The Payment of Wages Act, 1936 aims to ensure timely payment of wages to workers in establishments like factories, mines and plantations. It mandates that wages be paid before the expiry of the 7th/10th day of the wage period. Permissible deductions include fines, absence from work and advances. Fines cannot exceed 3% of wages and are to be used for worker welfare. The Act specifies authorities to address wage claims and impose penalties on employers for non-compliance. It was introduced to protect workers against unjustified deductions and delays in wage payments.

1. Payment Of Wages
Act, 1936
By-
Ajay Rathee
Guidance By-
Ms. ਸੁਮੰ ਜੀਤ ਕੌਰ

3. eer ee
Payment
of wagesBy To
Problems
Solutions
in the Act
1) Untimely payment
2) Penalty/Fines- unjustified
3) Non-Uniformity in amount
of wages
1) Timely payment of
wages and uniformity.
2) Deduction to be
allowed are specified
Why this Act ?

4. • Every Factory.
• Railway Administration.
• Any industrial or other establishment.(explained
later).
• Any other establishment by giving notification of at
least 3 months in official gazette.

5. • Where salary of a particular wage period is less
then 18,000.
Which can be
revised by NSSO
(Last in 2012)
With
5
Year
According
to consumer
expenditure
Level

6. 1) Tramway Or Carrying
Motor Transport services
2) Air Transport Services
Not-
(For Defense Decided by Central Govt.)
3) Dock Wharf (“Bandergaah”).
4) Inland Vessels (water ways Areas).
Psngr.
Goods
Both
Army
Navy
Air
force

7. 4) Mines/Quarrying/Oilfield
5) Plantation
6) Building
7) Water Supply
8) Electricity
9) Workshop- Manufacturing, production,
adoption(conversion)
10) Any other Establishment
(As Notified by Central Govt. with Regards to its Nature)
Construction
Development
Generation
Transmission
Distribution

8. CASE RESPONSIBLE
PERSON
Factories Manager
(As per Factories Act 1948)
Railway Admns. Person appointed in local area
concerned.
Industrial or other est. The person in whose
supervision & control the
payment of wages given.
Contractor Person appointed by contractor.
In other cases Person designated for the
purpose.

9. Before the Expiry of 7th Day
(Railway + Factory + Industrial Or other Est.) {< 1000 Emp.}
Dock + wharf/Jetty/Mine.
Before the Expiry of 10th Day
(Railway + Factory + Industrial Or other Est.)
Payment Day- Must be a Working Day.
Medium- In Current Coin or Currency Notes Or In Both.
In Cheque + Bank A/c - After obtaining written authorization
of the employed person.

10. In Case Of Termination
*Closer - Other than weekly or other Recognized
Holiday.
By or On Behalf of
Employer
Due to Closer of
Est. for Any
Reason
Before the Expiry
of 2nd working Day
Before the Expiry
of 2nd Day

11. For Person Responsible For Payment
Appropriate Govt.
By General or Special Order
Exempt For Above Said Provisions
In Certain Cases Specified under the Act

12. 1) Appropriate Govt.
Central Govt. State Govt.
(Railway, Mines, Oil Field ) (In all other cases)
Air Transport Services)

13. 2) Employed Person
Employed in Establishment specified under the Act.
Includes Representative of Deceased Employed.
3) Employer
Person Responsible for Payment of wages.
Includes Legal Rep. of deceased employer.

14. 4) Factory (Any Premises)
whereon 10 or More workers working
(+ Aid Of Power)
whereon 20 or More workers are working
(- Aid Of Power)
(-) Excluding-
Mines under Mines Act 1952.
Mobile Units of Armed Forces.
Railway Running Premises or Establishment.

15. 5) WAGES
Wages = All Remuneration + Salary + Allowances (HRA+ DA
Etc.)
For work done as per terms of contract.
Fixation Of Wage- Periods
Fixed by Person Responsible for Payment of wages.
Max. Wage Period 1 Month

16. Remuneration For
Overtime, Leave, Holidays.
Payable by order of court.
For settlement b/w the Parties.
Sum payable under any scheme for time
being.(Under any Act)
Sum payable on termination.
(under Law, Contract & Instrument)
For Any Reward. (under the terms of
employment- Bonus etc. or other Name)

17. 1) Bonus - Not Payable -
In Terms of employment, under any Reward or
Settlement b/w the parties, by order of Court.
2) Amenities or services
Excluded from wage terms (By order of court)
3) Employer Contribution
{To Pension + PF + Interest on PF}
4) Travelling Allowances & Concession
5) Gratuity Payable On Termination
Other than – Any Law + Contract + instrument

18. Payment of Wages
After Deducting Authorized Deductions only.
Deductions
Payment Made By
*For the purpose of this Act
Not Deemed to a Deduction (Conditions)
a) Withholding of Increment / Promotion.
b) Reduction to – Lower post / Time Scale / Lower Stage.
c) Suspension
ee ee’r

19. 1) Deduction For Fines
 Notice for Fines
Approved Acts & omissions specified, exhibited in
prescribed manner in employment premises.
 Given a Opportunity of showing cause against fine.
 Max. Limit - 3% of wages payable.
 Min. Age - 15 Years.
 Recovery of Fine – Under 90 Days ( In Installment )
 Use of Fines - For purpose beneficial to person employed
in Factory or Est.

20. Permissible Deduction
For employed person remains Absent From Duty.
Absent From Duty
From
Workplace
Present, But
refuses to work

21. Individual
Absenteeism
Collective
Absenteeism
10 or more
In same proportion
from period of
absence to total
wage period
Max. - 8 Days of
Wages

22. For Damages or Loss (Goods + Money )
*That must arise out of employee Negligence.
Deduction – Equal to Amount of loss caused to employer.
For Services Rendered
*Services - House Accommodation + Amenities or Services
provided by employer (-) Supply of tools and raw material
req. for employment.
 Provisions
a) Must be accepted by employed person.
b) Deduction – equal to value of services.
c) Further as Appropriate Govt. may impose.

23. For Recovery of Advances
For Recovery of loans
Extent + Interest rate As per rules of State Govt.
Advance
before Emp.
Advance
after Emp.
Advance of
wage not
earned
From 1st
payment of
wages
As per Appr.
Govt.
As per Appr.
Govt.
(Extent +
installments)

24. For Payment to co-operative societies &
Insurance Schemes
Conditions as per State Govt. Impose.
Others
Income Tax + order by court + contribution to fund and
insurance schemes as specified by central govt.
Limit
• Payment to co-operative Societies (wholly or partly)
< = 75% of wages
• others – 50% of wages

25.  INSPECTORS.
 AUTHORITY TO HEAR CLAIMS.
 Any commissioner for Workmen’s Compensation; or
 Any Regional / Assistant Labor Commissioner.
 Presiding Officer of any Labor Court or Industrial Tribunal.
 Order directing the employer-
Refund the deductions
To pay the delayed wages
Directing payment of compensation
Order imposing penalty whether on the ee Or ee’r
 An Appeal can be made within thirty days before the District
Court.( If unsatisfied).
 Penalties- Punishable (ee’r) with fine 1,500 - 7,500 Rupees.

26. Ms. ਸੁਮੰਜੀਤ ਕੌਰ