Section 24: Deductions for recovery of loans
Permits recovery of specified loans and interest subject to prescribed conditions.
Statutory identity
What the provision requires
Permits recovery of specified loans and interest subject to prescribed conditions.
Implementation control: Maintain sanction, repayment schedule, interest basis, payroll authorisation and deduction-cap checks.
Provision-level reading sequence
- Read each subsection, clause, proviso and explanation in the official text.
- Apply section 2 definitions before testing the obligation or exception.
- Identify the appropriate Government and the applicable Central or State rule.
- Check commencement, section-specific notifications and saved predecessor-law instruments.
- Document the factual test and the evidence supporting the conclusion.
Provision map — subsection, clause and qualification
This map decomposes the section into its operative tests. Use the linked India Code text for exact numbering and wording.
Permitted loans
Only loans and interest covered by the section/rules may be recovered.
Prescribed conditions
Rate, instalment and recovery conditions depend on the applicable rules/scheme.
Consent and ledger
Preserve sanction, schedule, balance and employee communication.
Cap
Run the aggregate deduction test each wage period.
Linked Code on Wages (Central) Rules, 2026
Authority, form and filing map
Evidence pack
- payroll register and wage slip
- attendance and deduction authorisation
- bank advice/payment file
- employee notice/response where required
Compliance consequence
An unauthorised or procedurally defective deduction can be ordered to be repaid, with compensation and related enforcement exposure.
Remedy path: identify the claims authority, appellate authority, adjudicating officer, Inspector-cum-Facilitator or criminal court applicable to the issue.
Worked example
Before acting on deductions for recovery of loans, the employer records the applicable Government, employee category, operative instrument, calculation or procedural step, reviewer approval and evidence of completion.
Illustrative only. Apply actual wage notifications, contracts, dates, State rules and evidence.
Practical Q&A
Can an employment contract override this section?
Not where the contract reduces a statutory entitlement. Sections 60 and 61 must be considered, including any more favourable award, agreement or contract.
What should be checked before payroll or HR action?
Confirm coverage, appropriate Government, operative rate/order, the exact subsection and proviso, linked rule, evidence, approval and payment/filing deadline.
Primary sources
India Code — exact Section 24 text ↗
India Code — official consolidated Act PDF ↗
Ministry of Labour — Codes, Rules, notifications and FAQs ↗
Last official-source review: 16 July 2026.