Deductions From Wages

Deductions From Wages 

Under Soviet labor law, deductions from the wages of industrial and nonindustrial workers are not permitted unless stipulated by law.

The deductions from wages provided for by law are subdivided into three main groups, depending on the party eventually receiving the money withheld. The first group comprises deductions for direct obligations to the state. Included here are income taxes and the taxes levied on unmarried individuals and individuals having small families, money withheld by court order from individuals serving sentences of correctional labor, and fines imposed by courts and administrative bodies. The second group comprises deductions to meet a worker’s financial obligations to other citizens or organizations. Included here are deductions based on writs of execution, deductions to pay for goods obtained on credit, and deductions for personal insurance. The third group covers deductions to meet any financial obligations a worker has to his place of employment. Obligations of this type arise when a worker is given an advance, at his own request, on his wages or when he receives an advance for a business trip or transfer. Workers can also incur obligations when receiving advances for other management needs, but here the worker must agree to the grounds and amount of the deductions. Other obligations arise when a worker receives an overpayment through clerical error or is held responsible for loss or damage at the workplace.

In general, the total amount of deductions may not exceed 20 percent of wages; in special cases, such as the collection of alimony to support three or more children, the figure can reach 50 percent. If deductions are being made on the basis of several writs of execution, the worker in any case keeps 50 percent of earnings. (These restrictions do not apply to deductions from the wages of individuals serving sentences of correctional labor.) Deductions are not permitted in the case of severance pay, compensation payments, and certain other types of payments.