Facing Delayed Salaries in Bangalore: What Can HR Do to Address This Issue?

Dear All,

I am working in a Pvt Ltd company under the Shops and Establishment Act in Bangalore. The issue pertains to the late payment of salaries occurring after the recession period. I will outline the procedure to seek your suggestions.

1. The attendance will be frozen by the 25th of every month.
2. The attendance and salary reports will undergo auditing by the 28th.
3. The auditing report will be received by the end of the month or on the 1st or 2nd of the subsequent month.
4. The final report will be sent to the finance team for payment within 2 days.

The delay commences at this stage. The company previously followed a practice of paying salaries between the 7th and 8th of the succeeding month after the salary period. However, recently, payments are often delayed, reaching beyond the 15th and sometimes as late as the 25th of the succeeding month.

Are there any laws against late payment of salaries? As an HR professional, how can I educate the company management on this issue? Please suggest all possible solutions.

Thank you.

I am facing the same problem in my company. Can anyone help with this matter?

Regards,
Dakshesh Naik

I am facing the same problem in my company. Can anyone help with this matter?

Regards,
Dakshesh Naik

Dear Faizal Hydrose,

As per the Payment of Wages Act, the salary should be paid within 7 days after the completion of a month if the number of employees is below 1000. If the number of employees is 1000 or above, it can be up to 10 days. This is applicable to those who draw a salary up to Rs. 10,000.

Abbas. P.S

I think, as per the law, the salary has to be disbursed on or before the 7th. However, I am also facing the same problem in my company. I have informed management many times regarding this issue, but management is giving the least preference to the salary, and the company situation also matters.