Last Updated: 5 December 2023

[EMP 47] Authorised deductions from wages47 

47
(1) An employer may—
  • (a)deduct from the wages of a worker an amount due by the worker in respect of any tax or deduction imposed by law or ordered by a court;
  • (b)with the written consent of the worker, deduct an amount due by the worker as a contribution to a provident fund, school fund, pension fund, sports fund, superannuation scheme, life or medical insurance or medical scheme, credit union, trade union, co-operative society or other funds or schemes of which the worker is a member and must on behalf of the worker pay the amount so deducted to the person empowered to collect amount or entrusted with the management of the fund, scheme, trade union or cooperative society;
  • (c)make deductions from the wages of a worker to the extent of an over payment made during the immediately preceding 3 months by the employer to the worker by the employer’s mistake; or
  • (d)make deductions at the request in writing of the worker—
    • (i)in respect of articles or provisions purchased on credit by the worker from the employer;
    • (ii)in respect of charges for the cost of accommodation, fuel or light supplied by the employer and used by the worker; or
    • (iii)in respect of food or victuals cooked, prepared and eaten on the employer’s premises.

[subs (1) am Act 23 of 2018 s 2, effective 1 August 2018]

(2) The price or cost which the employer charges a worker for articles or provisions must not exceed the lowest price at which the employer would sell articles or provisions retail to a member of the public.
(3) The total deduction in respect of accommodation, boarding, fuel and light must not exceed 15% of the worker’s wages in respect of one wage period, and 5% for accommodation or Board.
(4) If—
  • (a)an employer makes a loan to a worker;
  • (b)the total amount of the loan has been paid by the employer to the worker in cash or by cheque; and
  • (c)a memorandum of the transaction has been made and signed by or on behalf of both employer and worker providing for the repayment of the loan by one or more instalments,

the employer may deduct from the wages due to the worker the instalments at the times set out in the memorandum.

(5) With the exception of deductions in respect of life or medical insurance or a medical scheme, any deductions made under subsection (1) and other deductions permitted by this Act must not be, in a wage period, more than 50% of the wages due to the worker in respect of the wage period except for housing purposes from an approved lender, where the deductions permitted may be up to 75%.

[subs (5) am Act 23 of 2018 s 2, effective 1 August 2018]