PAYMENT OF WAGES ACT, 1936
17A. Conditional attachment of property of employer or other person responsible for payment of wages
18. Powers of authorities appointed under section 15
19. [Omitted by the Payment of Wages (Amendment) Act, 1964, w.e.f. 1-2-1965]
20. Penalty for offences under the Act
21. Procedure in trial of offences
22. Bar of suits
22A. Protection of action
23. Contracting out
24. Delegation of powers
25. Display by notice of abstracts of
of
PAYMENT OF WAGES (PROCEDURE) RULES, 1937
1. Short title
3. Form of
4. Authorisation
5. Permission to appear
6. Presentation of
7. Refusal to entertain application
8. Appearance of parties
9. Record of
10. Signature on forms
11. Exercise of
12. Appeals
12A. Order or
13. Inspection of
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[SHALL BE REPEALED BY CODE ON WAGES, 2019, WITH EFFECT FROM A DATE YET TO BE NOTIFIED]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.
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. 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.
S. 2
PAYMENT OF WAGES ACT, 1936 4
25[(iia) “mine” has the meaning assigned to it in clause (j) of sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952);]
26[(iii) “plantation” has the meaning assigned to it in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951);]
(iv) “prescribed” means prescribed by rules made under this Act;
27[(v) “railway administration” has the meaning assigned to it in clause (32) of section 2 of the Railways Act, 1989 (24 of 1989;] and
28[(vi) “wages” means all remuneration (whether by way of salary, allowance or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes—
(
(
a) any remuneration payable under any award or settlement between the parties or order of a court;
b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period;
(
(
c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name);
d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;
(
e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force, but does not include—
(
1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a court;
(
2) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of 29[appropriate Government];
25. Inserted by the Payment of Wages (Amendment) Act, 1964, w.e.f. 1-2-1965.
26. Substituted, ibid.
27. Substituted by the Payment of Wages (Amendment) Act, 2005, w.e.f. 9-11-2005. Prior to its substitution, clause (v) read as under : ‘(v) “railway administration” has the meaning assigned to it in clause (6) of section 3 of the Indian Railways Act, 1890 (9 of 1890);’
28. Substituted by the Payment of Wages (Amendment) Act, 1957, w.e.f. 1-4-1958.
29. Substituted for “the State Government” by the Payment of Wages (Amendment) Act, 2005, w.e.f. 9-11-2005.
(3) any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon;
(4) any travelling allowance or the value of any travelling concession;
(5) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or
(6) any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d).]
COMMENTS
SECTION NOTES
2.1 Definition of “Factory” [Section 2(ic)]
The term “factory” refers directly to the definition given under clause (m) of section 2 of the Factories Act, 1948.
The scope of “factory” is extended to any place where the provisions of the Factories Act have been applied by the government under section 85(1).
2.2 Definition of “Industrial or Other Establishment” [Section 2(ii)]
The phrase “industrial or other establishment” covers a broad range of workplaces and services engaged in various commercial and industrial activities, as enumerated in the sub-clauses below.
Tramway and Motor Transport Service [Sub-clause (a)]
Includes services providing transport of passengers or goods by road for hire or reward.
Air Transport Service [Sub-clause (aa)]
Covers air transport operations except those used exclusively by: Military, naval, air forces, or the Civil Aviation Department of the Government of India.
Dock, Wharf or Jetty [Sub-clause (b)]
Includes facilities used for loading, unloading, or storing goods from ships, which are essential for maritime trade and logistics.
Inland Vessel, Mechanically Propelled [Sub-clause (c)]
Applies to vessels operating on inland waterways powered by mechanical means (like engines), excluding non-mechanically propelled boats.
This ensures workers in river transport and similar services are covered.
Mine, Quarry or Oil-Field [Sub-clause (d)]
Encompasses establishments involved in extraction of minerals, stones, or oil from the earth.
Plantation [Sub-clause (e)]
Plantation workers’ welfare and labour conditions are thereby covered under this category.
Workshop or Other Establishment Producing or Manufacturing Articles [Subclause (f)]
Includes any place where goods are produced, adapted, or manufactured for use, transport, or sale.
Establishments Relating to Construction, Development or Maintenance Work [Subclause (g)]
Includes establishments engaged in building roads, bridges, canals, and other infrastructure projects.
Also includes operations linked to navigation, irrigation, water supply, and power generation, transmission, or distribution.
Other Establishments Specified by Appropriate Government [Sub-clause (h)]
Provides the government with the power to notify additional establishments or classes of establishments in the Official Gazette based on factors like the nature of work and the need for worker protection.
2.3 Definition of “Wages” (vi)
The term “wages” broadly covers all forms of remuneration that a person employed is entitled to receive for their work or employment.
Wages includes payments expressed in money or capable of being expressed in monetary terms, regardless of whether it is called salary, allowance, or any other form of payment. The payment must be payable if the terms of employment (express or implied) are fulfilled.
2.3-1 Inclusive Components of Wages
Remuneration under Awards, Settlements, or Court Orders [Sub-clause (a)]
Any payment ordered or agreed upon between employers and employees through collective agreements (awards or settlements) or by judicial decisions is part of wages.
Overtime, Holidays, and Leave Period Payments [Sub-clause (b)]
Payments for work done beyond normal hours (overtime), on holidays, or during leave periods are wages.
Additional Remuneration (Bonuses or Others) [Sub-clause (c)]
Any extra payment provided under employment terms, irrespective of the name (bonus or otherwise), counts as wages if it is a part of the agreed employment terms.
Payments on Termination of Employment [Sub-clause (d)]
Any sum payable due to termination, under any law, contract, or instrument, forms part of wages, regardless of whether deductions are allowed or the time for payment is specified.
Payments under Government-Framed Schemes [Sub-clause (e)]
Wages also include sums payable under any statutory schemes notified by law, thereby covering statutory benefits beyond contractual wages.
2.3-2 Exclusions from Wages
Bonuses Not Forming Part of Remuneration [Sub-clause (1)]
Bonuses or profit-sharing payments that are not part of the employment terms or not payable under awards, settlements, or court orders are excluded.
