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Taxmann's Payment of Wages Act 1936 with Rules

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Contents PAYMENT OF WAGES ACT, 1936 PAGE

1. Short title, extent, commencement and application

1

2. Definitions

2

3. Responsibility for payment of wages

10

4. Fixation of wage-periods

11

5. Time of payment of wages

11

6. Wages to be paid in current coin or currency notes or by cheque or crediting in bank account

12

7. Deductions which may be made from wages

14

8. Fines

20

9. Deductions for absence from duty

22

10. Deductions for damage or loss

23

11. Deductions for services rendered

23

12. Deductions for recovery of advances

24

12A. Deductions for recovery of loans 13. Deductions for payments to co-operative societies and insurance schemes 13A. Maintenance of registers and records 14. Inspectors

24 24 25 25

14A. Facilities to be afforded to Inspectors

26

15. Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims

26

16. Single application in respect of claims from unpaid group

36

I-5


CONTENTS

I-6 PAGE

17. Appeal

36

17A. Conditional attachment of property of employer or other person responsible for payment of wages

40

18. Powers of authorities appointed under section 15

41

19. [Omitted by the Payment of Wages (Amendment) Act, 1964, w.e.f. 1-2-1965]

42

20. Penalty for offences under the Act

42

21. Procedure in trial of offences

46

22. Bar of suits

47

22A. Protection of action taken in good faith

48

23. Contracting out

49

24. Delegation of powers

50

25. Display by notice of abstracts of the Act

50

25A. Payment of undisbursed wages in cases of death of employed person 26. Rule making power SUBJECT INDEX

50 51 55

PAYMENT OF WAGES (PROCEDURE) RULES, 1937 1. Short title

57

2. Definitions

57

3. Form of application

58

4. Authorisation

58

5. Permission to appear

58

6. Presentation of documents

58

7. Refusal to entertain application

58

8. Appearance of parties

58

9. Record of proceedings

59

10. Signature on forms

59

11. Exercise of powers

59

12. Appeals

59

12A. Order or direction when to be made 13. Inspection of documents FORM A: Form of individual application

60 60 60


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CONTENTS PAGE

FORM B: Form of Group Application

61

FORM C: Form of Application by an Inspector or person permitted by the authority or authorised to Act

62

FORM D: Certificate of Authorisation

62

FORM E: Notice for the disposal of application

63

FORM F: Record of order or direction

63

FORM G: Notice to respondent of the day fixed for the hearing of the appeal under section 17 of the Payment of Wages Act, 1936

64

PAYMENT OF WAGES (NOMINATION) RULES, 2009 1. Short title and commencement

65

2. Definitions

65

3. Procedure for nomination

66

FORM I: Nomination and declaration Form

66


Payment of Wages Act, 1936 [SHALL BE REPEALED BY CODE ON WAGES, 2019, WITH EFFECT FROM A DATE YET TO BE NOTIFIED]

[4 OF 1936]1 An Act to regulate the payment of wages to certain classes of 2[employed persons] WHEREAS it is expedient to regulate the payment of wages to certain classes of 2 [employed persons]. It is hereby enacted as follows :— Short title, extent, commencement and application. 1. (1) This Act may be called the Payment of Wages Act, 1936. 3

[(2) It extends to the whole of India 4[***].]

(3) It shall come into force on such date5 as the Central Government may, by notification in the Official Gazette, appoint. (4) It applies in the first instance to the payment of wages to persons employed in any 6[factory, to persons] employed (otherwise than in a factory) upon any railway by a railway administration or, either directly or through a sub-contractor, by a person fulfilling a contract with a railway administration 7[, and to persons employed in an industrial or other establishment specified in sub-clauses (a) to (g) of clause (ii) of section 2]. (5) 8[Appropriate Government] may, after giving three months’ notice of its intention of so doing, by notification in the Official Gazette, extend the provisions 1. Dated 23-4-1936. 2. Substituted for “persons employed in industry” by the Payment of Wages (Amendment) Act, 1982, w.e.f. 15-10-1982. 3. Substituted by the Adaptation of Laws Order, 1950. 4. Words “except the State of Jammu and Kashmir” omitted by the Central Labour Laws (Extension to Jammu and Kashmir) Act, 1970, w.e.f. 1-9-1971. Earlier the quoted words were substituted for “except Part B States” by the Part B States (Laws) Act, 1951, w.e.f. 1-4-1951. 5. With effect from 28-3-1937. 6. Substituted for “factory and to persons” by the Payment of Wages (Amendment) Act, 1982, w.e.f. 15-10-1982. 7. Inserted, ibid. 8. Substituted for “The State Government” by the Payment of Wages (Amendment) Act. 2005, w.e.f. 9-11-2005.

