Understanding the Payment of Wages Act 1936: What Are the Current Limits and Deductions?

Dear Seniors,

According to the Payment of Wages Act of 1936 (applicable to employees drawing wages less than 1600/month - old limit), could anybody please clarify what the current limit is and what the applicability criteria of this act are to the employees?

According to this act, authorized deductions are limited to 75% of wages in the case of Cooperative society deductions and 50% in the case of others. Could anybody please shed more light on the same?

Present limit has been enhanced. The percentage of deductions mentioned by you is correct, but the deductions should be for those specified in the act or permitted.

Dear Prashant,

For applicability, you may go through section 1(4) of this Act. As far as the wage ceiling is concerned, at present, this Act applies to wages payable to an employed person in respect of a wage period if such wages for that wage period do not exceed Rs. 10,000/- per month. For deductions in wages, you may go through section 7 of The Payment of Wages Act, 1936.

Regards,

R.N. Khola

Dear Seniors,

I heard that the present wage limit has been increased from 10,000 to 18,000 per month. Can anybody clarify this for me?

Regards,
Damodar Shetty

Dear All,

Please find attached a copy of the Gazette, which states that the wage limit has been increased to Rs 18,000/- per month.

Regards,
N. Nataraajhan
Sakthi Management Services
Mobile: +91 94835 17402
Email: natraj@sakthimanagement.com

Can anybody share clear-cut information regarding the current enhancements of wages as per the Payment of Wages Act-1936, with government notification.

Whether the Payment of Wages Act is applicable to financial institutions?

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The Payment of Wages Act is a legislation that aims to regulate the payment of wages to certain classes of employed persons. It ensures timely and full payment of wages to employees and provides for the deduction of certain amounts from these wages. Financial institutions need to comply with this act if they fall under the definition of an establishment covered by the legislation. Compliance with the Payment of Wages Act is essential to avoid any legal implications and ensure fair treatment of employees.