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Work and Wages

This page was last updated on: 2021-04-02

Minimum Wage

Note: Upcoming Labour Legislation in India

Last year (2020), the Indian Parliament combined 25 labour laws into three codes, i.e., the Social Security Code, the Code on Industrial Relations and the Code on Occupational Safety, Health and Working Conditions. The Code on Wages, enacted in 2019, also amalgamated four relevant labour laws.   

The Four new Labour Codes were supposed to be effective from 01 April 2021 however considering the rise in COVID cases and the potential impact of the new Codes on per employee costs for enterprises, the Government has delayed implementation of new Codes to a future date. The Central and State Governments have yet to notify the rules. The new legal provisions will be effective only, once notified.  

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Currently Applicable Provisions 

Minimum wage rates in India are fixed under the Minimum Wages Act, 1948. Since labour is a concurrent subject under the Indian Constitution, minimum wage rates are determined both by the Central Government and the Provincial Governments. Minimum wage rates in India are declared at the national, state, sectoral and skill/occupational levels. Minimum wage rates may be established for any region, occupation and sector. Also, the minimum wage is established for trainees, youth and piece-rate workers.  The minimum wage is determined by considering the cost of living.

The minimum rate of wages may consist of a basic rate of wages and a cost of living allowance; or a basic rate of wages, with or without the cost of living allowance, and the cash value of concessions in respect of the supply of essential commodities at concession rates (if authorized); or an all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions (if any).

While fixing or revising minimum rates of wages, different minimum rates of wages may be fixed for different scheduled employments; different classes of work in the same scheduled employment; adults, adolescents, children and apprentices; and different localities. The minimum wage rates may be fixed by hour, day, month or any such other larger wage period as may be prescribed.

Under the Minimum Wages Act, both the Central and State Governments may notify the scheduled employments and fix/revise minimum wage rates for these scheduled employments. The scheduled employments include both the agricultural and non-agricultural employments. Both the Central and State Governments are empowered to notify any employment (industry/sector) in the schedule where the number of employees is 1000 or more and fix the rates of minimum wages in respect of the employees employed therein.

Minimum wage is announced for 45 scheduled employments in the Central Sphere while the State level minimum wage is determined by every state keeping in view the sectors more dominant in the State. Minimum wage is revised while considering the following five elements: three consumption units per earner; minimum food requirement of 2700 calories per average adult; cloth requirement of 72 yards per annum per family; house rent corresponding to the minimum area provided under the Government's Industrial Housing Scheme; fuel, lighting and other miscellaneous items of expenditure to constitute 20% of the total minimum wage; and children education, medical requirement, minimum recreation including festivals/ceremonies and provision for old age, marriage etc. should further constitute 25% of the total minimum wage (the last component added by the Supreme Court in Reptakos Brett Vs Workmen case in 1991). Minimum wages may be reviewed at different intervals however such intervals cannot exceed five years.

The Minimum Wages Act provides for two methods of fixation/revision of minimum wages. Under the Committee Method, committees and sub-committees are set up by the Government to hold inquiries and make recommendations with regard to the fixation and revision of minimum wages. Under the Notification method, government proposals are published in the Official Gazette for information of the persons likely to be affected and specify a date (not less than two months from the date of the notification) on which the proposals will be taken into consideration.

After considering the advice of the Committees/Sub-committees (Committee method) and all the representations received by the specified date (Notification method), the appropriate Government, by notification in the Official Gazette, fixes/revises the minimum wage in respect of the concerned scheduled employment which come into force on expiry of three months from the date of its issue.

In protecting the real wages against inflationary effects, the Central government provides for linking of Variable Dearness Allowance to the Consumer Price Index for industrial workers (CPI-IW). Most states provide for variable dearness allowance in revising the minimum wage. VDA is revised periodically twice a year effective from 1st April and 1st October.  

