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Payment of Wages Act, 1936

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  • The objectives of the act are three fold:
    • to pay the wages to the employees
    • to pay the wages at proper time (ie. without any delay)
    • to prevent unauthorized deductions
  • Any orders, agreements etc that override the Payment of Wages Act are invalid to the extent of their conflict with the Act. However, anything above the act for the benefit of the workmen are welcome. Orders may supplement but should not supplant them.
  • House rent is not included in wages but includes overtimne work or holidays or leave period.
  • The Act applies to whole of the country.
  • Section 2: Defines Wage; What is included and what is not included
  • Section 3: The idea of the act is to make employer responsible for the payment to persons employed by him
  • Section 4: Deals with Wage period
  • Section 5: Wages should be paid before 7th of the month (in respect to certain class of employers)
  • Section 6: Wages should be paid in currency notes or in currency coins or both.
  • Section 20: Penalities and punishments for delays on the part of employer

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