News : Gujarat Professional Tax Amnesty Scheme, 2019    |  Seminar with Workshop on Labour Laws at Surat on 23/02/2019, for more details logon to    |  Revised Fees structure for Gujarat Shops & Establishment licence    |  

SOHAIL & CO.: The Payment Of Wages Act, 1936

Applicability of the Act

  1. Factory
  2. Industrial Establishment
  3. Tramway service or motor transport service engaged in carrying passengers or goods or both by road for hire or reward
  4. Air transport service
  5. Dock, Wharf or Jetty
  6. Inland vessel, mechanically propelled
  7. Mine, quarry or oil-field
  8. Plantation
  9. Workshop or other establishment etc.

Coverage of Employees

Drawing average wage upto Rs 24000 per month.

Fines as prescribed by

  1. Not to be imposed unless the employer is given an opportunity to show cause
  2. To record in the register


Deduction for services rendered

When accommodation amenity or service has been accepted by the employer


Object of the Act

To regulate the payment of wages of certain classes of employed persons.

Time of payment of wages

Time of payment of wages

The wages of every person employed be paid

  1. When less than 1000 persons are employed, shall be paid before the expiry of the 7ltl day of the following month.
  2. When more than 1000 workers, before the expiry of the 10th day of the following month.


Deduction made from wages

Deductions such as, fine, deduction for amenities and services supplied by the employer, advances paid, over payment of wages, loan, granted for house-building or other purposes, income tax payable, in pursuance of the order of the Court, PF contributions, cooperative societies, premium for Life Insurance, contribution to any fund constituted by employer or a trade union, recovery of fosses, ESI contributions etc.


Deduction for damages or loss

  1. For default or negligence of an employee resulting into loss.
  2. Show cause notice has to be given to the employee.


Wages to be paid in current coins or currency notes

Wages to be paid
  1. All wages shall be paid in current coin or currency notes or by cheque or by crediting the wages in the bank account of the employees.
  2. Provided that the appropriate Government may, by notification in the official Gazette, specify the industrial or other establishment, the employer of which shall pay to every person employed in such industrial or other establishment, the wages only by cheque or by crediting the wages in his Bank account.


Deduction for absence from duties for unauthorized absence

Deduction for absence

Absence for whole or any part of the day-

  1. If ten or more persons absent without reasonable cause, deduction of wages upto 8 days



On contravention of S. 5 (except sub-sec.4), S 7, S.8 (except sub-sec.8), S.9, S.10 (except sub-sec. 2) and Sees. 11 to 13 Fine not less than Rs. 1000 which may extend to Rs.5000. On subsequent conviction fine not less than Rs.5000, may extend to Rs.10,000, On contravention of S.4, S 5(4), S,6, S.8(8), S.10{2) or S.25 fine not less than Rs.1000-may extend to Rs.5000. On subsequent conviction fine not less than Rs.5000-may extend to Rs. 10,000.
  1. For failing to maintain registers or records; or
  2. Wilfully refusing or without lawful excuse neglecting to furnish information or return; or
  3. Wilfully furnishing or causing to be furnished any information or return which he knows to be false; or
  4. Refusing to answer or wilfully giving a false answer to any question necessary for obtaining any information required to be furnished under this Act.
  1. Fine which shall not be less than Rs.1000 but may extend to Rs.5000 - On record conviction fine not less than Rs.5000. may extend to Rs.10,000
  2. or second or subsequent conviction, fine not less than Rs.5000 but may extend to Rs.10,000.
  1. Wilfully obstructing an Inspector in the discharge of his duties under this Act, or
  2. Refusing or wilfully neglecting to afford an Inspector any reasonable facility for making any entry, inspection etc.
  3. Wilfully refusing to produce on the demand of an Inspector any register or other document kept in pursuance of this Act; or preventing any person for appearance etc.

Fine not less than Rs.1000 extendable upto Rs.5000 - On subsequent conviction fine not less than Rs 5000 - may extend to Rs.10,000

  1. On conviction for any offence and again guilty of contravention of same provision
  2. Failing or neglecting to pay wages to any employee.
  1. Imprisonment not less than one month extendable upto six months and fine not less than Rs.2000 extendable upto Rs. 15000.
  2. Additional fine upto Rs. 100 for each day.