Employment Act 1968 · 2020 Revised Edition · Part 3 · Payment of Salary
26. No unauthorised deductions to be made
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An employer may not deduct from an employee's salary unless the Employment Act allows it. Deductions required by an order of a court or other competent authority are also allowed. So are deductions under a tax official's direction, or where a tax official or recovery body declares the employer an agent to recover tax or unpaid premiums the employee owes.
Summary · Drafted with AI, checked against the official text on 30 Sep 2026.
Last amended by an amending law of 2025. 2 amendments in all.
No deduction is to be made by an employer from the salary of an employee, unless the deduction is authorised by or under any provision of this Act or is required to be made —
employer
“employer” means any person who employs another person under a contract of service and includes —(a)the Government in respect of such categories, classes or descriptions of officers or employees of the Government as are declared by the President to be employees for the purposes of this Act;(b)any statutory authority;(c)the duly authorised agent or manager of the employer; and(d)the person who owns or is carrying on or for the time being responsible for the management of the profession, business, trade or work in which the employee is engaged;
by order of a court or other authority competent to make such order;
pursuant to a declaration made by the Comptroller of Income Tax under section 57 of the Income Tax Act 1947, the Comptroller of Property Tax under section 38 of the Property Tax Act 1960 or the Comptroller of Goods and Services Tax under section 79 of the Goods and Services Tax Act 1993 that the employer is an agent for recovery of income tax, property tax or goods and services tax (as the case may be) payable by the employee;
pursuant to a direction given by the Comptroller of Income Tax under section 91 of the Income Tax Act 1947;
pursuant to a declaration made by a MediShield Life Scheme recovery body under section 12 of the MediShield Life Scheme Act 2015 that the employer is an agent for recovery of any outstanding premium (within the meaning of that Act) payable by the employee; or
pursuant to a declaration made by a CSHL Scheme recovery body under section 24 of the CareShield Life and Long‑Term Care Act 2019 that the employer is an agent for recovery of any outstanding premium (within the meaning of that Act) payable by the employee.
In this section —
“CSHL Scheme recovery body” has the meaning given by the definition of “recovery body” in section 2(1) of the CareShield Life and Long‑Term Care Act 2019;
“MediShield Life Scheme recovery body” has the meaning given by the definition of “recovery body” in section 2(1) of the MediShield Life Scheme Act 2015.