From 1 August 2018, the authorized deductions from wages with the written consent of a worker, now includes ‘Medical Insurance’.

Minister for Employment, Productivity and Industrial Relations – Jone Usamate, stated that under the Employment Relations Act 2018 – an employer may, with the written consent of the worker, deduct an amount due by the worker, as a contribution to medical insurance, and must on behalf of the worker, pay the amount deducted for medical insurance.

Usamate added – the authorized deductions that had existed in the law and continues to be in effect, 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 stated the law now also provides that, with the exception of deductions, in respect of life or medical insurance or a medical scheme.

Any authorized deductions with the written consent of a worker – must not, in a wage period, be more than fifty percent of the wages due to a worker, except for housing purposes from an approved lender, where the deductions permitted, may be up to seventy five percent.

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