What do you guys think should be the payday in a company? How do you think it all affects a company and employees if it is the last working day of a month/1st working day of the next month/6-7th working day of the next month?
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Dear Aroraneha,
As per the Payment of Wages Act, wages for a month are to be paid on or before the 7th of the succeeding month, provided the employee strength is below 1000. If the strength is 1000 or above, the payment date can be up to the 10th.
Abbas.P.S
From India, Bangalore
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530As per the Payment of Wages Act, wages for a month are to be paid on or before the 7th of the succeeding month, provided the employee strength is below 1000. If the strength is 1000 or above, the payment date can be up to the 10th.
Abbas.P.S
From India, Bangalore
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As a general policy say the payday should be on or before 5th of every month, so the Employees as well as Organisation will have the time think and calculate accurate payroll process. Thank you.
From India, Bangalore
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From India, Bangalore
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Importance of Consistent Paydays
The payday fixed by the company needs to be constant every month. Irrespective of any problem, the salary should be paid on that day. For example, if the payday is the 7th of every month, then year on year, without fail, the credit should occur on the 7th. Consistency helps employees organize their monthly budgets and payments.
Having the payday as the 1st or 10th is not the issue; the real concern is maintaining that date consistently month after month. Most employees will consider the payday a problem if the date is not fixed and maintained.
Regards,
Ashutosh Thakre
From India, Mumbai
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The payday fixed by the company needs to be constant every month. Irrespective of any problem, the salary should be paid on that day. For example, if the payday is the 7th of every month, then year on year, without fail, the credit should occur on the 7th. Consistency helps employees organize their monthly budgets and payments.
Having the payday as the 1st or 10th is not the issue; the real concern is maintaining that date consistently month after month. Most employees will consider the payday a problem if the date is not fixed and maintained.
Regards,
Ashutosh Thakre
From India, Mumbai
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Pay day in a company it should be the last working day of every month. The HR dept should take a necessary action to made this sucess
From India, Coimbatore
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From India, Coimbatore
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Dear Aroraneha,
Dear Abbas has clarified correctly as per the Act. Discuss with Management regarding the Act and its implications to set the date. Remember, the Employer has to pay/deposit PF by the due date, for example, 15 days from the salary date. Other statutory taxes also need to be deposited. Therefore, discuss with Management, Accounts/Salary Administration Team, any other decision-making body, and then finalize. Once the date is set, it must be displayed on the Notice Board as well.
Regards
From India, Mumbai
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Dear Abbas has clarified correctly as per the Act. Discuss with Management regarding the Act and its implications to set the date. Remember, the Employer has to pay/deposit PF by the due date, for example, 15 days from the salary date. Other statutory taxes also need to be deposited. Therefore, discuss with Management, Accounts/Salary Administration Team, any other decision-making body, and then finalize. Once the date is set, it must be displayed on the Notice Board as well.
Regards
From India, Mumbai
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Amendment to Payment of Bonus Act 2015.jpg
Online payment of PF mandatory from 1.1.2016.pdf