Compliance with labour legislation including payment of minimum wages to workers is ensured by the labour inspectors, as are appointed under section 19 of the Minimum Wages Act 1948. In the event of non-compliance, fines, imprisonment and payment of arrears can be applied as per law. Section 22 of the Minimum Wages Act stipulates that violators may be punished to pay a fine (which may be extended to 500 rupees) or imprisonment, which may extend to a period of six months or both. The Authority (magistrate) may also require payment of arrears to the worker along with compensation for delay in payment of due wages. However, such extra compensation should not exceed 10 times the due amount. Similarly, an employer who fails to maintain a register or record as required under the law is liable for a fine of up to 500 rupees.

If a worker receives wages, which are less than the government declared minimum wages, he/she may file a complaint with the labour inspectorate.  The complaint can be filed by the worker or through a legal practitioner, or an official of the registered trade union. The claims for any unpaid/due wages must be filed within 6 months of their becoming due.

The Code proposes that the central government fixes a floor wage, taking into account the living standards of workers.  The central government may set different floor level wages for different geographical areas. The central government may also obtain the advice of the Central Advisory Board (tripartite plus advisory body with representation from the worker, employer and government groups as well independent persons) and may consult with state governments. Moreover, 33% of the total members of both the central and state Boards must be women.  The Boards have the mandate to advise the respective governments on various issues including (i) fixation of minimum wages, and (ii) increasing employment opportunities for women.

The minimum wages notified by the central or state governments must be higher than the floor level wage. Where the existing minimum wages are higher than the floor wage, these cannot be reduced.

The Wage Code prohibits employers from paying workers less than the minimum wages.  Minimum wages notified by the government are either time based (number of hours of work) or per piece. The minimum wages must be revised and reviewed by the central or state governments at an interval of not more than 5 years.  While fixing minimum wages, the central or state governments may take into account various factors such as (i) skill of workers, and (ii) arduous nature of work.

The Code on Wages Bill, 2019 was passed by the Lok Sabha on July 30, 2019, and Rajya Sabha on 02 August 2019. 

The Wage Code regulates wage and bonus payments in all employment.  The Code combines the provision of the following four laws: (i) the Payment of Wages Act, 1936, (ii) the Minimum Wages Act, 1948, (iii) the Payment of Bonus Act, 1965, and (iv) the Equal Remuneration Act, 1976. The Wage Code repeals the above 4 laws. 

Source: §3-5, 18-22, 27 & 28 of the Minimum Wages Act 1948

 

Non-Standard Workers' Rights on Minimum Wage - Platform Workers

Minimum wages are applicable only to employees. However, the law allows the appropriate (central or state government) to include in the list of employees any "person declared to be an employee by the appropriate Government". Hence, the wages can be announced by the central and state governments for platform workers.

The Code on Wages, 2019 (enacted in August 2019) provides for the procedure to set minimum wages. The law also requires employers to pay minimum wages to employees. Employee is defined as "any person (other than an apprentice engaged under the Apprentices Act, 1961), employed on wages by an establishment to do any skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied, and also includes a person declared to be an employee by the appropriate Government, but does not include any member of the Armed Forces of India".

The Code on Wages entitles only employees to the bonus payment. Service agreement may also provide for a bonus payment to incentivise service delivery. 

Under the Wage Code, it is the responsibility of Inspector-cum-Facilitator to inspect all such establishments where workers are employed. On inspection of record or filing of a complaint by a worker, proceedings can be initiated against an employer. However, since platform workers are regarded as independent contractors, these are not covered under the Wage Code. 

Wage Codes provides for penalties where compliance with the law is lacking. The fine ranges between 20,000 to 100,000 Indian rupees. Since platform economy workers are considered independent contractors, their contracts/service agreements are governed under the Indian Contract Act, 1872.

Minimum Wage Regulations Under State Law 

Andhra Pradesh

Maharashtra

Karnataka

Uttar Pradesh

Rajasthan

Tamil Nadu

Gujarat

West Bengal

 

Minimum Wages Regulations in Andhra Pradesh

Employees of establishments under the Shops and Establishments Act are entitled to payments without any deductions other than those authorized. No fine can be imposed on any employee unless they have made certain acts or omissions that were specified by the employer with previous approval from the government. These acts and omissions should be mentioned to a worker by notice.

