Each organization has its own Salary Day fixed for releasing wages/salaries to its employees. Sometimes, this day differs by a few days due to reasons like computer breakdown, strikes by banks, or yearly closing work of banks, hartals in the city, etc. Such a delay in the payment of salary by one or two days is willingly accepted by employees too. There are some employee-friendly companies that release salaries earlier as well when they anticipate that the salary day is likely to be disrupted due to some reason.
I would like to know, 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 than the fixed salary day or on a later day? Is there any legality? What does the law say?
In today's world, many employees have direct debit to their bank account on a day disclosed by them to their banks for the monthly deductions of loans, premiums, etc. A delay in crediting salary to their account, even by a single day, may result in the payment of penalties for bouncing EMIs, etc.
Members are requested to express their views.
From India, Mumbai
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73I would like to know, 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 than the fixed salary day or on a later day? Is there any legality? What does the law say?
In today's world, many employees have direct debit to their bank account on a day disclosed by them to their banks for the monthly deductions of loans, premiums, etc. A delay in crediting salary to their account, even by a single day, may result in the payment of penalties for bouncing EMIs, etc.
Members are requested to express their views.
From India, Mumbai
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As long as it is not contravening Section 05 of Payment of Wages Act there is no problem. As employee friendly culture it can be deposited before a day of Holiday / Sunday
From India, Pune
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From India, Pune
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My dear friend,
You have already answered your own query!
"There are some employee-friendly companies that release salaries earlier when they anticipate potential disruptions to the salary day. A delay in crediting salary to their accounts, even by a single day, may result in penalties for bouncing EMIs, etc."
This is indeed the practice in all good companies.
Warm regards.
From India, Delhi
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You have already answered your own query!
"There are some employee-friendly companies that release salaries earlier when they anticipate potential disruptions to the salary day. A delay in crediting salary to their accounts, even by a single day, may result in penalties for bouncing EMIs, etc."
This is indeed the practice in all good companies.
Warm regards.
From India, Delhi
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My Question is, in case there is a holiday / Sunday, falling on Salary Day, is it not a compulsion on employer, to release salary on earlier day ?
From India, Mumbai
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From India, Mumbai
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Practically, I have seen in many companies that credit salaries to the employee's account earlier in case of their leave or an off on the day salary credit, and it is really a good practice that is employee-friendly too. In many payroll software, the date is defined for the salary transfer that automatically sends instructions to the bank or authority regarding that. Also, it can be customized in case of holiday or leave so that the salary gets credited on or before the salary day.
From India, Lucknow
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From India, Lucknow
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Hello Abhay Bandekar,
Thank you for posting your query. I agree with all senior members who have commented on this post earlier. What they have mentioned is correct.
If you review global standards, payroll processing has transformed to be more employee-friendly. That is why in certain industries payroll processing dates are between the 25th and 30th of every month, irrespective of a scheduled or unscheduled holiday. This enables you to avoid any delays.
If you claim to be an employee-friendly organization, this is the first step in ensuring your organization stands by that repute. After all, salary is the key criterion why an individual employee would associate with you.
Regards
From India, Mumbai
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Thank you for posting your query. I agree with all senior members who have commented on this post earlier. What they have mentioned is correct.
If you review global standards, payroll processing has transformed to be more employee-friendly. That is why in certain industries payroll processing dates are between the 25th and 30th of every month, irrespective of a scheduled or unscheduled holiday. This enables you to avoid any delays.
If you claim to be an employee-friendly organization, this is the first step in ensuring your organization stands by that repute. After all, salary is the key criterion why an individual employee would associate with you.
Regards
From India, Mumbai
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Dear Abhay,
Above all, Prashant is right. Salary for those who are under the purview of the Payment of Wages Act, i.e. salary > Rs 10,000, should be paid before the 7th if the number of employees is less than 1000, irrespective of holidays.
Mangesh Wakodkar
From India, Pune
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Above all, Prashant is right. Salary for those who are under the purview of the Payment of Wages Act, i.e. salary > Rs 10,000, should be paid before the 7th if the number of employees is less than 1000, irrespective of holidays.
Mangesh Wakodkar
From India, Pune
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Hi Abhay,
I understand your concern. In fact, I often face this dilemma. As HR, I always try to convince management to process the salaries on time, but I have seen that when a salary date falls on a holiday or a weekend, management prefers to process the salary on the next working day and not prior to the holiday. It is ironic. Certainly, it requires an employee-friendly management that considers the sensitivity of the employees during such situations. We as HR should never stop representing what is most appropriate for the employees, though it may require hard selling at times.
- Gia
From India, Pune
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I understand your concern. In fact, I often face this dilemma. As HR, I always try to convince management to process the salaries on time, but I have seen that when a salary date falls on a holiday or a weekend, management prefers to process the salary on the next working day and not prior to the holiday. It is ironic. Certainly, it requires an employee-friendly management that considers the sensitivity of the employees during such situations. We as HR should never stop representing what is most appropriate for the employees, though it may require hard selling at times.
- Gia
From India, Pune
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Dear Friend,
It is always better to pay salaries on the last working day of the month. Hence, there is no confusion with the dates. For salaries, you may calculate your month from the 21st to the 20th so that the Payroll team has enough time to process salaries.
From India, Madras
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It is always better to pay salaries on the last working day of the month. Hence, there is no confusion with the dates. For salaries, you may calculate your month from the 21st to the 20th so that the Payroll team has enough time to process salaries.
From India, Madras
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