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Each organization has its own Salary Day, fixed for releasing wages/salaries to its employees. Sometimes, this day differs by few days, due to some reasons, like computer breakdown, strikes by banks, or yearly closing work of banks, hartals in city etc. Such delay in payment of salary by one or two days is willingly accepted by employees too. There are some employee-friendly companies, who release salaries, earlier also, when they smell that the salary day is likely to get disturbed, due to some reason.

I would like to know, when a Salary day falls on Holiday or Sunday (which is known to all well in advance), when the payment is suppose to be effected. A day earlier to the fixed salary day or on a later day ! Is there any legality !! What law says !!

In todays world, many employees get direct debit to their bank a/c, on a day disclosed by them to their banks, for the monthly deductions of loans, premiums etc. A delay in crediting salary to their a/c, even by a single day, may result to payment of penalty for bouncing EMIs etc.

Members are requested to express their views.

From India, Mumbai
As long as it is not contravening Section 05 of Payment of Wages Act there is no problem. As employee friendly culture it can be deposited before a day of Holiday / Sunday
From India, Pune
My dear friend
You have already answered your own query !!!
"There are some employee-friendly companies, who release salaries, earlier also, when they smell that the salary day is likely to get disturbed, due to some reason.
A delay in crediting salary to their a/c, even by a single day, may result to payment of penalty for bouncing EMIs etc. "
This is indeed the practice in all good companies.
Warm regards.

From India, Delhi
My Question is, in case there is a holiday / Sunday, falling on Salary Day, is it not a compulsion on employer, to release salary on earlier day ?
From India, Mumbai
Practically, I have seen in many companies that credit salaries to the employee's account earlier in case of there's leave or an off on the day salary credit and it is really a good practice that is employee friendly too. I many payroll software the date is defined for the salary transfer that automatically send instruction to the bank or authority regarding that...also it can be customized in case of holiday or leave so that the salary get credited on or before the salary day.
From India, Lucknow
Hello Abhay Bandekar,
Thank you for posting your query.
I agree with all Senior members who have commented on this post earlier. What they have mentioned is correct.
If you review global standards, payroll processing has transformed to be more employee friendly. That is why in certain industries payroll processing dates are between the 25th and 30th of every month, irrespective of a scheduled or unscheduled holiday. This enables you to avoid any delays.
If you claim to be an employee friendly Organization, this is the first step in ensuring your organization stands by that repute. After all, Salary is the key criterion why an individual employee would associate with you.
Regards

From India, Mumbai

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Dear Abhay,
The Company has to pay salary by cheque by the 7th of next month. If they do not adhere to this timeline, they have to pay salary in cash before the 10th of the next month. As long as the Co. adheres to this timeline there isn't any other compulsion regarding day of payment of salary.

From India, Pune
Dear Abhay,
Above all Prashant is right.Salary for those who are under purview of Payment of wages act i.e.salary > Rs 10,000 should be paid before 07th if Employee less than 1000 irrespective of holiday
Mangesh Wakodkar

From India, Pune
Hi Abhay :
I understand your concern. Infact I often face this dilemna. As HR, I always try to convince Mgmt to process the salaries on time but I have seen that when a salary date falls on a holiday or a weekend the mgmt prefer to process the salary on the the next working day and not prior to holiday. It is ironic. Certainly it requires a employee friendly management who considers the sensitivity of the employees during such situations. We as HR should never stop representing what is most appropriate for the employees though it may require hardselling at times.
- Gia

From India, Pune
Dear Friend,
It is always better to pay slaries on the last working day of the month. Hence there is no confusion with the dates. For salaries you may calculate your month from 21-20 so that Payroll team has enough time to process salaries.

From India, Madras

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