hi, Abhay Mine is a govt organization and salary here are transferred on last working day of month in practice. Its always better to pay salary day preceding the holiday.
From India, Ratlam
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3From India, Ratlam
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Dear Abey,
I appreciate you for being an HR professional who is concerned about the difficulties and requirements of the workforce. I have seen the emails of most of the members who have given their views, but very few have examined your query from a statutory angle.
You may be aware that Section 5 of the Payment of Wages Act, 1936, stipulates that every employer is responsible for the payment of wages to the persons employed by him within the time stipulations. The wages shall be paid before the expiry of the 7th day of the following month if less than 1000 persons are employed, and if he employs more than 1000 workers, before the expiry of the 10th day of the following month.
As for your query regarding when a salary day falls on a holiday or Sunday (which is known to all well in advance), when the payment is supposed to be effected - is it a day earlier to the fixed salary day or on a later day? Is there any legality? What does the law say?
I have already explained the statutory requirement in my email above. If you read Section 5 carefully, the wording has been very carefully structured by the legislators. They have used the words "before the expiry of the 7th or the 10th day of the following month," as the case may be. Hence, if you are making the payment a day later, it comes under the category of "Delay in payment of wages," which gives rise to a claim as mentioned under Section 15 of the Payment of Wages Act, 1936. Section 19(6) deals with "Penalty for offences under the Act," which reads as follows:
If any person fails or willfully neglects to pay the wages of any employed person by the date fixed by the authority in this behalf, he shall, without prejudice to any other action that may be taken against him, be punishable with an additional fine which may extend to seven hundred fifty rupees for each day for which such failure or neglect continues.
It is thus always safer and in the interest of the employer as well as employees to make payment of wages a day earlier when the salary/wages day falls on a holiday or Sunday.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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I appreciate you for being an HR professional who is concerned about the difficulties and requirements of the workforce. I have seen the emails of most of the members who have given their views, but very few have examined your query from a statutory angle.
You may be aware that Section 5 of the Payment of Wages Act, 1936, stipulates that every employer is responsible for the payment of wages to the persons employed by him within the time stipulations. The wages shall be paid before the expiry of the 7th day of the following month if less than 1000 persons are employed, and if he employs more than 1000 workers, before the expiry of the 10th day of the following month.
As for your query regarding when a salary day falls on a holiday or Sunday (which is known to all well in advance), when the payment is supposed to be effected - is it a day earlier to the fixed salary day or on a later day? Is there any legality? What does the law say?
I have already explained the statutory requirement in my email above. If you read Section 5 carefully, the wording has been very carefully structured by the legislators. They have used the words "before the expiry of the 7th or the 10th day of the following month," as the case may be. Hence, if you are making the payment a day later, it comes under the category of "Delay in payment of wages," which gives rise to a claim as mentioned under Section 15 of the Payment of Wages Act, 1936. Section 19(6) deals with "Penalty for offences under the Act," which reads as follows:
If any person fails or willfully neglects to pay the wages of any employed person by the date fixed by the authority in this behalf, he shall, without prejudice to any other action that may be taken against him, be punishable with an additional fine which may extend to seven hundred fifty rupees for each day for which such failure or neglect continues.
It is thus always safer and in the interest of the employer as well as employees to make payment of wages a day earlier when the salary/wages day falls on a holiday or Sunday.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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I Agree with Mr.Kalsi .....for the payment we need to refer payment of wages as Mr.Kalsi says that should be earlier in a day .
From India, Bangalore
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From India, Bangalore
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Kalsi - I appreciate your answer to this query. To the point and straight.
From India, Mumbai
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From India, Mumbai
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Excellent guidance by Mr Kalsi, very clear and transparent. Many thanks to Mr Kalsi, as well to all participants.
Still one more doubt to be cleared…
As guided by you/ law, last date for payment of wages/salaries is 7th/10th, and cannot be extended. Ok fine.
But, suppose an organization has fixed its salary day as 5th of the month, by its policy. Is it binding on them lawfully to maintain this date, or Can it be extended, if 5th is a Sunday/holiday.
Term “date fixed by authority” – is referred to which authority – an organizational authority or lawful authority of section 5 ??
From India, Mumbai
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Still one more doubt to be cleared…
As guided by you/ law, last date for payment of wages/salaries is 7th/10th, and cannot be extended. Ok fine.
But, suppose an organization has fixed its salary day as 5th of the month, by its policy. Is it binding on them lawfully to maintain this date, or Can it be extended, if 5th is a Sunday/holiday.
Term “date fixed by authority” – is referred to which authority – an organizational authority or lawful authority of section 5 ??
From India, Mumbai
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Hi Abai,
Already, seniors have posted the same reply as below. In our company, all the salaries are debited into the respective employees' accounts from the 25th of the month to the 30th or 31st of the month, despite there being a holiday in between.
From India, Chennai
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Already, seniors have posted the same reply as below. In our company, all the salaries are debited into the respective employees' accounts from the 25th of the month to the 30th or 31st of the month, despite there being a holiday in between.
From India, Chennai
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Dear Abey,
Thanks for the appreciation.My clarification to your queries point-wise is as under:-
1.But, suppose an organization has fixed its salary day as 5th of the month, by its policy. Is it binding on them lawfully to maintain this date, or Can it be extended, if 5th is a Sunday/holiday-In all labour laws-- One should always remember that the legislators have enacted the basic and barest minimum facilities required to be provided to the workers under the all the labour laws to stopped the exploitation by the employers.Everybody is welcomed to provide over and above the statutory provisions.The Payment of Wages Act, 1936 requiring to make payment before expiry of the 7th or the 10th day of the following month,as the case may.As long as you make payment before the dates mentioned in the Act, your action is perfectly in order.
