Understanding Wage Laws: What Governs Employees Earning Over Rs 18,000?

Dear Seniors,

As per Section 1(6) of the Payment of Wages Act, it is applicable to employees earning wages up to Rs 18,000 only. Therefore, considering the definition of wages provided in the same act, it should be interpreted as "GROSS" wages. Based on this interpretation, many employees will fall outside the scope of this act.

If my understanding is correct as mentioned above, then which act will govern employees earning more than Rs 18,000 in wages for issues related to payment of wages and deductions? Your insights on this matter would be appreciated.

Regards

Still, the question of deducting PF is not understood. I have consulted a few people, and they say PF has to be deducted as they are wages and not overtime amount. Requesting insights, please.

The workmen earning over ₹18,000 will be governed by other acts - Factories Act, Shop & Establishment Act, Minimum Wages Act, Standing Orders Act, Industrial Dispute Act, etc.

Highly paid employees do not actually have any specific protection, and they will need to file a civil suit against the company.

Mostly, the members have touched upon the points you raised.

Regarding the Ceiling to cover under PWA, 1936, the wage to be taken up to Rs. 18,000/-, which is covered under Basic and DA, but not the gross.

Wages include all components under which an employee is paid. Please refer to section 2 of the Act.