Section 23: Deductions for recovery of advances
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Regulates recovery of advances, including advances before employment and advances of unearned wages.
Principal remaining provisions commenced on 21 November 2025 under S.O. 5322(E), read with the earlier partial commencement; check section-specific footnotes in the current India Code text.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
Finin2min analysis — what the section actually does
Operative clauses
- Deductions under clause (f) of sub-section (2) of section 18 for recovery of advances given to an employee shall be subject to the following conditions, namely:— (a) recovery of advance of money given to an employee before the employment began shall be made from the first payment of wages to him in respect of a complete wage-period but no recovery shall be made of such advances given for travelling expenses;
- (b) recovery of advance of money given to an employee after the employment began shall be subject to such conditions as may be prescribed;
- (c) recovery of advances of wages to an employee not already earned shall be subject to such conditions as may be prescribed.
Provisos, explanations & qualifications
- No proviso/explanation was separately extracted from this section text.
Thresholds and timelines in the text
- No explicit day/month/year/hour/percentage/rupee expression was detected in this section text.
Actors expressly appearing in the text
Employee / worker
Full statutory text — Section 23
23. Deductions for recovery of advances.—Deductions under clause (f) of sub-section (2) of section
18 for recovery of advances given to an employee shall be subject to the following conditions, namely:—
(a) recovery of advance of money given to an employee before the employment began shall be
made from the first payment of wages to him in respect of a complete wage-period but no recovery
shall be made of such advances given for travelling expenses;
(b) recovery of advance of money given to an employee after the employment began shall be
subject to such conditions as may be prescribed;
(c) recovery of advances of wages to an employee not already earned shall be subject to such
conditions as may be prescribed.How to apply this provision
- Primary statutory test — Deductions under clause (f) of sub-section (2) of section 18 for recovery of advances given to an employee shall be subject to the following conditions, namely:— (a) recovery of advance of money given to an employee before the employment began shall be made from the first payment of wages to him in respect of a complete wage-period but no recovery shall be made of such advances given for travelling expenses;
- Additional operative limb — (b) recovery of advance of money given to an employee after the employment began shall be subject to such conditions as may be prescribed;
- Central Rule mapping — 19. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
- Evidence file — retain facts and records proving the role/status of: Employee / worker.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
When an event triggers deductions for recovery of advances, record the trigger date, competent authority, prescribed rule/form, filing or decision step, service/acknowledgement and final outcome. A statutory point to test is: “Deductions under clause (f) of sub-section (2) of section 18 for recovery of advances given to an employee shall be subject to the following conditions, namely:— (a) recovery of advance of money given to an employee before the employment began shall be made from the first payment” Read the mapped Central Rule(s) 19.
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 23
What does Section 23 of the Code on Wages cover?
Regulates recovery of advances, including advances before employment and advances of unearned wages.
What is the main legal requirement or power in Section 23?
The first operative clause identified from the official text is: “Deductions under clause (f) of sub-section (2) of section 18 for recovery of advances given to an employee shall be subject to the following conditions, namely:— (a) recovery of advance of money given to an employee before the employment began shall be made from the first payment of wages to him in respect of a complete wage-period but no recovery shall be made of such advances given for travelling expenses;” Read it with the remaining subsections and any proviso below.
Does Section 23 contain a proviso or explanation?
No standalone proviso or explanation was extracted from this section text. Check the full text below for clause-level qualifications.
What time limit, percentage or amount appears in Section 23?
No explicit day/month/year/hour/percentage/rupee expression was detected in the official section text.
Which 2026 Central Rules are linked to Section 23?
The current concordance maps Section 23 to Central Rule(s) 19.
Is Section 23 currently operative?
Principal remaining provisions commenced on 21 November 2025 under S.O. 5322(E), read with the earlier partial commencement; check section-specific footnotes in the current India Code text.
Source & verification trail
Act: Code on Wages, 2019 — official India Code PDF ↗
Central Rules: Code on Wages (Central) Rules, 2026 — G.S.R. 343(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.