Payment of Wages Act 1936

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)

Also Read : How to Check Your PF Statement

Deduction from Wages

Employer is allowed to effect only authorized deductions, as specified in the Act. This include:

Fines:

      • Deductions for absence from duty,
      • Deductions for damage to or loss of goods made by the employee due to his negligence,
      • Deductions for house-accommodation supplied by the employer or by government or any housing board,
      • Deductions for such amenities and services supplied by the employer as the State Government or any officer,
      • Deductions for recovery of advances connected with the excess payments or advance payments of wages,
      • Deductions for recovery of loans made from welfare labour fund,
      • Deductions for recovery of loans granted for house-building or other purposes,
      • Deductions of income-tax payable by the employed person,
      • Deductions by order of a court,
      • Deduction for payment of provident fund,
      • Deductions for payments to co-operative societies approved by the State Government.

    Deductions for payments to a scheme of insurance maintained by the Indian Post Office

    • Deductions made if any payment of any premium on his life insurance policy to the Life Insurance Corporation with the acceptance of employee,
    • Deduction made if any contribution made as fund to trade union with the acceptance of employee,
    • Deductions, for payment of insurance premia on Fidelity Guarantee Bonds with the acceptance of employee,
    • Deductions for recovery of losses sustained by a railway administration on account of acceptance by the employee of fake currency,
    • Deductions for recovery of losses sustained by a railway administration on account of failure by the employee in collections of fares and charges,
    • Deduction made if any contribution to the Prime Minister’s National Relief Fund with the acceptance of employee,
    • Deductions for contributions to any insurance scheme framed by the Central Government for the benefit of its employees with the acceptance of employee.



Limit for deductions [Sec 7 (3)] 
The total amount of deductions from wages of employees should not exceed 50%, but only in case of payments to co-operative societies, deduction from wages of employee can be made up to 75%.

 

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)

Also Read :

49 COMMENTS

  1. Pls put all efforts to stop the cruelty of exploitation of lakhs of employees across India by the hands of their employers by not providing them with their basic rights & without paying them their proper dues of wages

  2. i m project fellow in a university.project fund not come in university.so my salary stopped from 1 year and 8 month.University not paying my salary please help me.

  3. I am from Education Sector and this has happened with me 3times. Once in UP and then in Rajasthan. UP does not have a tribunal so case was settled by High Court in 3 months. But Rajasthan has a Higher Education Tribunal and there is no judge in it for last 4 years. So almost 65000 cases are pending of salary non payment. My 2 cases are pending for last 2years. We do not come under wages Act or labour Act. For a petition we need to submit court fee to High Court. And for my total amount due I need to pay some where 1.5lac as court fee. That I am not sure that the court will accept the case. Due to presence of tribunal. I posted it on PRADHAN MANTRI portal but the response was… It does not come under jurisdiction. What can I do now, kindly suggest…. [email protected], 7410826620

  4. ESIC really doesn’t take care of the employees medical requirements.
    Promises r tall but services they don’t seem to have any trust.
    Neither r doctors available, nor medicines of reputed companies.
    So company n employees pay for not much return at all.
    It should b made optional.

    • I do agree, that ESIC is not able to provide satisfactory services to insured persons.
      ESIC lacks sufficient infrastructure for medical treatment because of huge number of insured persons. Medical Services are administered by State Government and ESIC by Central Government, thus, both do not have good understandings, which further deteriorates the standard of services.
      ESIC have very good amount of funds, and due to regular increase of its coverage, it is regularly growing.
      Although, ESIC is in the process of improving its infrastructure, still it needs much improvement.
      No scheme in our Country is better or comparable with ESIC. It has to become people friendly and smoothen its services.
      ESIC needs to improve its infrastructure with optimum use of its resources and obtain confidence of Insured Person (IP).

  5. If any employee taken advance loan from company for example 6500 rs and his total salary also 6500 rs can we deduct whole amount from his salary for deduction purpose .

  6. Componey Fired Me Without Reason .last Five Month Salary not Credit to Account & Not Maintained any Record also
    Base of Pvt. Ltd. Company Not provide Any provided Funde , Esi Facility.kindly Help Me

  7. Sir, Can you please give me clarity regarding PF deduction policy and ratio of employee and employer. If companies deduct PF both contribution in employee salary we can take any legal action against them.