1


S. 2

PAYMENT OF WAGES ACT, 1936

2

of 9[this Act] or any of them to the payment of wages to any class of persons employed in 10[any establishment or class of establishments specified by the 11[appropriate Government] under sub-clause (h) of clause (ii) of section 2]: 12

[Provided that in relation to any such establishment owned by the Central Government, no such notification shall be issued except with the concurrence of that Government.]

13

[(6) This 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 six thousand five hundred rupees 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 notification14 in the Official Gazette, specify.] STATE AMENDMENTS MAHARASHTRA

Section 1

In sub-section (6) for the words “one thousand six hundred rupees” the words “six thousand five hundred rupees” shall be substituted - Maharashtra Act No. XXXIII of 2005. WEST BENGAL

Sub-section (6) of section 1 shall be omitted - West Bengal Act No. XXVIII of 1993.

Definitions. 2. In this Act, unless there is anything repugnant in the subject or context,— 15

[(i) “appropriate Government” means, in relation to railways, air transport services, mines and oil-fields, the Central Government and, in relation to all other cases, the State Government;]

9. Substituted for “the Act” by the Payment of Wages (Amendment) Act, 1957, w.e.f. 1-4-1958. 10. Substituted for “any industrial establishment or in any class or group of industrial establishments” by the Payment of Wages (Amendment) Act, 1982, w.e.f. 15-10-1982. 11. Substituted for “Central Government or a State Government” by the Payment of Wages (Amendment) Act, 2005, w.e.f. 9-11-2005. 12. Substituted by the Payment of Wages (Amendment) Act, 1982, w.e.f. 15-10-1982. Earlier the existing proviso was inserted by the Payment of Wages (Amendment) Act, 1964, w.e.f. 1-2-1965. 13. Substituted by the Payment of Wages (Amendment) Act, 2005, w.e.f. 9-11-2005. Prior to its substitution, sub-section (6), as amended by the Payment of Wages (Amendment) Act, 1957, w.e.f. 1-4-1958, Payment of Wages (Amendment) Act, 1976, w.r.e.f. 12-11-1975 and Payment of Wages (Amendment) Act, 1982, w.e.f. 15-10-1982, read as under : “(6) Nothing in this Act shall apply to wages payable in respect of a wage-period which, over such wage-period, average one thousand six hundred rupees a month or more.” 14. Rs. 24,000 per month vide Notification No. S.O. 2806(E), dated 28-8-2017. Rs. 18,000 per month vide Notification No. 2260(E), dated 11-9-2012. 15. Inserted by the Payment of Wages (Amendment) Act, 2005, w.e.f. 9-11-2005.


3

PAYMENT OF WAGES ACT, 1936

S. 2

16 17

[ [(ia)] “employed person” includes the legal representative of a deceased employed person; 18

[(ib)] “employer” includes the legal representative of a deceased employer;

l8

[(ic)] “factory” means a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948) and includes any place to which the provisions of that Act have been applied under sub-section (1) of section 85 thereof;] (ii) 19[“industrial or other establishment” means] any— 20

[(a) tramway service, or motor transport service engaged in carrying passengers or goods or both by road for hire or reward;

(aa) air transport service other than such service belonging to, or exclusively employed in the military, naval or air forces of the Union or the Civil Aviation Department of the Government of India;] (b) dock, wharf or jetty; 21

