Employer deduction rules under wage code schedule set category-wise limits for capital, reserves, dividends, and partner remuneration. Appendix D under rule 26 of the Code on Wages (Central) Rules, 2026 sets out category-wise further sums to be deducted for companies, banking companies, corporations, co-operative societies, and other employers. The schedule specifies deductions by reference to preference share dividends, paid-up capital, reserves, reserve fund transfers, annuity deposits, and remuneration to partners or individuals/HUFs, with special formulas for foreign companies and foreign banking companies. The Explanation defines 'reserves' for the schedule and excludes amounts set apart for direct tax, admissible depreciation, and declared dividends.