Please tell me, is there a statutory last day for disbursing salary for a company with approximately 80 employees where the average salary amount is more than 10k? Is there any statutory ceiling on salary in this regard?
From India, Calcutta
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From India, Calcutta
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As per the Payment of Wages Act, for an establishment employing fewer than 1000 employees, monthly wages shall be paid by the 7th of the next month. If the workforce exceeds 1000 employees, wages must be paid by the 10th of the following month for which the wages are due.
Regards,
Rahul
From India, Delhi
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157Regards,
Rahul
From India, Delhi
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Dear Ropan,
In continuation of the reply by Rahul, please note that here it is not the date but the period that is important. The Act stipulates that payment should be made within 7 days from the last payment date.
Shailesh Parikh
99 98 97 10 65
Vadodara
From India, Mumbai
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In continuation of the reply by Rahul, please note that here it is not the date but the period that is important. The Act stipulates that payment should be made within 7 days from the last payment date.
Shailesh Parikh
99 98 97 10 65
Vadodara
From India, Mumbai
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Hi Rahul, Thanks for the quick response. But is this condition of 1000 employees and 7th of the month is valid only up to salary of 10k?
From India, Calcutta
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From India, Calcutta
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sir, it is not the last payment date. it is after the last day of the wage period in respect of which the wages are payable. regurajan
From India
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From India
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Dear Colleague,
Your query falls within the ambit of the provisions under the Payment of Wages Act, 1936, and its recent amendments. The act applies to the factories/establishments and to wages drawn up to ₹24,000 per month by an employee. It requires the employer to define the wage period, which will not exceed a month. The last day for paying wages is the 7th day or the 10th day from the close of the wage period where the employee strength is less than 1000 and more than 1000, respectively. For more compliance, please refer to the latest text of the Act/Rules.
Regards, Vinayak Nagarkar HR Consultant
From India, Mumbai
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Your query falls within the ambit of the provisions under the Payment of Wages Act, 1936, and its recent amendments. The act applies to the factories/establishments and to wages drawn up to ₹24,000 per month by an employee. It requires the employer to define the wage period, which will not exceed a month. The last day for paying wages is the 7th day or the 10th day from the close of the wage period where the employee strength is less than 1000 and more than 1000, respectively. For more compliance, please refer to the latest text of the Act/Rules.
Regards, Vinayak Nagarkar HR Consultant
From India, Mumbai
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1 Amendment to The Payment of Wages Act to pay Salary by Cheque or NEFT.pdf
PAYMENT OF WAGES ACT 2009.doc