The Payment of Wages Act, 1936
1 Chapter, 26 Sections
An act to regulate the payment of wages to certain classes of employed persons.
Payable:- This act applies to wages payable to an employed person in respect of a wage period
if such wages for that wage period do not exceed 6500 per month or such higher wage.
Section 3- Responsibility for Payment of wages
In factories- manager of the factory
In industrial and other establishment- employer
Railways- railway administration
Section 5- Time of payment of wages
In any railway, factory or industrial or other establishment, in which less than 1000
persons are employed, shall be paid before the expiry of the 7th day.
Any other railway, factory or industrial or other establishment shall be paid before the
expiry of the 10th day.
A person employed on a dock, wharf [a level quayside area to which a ship may be
moored to load and unload] or jetty [a landing stage or small pier at which boats can
dock or be moored] or in a mine, the balance of wages found due on completion of the
final tonnage or wagons loaded or uploaded – before the expiry of 7th day from the day
of such completion.
Where employment is terminated- shall be paid before expiry of the 2nd working day
from the day on which his employment is terminated.
Section 6- Wages to be paid in current coin or currency notes or by cheque or crediting in
bank account
Section 7- Deduction
All of the below shall not be deemed to be a deduction from wages.
The withholding of increment or promotion
The reduction to a lower post or time scale or to a lower stage in a time scale; or
Suspension
Deduction may be of the following kinds only, namely:-
Fines
Absence from duty
Damage or loss
Service rendered
Recovery of advances
Recovery of loans
Payment to co-operatives societies and insurance scheme
Section 8- Fines
No fine without any show cause notice.
Total amount of fine in any wage period is not more than 3% of the wages payable to
him in that respected wage-period.
No fine shall be imposed on any employed person who is under the age of 15 years.
No fine shall recover by installment or after the expiry of 90 days from imposed date.
All information shall be recorded in a register.
Section 9- Deduction for absence from duty
When 10 or more employed person absent from duty without any notice then the
deduction shall be the amount not exceeding his wages for 8 days.
Section 10- Deduction for damage or loss
Section 11- Deduction for service rendered
For house accommodation, amenity or service has been accepted by him, as a term of
employment.
Section 12- Deduction for recovery of advances
Section 12A- Deduction for recovery of loans
Section 13- Deduction for payments to co-operative societies and insurance schemes
Section 13A- Maintenance of registers and records
Employer shall maintain
To be maintained for 3 years
Section 14- inspectors
Section 15- Claims arising out of deduction from wages or delay in payment of wages and
penalty for malicious or vexatious claims
The appropriate government may by notification in official gazette, appoint-
Any commissioner for workmen’s compensation;
Any commissioner of central government exercising power of-
o Regional labour commissioner
o Assistant labour commissioner with at least 2 years of experience
o Any officer of state government not below the rank of assistant labour
commissioner having 2 years of experience.
o A presiding officer of labour court or tribunal as per Industrial Dispute Act, 1947.
o Any other officer with experience as a judge of a civil court or a Judicial
Magistrate.
Application should be given in b/w 12 months from the date of deduction made.
If employer loose case, then he will give compensation to that employed person, which
doesn’t exceed 10 times the deduction or 3000 rupees but not less than 1500 rupees.
Claim should be disposed under 3 months and can be increased if both parties agree.
Section 16- Single application in respect of claims from unpaid group
Section 17- Appeal
An appeal against an order should be made before 3 months from the date when order
has been given.
By the employer- exceeds 300 rs
By the employed person- exceeds 20 rupees
By any person directed to pay
Section 20- Penalty for offences under the Act
Whoever responsible for payment of wages to any employed person if contravenes any
of the provision shall be penalized with not less than 1500 rupees to 7500 rupees
Contravenes [Section 5(4), Section 6, Section 8(8), Section 10(2), Section 25] shall be
punishable upto 3750 rupees
Failed to nominate or designate a person under section 3, shall be penalized upto 3000
rupees
Failed to maintain record or register or furnish any information shall be penalized with
fine not less than 1500 rupees to 7500 rupees, for each such offence.
Willfully obstruct an inspector, shall be penalized fine from 1500 to 7500 rupees.
Once guilty and for further mistakes shall be imprisoned for 1 to 6 months with fine
from 3750 to 22500 rupees.
Any employer willingly neglect to pay shall be penalized 750 per day.
