1. THE PAYMENT OF WAGES ACT, 1936

2. OBJECT OF THE ACT
• To regulate the payment of wages to certain classes of
employed persons. Two fold:-
• First the date of payment of wages and
• Secondly the deductions from wages whether as fine or
otherwise.

3. APPLICABILITY OF THE ACT
• Persons employed in:-
• Any factory (a saw mill, ginning factory, godowns, yards etc as
defined in Factories Act, 1948).
• Tramway service or motor transport service engaged in
carrying passengers or good or both by road for hire or
reward.
• Air transport service Dock, Wharf or Jetty, Inland vessel,
mechanically propelled
• Mine, quarry or oil-field plantation
• Workshop or other establishment etc.

4. WAGE
• Wage includes any remuneration:-
• Payable under any award or settlement between the parties
or order of a Court;
• Over time work or holiday or any leave period;
• Any additional remuneration under the terms of
employment.
Wage does not includes any bonus, pension fund or provident
fund, travelling allowance and any gratuity.

5. WAGES TO BE PAID IN CURRENT COINS OR CURRENCY NOTES
a. All wages shall be paid in current coins or currency notes or
in both.
b. After obtaining the authorization, either by Cheque or by
crediting the wages in employees banks Account {Section 6}
Andhra Pradesh State Amendment: “Provided further that the
State Government may, by notification in the Andhra
Pradesh Gazette, specify the industrial establishments , the
employers of which shall pay to the persons employed
therein, the wages either by cheque or by crediting the
wages in their bank account”-[Vide Andhra Pradesh Act 15
of 1982, sec.2 (w.e.f 7-10-1982).

6. TIME OF PAYMENT OF WAGES
• The wages of every person employed is paid. When less than 1000
persons are employed shall be paid before the expiry of the 7th day
of the following month. When more than 1000 workers, before the
expiry of the 10th day of the following month. (Section 5).

7. COVERAGE OF EMPLOYEES
• Drawing average wage upto Rs.6500 pm as amended
with effect from 6th September 2005.

8. 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, Provident Fund contributions, cooperative
societies, premium for Life Insurance, contribution to any fund
constituted by employer or a trade union, recovery of losses, Employees
State Insurance contribution etc. (Section 7).

9. DEDUCTION FOR ABSENCE FROM DUTIES FOR UNAUTHORISED
ABSENCE
• Absence for whole or any part of the day – If ten or more
persons absent without reasonable cause, deduction of
wages upto 8 days {Section 9}

10. DEDUCTION FOR DAMAGE OR LOSS
• For default or negligence of an employee resulting into loss. Show cause
notice has to be given to the employee. {Section 10}

11. DEDUCTIONS FOR SERVICE RENDERED
• When accommodation amenity or service has been accepted by the
employee. {Section 11}

12. • Deductions for recovery of Advance.
• Deduction for recovery of loans.
• Deductions for payment to co-operative
societies and Insurance schemes.

13. AUTHORITIES UNDER THIS ACT
• INSPECTORS.
• AUTHORITY TO HEAR CLAIMS.
Any commissioner for Workmen’s Compensation; or
Any Regional Labour Commissioner.
Any Assistant Labour Commissioner.
Presiding Officer of any Labour Court or Industrial Tribunal.

14. APPEAL
An Appeal may be preferred from the following orders or directions of
the Authority:-
an order directing the employer or the persons responsible for payment
of wages, to refund the deductions wrongfully made or to pay the
delayed wages;
an order directing payment of compensation to the employee under
Section 15(3);
an order imposing penalty whether on the employee or the employer
under Section 15(4).
An Appeal can be made within thirty days of the date on which the
order or direction was made before the District Court within whose
jurisdiction the industrial establishment is situated.

15. PENALITIES
• Makes contravention of Sec’s.5, 7, 9, 11 and 13 of the Act, by
any person responsible for the payment of wages to an
employed person, punishable with fine which shall not be less
than one thousand five hundred rupees but which may
extend to seven thousand five hundred rupees.