Hi Seniors,
This is Supriya. I am working in an IT company, and I have a small query. According to the Payment of Wages Act, every organization has to pay salaries by the 10th of each month. However, we are paid our salaries on the 15th.
Upon referencing the Payment of Wages Act, I informed my Senior Manager that we should be paying salaries at least by the 10th of every month. In response, he asked me whether this Act pertains to wages or salaries.
I am confused. Are salaried individuals not covered under the Payment of Wages Act? Can a company decide when to pay salaries?
Please help me with this dilemma.
In anticipation of your prompt assistance.
Thanks & Regards,
Supriya
From India, Mumbai
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14This is Supriya. I am working in an IT company, and I have a small query. According to the Payment of Wages Act, every organization has to pay salaries by the 10th of each month. However, we are paid our salaries on the 15th.
Upon referencing the Payment of Wages Act, I informed my Senior Manager that we should be paying salaries at least by the 10th of every month. In response, he asked me whether this Act pertains to wages or salaries.
I am confused. Are salaried individuals not covered under the Payment of Wages Act? Can a company decide when to pay salaries?
Please help me with this dilemma.
In anticipation of your prompt assistance.
Thanks & Regards,
Supriya
From India, Mumbai
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Hi Supriya,
As per the Payment of Wages Act, payment schedules may vary based on the company's standing orders. Some companies have specific pay cut-off dates, while others pay on the 1st of every month.
According to the Payment of Wages Act:
- For companies with less than 1000 employees: payment is due on the 7th of every month.
- For companies with more than 1000 employees: payment is due on the 10th of every month.
If you have any queries, please respond to the email address below: [anjanram81@gmail.com](mailto:anjanram81@gmail.com).
Best Regards,
Anjan
HR
From India
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As per the Payment of Wages Act, payment schedules may vary based on the company's standing orders. Some companies have specific pay cut-off dates, while others pay on the 1st of every month.
According to the Payment of Wages Act:
- For companies with less than 1000 employees: payment is due on the 7th of every month.
- For companies with more than 1000 employees: payment is due on the 10th of every month.
If you have any queries, please respond to the email address below: [anjanram81@gmail.com](mailto:anjanram81@gmail.com).
Best Regards,
Anjan
HR
From India
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Dear Ms. Supriya,
To claim the benefit of the Payment of Wages Act regarding the time of payment of wages, firstly, your company should come within the ambit of the applicability clause of section 1(4) or section 1(5) of the Payment of Wages Act. Assuming that your company comes within the ambit of the sections referred to above, your wage/salary per month cannot exceed Rs. 10,000/-. If both these conditions are satisfied, then you can claim that your salary should be within the timeframe prescribed under the Payment of Wages Act.
Otherwise, if the Shops and Establishments Act in your state is applicable to your company, then that Act may contain a provision regarding the time of payment of wages. If the Shops and Establishments Act is not applicable to your company, then you can look into the certified standing orders applicable to your company. If certified standing orders are not applicable, then please check whether the appointment order contains a provision relating to the time of payment of wages/salary. Even if the appointment order is silent on this point, then nothing can be done.
From India, Madras
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To claim the benefit of the Payment of Wages Act regarding the time of payment of wages, firstly, your company should come within the ambit of the applicability clause of section 1(4) or section 1(5) of the Payment of Wages Act. Assuming that your company comes within the ambit of the sections referred to above, your wage/salary per month cannot exceed Rs. 10,000/-. If both these conditions are satisfied, then you can claim that your salary should be within the timeframe prescribed under the Payment of Wages Act.
Otherwise, if the Shops and Establishments Act in your state is applicable to your company, then that Act may contain a provision regarding the time of payment of wages. If the Shops and Establishments Act is not applicable to your company, then you can look into the certified standing orders applicable to your company. If certified standing orders are not applicable, then please check whether the appointment order contains a provision relating to the time of payment of wages/salary. Even if the appointment order is silent on this point, then nothing can be done.
From India, Madras
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Thank you for your information, Mr. Harikrishnan.
For workmen, I can relay the response provided by Anjan, but regarding the staff, I do not currently have a response. Your post has enabled me to explain the situation to others now.
Thanks for your timely guidance. Please continue to share your experiences and knowledge with our forum members, Mr. Harikrishnan.
From India, Kumbakonam
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For workmen, I can relay the response provided by Anjan, but regarding the staff, I do not currently have a response. Your post has enabled me to explain the situation to others now.
Thanks for your timely guidance. Please continue to share your experiences and knowledge with our forum members, Mr. Harikrishnan.
From India, Kumbakonam
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Hello Supriya,
It differs from company to company. Most of the automotive companies like Honda and Maruti pay salaries to their employees by the 19th or 28th of the month. Some companies even pay on the 1st of every month.
With regards,
From India, Pune
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It differs from company to company. Most of the automotive companies like Honda and Maruti pay salaries to their employees by the 19th or 28th of the month. Some companies even pay on the 1st of every month.
With regards,
From India, Pune
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Ms. Supriya,
The following details are self-explanatory.
