The Payment of Wages Act 1936 is meant for the benefit of industrial employees not getting very high wages and to safeguard their interest it provides against irregularities in payment of wages, withholding wages, delay in paying wages and making unreasonable deductions out of the wages. This Act ensures payment of wages in a particular form and at regular intervals.
Definitions
"Factory"
means a factory as defined the Factories Act 1948 and includes any place to which the provisions of that Act have been applied
"Wages"
means all remuneration (whether by way of salary allowances or otherwise) expressed in terms of money or capable of being so expressed which would if the terms of employment express or implied were fulfilled by payable to a person employed in respect of his employment or of work done in such employment and includes - (a) any remuneration payable under any award or settlement between the parties or order of a court; (b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period; (c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name); (d) any sum which by reason of the termination of employment of the person employed is payable under any law contract or instrument which provides for the payment of such sum whether with or without deductions but does not provide for the time within which the payment is to be made; (e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force, but does not include - (1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a court; (2) the value of any house-accommodation or of the supply of light water medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the State Government; (3) any contribution paid by the employer to any pension or provident fund and the interest which may have accrued thereon; (4) any travelling allowance or the value of any travelling concession; (5) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or (6) any gratuity payable on the termination of employment
Applicability:
To all factories and establishments.
Main Provisions
Wage Period: Maximum Wage Period should be one month.
Time of Payment of Wages:
Wages should be paid before the end of
7th day when employees less than 1000
10th day when employees more than 1000
Deductions from Wages:
With Authorisation
Without Authorisation
LIC Premium
Fines
Postal PLI Premium
Period of absence from duty
Trade Union Subscription
Damage or loss of goods
Contributions to Prime Minister Fund
Recovery advances / Loans
Income Tax
Provident Fund
Order of Court
Deduction for House Accommodation
Deduction for amenities and services
Payment to Cooperative Societies
Maximum deductions should not exceed:
Ø When whole or part of the deductions are meant to Cooperative Society - 75 % of wage
Ø In other cases - 50% of wages.
Definitions
"Factory"
means a factory as defined the Factories Act 1948 and includes any place to which the provisions of that Act have been applied
"Wages"
means all remuneration (whether by way of salary allowances or otherwise) expressed in terms of money or capable of being so expressed which would if the terms of employment express or implied were fulfilled by payable to a person employed in respect of his employment or of work done in such employment and includes - (a) any remuneration payable under any award or settlement between the parties or order of a court; (b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period; (c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name); (d) any sum which by reason of the termination of employment of the person employed is payable under any law contract or instrument which provides for the payment of such sum whether with or without deductions but does not provide for the time within which the payment is to be made; (e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force, but does not include - (1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a court; (2) the value of any house-accommodation or of the supply of light water medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the State Government; (3) any contribution paid by the employer to any pension or provident fund and the interest which may have accrued thereon; (4) any travelling allowance or the value of any travelling concession; (5) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or (6) any gratuity payable on the termination of employment
Applicability:
To all factories and establishments.
Main Provisions
Wage Period: Maximum Wage Period should be one month.
Time of Payment of Wages:
Wages should be paid before the end of
7th day when employees less than 1000
10th day when employees more than 1000
Deductions from Wages:
With Authorisation
Without Authorisation
LIC Premium
Fines
Postal PLI Premium
Period of absence from duty
Trade Union Subscription
Damage or loss of goods
Contributions to Prime Minister Fund
Recovery advances / Loans
Income Tax
Provident Fund
Order of Court
Deduction for House Accommodation
Deduction for amenities and services
Payment to Cooperative Societies
Maximum deductions should not exceed:
Ø When whole or part of the deductions are meant to Cooperative Society - 75 % of wage
Ø In other cases - 50% of wages.
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