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) 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-accommodati...