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Payments Of Wage Act | Meaning and Definition

What is payment of wage act?

The Payment of Wages Act of 1936 helps to combat unlawful wage deductions and salary delays for workers. The Act synchronizes the payment of salary for particular groups of workers in the business. It guarantees that salaries are paid on time and without unlawful deductions. The Payment of Wages Act is not in place for those employees earning less than INR 24,000 per month.

Provisions Of the Act

  •  Salaries should be paid by the 7th day of the month if the number of staff is less than 1000, and by the 10th day if the number of employees is greater than 1000. The salary term is limited to one month. The Act only applies to employees earning less than INR 6500 per month.
  •   Only approved deductions, such as penalties, absence from work, asset damage or loss, debt recovery, and insurance, are allowed by an employer.
  •   Salary payments must be made in cash notes or coins, with direct credit allowed if an employee agrees.
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