Maintenance of Registers and Records (Section 13A)
Employers must maintain records of employees, work, wages, deductions, and receipts,
preserving them for three years.
Inspectors and Their Powers (Sections 14, 14A)
Inspectors (e.g., Factory Inspectors or those appointed by the government) can inspect premises,
supervise wage payments, seize records, and enforce compliance.
Employers must provide reasonable facilities to inspectors.
Claims and Penalties (Section 15)
Employees or authorized representatives can claim refunds for wrongful deductions or delayed
wages within 12 months.
The authority can order refunds, compensation (up to 10 times the deducted amount or ₹3,000,
with a minimum of ₹1,500 for delays), and impose penalties for malicious claims (up to ₹375).
Appeals (Section 17)
Appeals against orders under Section 15 can be led within 30 days in the Court of Small Causes
(in Presidency towns) or District Court, with a deposit requirement for employers.
Conditional Attachment of Property (Section 17A)
If an employer is likely to evade payment, the authority can attach their property, following Civil
Procedure Code provisions.
Penalties for O ences (Section 20)
Contraventions of wage payment rules attract nes ranging from ₹1,500 to ₹7,500. Repeat
o enders may face imprisonment or higher nes (up to ₹22,500).
Failure to maintain records or obstruct inspectors also incurs penalties.
Miscellaneous Provisions (Sections 22-26)
Bars suits for wage recovery if claims are pending under the Act (Section 22).
Protects government actions taken in good faith (Section 22A).
Nulli es contracts relinquishing Act rights (Section 23).
Allows delegation of powers and rule-making by the appropriate government (Sections 24, 26).
Mandates displaying Act abstracts (Section 25) and provisions for undisbursed wages in case of
death (Section 25A).
Scope and Applicability
Covered Employees: The Act applies to workers in factories, railways, mines, plantations, docks,
air transport, and other speci ed establishments, with wages not exceeding ₹24,000 per month
(as updated in 2017).
Exclusions: Highly paid employees (above the wage ceiling) and those in unlisted establishments
are excluded unless extended by noti cation.
Geographical Extent: Applies across India, with extensions to Union Territories like Goa, Daman
and Diu, and Lakshadweep.
Key Features and Implications
Timely Payment: Ensures wages are paid on time, reducing nancial hardship for workers.
Controlled Deductions: Limits deductions to authorized types, protecting employees from
exploitation.
Enforcement Mechanism: Inspectors and authorities provide oversight, with legal recourse for
violations.
Worker Protection: Compensation for delays and penalties for employers deter non-compliance.
Flexibility: Allows the government to adapt the Act to new industries or wage levels through
noti cations.
Amendments and Updates
The Act has been amended multiple times (e.g., 1957, 1964, 1982, 2005, 2017) to:
Increase wage ceilings (from ₹18,000 to ₹24,000 in 2017).
Enhance penalties and compensation limits.
Expand the de nition of "industrial or other establishment" and "wages."
Strengthen inspector powers and record-keeping requirements.
Practical Signi cance (as of May 09, 2025)
Given the current date, the Act remains relevant with its latest wage limit of ₹24,000, re ecting
adjustments for in ation and living costs. Employers must comply with digital payment modes
(e.g., bank transfers) as mandated, and workers can leverage the claims process for redressal.
The Act’s focus on welfare (e.g., using ne proceeds for employee bene ts) aligns with modern
labor rights frameworks.
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In conclusion, the Payment of Wages Act, 1936, is a cornerstone of labor law in India, balancing
employer responsibilities with employee rights. Its detailed provisions ensure fair wage practices,
with ongoing amendments keeping it aligned with contemporary economic conditions