3*[(vi) "wages" means all remuneration (whether by way of salary, allowances or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes –
(a) any remuneration payable under any award or settlement between the parties or order of a Court;
(b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period;
(c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name);
(d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, with or without deductions, but does not provide for the time within which the payment is to be made;
(e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force; but does not include –
(1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a Court;
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(1) Ins. by Act 53 of 1964, s. 3 (w.e.f. 1-2-1965).
(2) Subs. by s. 3, ibid., for cl. (iii) (w.e.f. 1-2-1965).
(3) Subs. by Act 68 of 1957, s. 3, for cl. (vi) (w.e.f. 1-4-1958).
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(2) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the State Government;
(3) any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon;
(4) any travelling allowance or the value of any travelling concession;
(5) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or
(6) any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d).]
Responsibility for payment of wages
3- Every employer shall be responsible for the payment to persons employed by him of all wages required to be paid under this Act: Provided that, in the case of persons employed (otherwise than by a contractor) –
(a) in factories, if a person has been named as the manager of the factory under 1*[clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948)],
2*[(b) in industrial or other establishments, if there is a person responsible to the employer for the supervision and control of the industrial or other establishments;]
(c) upon railways (otherwise than in factories), if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned; the person so named, the person so responsible to the employer, or the person so nominated, as the case may be, 2*[shall also be responsible] for such payment.
4- Fixation of wage-periods.
(1) Every person responsible for the payment of wages under section 3 shall fix periods (in this Act referred to as wage-periods) in respect of which such wages shall be payable.
(2) No wage-period shall exceed one month.
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(1) Subs. by Act 68 of 1957, s. 4, for "clause (e) of sub-section (1) of section 9 of the Factories Act, 1934" (w.e.f. 1-4-1958).
(2) Subs. by Act 38 of 1982, s. 5 (w.e.f. 15-10-1982).
(3) Subs. by Act 53 of 1964, s. 4, for "shall be responsible" (w.e.f. 1-2-1965).
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Time of payment of wages
5-
(1) The wages of every person employed upon or in –
(a) any railway, factory or 1*[industrial or other establishment] upon or in which less than one thousand persons are employed, shall be paid before the expiry of the seventh day,
(b) any other railway, factory or 1*[industrial or other establishment], shall be paid before the expiry of the tenth day, after the last day of the wage-period in respect of which the wages are payable:
2*[Provided that in the case of persons employed on a dock, wharf or jetty or in a mine, the balance of wages found due on completion of the final tonnage account of the ship or wagons loaded or unloaded, as the case may be, shall be paid before the expiry of the seventh day from the day of such completion.]
(2) Where the employment of any person is terminated by or on behalf of the employer, the wages earned by him shall be paid before the expiry of the second working day from the day on which his employment is terminated: 2*[Provided that where the employment of any person in an establishment is terminated due to the closure of the establishment for any reason other than a weekly or other recognised holiday, the wages earned by him shall be paid before the expiry of the second day from the day on which his employment is so terminated.]
(3) The State Government may, by general or special order, exempt, to such extent and subject to such conditions as may be specified in the order, the person responsible for the payment of wages to persons employed upon any railway (otherwise than in a factory) 3*[or to persons employed as daily-rated workers in the Public Works Department of the Central Government or the State Government] from the operation of this section in respect of the wages of any such persons or class of such persons:
3*[Provided that in the case of persons employed as daily-rated workers as aforesaid, no such order shall be made except in consultation with the Central Government.]
(4)
4*[Save as otherwise provided in subsection (2), all payments] of wages shall be made on a working day.
Thanks & Regards,
Yogesh Kulkarni
Assistant Manager – HR
Krishidhan Seeds Pvt. Ltd.
From India, Mumbai
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The following details are self-explanatory.
3*[(vi) "wages" means all remuneration (whether by way of salary, allowances or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes –
(a) any remuneration payable under any award or settlement between the parties or order of a Court;
(b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period;
(c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name);
(d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, with or without deductions, but does not provide for the time within which the payment is to be made;
(e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force; but does not include –
(1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a Court;
-----------------------------------------------------------------------------------------------------------
(1) Ins. by Act 53 of 1964, s. 3 (w.e.f. 1-2-1965).
(2) Subs. by s. 3, ibid., for cl. (iii) (w.e.f. 1-2-1965).
(3) Subs. by Act 68 of 1957, s. 3, for cl. (vi) (w.e.f. 1-4-1958).
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(2) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the State Government;
(3) any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon;
(4) any travelling allowance or the value of any travelling concession;
(5) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or
(6) any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d).]
Responsibility for payment of wages
3- Every employer shall be responsible for the payment to persons employed by him of all wages required to be paid under this Act: Provided that, in the case of persons employed (otherwise than by a contractor) –
(a) in factories, if a person has been named as the manager of the factory under 1*[clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948)],
2*[(b) in industrial or other establishments, if there is a person responsible to the employer for the supervision and control of the industrial or other establishments;]
(c) upon railways (otherwise than in factories), if the employer is the railway administration and the railway administration has nominated a person in this behalf for the local area concerned; the person so named, the person so responsible to the employer, or the person so nominated, as the case may be, 2*[shall also be responsible] for such payment.
