Payment of wages act,1936

introduction
The payment of wages act,1936 was passed to regulate the
payment of wages to certain classes of person employed in
industry. It is essential meant for the benefit of industrial
employees not getting very high wages and the provision
of the act were enacted to safeguard their interest.

It insure payment of wages in a particular form and at

regular intervals without unauthorized deductions.

It also provide against irregularities in payment of wages

and unauthorized deduction therefore by the employers.
It applies to the person employed in the factories
and to persons employed industrial or other
establishment.

This act is applies to the employees whose wages

up to Rs. 1600 per month or more.
Scope of the act
The act extends to the whole of India . It was
extended to Jammu & Kashmir by the center
labour laws act (extension to Jammu & Kashmir )
act 1970.

It applies to the person employed in the factories

and to persons employed industrial and to
persons employed upon any railways
administration or following establishments.
Establishments as follows
1. Motor transport service engaged in carrying
passengers or goods,

2. Dock, wharf or jetty ,

3. Inland vessel, mechanically propelled,

4. Mine , oil fields,

5. Workshop or other establishment in which articles
are produced or manufactured with a view to their
use, transport or sale,

6. Establishment in which any work relating to the

construction development or maintenance of
building, road, bridges, or relating to operations
connected with navigations, irrigations or other
supply to water,
Responsibility for payment of wages
(section 3)
1. In factories, if a person has been named as manager
of the factory.
2. In industrial or other establishments, if there is a
person responsible to the employer for the
supervision and control of the industrial or other
establishment .
3. In railway, if the employer is the railway
administration and the railway administration has
nominated a person in this behalf for the local area
connected.
Fixation of wage period
 The person responsible for payment of wages is to fix
wage period in respect of which wages shall be
payable.

 The wage period shall not be exceed one month. In

other words , payment of wages can be made daily,
weekly, fortnightly and monthly.
Time for payment (section 5)
The wage of every person employed upon in any
railway, factory or industrial or other establishment
shall be paid before the expiry of :

If the person employed in a factory, an industrial

establishment or railway including daily rated workers
is less than one thousand, wages have to be paid before
the expiry of the seventh day after the last day of the
wage period.
In other cases the payment has to be made before the
expiry of the tenth day after the last day of the wage
period.

In case of persons employed on dock, wharf or in a

mine , the balance of wages found due on completion
of the final account of the slip loaded or unloaded , as
the case may be shall be paid before the expiry of the
seventh day from the day of such completion.
In the case of termination of employment of any

person by the employer , the wage earned by him, shall

be paid before the expiry of the second working day

from the day on which his employment is terminated.

Wage to be paid on the working day

All payment of wages to be made on a working day.

Medium of payment of wages
All wages shall be paid in current coin or currency
notes on in both,

However , the employer, after obtaining the written

authorization of the employed persons pays them the
wages by cheque or by crediting the wage in their bank
account.
 Deductions (section 7)
The act allows the following deductions :

1. Fines,
2. Deduction for the actual period of absence,
3. Deduction for damage or loss of goods expressly
entrusted to the employed person for custody ,
4. Deduction for house accommodation,
5. Deduction for recovery of advances and interest and
for adjustment of over payment of wages,
6. Deduction for income tax,
7. Deduction for subscription and repayment of
advance from any provident fund,
8. Deduction made on written authorization of the
employed person, for contribution to prime
minister's national relief fund,
9. Deduction on written authorization of the
employed person for payment of fees for
membership of trade union,
10. Deduction on orders of a court or other authority,
11. Deduction for amenities supplied and authorized by
government,
12. Deduction for recovery of loan for house building or
any other purposes approved by government,
13. Deduction on written authorization by the employee
for contribution to any fund constituted by the
employer or trade union for welfare of employed
persons with the approved by the state government.
14. Deduction on written authorization of the employed
person for payment of fees for membership of trade
union.
15. deduction of premium for policy on written

authorization of the employed persons.

16. deduction for corporative societies on written

authorization.
Appointment of authority
Section 15 empowers the state government to appoint
some person as the authority to hear and decide for
any specified area all claims arising out of:
 Appeal or claim

A. Against a direction of the authority under section

15(3), for refund of amount wrongfully deducted.
B. Against a direction of the authority for payment of
the delayed wages section 15(2)
C. Against order of the authority imposing a penalty
under section 15(4).
D. Against the direction of the authority for payment of
compensation under section15(3).
Who may appeal
a. Employed person himself.

b. Any legal practitioner.

c. Any official of registered trade union authority in

writing to action behalf of the employed person.

d. any other person acting with the permission of the

authority appointed under section15(1) of the act.
Maintenance of register
The employer is required to maintain the following
register in the prescribed forms:

 1. Register of fines,

 2. Register of advanced made to employed person,

 3.Register of deduction for damage or loss caused

through neglect or default,
4. Register of wages which contain the
following particular:
I. Particulars of persons employed,

II. The work performed by the persons employed,

III. The wages paid to the persons employed,

IV. The deduction made from the wages of the person employed,
The employer has to the preserve the above records for a period
of three years and make them available to the inspector for
inspection for when required to do so.
Administration
It is a center legislation, but it is administered by state

governments except in the case of railways , mines , oil-

fields and central air transport service, where it is enforced
by the central governments. Both the central and state
government are empowered to appoint inspectors under
the act to ensure its enforcement and make rules for
carrying out the purposes of the act.
Penalty for offences under the act (section
20)
1.Penalty for delaying payment of wages or making
unauthorized deduction from wages,

Punishable with the fine which shall not be less than

Rs. 200 but which may extend to Rs. 1000.

2.Penalty for not paying wages on a working day

He shall be punishable with a fine which may extend
to Rs. 500.
3.Penalty for failure to maintain and furnish records

Every register and record required to be maintained

under this section shall be preserved by the employer
for a period for three years after the date of last entry
made therein.
4.Penalty for obstructing etc. inspector

Punishable with fine which shall not be less than Rs.

200 but which may extend to Rs. 1000.
5.Subsequent offence
If any person who has been convicted of any offence

punishable under the act is again guilty of an offence

involving contravention of the same provision, he shall be
punishable on a subsequent conviction with
imprisonment for a term which shall not be less than 1
month but which may extend to 3 month, or with fine
which shall not be less than Rs. 500 but which may extend
to Rs. 3000 or with both.
The end