The Payment of Wages Act is to ensure the proper payment of wages to the employees without any kind of delay or unauthorized deduction in the payment.
It extends to the whole of India. It is applicable to every person employed in
The State Government may by notification extend the provisions to any class of persons employed in any establishment or class of establishment.
The wages can't be paid in kind; it needs to be paid in cash, i.e. the country's current currency, note or coin.
The amount can also be paid by cheque or by direct crediting to the bank account of the employee after getting the authorization in writing.
The employer needs to pay the wags to the employee without any kind of deduction other than the authorized reason as per the Payment of Wages Act. The list of authorized deduction from wages includes: -
However, there are specific rules for the wages deduction in each condition as well.
However, as per the Sec. 15 of the Act, an employee has the right to appeal against the deduction as per the Payment of Wages Act. An application can be made to the concerned authority by: -
This act mainly regulates the payment of wages to certain classes of persons employed in particular kinds of industries. This act's importance and benefits can't be denied as it ensured employees should get their payment on time and without any unauthorized deduction.
The Payment of Wages Act, 1936 seems to be a remedy against the employer's unauthorized deduction. Although this act also has several rules here, we are discussing a few crucial benefits of this Act.
According to The Payment of Wages Act, 1936, the employee's payment should be done before the 7th day of each month if the number of employees in the organization is upto 1000. If the number of employees is more than 1000, then the payment should be done before the 10th day of each month. The wage period shouldn't exceed 1 month.
The Payment of Wages Act, 1936 also mentions that the regular pay act is the only applicable to for those employees whose drawing wages is not exceeding Rs 6,500/- month. This act is not applicable to employees whose wage is Rs 24,000/- or more.
Under The Payment of Wages Act, 1936 , the payment should be done in currency notes or coins. But the organization can also pay using a cheque or crediting to the account of the employee, but for this, the organization needs to have employee consent in writing.
The employer can reduce employee wages, but they are only allowed to do authorized deductions like fines, absence of duty, damage/loss of assets, recovery of loans & advance given to the employee by the employer. According to The Payment of Wages Act, 1936 an employer can also deduct payment related to the cooperative society and insurance.
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