Short Answer Questions and Answers
What is the short title of the Act?
Answer: The short title of the Act is the Payment of Wages Act, 1936.
When did the Act come into force?
Answer: The Act came into force on March 28, 1937.
To which employees does the Act initially apply?
Answer: The Act initially applies to persons employed in factories, railways (directly or through
subcontractors), and industrial or other establishments speci ed under Section 2(ii)(a) to (g).
What is the current wage limit for the applicability of the Act?
Answer: The current wage limit is ₹24,000 per month.
Who is responsible for the payment of wages under Section 3?
Answer: The employer is primarily responsible, with designated managers, supervisors, or
nominated persons accountable in speci c cases like factories, railways, or contractors.
What is the maximum duration of a wage-period under Section 4?
Answer: The maximum duration of a wage-period is one month.
Within how many days must wages be paid for establishments with fewer than 1,000 employees?
Answer: Wages must be paid within seven days after the last day of the wage-period.
In what forms can wages be paid according to Section 6?
Answer: Wages can be paid in current coin, currency notes, by cheque, or by crediting to the
employee’s bank account.
What is the maximum percentage of wages that can be deducted in a wage-period (except for
co-operative society payments)?
Answer: The maximum deduction is 50% of wages.
Under what conditions can nes be imposed on an employed person?
Answer: Fines can be imposed only for speci ed acts/omissions approved by the appropriate
government, after giving the employee a chance to show cause, and must not exceed 3% of
wages per wage-period.
What must employers maintain under Section 13A?
Answer: Employers must maintain registers and records of employees, work performed, wages
paid, deductions, receipts, and other particulars, preserving them for three years.
Who can be appointed as an Inspector under Section 14?
Answer: Inspectors can be Factory Inspectors appointed under the Factories Act, 1948, or other
persons appointed by the appropriate government.
Within how many months can a claim for wrongful deduction be led under Section 15?
Answer: A claim can be led within twelve months from the date of deduction or due payment.
What is the maximum compensation for delayed wages under Section 15?
Answer: The maximum compensation is ₹3,000, with a minimum of ₹1,500.
Within how many days can an appeal be led against an order under Section 15?
Answer: An appeal can be led within thirty days from the date of the order or direction.
What is the penalty for contravening wage payment provisions under Section 20?
Answer: The penalty is a ne ranging from ₹1,500 to ₹7,500.
What does Section 22 prohibit?
Answer: Section 22 prohibits courts from entertaining suits for wage recovery if the claim is
pending, adjudicated, or could have been addressed under Section 15.
What is the purpose of Section 25A?
Answer: Section 25A provides for the payment of undisbursed wages in case of an employed
person’s death, either to a nominated person or deposited with a prescribed authority.
Who has the rule-making power under Section 26?
Answer: The appropriate government has the rule-making power to enforce the Act’s provisions.
What happens to contracts that relinquish rights under this Act?
Answer: Such contracts are null and void under Section 23.
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