Understanding Your Pay: Lawful Deductions

Under Section 24, employers are generally prohibited from making deductions except those specifically allowed by the Act, such as recovery of salary advances, indemnity payments, or deductions authorized by written law (e.g., EPF or SOCSO contributions).

For other deductions—such as union dues or payments for employer-provided housing—the employee must provide a written request. Furthermore, the Act limits total monthly deductions to 50% of the employee’s earned wages. This serves as a vital financial protection for workers, preventing excessive deductions that could compromise their livelihood.