PAYMENT OF WAGES ACT 1936 ( 28/03/1937 )
The Payment of Wages Act 1936 was enacted on the recommendation of Whitley committee & came into force from 28.3.1937 & latest amended in the year 2005
Aim & Objects: -
1. To secure prompt and regular payment of wages.
2. To prevent unauthorized deduction.
3. To fix up the wage period.
The act extends to whole if India including J&K
This act applies to all Establishment, which engage 20 or more workers.
This act also applies to all workers whose monthly emolument do not exceed Rs.6500/- (RBE No: 216/2005) (Basic + all allowances expect TA)
The wage period is fixed to the extent of one month.
In Railway the following wage periods are prescribed.
1. For administrative of the staff - Calendar month i.e. from date of month to last date of month.
2. For running g staff, 11th of the month to 10th of the following month.
3. For S&T /Engg. Gang staff, 19th of the month to 18th of the following month.
In practice, the pay sheets are prepared on the basis of two types of attendance
(a) Actual attendance (b) assume attendance.
Assumed attendance should not exceed 15 days.
For full fulfillment of the objective, following provisions are to be made by the employer.
1) If the number of workers in as establishment is less than 1000, their wages should be paid within 7 days from expiry of wage period. And if the number of workers is 1000 or more within 10 days on expire of wage period.
2) In case of casual labour, discharge from Rly. service his wages should be paid within 02 days excluding Sundays & Holidays.
3) Payment should be arranged on working day only.
Payment should be arrange only in prevailing legal currency, notes and coins. However Bank payment facility can be granted to employee on his written request.
The deductions are classified into following three types: -
(a) Compulsory deduction: - P.F., Income Tax, NGIS, Prof. Tax, court attachment, overdrawn wages, A/Cs , Audit debits, store debits. Etc.
(b) Voluntary deduction.- VPF, M.D. LIC Premium, PRSS etc.
(c) Obligatory deduction. - House Rent, Elect. Charges, Diet charges, Inst. Fees, repayment of loans and advances etc.
Normally all deductions put together, could not exceed 50% of total emoluments which may be further extended up to max. 75% in case of deduction of co-op society involved.
Machinery for redresses of Grievances:
The following machinery is available for this purpose.
1. Head quarter staff will approach to Sr. Personal officer.
2. Divisional staff- Divisional Personal Officers.
3. Workshop staff works Manager/ Dy. Chief mechanical Engineer.
If there is no response from the above authority, employee may approach to LEO and if however there is no response from LEO employee may approach to Labour Court.
The employer for information of purpose in premises should exhibit following information on notice board. (In Hindi or In English & regional language).
1. Wage period.
2. Date & Time of appointment.
3. Name & Residential address of LEO
4. Main aspect of this Act.
For violation of any of the provision of this act, employee may be fined with a sum of Rs.1500/- which may extend upto Rs. 7500/- for first time and Rs.3750/- to Rs.22500/- or and six month’s simple imprison made for II nd and subsequent time.
For unauthorized deduction with the intention of financial harassment, the employer may be fined a sum equal to 10 times of the amount of