Payment of Wages Act, 1936

The Payment of Wages Act, 1936 regulates payment of wages to employees (direct and indirect). The act is intended to be a remedy against unauthorized deductions made by employer and/or unjustified delay in payment of wages.


Regular Pay

Payment should be made before the 7th day of a month where the number of workers is less than 1000 and 10th day otherwise. The wage-period shall not exceed 1 month. The Act is applicable only to employees drawing wages not exceeding Rs. 6500 a month. [20]

Mode of Payment

Under the act, payment has to be made in currency notes or coins. Cheque payment or crediting to bank account is allowed with consent in writing by the employee. (Section 6)

Deduction from Wages

Employer is allowed to effect only authorized deductions, as specified in the Act. This include fines (Section 8), absence from duty (Section 9), Damages or loss (Section 10), deduction for services (amenities ) given to employer (Section 11) recovery of advances and loans (Section 12, 13) and payment to cooperative society and insurance (Section 13).

Claims for excessive deduction and Non Payment

Employers individually or through trade union can approach the authority (Labour Office) for relief. (Section 15, 16, 17)

Reference:

Government of India, Legal Aspects, Law relating to wages, Payment of Wages Act, 1936. Retrieved 27th June, 2009, from business.gov.in online via access: business.gov.in/legal_aspects/wages_1936.php

Disclaimer: This section provides only a brief of Indian legislation and should not be considered as legal advice.
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