Postpone The Date Of Wages Payable As Per Payment Of Wages Act - CiteHR
Saswatabanerjee
Partner - Risk Management
Boss2966
Industrial Relations
Stephen_7
Senior Officer - Hr
Mnsahu
General Manager, Corporate Hr
+1 Other

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Hi all,
Greetings..!
As you are all aware that manufacturing units are in down stage. That too automobile based companies are facing very tough situation.
The question here is that, can we postpone the wages payable to all employees from 7th of every month. I read this rule says that, wages should be paid with in seven days (before completion of seventh day) of attendance. So, can we close the attendance by 15th of every month and pay wages in seven days? Means before 22nd of every month.
is there a way to do this? We have to give a letter to inspector of factories to change our factory's wage payable date.
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Hi,
As per section 4 of Payment of Wages Act, wage-period can be fixed. Section is reproduced under:
4. Fixation of wage-periods.-
(1) Every person responsible for the payment of wages under section 3 shall fix periods (in this Act referred to as wage-periods) in respect of which such wages shall be payable.
(2) No wage-period shall exceed one month.
Dear Stephen
You can make the Fortnightly payment instead of Monthly Payment. The Payment duration should not exceed 1 month. If you do so, then you can close the attendance by every 15th and 30/31 of the month. You can pay them on every 22nd and 7th of every month.
Mr. Gupta has given the details of Section 4 of Payment of wages act for your reference.
Hi,
Thanks for your replies.
So, we can calculate the wage period from 16th of a month to 15th of next month and we can pay salary before 22nd, means with in 7 days.
We have to pay 15 days salary and can start changing it? Or we should inform to Inspector of factories and have to get approval from them??
Hi,
Yes you can change after paying salary for 15 days. U/S 4 of the Act, person responsible for payment of wages can fix the wages period. Hence pass order as per Act and notify to the staff & workers who will be affected due to this change and ask for the objections if any and finally decide after considering their objections, if any. Pls check with last date of payment of ESIC & EPF or any other legal liability such as TDS etc.
Payment Of Wages Act talks about two major things.
1) Fixation of Wage period and Timely Payement.- .
2) Deductions.
Wage period denotes the attendance period and Timely payment as per Section(5) (a) indicates 7th day of closing of month.Not attendance period if strength is up to 999 employees.
In no circumtances it should cross the time limit.
Thanks
Mritunjay Nath Sahu
GM(HR)
No, you can not do this
You have to pay salary for the calander month and you do not have the option of paying for any period that is half of a month and half of another month. What the other member are suggesting is to pay the salary every 15 days, that is to pay twice a month.
I do not understand what benefit you will derive by changing the payment date from month end to half way through a month. I mean, it will just change the date. The amount or your cash flows do not change at all

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