THE PAYMENT OF WAGES ACT, 1936

OBJECT OF THE ACT

• To regulate the payment of wages to certain classes of

employed persons. Two fold:-

• First the date of payment of wages and

• Secondly the deductions from wages whether as fine or

otherwise.
 APPLICABILITY OF THE ACT

• Persons employed in:-

• Any factory (a saw mill, ginning factory, godowns, yards
etc as defined in Factories Act, 1948).
• Tramway service or motor transport service engaged in
carrying passengers or good or both by road for hire or
reward.

• Air transport service Dock, Wharf or Jetty, Inland vessel,

mechanically propelled

• Mine, quarry or oil-field plantation

• Workshop or other establishment etc.

 WAGE

• Wage includes any remumeration:-

• Payable under any award or settlement between the
parties or order of a Court;
• Over time work or holiday or any leave period;
• Any additional remuneration under the terms of
employment.

Wage does not includes any bonus, pension fund or

provident fund, travelling allowance and any gratuity.
 WAGES TO BE PAID IN CURRENT COINS OR
CURRENCY NOTES

a. All wages shall be paid in current coins or currency notes

or in both.
b. After obtaining the authorization, either by Cheque or by
crediting the wages in employees banks Account
{Section 6}
Andhra Pradesh State Amendment: “Provided further that the
State Government may, by notification in the Andhra
Pradesh Gazette, specify the industrial establishments ,
the employers of which shall pay to the persons
employed therein, the wages either by cheque or by
crediting the wages in their bank account”-[Vide Andhra
Pradesh Act 15 of 1982, sec.2 (w.e.f 7-10-1982).
 TIME OF PAYMENT OF WAGES

• The wages of every person employed is paid. When less than 1000
persons are employed shall be paid before the expiry of the 7th day
of the following month. When more than 1000 workers, before the
expiry of the 10th day of the following month. (Section 5).
 COVERAGE OF EMPLOYEES

• Drawing average wage upto Rs.6500 pm as amended

with effect from 6th September 2005.
 DEDUCTION MADE FROM WAGES

• Deductions such as, fine, deduction for amenities and services

supplied by the employer, advances paid, over payment of wages,
loan, granted for house-building or other purposes, income tax
payable, in pursuance of the order of the Court, Provident Fund
contributions, cooperative societies, premium for Life Insurance,
contribution to any fund constituted by employer or a trade union,
recovery of losses, Employees State Insurance contribution etc.
(Section 7).
 DEDUCTION FOR ABSENCE FROM DUTIES FOR
UNAUTHORISED ABSENCE

• Absence for whole or any part of the day – If ten or more

persons absent without reasonable cause, deduction of
wages upto 8 days {Section 9}
 DEDUCTION FOR DAMAGE OR LOSS

• For default or negligence of an employee resulting into loss. Show

cause notice has to be given to the employee. {Section 10}
 DEDUCTIONS FOR SERVICE RENDERED

• When accommodation amenity or service has been accepted by the

employee. {Section 11}
• Deductions for recovery of Advance.
• Deduction for recovery of loans.
• Deductions for payment to co-operative
societies and Insurance schemes.
 AUTHORITIES UNDER THIS ACT

• INSPECTORS.
• AUTHORITY TO HEAR CLAIMS.
Any commissioner for Workmen’s Compensation; or
Any Regional Labour Commissioner.
Any Assistant Labour Commissioner.
Presiding Officer of any Labour Court or Industrial Tribunal.
PRESENTATION OF CLAIM APPLICATION
SINGLE APPLICATION IN RESPECT
OF CLAIMS FROM UNPAID GROUP
 APPEAL

An Appeal may be preferred from the following orders or directions of

the Authority:-
an order directing the employer or the persons responsible for payment
of wages, to refund the deductions wrongfully made or to pay the
delayed wages;
an order directing payment of compensation to the employee under
Section 15(3);
an order imposing penalty whether on the employee or the employer
under Section 15(4).
An Appeal can be made within thirty days of the date on which the
order or direction was made before the District Court within whose
jurisdiction the industrial establishment is situated.
• MAINTENANCE OF REGISTERS AND RECORDS
 PENALITIES
• Makes contravention of Sec’s.5, 7, 9, 11 and 13 of the
Act, by any person responsible for the payment of wages
to an employed person, punishable with fine which shall
not be less than one thousand five hundred rupees but
which may extend to seven thousand five hundred
rupees.