Section 12: Deductions for recovery of advances

The Payment of Wages Act, 1936 was repealed and replaced by the Code on Wages, 2019 from 21 November 2025. It still applies to matters and proceedings from before that date, as the repealing law provides.

Deductions under clause (f) of sub-section (2) of section 7 shall be subject to the following conditions, namely:—

(a) recovery of an advance of money given before employment began shall be made from the first payment of wages in respect of a complete wage-period, but no recovery shall be made of such advances given for travelling-expenses; [(aa) recovery of an advance of money given after employment began shall be subject to such conditions as [appropriate Government] may impose;]

(b) recovery of advances of wages not already earned shall be subject to any rules made by [appropriate Government] regulating the extent to which such advances may be given and the installments by which they may be recovered.

Source: India Code (Legislative Department), the text of the Act as it stood before its repeal. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Supreme Court judgments citing the section 12

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