Article 110 Federal Labor Law

The discounts in the wages of the employees are prohibited, except in the cases and with the following requirements:

I.Payment of debts contracted with the employer for advance of wages, payments made in excess to the employee, errors, losses, damages or acquisition of articles produced by the company or establishment. The amount demandable may in no case be greater than the amount of the wages of one month and the discount shall be that which the employee and the employer agree, without it being able to be greater than thirty percent of the excess over the minimum wage;

II.Payment of the rent referred to in article 151, which may not exceed fifteen percent of the wage.

III.Payment of installments to cover loans or rents coming from the National Workers' Housing Fund destined for social leasing, acquisition, construction, repair, enlargement or improvements of housing or to the payment of liabilities acquired for these concepts. These discounts must have been freely accepted by the working person.

IV.Payment of contributions for the constitution and promotion of cooperative societies and of savings banks, provided that the employees expressly and freely manifest their conformity and that they are not greater than thirty percent of the excess over the minimum wage;

V.Payment of alimony in favor of alimony creditors, decreed by the competent authority.

In the event that the employee ceases to render his services in the work center, the employer must inform the competent jurisdictional authority and the alimony creditors of such circumstance, within the five working days following the date of the termination of the employment relationship;

VI.Payment of the ordinary union dues provided in the statutes of the labor unions.

The employee may manifest in writing his will that the union dues not be applied to him, in which case the employer may not discount it;

VII.Payment of installments to cover credits guaranteed by the Institute referred to in article 103 Bis of this Law, destined for the acquisition of consumer goods, or to the payment of services. These discounts must have been freely accepted by the employee and may not exceed twenty percent of the wage.