Wage Slips and NEFT Transfers: Are They Still Necessary for Workmen?

Good morning, folks. I would like to know if it is mandatory or compulsory to issue wage slips to workmen even if we pay wages through NEFT transfer to the workmen's accounts. In such a case, what are the requirements? Can someone guide me, please?

Issue of Salary Slip is Compulsory

It is stated in various acts and rules, including standing orders, the Payment of Wages Act, the Factory Act, etc. You don't have a choice in it. The mode of payment does not determine it; the payslip must include information on attendance, breakdown, working hours, etc., not just the final amount paid.

Also, how can any employee know about their calculation of salary/wages? This can only be understood by the salary slip. In NEFT, you only transfer the amount of net payment. That's why it is logically and statutorily necessary to give the pay/salary slip to respective employees.

Dear Member, In general, we are required to issue wage slips to the employees a day prior to the disbursement of wage/salary under the Minimum Wages Act & Rules and Contract Labour (R&A) Act & Rules. Now, please see which of the Acts is applicable to you. After finalization of the appropriate Govt., you are to go through the applicable Rules for the procedure & format of this slip. Thus, if you are covered under these Acts, then you are bound to issue wage slips in accordance with the law.

Regards, R. NKHOLA

Dear Rupesh, then what is to be done if you are covered under the Factories Act, 1948? Your query relates to the issuance of wage slips while the Factories Act does not require you to issue wage slips.

R N KHOLA

Sir, we are in Karnataka state, and ours is a dental diagnostic center (Healthcare Pvt Ltd). Which act and rule are applicable to our company? Do we have to issue wage slips?

Dear Member, Please note that my area of work is in Haryana State. You need to review the list of scheduled employments under the Minimum Wages Act declared by your government for your query. If your establishment falls under any of the scheduled employments, then you are required to issue wage slips to the employees under this Act and its Rules. You can also contact the area labor office for assistance.

Regards, R N KHOLA

Dear Rupesh,

When the provision of an Act or the Rules framed under the same requires the employer or another person to do something in a particular manner, they are obligated to do it in that manner and not otherwise. Maintenance of registers, issuance of wage slips, collection of nominations, and exhibition of notices in physical forms cannot be dispensed with due to the availability of the required details in electronic form unless there are specific statutory exemptions in this regard.

Rule 26(2) of the Minimum Wages (Central) Rules, 1950

Rule 26(2) prescribes the issuance of wage slips in Form XI. Your State Payment of Wages Rules would have a specific rule for the issuance of salary/wage slips to the employees.

Purpose of Issuing Wage Slips

The purpose of this provision is to enable the employee to know their gross salary, deductions, and net salary. Therefore, you cannot skip this just because of the payment through ECS.