Is It Mandatory to Pay Salaries by the 10th Under the Shops and Establishments Act for Small Companies?

Respected Seniors and my dear colleagues,

I would like to know whether it is compulsory under The Shops and Establishments Act to pay off salary within the 10th of the month for less than 500 employees. Our company strength is 50 currently.

I will be highly obliged if you can shed some light on the same.

Thanking you in anticipation,

Indrani Chakraborty

Dear Indrani,

The salary should be paid before the 7th of every month if the organization employs less than 1000 employees. If the staff size exceeds 1000, the salary shall be paid on or before the 10th. If the payment date falls on a holiday, then the salary shall be paid on or before the previous day (i.e., 6th / 9th). Trust this clarifies your doubt.

Dear Ms. Roopa,

Thank you so much for the clarification. Could you also inform me about the legal implications if a company fails to follow this rule? If an employee files a complaint at the labor office, what challenges might the employer encounter?

Thank you.

The company will be penalized with a fine of Rs. 1000 for every day of delay or imprisonment up to 3 months for the designated persons or both.

Thank you.

Obligation to pay wages on the 7th (if employing less than 1000 employees) or the 10th (if employing more than 1000) of the wage month is provided in the Payment of Wages Act, 1936.

Regards,
Madhu.T.K

Sir,

Please give me advice on how to divide the cadder's salary structure with ESI, PF in shops. We are Balaji Watch Company in Nellore.

Sir,

Please give me advice on how to divide the caddar's salary structure with ESI and PF in shops. We are Balaji Watch Company in Nellore.