Understanding Salary Payment Deadlines: How Soon Should Employees Receive Their Pay?

Hi,

Can any labor laws specialist help me with this? What is the number of days within which salary must be paid to employees after the completion of a month? Nowadays, salary is directly deposited into the bank account. Is there any ruling that states salary must be processed within 7 days or 10 days after the completion of a month? Please let me know what the maximum staff strength limit is to determine whether salary should be released in 7 days or 10 days.

Does it mean the company must release the salary within 7 days or must it be realized in the hands of the employee (read bank account) by the end of the 7th day? Sometimes the company releases the salary on the 7th day, but it only reaches the employees' accounts on the 10th day due to various reasons.

Please reply ASAP. Generally, my threads receive zero responses, but I hope to get the required answer this time. :icon1:

Thanks in advance with warm regards,
Geeta

Dear Geeta,

If the number of employees is 1000 or more, you can make payment by the 10th of the next month. If the number of employees is less than 1000, then payment should be made by the 7th of the next month.

Regards,
J. S. Malik

Dear Geeta,

Now you must be happy that our senior member has given you the timely response.

Regards, R.N. Khola
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
09810405361

Thank you so much, Mr. Malik. Please clarify if payment should be made by the 7th of next month. Does this mean the payment is to be released by the company by the end of the 7th day, or should it be realized in the employee's account by the 7th day?

Warm Regards, Geeta

Dear individual should be able to take out money from the bank on the 7th. I think it is clear now.

Regards,
J. S. Malik

Thank you so much, Mr. Malik. Please clarify, does "payment should be made by the 7th of the next month" mean the payment should be released by the company by the end of the 7th day, or should it be realized in the employee's account by the 7th day?

Warm Regards,
Geeta

Dear Mr. Malik,

It would be useful to know whether there are any legal implications if the employer does not pay the salary by the 7th of the month and also holds back the salary of previous months, stating a lack of funds.

Kumar

Dear Mr. Kumar,

If the employer cannot pay the salary within the specified period for whatever reason, he must apply to the Inspector of Factories, asking permission from the same, to quote the act "the occurrence of an emergency or the existence of exceptional circumstances, such that the person responsible for the payment of the wages was unable, though exercising reasonable diligence, to make prompt payment." In such a case, action will not be taken against the employer; otherwise, he is punishable with a fine and imprisonment or with both.

Whoever contravenes the provisions of Section 5 shall be punished with a fine of a minimum of two hundred rupees but which may extend to one thousand rupees if the offense is for the first time. For a repeated offense, the punishment is imprisonment for a term of a minimum of one month but which may extend to six months and with a fine of a minimum of five hundred rupees but which may extend to three thousand rupees. Section 5 deals with "Time of Payment of Wages."

Kirti

If you have an employee strength of over 1000 and your company is paying over bank, then you have to ensure that the worker will get it before the end of the 10th day after completion of the month, i.e., their account should be credited by the bank. The same applies for employees with less than 1000, the time limit is 7 days. If you are unable to do this, you need to display a notice mentioning the reason for the delay in payment.

Thanks,
Koushik

Dear all,

I think Mr. Malik has cleared up all the matters. If you need any further clarification, you must read sections 5 and 6 of the Payment of Wages Act 1936.

Thank you and regards,
Manu

Dear Kirti,

Thank you so much for the information. One last question: who should the matter be reported to or complained to if such a default occurs?

Regards,
Kumar

Dear Kumar,

The State Labour Department is responsible for the enforcement of the Payment of Wages Act, 1936. You are required to make a complaint to the area Labour Inspector/Labour Officer. You can file a claim for non-payment of wages yourself before the Authority under The Payment of Wages Act.

Regards,

R.N. Khola
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
09810405361

Hi,

Just an afterthought...

Say you don't want to be caught (like complaining to the labor department/officer) and want to maintain your good image in the company for all concerned. Also, you know that your payment is always deposited after 2 days from the set deadline. Being well-paid, you may not really bother to think about whether you are paid in 7 days or 9 days, and being a good company, you know salaries are released every month.

So, how will you bring your management to the realization that salaries must be sent to the bank account within 7 days, respecting the laws and rules of the land?

Truly speaking, many companies do not stick to the rules, and the labor inspector is also content knowing that employees are paid on a monthly basis. If employees are paid, he need not worry, but if they are not paid, he can still be paid to keep his attention elsewhere. How do you make your point?

Thanks,
Geeta