Lets not confuse Payment of Wages Act with Minimum Wages Act or ESIC Act.
All these act are separate from each other having separate set of objectives. These acts provides separate set of obligations/compliances of the employers.
The objective of the Payment of Wages Act, 1936 is to (1) regulate payment of wages, imposition of fines and deductions from wages, and (2) eliminate all malpractices by laying downwage periods and time and mode of payment of wages etc.
This Act ensures payment of wages in a particular form at regular intervals without unauthorized deductions. The compliance of the Payment of Wages act is applicable to the employees getting wages upto 18,000/- per month
Obligations of Employers as per Payment of Pages Act:-
Every employer is primarily responsible for payment of wages to his employees.
a.) Every employer should fix the wage-period, which may be per day, per week or per month, etc., but in no case it should exceed one month.
b.) Employer should make timely payment of wages. If the number of employees is less than 1000, then wages must be paid within 7 days of the expiry of the wage period, and in other case within 10 days of the expiry of the wage period. Besides, all payments of wages should be made only on a working day.
c.) Wages should be paid in cash or by cheque or by crediting in employee’s bank account, after obtaining his written consent.
d.) The employer should not make any unauthorized deductions from wages.Employer can make permissible deductions such as for income tax, recovery of loans and advances, employee’s subscription to provident fund, and with his written consent for payment of life insurance premium, purchase of Government securities, deposits in any Post Office Savings Bank, contributions to any labor welfare fund and fees for membership of any trade union, etc. etc.
e.) In case of death of an employee, all amounts payable to him as wages should be paid to his nominee or legal heir.
Hope doubts of you guys are clear now.
11th October 2012 From India, Pune