The Payment of Wages Act, 1936 – Brief Notes

Payment of wages Act, 1936 is applicable to the whole of India. The main object of this Act is to ensure timely payment of wages to the employees working in ‘Scheduled Employments’ and to make sure there are no unauthorised deductions.

According to Section 5, a wage period cannot exceed one month. Wages shall be paid before the expiry of the 7th day of the wage period where less than one thousand persons are employed in any industrial or other establishment or railways or factory and before the expiry of the 10th day of the wage period where more than one thousand persons are employed.

[Suggested Read: Under What Circumstances Lack of Moonlight Preclude Identification]

Only those employees are subject to this act whose monthly wage does not exceed Rs. 10000.

  • Under this, payment of wage can only be made in the form of currency or coins. Cheques and crediting the amount in the bank can also be methods of payment if the employee authorizes.
  • The employer is not allowed to make any arbitrary deductions other than those specified in the act such as absence from duty, damages or loss, services are given to an employee, recovery of loan, accommodation provided etc.
  • The authorities, labour offices, can be approached by employees seeking relief individually or with the help of a trade union.
  • The employer can only impose fines on the employee in case of some act or omission by him that he has already notified the authorities.

[Suggested Read: D.C. Mehta Vs. State [Gujarat High Court, 112016]]