  8. KRISHNA MOHAN
    I am a school teacher in a reputed private school.I have been working in this school for the last 14years with dedication.I became famous as the best teacher who teaches well and make children in achieving the highest grades in their exams.But the employer is exploiting us for all these years without providing leaves and basic rights like Provident fund, ESI, and Gratituity.He does not pay Summer vaction salary in the month of May every year. He now threatening to terminate me from my job without any reason and gratitude.what could I do now? please advise me.

    • in case any such thing happen… u can contact the labour commissioner of your area having jurisdiction. As per the Judgment of supreme court, no one can ask job as a right but if someone is in job and he has been removed without following the provisions of law, it would be against Article 21 of the Indian Constitution. My suggestion, do not create problem for your employer without any reason but if they create the same for you, you have all the right to take legal step through labour commissioner, then labour court.

  9. My company is not paying salary from last 3 month. They said that some financial issues having in company that’s why they unable to pay. When I text to sir, now he ignore my msg. So what should I do?

    • contact labour commissioner of your area…. all employment related disputes are handled by labour commissioner. then file a case in labour court. My suggestion, apart from this step search another job.

  10. I have been working in a Hospital from the month of March 2018 i have submitted my old PF number in this organization their are deducting my PF but their have updated the PF and it is not showing in my previous PF statement please help me what should i do.

  11. I am working at C.P.W.D. office, Bolpur – Santiniketan as a nontechnical staff under a agency. But the agency did not gave me my salary last three months. In this situation what can I do? Please help me.

  12. There’s an urgent need to modify the applicable minimum wage of below Rs 6500/- as also certain
    other cluses. The act is in place for almost 82 years and many a developments have taken place in the meantime.

  13. I am windmill commissioning engineer.my company regen powertech pvt ltd. My company attendance cycle for salary is 21 to 20th date.ex(march21-april20). But still now not credit our salary.can I complaint this. Working hours based on completion of work not give any overtime money. So that can I complaint

  14. if company as not a pay salary on 2 months for staff is there any action.

    in case salary as per role credit to account or check must to given.but one time will be give the cash one will be credit account.

  15. I complaint against my contractor
    He is not veryfied my pan no. And bank details for EPF claim ….
    So plz guide me what I do….

  16. I started a business in Kochi, Kerala and had problems in getting employees for a small establishment. They are not responsible, accountable and not hard working. I placed advertisement twice in the reputed news paper and didn’t get Sales person for our products. This is not the problem not with me and lot of establishments! are facing the same problem in Kochi, Kerala.

    Here in Kerala, I find lot of employees are from North India, if not, Kerala will be stand still!
    I am looking for Sales personnel on salary + commission basis in Kochi.

  17. Hi sir I m Deepak Kumar working in epayinfoserver Pvt LTD at (uhbvn)in a cashier window. But company joing in salary in hand 10600 per month. But 4 month salary paid. Or ab company Hume salary not paid only per bill camission paid and not updated my epf balance on epf portel company ne hamara pf or esi bhi hamari salary se cut liya but updated nhi Kiya plz so me help. Main company k against kya Kar sakta hu .

  18. we have complete for salary less pay ₹3400 monthly only as day employees work’s without ESI card PF but payment dedicated employees working at college of Oxford civil engineering, and all units of college total service employee . please note the complete this college management and owner of comenuties,

  19. My employer is not submitting joint declaration form to EPF office for d correction of my fathers name. I have left d job in 2015…..Due to that my claim is rejected two times by EPF office….plz help me …..whom I must talk…..where I may complaint about this?????

  20. I am from education sector and been in it for the last 34 years. As far as my experience in this goes the so called educational institutions run by mafias open school in the name of some saint and convent school that does not have proper facility and proper working conditions for the teachers and helpers. They do not pay proper wages and for the sake of records they are paid and money taken back from the by force. The so called St. so and so & convent is added for the marketing tactics and unfortunately none of them know what is convent? Today every English medium is called convent wrongly. Every one is taking advantage of the flaw in the Law and corruption entailed in implementation.

