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ARTICLE · 08 SEPTEMBER 2017

Payment Of Wages Act – Salary Threshold Revised

The Wages Act regulates the payment of wages to persons employed in factories, railways, industrial and other establishments specified under the Wages Act.

IndiaEmployment and HR

 The Government has vide notification dated August 28, 2017 revised the salary threshold for the applicability of the Payment Wages Act, 1936 ("Wages Act") from Rs. 18,000/- (Rupees Eighteen Thousand Only) per month to Rs. 24,000/- (Rupees Twenty Four Thousand Only) per month. Consequently, the provisions contained under the Wages Act will now be applicable to employees earning wages up to Rs. 24,000/- (Rupees Twenty Four Thousand Only) per month, covering a significantly larger number of employees within the purview of the Wages Act.

The Wages Act regulates the payment of wages to persons employed in factories, railways, industrial and other establishments specified under the Wages Act. It contains provisions with respect to the responsibility for payment of wages, fixing of wage-periods, time of payment of wages, permissible deductions, maintenance of records and registers and penal consequences for non-compliances of the provisions stipulated under the Wages Act.

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