The Payment of Wages Act

The Payment of Wages Act, 1936 and the rules framed thereunder are enacted wit the objective to regulate the payment of wages of certain classes of employed persons.


The Act extends to the whole of India.

The Act is applicable to the payment of wages to persons employed:

  1. in any factory,
  2. otherwise than in a factory upon any railway by a railway administration or,
  3. either directly or through a sub-contractor, by a person fulfilling a contract with a railway administration, and
  4. to persons employed in an industrial or other establishment specified in sub-clauses (a) to (g) of clause (ii) of section 2 of the Act.

The Act applies to wages payable to an employed person in respect of a wage period if such wages for that wage period do not exceed Rs.24,000/- per month or such other higher sum which, on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey Organisation, the Central Government may, after every five years, by notification in the Official Gazette, specify.


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