In most of the labour laws, you will find in-built provisions, where the appropriate Govt has been empowered to grant exemption on being satisfied that the establishment is providing facilities or benefits,which are more favorable comparing to the statutes.
2.Term “date fixed by authority” – is referred to which authority – an organizational authority or lawful authority of section 5 ??--If you go through Section 15 the Payment of Wages Act, 1936, the appropriate Govt is empowered to appoint the authorities to hear and decide for any specified area all the claims arising out of deductions or delay in payment of wages and impose penalty arising out of malicious & vexatious claims.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Thanks for the appreciation.My clarification to your queries point-wise is as under:-
1.But, suppose an organization has fixed its salary day as 5th of the month, by its policy. Is it binding on them lawfully to maintain this date, or Can it be extended, if 5th is a Sunday/holiday-In all labour laws-- One should always remember that the legislators have enacted the basic and barest minimum facilities required to be provided to the workers under the all the labour laws to stopped the exploitation by the employers.Everybody is welcomed to provide over and above the statutory provisions.The Payment of Wages Act, 1936 requiring to make payment before expiry of the 7th or the 10th day of the following month,as the case may.As long as you make payment before the dates mentioned in the Act, your action is perfectly in order.
In most of the labour laws, you will find in-built provisions, where the appropriate Govt has been empowered to grant exemption on being satisfied that the establishment is providing facilities or benefits,which are more favorable comparing to the statutes.
2.Term “date fixed by authority” – is referred to which authority – an organizational authority or lawful authority of section 5 ??--If you go through Section 15 the Payment of Wages Act, 1936, the appropriate Govt is empowered to appoint the authorities to hear and decide for any specified area all the claims arising out of deductions or delay in payment of wages and impose penalty arising out of malicious & vexatious claims.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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This is really a healthy discussion, and we all should be grateful to Mr. Kalsi for sharing such views that have a strong legal and logical base. Lots of learning can be done and knowledge updated with such comments.
Very happy and satisfied with everyone's expressions. Once again, thanks to all.
From India, Mumbai
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Very happy and satisfied with everyone's expressions. Once again, thanks to all.
From India, Mumbai
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Dear friends,
The regulations regarding payment of wages are one of the fundamental laws governing labor in any establishment. It's puzzling how there could be such queries among HR personnel. The Act is very clear regarding the due date of wages. The basic four stipulations are:
1. NO WAGE PERIOD SHALL EXCEED ONE MONTH
2. If the employee strength is < 1000, wages should be paid on or before the 7th of the following month.
3. If the employee strength is > 1000, wages should be paid on or before the 10th of the following month.
4. Wages should be paid either in coins or notes, or by check, or by crediting to the employees' bank accounts.
The query is, if the due date falls on a holiday, whether to pay before or after the due date. Isn't it difficult to find the answer based on these four stipulations? Surprising. You know the answer.
From India, Bangalore
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The regulations regarding payment of wages are one of the fundamental laws governing labor in any establishment. It's puzzling how there could be such queries among HR personnel. The Act is very clear regarding the due date of wages. The basic four stipulations are:
1. NO WAGE PERIOD SHALL EXCEED ONE MONTH
2. If the employee strength is < 1000, wages should be paid on or before the 7th of the following month.
3. If the employee strength is > 1000, wages should be paid on or before the 10th of the following month.
4. Wages should be paid either in coins or notes, or by check, or by crediting to the employees' bank accounts.
The query is, if the due date falls on a holiday, whether to pay before or after the due date. Isn't it difficult to find the answer based on these four stipulations? Surprising. You know the answer.
From India, Bangalore
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Sincerely appreciate the above comments by ‘loginmiraclelogistics’, which is pointing out that when law is very clear, how can we talented HRs are discussing on such kind of simplest query , which std 7th student can answer.
Here, I would like to bring to the attention of my learned friend ‘loginmiraclelogistics’, a point which might have skipped his attention, and which is a very very serious issue, if at all he respects an employee’s concern.
The discussion started on 2nd sept, with my original post, and the main point on which I expected members views is not about the final dates for releasing wages, under any act. It is to know that if any organization makes a policy of its own fixing a date of salary, say 1st of every month, and if this date falls on a holiday/ Sunday, is it binding on company to release payment on earlier day or not.
The above question was raised because …
(please refer original post, and few lines are reproduced below, for ready reference…)
“In todays world, many employees get direct debit to their bank a/c, on a day disclosed by them to their banks, for the monthly deductions of loans, premiums etc. A delay in crediting salary to their a/c, even by a single day, may result to payment of penalty for bouncing EMIs etc.”
Am I not justified by putting this issue to members discussion !!
From India, Mumbai
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Here, I would like to bring to the attention of my learned friend ‘loginmiraclelogistics’, a point which might have skipped his attention, and which is a very very serious issue, if at all he respects an employee’s concern.
The discussion started on 2nd sept, with my original post, and the main point on which I expected members views is not about the final dates for releasing wages, under any act. It is to know that if any organization makes a policy of its own fixing a date of salary, say 1st of every month, and if this date falls on a holiday/ Sunday, is it binding on company to release payment on earlier day or not.
The above question was raised because …
(please refer original post, and few lines are reproduced below, for ready reference…)
“In todays world, many employees get direct debit to their bank a/c, on a day disclosed by them to their banks, for the monthly deductions of loans, premiums etc. A delay in crediting salary to their a/c, even by a single day, may result to payment of penalty for bouncing EMIs etc.”
Am I not justified by putting this issue to members discussion !!
From India, Mumbai
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