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Payement of Wage Act, 1936 Unit-4

The Payment of Wages Act, 1936 regulates the payment of wages to workers in India. It aims to ensure wages are paid in a timely manner and unauthorized deductions are not made. The Act covers workers in various industries who earn wages up to Rs. 6,500 per month. Employers must pay wages within 7 days if there are less than 1,000 employees, and within 10 days if there are 1,000 or more employees. Authorized deductions include fines, loans, taxes, and contributions to provident funds. The Act establishes penalties for late or unlawful wage payments, including fines of up to 10 times the unpaid amount.

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385 views8 pages

Payement of Wage Act, 1936 Unit-4

The Payment of Wages Act, 1936 regulates the payment of wages to workers in India. It aims to ensure wages are paid in a timely manner and unauthorized deductions are not made. The Act covers workers in various industries who earn wages up to Rs. 6,500 per month. Employers must pay wages within 7 days if there are less than 1,000 employees, and within 10 days if there are 1,000 or more employees. Authorized deductions include fines, loans, taxes, and contributions to provident funds. The Act establishes penalties for late or unlawful wage payments, including fines of up to 10 times the unpaid amount.

Uploaded by

rpsinghsikarwar
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We take content rights seriously. If you suspect this is your content, claim it here.
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PAYEMENT OF WAGE ACT,1936

Unit-4

By-Prof.Preeti Dwivedi

1
• Payment of wages act, 1936.

• Objectives: to regulate payment of wages and to

Ensure that wages are disbursed by within time.

And no deductions except authorised by law

are made .

• Applicablity : to factories, railways, air services

Mines, plantations, dock, tramway services,

oil fields and establishments as notified

by appropriate govt.
2
• Covers employees drawing wages upto Rs. 6,500/- per month.
(Section 01)

• Payment of wages by 07th day where there are less one.

• Thousand persons employed and where one thousand or more

are employed by 10th day of the month succeeding to wage-

Period in respect of which the wages are payable. (Section 5)

• Authorized deductions from wages allowed include:

• Fines,
• For absence from duty.
• For damage, loss of goods.
• House accommodation provided by the employer.
• For amenities and services supplied by the employer.
• For advances, loans, income-tax, on orders of court.
• Provident fund, membership of the co-operative societies.
• Membership of trade union, insurance premiums.
• Pm’s national relief fund or similar funds as govt. Authorizes.
(Section 7) 3
• For effecting any deduction without giving due opportunity

to the employee concerned. This is in consonance with the

principles of natural justice.

• Registers and records have to be maintained for all the

payments and ductions/fines made or imposed.

• Employer is required to display notice of date of payment of

Wages at the entrance of the establishment.

4
• “If ten or more employed persons acting in concert absent

Themselves without due notice and without reasonable

Cause, such deduction from any such person may include such

Amount not exceeding his wages for eight days.

An employed person shall be deemed to be absent from the

Place where he is required to work, if although present in

such place, he refuses, in pursuance of a stay-in-strike or

for any other cause which is not reasonable in the circumstance

To carry out his work.


5
(Proviso to sub-section 2 of section 9).
• In the event of un-due delayed payments, ‘authority’ under the

Act may direct without prejudice to anyother penality to

such employer, direct the refund to the employed person of

The amount deducted or delayed payment, together with such

Compensation as may be deemed appropriate, impose fine


up to 10 times the amount deducted.

(Section 15 (3)

6
Fines [sec 8]
(1) No fine shall be imposed on any employed person until he has been
given an opportunity of showing cause against the fine, or
otherwise than in accordance with such procedure as may be
prescribed for the imposition of fines.

(2) A notice specifying such acts and omissions shall be exhibited in


the prescribed manner on the premises in which the employment is
carried on or in the case of person employed upon a railway
(otherwise than in a factory), at the prescribed place or places.
Cont….
(3) The total amount of fine which may be imposed in any
one wage-period on any employed person shall not
exceed an amount equal to [three per cent.] of the
wages payable to him in respect of that wage-period.
(4) No fine shall be imposed on any employed person who
is under the age of fifteen years.
• Penalties [sec20]
Sec 20(1) of the act makes contravention of the
provisions of the Act, by any person responsible for the
payment of wages to an employed person, punishable
with fine which shall not be less than one thousand five
hundred rupees but which may extend to seven
thousand five hundred rupees.

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