Understanding Wage Slip Regulations: How Should We Issue Them to Factory Workers?

Dear All,

This is Raja and I am a new member. I would like to know the statutory provisions by which we are supposed to issue wage slips to factory workers.

Thanks and best regards,

Raja G

Hi Raja,

There isn't any specific topic in the Factory Act, but it is regulated through the "Industrial Employment Standing Orders Act". Generally speaking, it is the employer's obligation to issue wage slips two days before disbursement, on or before the 7th of every month if there are 100 workers, otherwise by the 10th.

Regards,
Sidheshwar

Dear Sidheswar,

Thank you for the clarification. I would like to request you to please quote the particular section in the Standing Orders Act which requires management to issue wage slips.

I have one more question. There are factories that do not employ 100 or more people and, therefore, the Standing Orders Act does not apply to them. In such cases, which other legal provision can we refer to for those factories (where less than 100 workers are employed) to issue wage slips to workers?

Thank you for your support.

Best regards,
Raja G

The Minimum Wages Act provides for issuing a wage slip if the industry is covered under the schedule.

Please let me know if you need any further assistance.

Dear Raja,

As per Section 18 (Maintenance of Return, Registers, and Records) under the Minimum Wages Act, it is obligatory for the employer to issue wage books or wage slips to the employees if required by the government and make authenticated entries therein.

According to the standing order, every term and condition of services should be followed. You can refer to the model standing order for more details.

Regards,
Sidheshwar

Dear Mr. Sidheswar,

In order to determine the salary, a wage slip is required for any workers or executives under the Factories Act.

Is it obligatory for the employer to issue the wage slip two days before the salary disbursement, i.e., on the 7th, if the number of workers is less than 1000? However, this requirement is not mentioned in the standing orders.

I need your advice.

Thanks,
Shivakumar

Hi Shiva,

It depends upon the organization's approved standing order by the concerned labor commissioner. Generally, it consists in SO, but there is no clause in the Factory Act as far as I know. It is mandatory as well as obligatory.

Regards,
Sidheshwar

Hi friends,

In the register of wages (Form XVII), there are four main columns given: (1) basic wages, (2) DA, (3) overtime, and (4) other cash payments. My question is whether the column mentioned as 'other cash payments' shall be treated as part of minimum wages or if only basic and DA are considered as minimum wage. Please clarify.

Regards,
Shailendra Singh
Senior Officer (HR)
PSU

Dear Shailendra,

Please go through the minimum wages notification of your state if your unit is covered under the Minimum Wages Act, 1948. See if different components are allowed or not.

Regards,
R.N. Khola
Sr. Associate (Haryana)

Is a Payslip Compulsory for NEFT Transfers?

Is a payslip compulsory even if we pay salary through NEFT transfer to the employees' accounts? In such a case, what are the requirements? Can someone please provide guidance?

Thanks in advance.

Dear All,

I am Swapnil, working in a manufacturing plant with 80 workers. I would like to know if it is mandatory to mention FORM II [SEE RULE 27(1)] on the payslip?

Thank you.