[(c) inland vessel, mechanically propelled;] (d) mine, quarry or oil-field; (e) plantation; (f) workshop or other establishment in which articles are produced, adapted or manufactured, with a view to their use, transport or sale;

22

[(g) establishment in which any work relating to the construction, development or maintenance of buildings, roads, bridges or canals, or relating to operations connected with navigation, irrigation or the supply of water, or relating to the generation, transmission and distribution of electricity or any other form of power is being carried on;]

23

[(h) any other establishment or class of establishments which 24[appropriate Government] may, having regard to the nature thereof, the need for protection of persons employed therein and other relevant circumstances, specify, by notification in the Official Gazette;]

16. Clauses (i), (ia) and (ib) substituted for clause (i) by the Payment of Wages (Amendment) Act, 1964, w.e.f.1-2-1965. Earlier, clause (i) was substituted by the Payment of Wages (Amendment) Act, 1957, w.e.f. 1-4-1958. 17. Clause (i) renumbered as clause (ia) by the Payment of Wages (Amendment) Act, 2005, w.e.f. 9-11-2005. 18. Clauses (ia) and (ib) renumbered as clauses (ib) and (ic), respectively, ibid. 19. Substituted for ‘“industrial establishment” means’ by the Payment of Wages (Amendment) Act, 1982, w.e.f. 15-10-1982. 20. Sub-clauses (a) and (aa) substituted for sub-clause (a) by the Payment of Wages (Amendment) Act, 1964, w.e.f. 1-2-1965. 21. Substituted by the Payment of Wages (Amendment) Act, 1957, w.e.f. 1-4-1958. 22. Inserted, ibid. 23. Inserted by the Payment of Wages (Amendment) Act, 1982, w.e.f. 15-10-1982. 24. Substituted for “the Central Government or a State Government” by the Payment of Wages (Amendment) Act, 2005, w.e.f. 9-11-2005.


Payment of Wages Act 1936 with Rules – Bare Act with Section Notes AUTHOR : PUBLISHER : DATE OF PUBLICATION : EDITION : : ISBN NO No. of Pages : : BINDING TYPE

Taxmann’s Editorial Board Taxmann December 2025 2026 Edition 9789371262439 76 Paperback

Rs. 135 DESCRIPTION Payment of Wages Act 1936 with Rules [Bare Act with Section Notes] by Taxmann is an authoritative statutory reference on the regulation and enforcement of wage payments in India. The 2026 Edition presents the verbatim and updated text of the Act, along with allied rules, supported by concise, sectionwise notes that explain legislative intent, statutory scope, procedural safeguards, and judicial interpretation. The publication is designed to facilitate practical application, litigation, statutory compliance, and legal research in wage and labour law. This book is intended for the following audience: • Employers & HR Managers • Legal Practitioners & Advocates • Labour Law Consultants & Trade Unions • Government Departments, Inspectors & Regulatory Authorities • Academicians, Law Students & Policy Researchers • Industrial, Commercial & Service Establishments The Present Publication is the 2026 Edition, covering the amended and updated text of the Payment of Wages Act [Act No. 4 of 1936] and Rules, with the following noteworthy features: • [Updated Statutory Text] Contains the fully amended Central Act along with applicable State amendments • [Pre-amendment Provisions] Includes prior versions of provisions in amendment footnotes to explain the pre-amendment legal position • [State Amendments] Integrates State-specific modifications to ensure jurisdictional applicability • [Section-wise Notes] Provides concise editorial notes clarifying statutory meaning, scope, and practical application • [Allied Rules & Forms] Includes: o Payment of Wages (Procedure) Rules 1937 o Payment of Wages (Nomination) Rules 2009 o Prescribed statutory forms • [Judicial Guidance] References important Supreme Court and High Court decisions relevant to wage law • [Comprehensive Coverage] Covers wage payment timelines, fixation of wage periods, permissible deductions, fines, claims for unpaid or delayed wages, penalties, inspections, and appeals • [Easy Navigation] Detailed contents and subject index for quick reference • [Professional Use] Suitable for courtroom reference, compliance management, and academic study

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