Wage limit under Payment of Wages Act increased to Rs 24000 per month

Wage limit under Payment of Wages Act increased to Rs 24000 per month

The Payment of Wages Act, 1936 (the Act) was enacted with a view to ensuring that wages payable to employed persons covered by the Act were disbursed by the employers within the prescribed time limit and that no deductions other than those authorised by law were made by them. 

As per sub-section (6) of section 1 of the Act,  it applies to wages payable to an employed person in respect of a 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 notification in the Official Gazette, specify.

The Government has raised the monetary limit of wages to Rs. 24000/- per months for the applicability of the Act. The relevant notification in this regard is as under:

MINISTRY OF LABOUR AND EMPLOYMENT

NOTIFICATION

New Delhi, the 28th August, 2017

S.O. 2806(E).—In exercise of the powers conferred by sub-section (6) of section 1 of the Payment of Wages Act, 1936 ( 4 of 1936), the Central Government, on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey Organization, hereby specifies rupees twenty four thousand per month as the wages under said sub-section (6).

[F. No. S-31018/3/2007-WC]
N. K. SANTOSHI, Dy. Director General