THE PAYMENT OF WAGES (AMENDMENT) ACT, 2017

• 

• The payment of wages act is central legislation
• The Payment of Wages Act, 1936 was assent by president on 23^rd April,1936 and came into force on 28^th March,1937.
• Jammu & Kashmir was added in 1970
• It ensures payment of wages in a particular form and at regular intervals without   unauthorized deductions. The Act extends to whole of India sec. 1(2). It was extended to Jammu and Kashmir by the Central Labour Law (Extension to Jammu and Kashmir) Act 1970.
• Ministry of labour and employment can revise wages though NSSO within 5 years generally according to consumer expenditure level / cost of living.  

Objective of the Act:

• To regulate the payment of wages to workers employed in certain specified industry and ensure a speedy and effective remedy to them
• Against illegal deduction & unjustified delay caused in paying wages
• The date of payment of wages

To ensure payment of wages to persons who covered by the act certain provisions have been made in this act.

Meaning of Wages (sec-2 (IV)

• Wages means all remuneration whether by way of salary, allowances or otherwise.
• Wages including:
  • Court settlement allowance
    • Overtime
    • Holiday wages
    • Leave period wages
    • Additional remuneration hours
    • Termination remuneration
    • any additional remuneration payable under the terms of employment whether called a bonus or any other name.

wages excluding:

1. “wages” does not included bonus or additional remuneration not as part of terms of employment.
2. HRA
3. Perks like water, medical or other service excluded from the calculation of wages by general or special order of appropriate government.
4. Leave travel concession
5. Gratuity
6. Remuneration expenses (traveling bills etc…)

Time limit for payment of wages

• No wage period shall exceed 1 month (sec-4)
• If the number of person employed in factory, industrial or other establishment or in railway-(sec-5)
• Wages to be paid before 7 day.

If person employed less than 1000 persons.

• Wages to be paid before 10 day.

If person employed more than 1000 persons

In case of dock, wharf or jetty or in mines Wages to be paid before expiry of 2^nd day from termination for terminated employee.

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