Salient Features of Payment of Wages Act 1936 – India’s Payment of Wages Act 1936 guarantees timely payment of wages to workers. The 10 salient features of this Act are:
Salient Features of Payment of Wages Act, 1936
- Timely Payment: This Act mandates timely payment of wages to employees, usually before a specified date after the pay period.
- Frequency of Payment: This specifies the frequency of wage payments, ensuring that employees are paid at regular intervals, daily, weekly, fortnightly or monthly.
- Mode of Payment: This Act outlines the permissible modes of payment of wages, which may be in cash or by cheque, direct bank transfer or electronic methods.
- Deductions: It regulates deductions made from wages, ensuring that legal deductions such as taxes, provident fund contributions or official penalties are made within specified limits.
- Minimum Wages: Although the Act itself does not prescribe minimum wage rates, it ensures that the wages paid are not less than the minimum rates fixed by the appropriate government authorities.
- Maintenance of Records: Employers are required to maintain accurate and up-to-date records of wages, deductions and other relevant details of employees as prescribed under the Act.
- Inspecting Authority: The Act empowers labor inspectors or other designated authorities to inspect records, investigate complaints and ensure compliance with its provisions.
- EMPLOYEES’ RIGHTS: It provides certain rights to employees, including the right to accurate and timely payment of wages without unauthorized deductions.
- Prohibition of Delayed Payments: Employers are prohibited from paying wages late beyond the specified period, failing which they may be liable to penalty.
- LEGAL REMEDIES: It provides legal remedies to employees in case of wage related disputes, allowing them to file complaints or claims before appropriate authorities for redressal.