  21. Hey Guys,
    This is just time pass of government.
    In India there is no rule in fever of employee.

    See the topic in details.
    It has clearly mentioned ” 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.”

    So in our country monthly salary 6500 ???????

    One can survive ???????

  22. This is totally an outdated Act ,not benefitting even a single worker untill the limit of Rs6500/- abolished & cover all Industrial worker. I wrote about it. All workers write post card to Labour Minister to abolish limit . We will win !!?

  23. I worked for a premier PSU as being recruited as a Class1 employee from June 1990to July 2014 as a regular employee before Quitting due to domestic circumstances back home(tending a sick bedridden wife suffering from after effect of cancer). Now four yrs have gone by I am yet to get my UAN (12digit)forget the reduced pension for which due application & formalities had been completed six month before. The matter is pending with EPF office at Dehradun where the company HQ are located. This being the issue. Also I have no idea of my net corpus.

    • Hello mr. Atul i hope ur wife is fine now. Don’t worry she will be alright. Urs UAN no u can get from ur office only u know once time my husband joined a company on outsources and then, he recuruited o permanent basis. And, after leaving that office he doesn’t know about his PF no. The outsource company was saying we are not finding. I just stand on their head and said what a system u have such a foolish people ur a person had worked in ur organisation n u cud not find it out. Please check u must find it out and after half an hour they found my hubby PF no. And we got his PF amount after some times directly in to his account. U need to ask then, strictly or politely they must give u in this situation specially every one will help u. Good luck

  24. May be in 1936 (when this act became operative) wages of 6500 were a handsome amount but now even house hold servants are paid higher than this. Hope this amount has subsequently been amended.

  25. India is having rich laws and all laws can be be broke by rich and greedy employers please take stand before you get into problem until your neck is stuck

    As we cannot fight for any rights in India even in court

  26. Iam working in a one of the Indian corporate pharma company last 4.5 years, when iam eligible to get graduvity amount.if iam getting after 5 years which amount iam expecting my basic +DA 25000/-

  27. I was working with a restaurant being a part of reopening team from last one year, but the management shut down the restaurant without giving any notice period to us they made fake promise that he will give us 2 month salary behalf of their notice period but he did not pay us. its corporate office is in chennai.
    So please suggest what should I do for that …

  28. Dear sir ,
    I am working in bank as temporary satff past 4 yr 5 months past 4 year i cant recive any bonus amount and when i am told about bonus they told you are temporary staff u dont have rights to claim bonus and every time they told us about you go your way when i demand to increase my salary and abiut bonus and month in 4 sunday and 2 satrday and even bank holiday is also deducted in my salary sir do me suggestion what can do to permenant and how to increas my salary and past 4 year bonus to claim about that

  29. I need help here I left the organisation and mail to pay notice period of 1 month in revert i got the mail from hr that i can pay 20 days of notice only (due to month end) and in my full and final the company has deducted all my one month salry bonas and leave showing 1500 rs as full and final money please help M in trouble how to get my money back.

  30. This the time that resignation records must be checked.Because most of the employers are exploiting employees when they fire or employee leave.

  31. Hello mr. Sachin. I am rakhi sharma i am working as a Teacher right now, i am on a probation period. So, in final examinations. My school authorities said to help studnets in exam to clear the exam. But, i denied now, they fired me and terminate my services. As vacations are going to begin from 26th may 2018. Am i eligible to get the full salary of tnhe month which has been fixed by school as consolidated on probation period or they are liable to pay me only 25 days working of salary. Please suggest me. Thanks

  32. Esi make fool for esi cardholder
    Normal medicine process 7 to 8 hour waste

    Doctor give medicine without check patient

    If medical benefit recd but that waged totally miss

    So, esi medicine cost 400/- if u take esi medicine because much delay process giving medcine, one day wages miss because office cut you day wages

    So, please esi mangement please fast their process medcine & cure checking steps.

    Esi cut your payment much higher from other private medical insurance

  33. WHAT IS MINIMUM WAGES PAID TO AN M.TECH-DESIGN ENGINEER OF 1YR EXPERIENCE IN RELEVANT FIELD AND TOTAL OF 2.5YR EXPERIENCE?

Leave A Reply

Please enter your comment!
Please enter your name here