Payment of Wages law in India

Payment of Wages Act 1936

Under the Payment of Wages Act 1936 the following are the common obligations of the Employer:

  • Every employer is primarily responsible for payment of wages to employees. The employer should fix the wage period (which may be per day, per week or per month) but in no case it should exceed one month;
  • Every employer should make timely payment of wages. If the employment of any person is being terminated, those wages should be paid within two days of the date of termination; and
  • The employer should pay the wages in cash, i.e. in current coins or currency notes. However wages may also be paid either by cheque or by crediting in employee’s bank account after obtaining written consent.

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