Flow of presentation

 Meaning
 Objectives
 Applicability
 Responsibility for the payment of wages
 Time of payment of wages
 Method
 Deduction made from wages
 Latest news regarding wages
 Appeal
Meaning and type

 A wage is monetary compensation (or remuneration, personnel expenses,

labor) paid by an employer to an employee in exchange for work done.
 Types:
1) Piece wages
2) Time wages
3) Cash wages
4) Wages in kind
5) Contract wages
objectives

 To regulate payment of wages to persons employed directly or indirectly in

Industry.
 Specifically, it applies to employees drawing a wage of upto Rs. 1600/- on an
average per month and employed in (1) Factories, (2) Transport Service of all
kinds, (3) Mines, (4) Plantations and (5) Construction industry.
 To avoid unnecessary delay in the payment of wages.
 To prevent unauthorized deductions of wages.
Applicability

 Payment of Wages Act, 1936 is a central legislation & extends to whole of

India.
 It applies to all persons employed, whether directly or through contractors, in
a factory or certain specified industrial or other establishments.
 Applicable on employees drawing wages up-to 6,500/- per month and not
exceeding Rs.10000 per month.
Responsibility of payment of wages act

 In case of factories, person named as manager under the provisions of

Factories Act, 1948;
 In case of industrial or other establishments, person responsible for
supervision and control of the industrial or other establishments;
 In case of railways, the railway administration and the person nominated by
railway administration for the local area concerned;
 In case of contractor, person designated by contractor.
Time of payment of wages act

 The wages of every person employed upon or in;

 (a) any railway, factory or industrial 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 industrial establishment, shall be paid before the
expiry of the tenth day,
 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.
 All payments of wages shall be made on a working-day.
Method

 Wages must be paid in current coin or currency notes or in both and not in
kind.
 Wages can be paid by cheque or by crediting them in bank account if so
authorized in writing by an employed person.
Deduction made from wages

 Deductions for absence from duty.

 Deduction for damage to or loss of goods of employed person.
 Deduction for house accommodation supplied by the employer.
 Fines
Latest news regarding wages

 The Aam Aadmi Party government in Delhi is going to launch operation

minimum wages from December 10 to ensure that unskilled, semi-skilled and
skilled workers are not denied minimum wages.
 The minimum wages in Delhi for unskilled worker is Rs.14000 per month,
semi-skilled workers Rs.15400 per month and skilled workers Rs.16962 per
month.
Appeal

 An appeal against an order of the authority should be made within 30 days of

the date of the said order/direction, before court of small causes and
elsewhere before the district court.