Authorised deductions from wages includes medical insurance
August 14, 2018 10:40 pm
The authorised deductions from wages with the written consent of a worker now includes medical insurance.
This came into effect from August 1st.
Employment Minister, Jone Usamate says this will be done under the Employment Relations (Budget Amendment) Act 2018.
The deduction will be made following a written consent from the worker and the employer must on behalf of the worker pay the amount deducted for medical insurance.
Usamate says the authorised deductions that had existed in the law and continues to do so were contributions to the provident fund, school fund, pension fund, sports fund, superannuation scheme, life insurance or medical scheme, credit union, trade union, co-operative society or other funds or schemes of which a worker is a member.
He says now the law also provides that with the exception of deductions in respect of life or medical insurance or a medical scheme, any authorised deductions must not, in a wage period, be more than 50 percent of the wages, except for housing purposes from an approved lender where the deductions permitted may be up to 75 percent.