Rule 18: Procedure for deduction for damage or loss

Rule-wise repository containing the operative Gazette text, enabling-section map, forms, implementation controls and evidence requirements.

Effective 8 May 2026Source review: 16 July 2026Sections: 18, 21

Rule identity

Notification: G.S.R. 343(E), 8 May 2026

Chapter: CHAPTER IV — P AYMENT OF WAGES

Act references detected: section 18, section 21

Forms referenced: None expressly detected

Operational reading

Read every sub-rule, clause, proviso and explanation in sequence.
Treat the full Gazette text below as the controlling rule text in this repository.
Check whether a State rule, sector-specific instrument or later notification governs the establishment.
Map the rule to payroll configuration, form, register, notice, authority and evidence.

Enabling and linked Code sections

Section 18

Deductions which may be made from wages

Open section analysis and compliance consequence.

Section 21

Deductions for damage or loss

Open section analysis and compliance consequence.

Official rule text

Extracted from the English part of the Gazette PDF bundled with the production repository. Formatting is normalised; the signed Gazette PDF prevails.

18. Procedure for deduction for damage or loss.––(1) Any employer intending to make deduction for damages or loss under sub-section (1) of section 21 from the wages of an employee, shall give the employee an opportunity to submit explanation within a period of seven days, showing cause, the value of the damage caused or loss of goods expressly entrusted to the employee. (2) On establishment of the charges, deductions shall be made from the wages of the employee in accordance with sub-section (3) of section 18. (3) In case no reply is received from the employee concerned within seven days, the employer shall make such deduction from the wage of the employee concerned and the same shall be intimated to the employee within ﬁfteen days of the date of such deduction.

Open official Gazette PDF ↗

Paragraph map

Implementation control

Translate Rule 18 into a named owner, payroll/HR system control, prescribed form or register, due date, reviewer and retained evidence. Where the rule delegates criteria to a special or general order, verify that order rather than inventing a threshold.

Evidence checklist

current Gazette and later amendment check
applicable employee/establishment classification
calculation, register, form or notice required by the rule
approval and submission/payment evidence
exception and remediation log

Failure consequence

Failure can support a wage/bonus claim, an inspection observation, adjudication or prosecution depending on the linked Code provision. Apply sections 45, 49 and 51–56 as relevant.

Primary sources

Ministry of Labour — Code on Wages (Central) Rules, 2026 ↗

India Code — Code on Wages, 2019 ↗

Ministry Labour Codes library ↗

Last official-source review: 16 July 2026.

Reliance note: Read the current Gazette/India Code text, the applicable Central or State rules and later notifications before acting. This repository is educational and does not replace matter-specific legal advice.