Respected Seniors and my dear colleagues,
I would like to know whether it is compulsory under The Shops and Establishments Act to pay off salary within the 10th of the month for less than 500 employees. Our company strength is 50 currently.
I will be highly obliged if you can shed some light on the same.
Thanking you in anticipation,
Indrani Chakraborty
From India, Pune
I would like to know whether it is compulsory under The Shops and Establishments Act to pay off salary within the 10th of the month for less than 500 employees. Our company strength is 50 currently.
I will be highly obliged if you can shed some light on the same.
Thanking you in anticipation,
Indrani Chakraborty
From India, Pune
Dear Indrani,
The salary should be paid before the 7th of every month if the organization employs less than 1000 employees. If the staff size exceeds 1000, the salary shall be paid on or before the 10th. If the payment date falls on a holiday, then the salary shall be paid on or before the previous day (i.e., 6th / 9th). Trust this clarifies your doubt.
From India, Madras
The salary should be paid before the 7th of every month if the organization employs less than 1000 employees. If the staff size exceeds 1000, the salary shall be paid on or before the 10th. If the payment date falls on a holiday, then the salary shall be paid on or before the previous day (i.e., 6th / 9th). Trust this clarifies your doubt.
From India, Madras
Dear Ms. Roopa,
Thank you so much for the clarification. Could you also inform me about the legal implications if a company fails to follow this rule? If an employee files a complaint at the labor office, what challenges might the employer encounter?
Thank you.
From India, Pune
Thank you so much for the clarification. Could you also inform me about the legal implications if a company fails to follow this rule? If an employee files a complaint at the labor office, what challenges might the employer encounter?
Thank you.
From India, Pune
The company will be penalised with fine of Rs.1000/- for every day of delay or imprisonment upto 3 months of the designated persons or both.
From India, Madras
From India, Madras
Obligation to pay wages on 7th (if employing less than 1000 employees) or 10 th (if employing more than 1000) of the wage month is provided in the Payment of Wages Act, 1936. Regards, Madhu.T.K
From India, Kannur
From India, Kannur
CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.