Pay Period Dilemma: Can Employers Legally Set Wages Beyond a Month?

Hello,

Can any employer set a pay period longer than one month for employees under their employment?

Thanks

Under the Payment of Wages Act, the time limit is one month at max. However, not all employees qualify to be covered under the Payment of Wages Act. In that case, your contract with the employer serves as the guide. If nothing has been stated in the contract, the period deemed will be one month, based on reasonability, commonly known as the wage period. This basic assumption can be overturned by a specific point in the contract related to this issue and not otherwise.

Payment of Wages Act, 1936: Wage Period Guidelines

If an employee falls within the purview of the Payment of Wages Act, 1936, then no employer can fix the period of one month in the form of payment of wages. However, Section 4 of the Payment of Wages Act, 1936, deals with the fixation of wages. According to this section, the wage period can be fixed on a daily basis, weekly basis, half-monthly basis, or full-monthly basis, as the case may be, but not exceeding the period of one month.

According to Section 5 of the Payment of Wages Act, 1936, if the employee strength is less than 1000, the wages shall be disbursed on or before the 7th of the next month. If the employee strength is 1000 or more, then the wages shall be disbursed on or before the 10th of the next month.

A wage period exceeding one month violates the Payment of Wages Act, 1936.

Thanks & Regards,
V SHAKYA
HR & Labour Law Advisor

Hi,

Section 4 of the Payment of Wages Act states that every employer is responsible for paying wages to their employees, and it should not exceed one month. This means that every employee should receive wages on a monthly basis.

You can download the Wages Act for free from [Simpliance - Labour Law Compliance](http://www.simpliance.in), a free labor law library.

Thanks,
HR Consultant