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Deduction in Pay or Salary of the Employee

Read article on that employer can do which kind of money deduction from your pay or salary and which kind of deduction he may not do.

Employers may not deduct money from a worker’s pay unless:

  • the worker agrees in writing to the deduction of a debt, or 
  • the deduction is made in terms of a collective agreement, law (e.g. UIF contributions), court order or arbitration award.

Deductions for damage or loss caused by the worker may only be made if:

  • the employer has followed a fair procedure and given the worker a chance to show why the deduction should not be made, 
  • the worker agrees in writing, and 
  • the total deduction is not more than 25% of the worker’s net pay.

Deductions for Benefit Funds:

Employers must pay the employee’s deductions to benefit funds (pension, provident, retirement, medical aid, etc.)