Payment of Wages Act, 1936

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.

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