductions for absence from duty and
3. 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. Such deduction can be made only after giving the workman concerned-an opportunity to show cause against the proposed deduction.
4. Deduction for house-accommodation provided as per term of employment. The amount of deduction cannot exceed an amount equivalent to the value of house accommodation amenity or service supplied. The amenities and services for which deduction can be made have to be authorized by the State Government. State Governments are authorized to frame rules governing the deductions as regards services and amenities.
5. Deduction for recovery of advance of whatever nature. Deductions for recovery of loans from any fund constituted for the welfare of labor and deductions for recovery of loans granted for house building etc.
6. Deduction for payment to co-operative societies and Insurance Schemes. These deductions shall include :— Deductions for payments to co-operative societies as approved by the appropriate Government or any officer specified by it in this behalf or to a scheme of insurance maintained by the Indian Post Office.— Deductions, made with the written authorization of the person employed for payment of any premium on his life insurance policy to the Life Insurance Corporation of India.
   
7. Deduction for subscription to and for repayment of advances from provident fund.
8. Other Deductions

Other Deductions: The following deductions are also permitted under the Act:

1. Deductions of income tax payable by the employed persons,
2. Deductions required to be made by order of a Court or other authority competent to make such order,
3. Deductions made, with-Written authorization of the employed person for payment of fees payable by him for the membership of any trade union registered under the Trade Unions Act, 1926.
4. Deduction for recovery of losses sustained by a railway administration on account of acceptance by the employed person of counter feit or base coins or mutilated or forged currency note.
5. Deductions for payment of insurance premium on Fidelity Guarantee Bond.
6. Deductions, made with the written authorization of the employed person, for contribution to the Prime Minister’s National Relief Fund or to such other Fund as may be specified by the Central Government and
7. Deductions for contribution to any insurance scheme framed by the Central Government for the benefit of the employees.

Limit on Total Deduction [Section 7(3)]: The total amount of deductions is any age-period from the wages of any employed person shall not exceed 75% of such wages if whole or part of the deductions are meant for payments to cooperative societies. In any other case, it shall not exceed 50% of such wages. The excess amount of deductions, however, can be recovered in such manner as may be prescribed.