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Dear Sir, Presently We have Calendar month as the Wage Period. Can we change on our own accord our Wage period from 26th of Previous month to 25th of Current Month. Alternatively can we close attendance as of 25th of the month, pay wages for remaining period of month as advance and in the succeeding month if any deductions are there can be adjusted, otherwise attendance will automatically get regularised. If we follow this pattern of salary processing, will there be any problem for the Employer. Please provide your valuable and expert guidance.
Dear friend,
Please refer to section 4 of the Payment of wages Act,1936 which precisely deals with fixation of wage periods.
Sub section (1) of sec.4 makes it mandatory for the employer to fix the wage period which means the periodicity in which wages are payable. It can be anything like daily, weekly, fortnightly etc. But ss (2)of sec.4 limits it to monthly by declaring that no wage period shall exceed one month. Just for the sake of clarity, a month is universally considered to comprise of 30 days. Therefore within this limits you can change your wage period accordingly.
But your statement based on the closing of the attendance of the employees on every 25th of the month that the wages for the remaining period of the month to be treated as advance does not seem to be logical. Since the 26th day of the previous month is the starting date of the period of 30 day's cycle, why should you unnecessarily treat the wages for the period after the 25th day of the following month as advance?

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