4- Fixation of wage-periods.
(1) Every person responsible for the payment of wages under section 3 shall fix periods (in this Act referred to as wage-periods) in respect of which such wages shall be payable.
(2) No wage-period shall exceed one month.
-----------------------------------------------------------------------------------------------------------
(1) Subs. by Act 68 of 1957, s. 4, for "clause (e) of sub-section (1) of section 9 of the Factories Act, 1934" (w.e.f. 1-4-1958).
(2) Subs. by Act 38 of 1982, s. 5 (w.e.f. 15-10-1982).
(3) Subs. by Act 53 of 1964, s. 4, for "shall be responsible" (w.e.f. 1-2-1965).
-----------------------------------------------------------------------------------------------------------
Time of payment of wages
5-
(1) The wages of every person employed upon or in –
(a) any railway, factory or 1*[industrial or other establishment] upon or in which less than one thousand persons are employed, shall be paid before the expiry of the seventh day,
(b) any other railway, factory or 1*[industrial or other establishment], shall be paid before the expiry of the tenth day, after the last day of the wage-period in respect of which the wages are payable:
2*[Provided that in the case of persons employed on a dock, wharf or jetty or in a mine, the balance of wages found due on completion of the final tonnage account of the ship or wagons loaded or unloaded, as the case may be, shall be paid before the expiry of the seventh day from the day of such completion.]
(2) Where the employment of any person is terminated by or on behalf of the employer, the wages earned by him shall be paid before the expiry of the second working day from the day on which his employment is terminated: 2*[Provided that where the employment of any person in an establishment is terminated due to the closure of the establishment for any reason other than a weekly or other recognised holiday, the wages earned by him shall be paid before the expiry of the second day from the day on which his employment is so terminated.]
(3) The State Government may, by general or special order, exempt, to such extent and subject to such conditions as may be specified in the order, the person responsible for the payment of wages to persons employed upon any railway (otherwise than in a factory) 3*[or to persons employed as daily-rated workers in the Public Works Department of the Central Government or the State Government] from the operation of this section in respect of the wages of any such persons or class of such persons:
3*[Provided that in the case of persons employed as daily-rated workers as aforesaid, no such order shall be made except in consultation with the Central Government.]
(4)
4*[Save as otherwise provided in subsection (2), all payments] of wages shall be made on a working day.
Thanks & Regards,
Yogesh Kulkarni
Assistant Manager – HR
Krishidhan Seeds Pvt. Ltd.
From India, Mumbai
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If the employees less than 1000 then salary paid to 7th of every month If the employees more than 1000 then salary paid to 10th of every month
From India, Delhi
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From India, Delhi
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Hi Supriya,
There's no need to worry a lot about it. Generally, every company gives wages and salary keeping both the company and employees in mind. They try to give it most probably in the first or second week. If some problem occurs, then only do they delay it. I hope you understand.
Thank you,
Kamal Shukla
From India, Hyderabad
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There's no need to worry a lot about it. Generally, every company gives wages and salary keeping both the company and employees in mind. They try to give it most probably in the first or second week. If some problem occurs, then only do they delay it. I hope you understand.
Thank you,
Kamal Shukla
From India, Hyderabad
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Hi What the Due date of payment of wages under shop and establishment act ? Does that apply for all employees or for lower salary staff
From India, Mumbai
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From India, Mumbai
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Dear Saswata Banerjee,
Please see section 2(ii)(h) of the Payment of Wages Act. This Act is not made applicable to shops and establishments straight away. In the case of shops and establishments, the Central or State Government has to make the Act applicable by way of a notification. To the best of my knowledge, there is no Central Government notification applying the provisions of the PW Act to shops and establishments. Please check whether the Government of your State has notified the application of the PW Act to shops and establishments. If there is a notification, then the time limit prescribed under the PW Act will apply. If no such notification exists, please check the Shops and Establishments Act applicable in your State. This Act might have incorporated the provisions of the PW Act in the Shops and Establishments Act. If there is no such provision in the Shops and Establishments Act of your State, then the presumption is that there is no time limit.
With regards,
From India, Madras
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Please see section 2(ii)(h) of the Payment of Wages Act. This Act is not made applicable to shops and establishments straight away. In the case of shops and establishments, the Central or State Government has to make the Act applicable by way of a notification. To the best of my knowledge, there is no Central Government notification applying the provisions of the PW Act to shops and establishments. Please check whether the Government of your State has notified the application of the PW Act to shops and establishments. If there is a notification, then the time limit prescribed under the PW Act will apply. If no such notification exists, please check the Shops and Establishments Act applicable in your State. This Act might have incorporated the provisions of the PW Act in the Shops and Establishments Act. If there is no such provision in the Shops and Establishments Act of your State, then the presumption is that there is no time limit.
With regards,
From India, Madras
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