Is it legal for an employer to deduct salary for arriving late to work?

An employer can lawfully deduct wages for absence or lateness, but only on a proportionate basis and within the limits the Payment of Wages Act sets for permissible deductions. A deduction must correspond to the actual period not worked; arbitrary or punitive deductions beyond the time lost are not permitted.

In practice this means a late-coming or partial-absence deduction should reflect the proportion of the working day missed, applied under a clear and communicated attendance policy. Deductions that exceed the statutory ceilings, or that are imposed as a penalty rather than for time not worked, can be challenged. Employers should base any such deduction on a documented policy and accurate attendance records.