Home » SSI Corner » SSI Regulations » The Payment of Wages Act, 1936

Objectives
- To ensure regular and prompt payment of wages and to prevent the exploitation of a wage earner by prohibiting arbitrary fines and deductions from his wages.

Scope and coverage
- Application for payment of wages to persons employed in any factory.

- Not applicable to wages which average Rs 1600/- per month or more.

- Wages include all remuneration, bonus, or sums payable for termination of service, but do not include house rent reimbursement, light vehicle charges, medical expenses, TA, etc.

Main provisions
- Responsibility of the employer for payment of wages and fixing the wage period.

- Procedures and time period in wage payment.

- Payment of wages to discharged workers.

- Permissible deductions from wages.

- Nominations to be made by employees.

- Penalties for contravention of the Act.

- Equal remuneration for men and women.

- Obligations and rights of employers.

- Obligations and rights of employees.

When to consult and refer
- Deciding wages and salary administration at all times.