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Unit 8: Payment of Wages Act, 1936

Self Assessment Notes

Fill in the blanks:
7. If the number of working hours in any working day is ........................... hours or less, it
shall be regarded as a half-day.

8. Daily basis of wages can be further categorized into ........................... and ...........................

8.5 Rules in Payment of Wages Act

Following are the rules applicable on Payment of Wages Act area as follows:

8.5.1 Wage-periods (Sec. 4)

Every person responsible for the payment of wages must fix wage-periods in respect of which
wages shall be payable, and see that no wage-period exceeds one month in any case. The penalty
for contravention of this provision is fine extending to 200.

8.5.2 Time of Payment of Wages (Secs. 5 and 6)

In regard to the time of payment of wages the following rules must be observed:

Section 5 of the Act lays down that the wages of every person employed upon or in:
(a) Any railway, factory or other establishment upon or in which less than one thousand persons
are employed, shall be paid before the expiry of the seventh day.

(b) Any other railway, factory or industrial or other establishment, shall be paid before the
expiry of the tenth day after the last day of the wage-period in respect of which the wages are
payable.
(c) In the case of persons employed on a dock, wharf or jetty or in a mine, the balance of wages
found due on the completion of a final tonnage amount of the ship or wagons loaded or unloaded,
as the case may be, shall be paid before the expiry of the seventh day from the day of such
completion.

(d) Where the employment of any person is terminated by or on behalf of the employer the
wages earned by him shall be paid before expiry of the second working day from the date on
which his employment is terminated.

Notes This section relates to time of payment of wages which are to be paid within seven
days after the last day of the wage period except in establishments employing 1000 or
more persons which are permitted to pay within ten days. All payments of wages are to be
made on a working day. The penalty for a breach of the provisions of this section is
provided under section 20(1) of the Act namely, a fine upto five hundred rupees.

8.5.3 Exemption from Compliance with the Time Limit for Payment of
Wages

The Act empowers the state Govt. to exempt , the person responsible for the payment of wages
to persons employed upon in railways (otherwise than in factory), or to persons employed as

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