Payment Of Wages Act, 1936

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Payment Of Wages Act, 1936

To regulate that the employees are receiving their wages regularly the Government made the payment of wages act, 1936. This act is a remedy for the unauthorized deduction the employers make. Also, it covers the unjustified delay in payments made by the employers. Therefore, the main objective of this act is to eliminate all the malpractices happening in the labour employment sector. This secures that the workers are getting their regular wages at regular intervals. The appropriate government regulates the implementation of the act, and this covers the whole of India.

Regular payment

Under this act, the payment shall be made on or before the 7^th day of every month. This involves the number of employees under 1000 and otherwise, 10^th day. Also, it maintains that the wages period should not exceed the limit of one month. Although, this act is applicable to the employees’ only whose wages not exceed the limit of 6500 INR a month.

Mode of payment

The payment has to be made in the currency notes or coins. Although it allows the payment through cheques and transfers to a bank account, with the consent in writing by the employee.

The deduction from the wages:

The employer is allowed to make only authorized deductions, as per the act. Including, fines, absence from duty, the deduction for the services given to the employer, damage or loss made by the employees, payment of insurance, and recovery of loans and advances made.

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