From 1 August 2018 the authorised deductions from wages with the written consent of a worker now includes medical insurance.

Minister for Employment, Productivity and Industrial Relations Honourable Jone Usamate stated that under the Employment Relations (Budget Amendment) 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.

The Minister added that 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.

Minister Usamate stated that 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 with the written consent of a worker must not, in a wage period, be more than 50 percent of the wages due to a worker except for housing purposes from an approved lender where the deductions permitted may be up to 75 percent.