Deductions allowed on your pay

Employers must comply with the law when it comes to pay deductions, and there are specific rules around what they are allowed to deduct and how, specifically section 34(1) of the Basic Conditions of Employment Act (BCEA). So if you find yourself questioning money being deducted from your pay, read on to find out if your employer is right or wrong in doing this and what you can do about it.

What kinds of things can be deducted from an em ployee’s pay?

Pay deductions are ruled by section 34 of the Basic Conditions of Employment Act (BCEA). There must be a written agreement between the employee and the employer before deductions can be made from an employee’s pay, for example, if the employee loaned money from the employer and agreed to pay it back in instalments. However, there are certain deductions that can be made without an agreement. They are:

• Statutory deductions, like PAYE and UIF contributions.

• Deductions authorised in terms of a collective agreement, like trade union fees.

• Deductions in terms of a court order, like maintenance payments.

• Deductions in terms of an arbitration award.

What deductions are not allowed?

Unlawful deductions from an employee’s pay include:

• Loss or damage, where the employee has not consented to this deduction because they do not believe they are liable for it or there are questions around the amount.

• Fines, where the employer gives the employee a fine as a form of punishment for misconduct. Employers who write deductions into the employment contract must still follow proper disciplinary procedures, it is not an excuse to deduct money from an employee’s pay without allowing them the chance to defend themselves or dispute the deduction.

Is there a lim it to how m uch can be deducted?

Yes, total deductions made cannot be more than 25% of the employee’s gross remuneration. Gross remuneration means your pay before taxes and other deductions.

Taking action against unlawful deductions

If you feel that your employer has unlawfully deducted money from your pay, you can refer the matter to the CCMA or relevant bargaining council as a pay dispute. You can also talk to Scorpion Legal Protection if you are a member.

If you have a query, follow Scorpion Legal Protection on Facebook and ask your question during our next Live Q&A (every first Thursday of the month from 11:30- 13:30).

* This is only basic legal advice and cannot be relied on solely. The information is correct at the time of being sent to publishing. Cases are based on fictional characters unless otherwise indicated.