What are statutory deductions ?
As an employer, you are entitled by law to take any sum from your employee’s wage as a contribution to any fund or scheme authorised by the commissioner for labor to which the employee has consented to contribute, according to Section 19(1) of the Employment Act.
This is the statutory deduction, to put it simply.
While an employee has the option to opt out of any voluntary deductions, statutory deductions are required by law.
Also, if you take money from an employee’s wage to cover statutory deductions, you must do so within the time frame and meet any other conditions set down in the legislation, agreement, court ruling, or arbitration, as the case may be.