Similarly, no fine can be imposed on any employee without giving them an opportunity of explaining against the fines unless specified by law. The total amount of fine which may be imposed in any one wage period on any employee cannot exceed 3% of the wage payable. A fine cannot be imposed on a worker under 15. Law also states that the fines imposed on an employee cannot be recovered after the expiry of sixty days from the day on which it was imposed.

Deductions on account of absence are allowed however the deduction should match the days of absence during a wage period. The deduction for damage of goods cannot exceed 50 per cent of the amount of damaged goods. A notice must be served to the workers, with an opportunity to explain, prior to any such deduction. Deductions for recovery of an advance of money given before employment began can be made from the first payment of wages. However, no recovery can be made of such advance given for travelling expenses.

Source: Section 40, 41, 42, 45, Andhra Pradesh Shops and Establishments Act, 1988

 

Minimum Wages Regulations in Maharashtra

Apprentices:

Apprentices should receive a minimum stipend in the three years of their training. It should be 70%, 80%, and 90% of the minimum wage for a semi-skilled worker in the first, second, and third year respectively. The wage payment is for 8 hours of training. And, the stipends is reduced by 50% if an apprentice undergoes 4 hours of training in a day. In case there is no minimum wage specified (for a semi-skilled worker in the industry), the highest of the minimum wage of a semi-skilled worker should be considered for calculation.

Source: Section 5 of the Apprentices (Maharashtra Amendment) Act, 2017

For workers in Beedi Establishments:

Wages for workers in Beedi Industrial Establishment should be paid as per the Minimum Wages Act 1948 (Wages Code 2019). However, in case of payment on a piece rate, overtime pay, paid leaves, etc., should be based on a calculated ‘Ordinary Wage’. This ‘ordinary wage’ acts as the average daily wage/monthly wage of a worker. For e.g., if a worker produces an average daily output of X bidis at a Y per piece rate, their daily wage should be XY. And, their monthly wage should be XY*D (number of working days). This wage should be calculated by the employer along with consent from the employee. And, it should include basic pay, dearness allowance and cash equivalent of concession in food grain sale. This equivalent should be calculated from the admissible limit for standard family.  A standard family involves an employee, spouse and two children, totaling to three adults.

Source: Maharashtra Beedi and Cigar Workers (Conditions of Employment) Rules, 1968

For House Rent Allowance of all workers:

All workers are eligible to be paid a minimum house rent allowance that is not less than 5% of the basic wage or Rs 20 (Whichever is higher). In case the worker has been there for less than a month, the same should be paid on a pro-rata basis. For this calculation, the period of a month includes lay-offs, lockouts, disablements, leaves and maternity leave (in case of women). Workers receiving amounts that are greater than 5% under respective agreements and contracts should not be disadvantaged by the Act.

For workers paying housing rents in the forms of deduction, (a) in case of a deduction being higher than the said amount, workers should only be charged the difference between the percentage deducted and the said amount [A worker paying 8% as house rent may only paid be 3% i.e. the excess of the amount stipulated to be covered by the employer under law]; (b) in case of a deduction being less than the said amount, the difference between the deduction and 5% (of salary) should be paid to the worker. Lastly, house rent allowances are not to be paid to workers experiencing no deductions from their salaries for housing facilities.

Source: Section 4 of the Maharashtra workmen's minimum house rent allowance Act, 1983

 

Minimum Wages Regulations in Karnataka

For Toddy Workers:

No employer can reduce, whether directly or indirectly, the wages of any employee to whom the Toddy Workers Scheme applies.

Source: Section 11 of the Karnataka Toddy Workers' Welfare Fund Act, 1981     

For Daily Wage Employees:

The pay of a daily wage employee must be the minimum of the time scale pay of their post.

Source: Section 4 of the Karnataka Daily Wage Employees Welfare Act, 2012

 

Minimum Wages Regulations in Uttar Pradesh

For Contract Labourers:

The rates of wages payable to the workmen by the contractor should not be less than the rates prescribed under the Minimum Wages Act, 1948 (II of 1948).

The wage rates of workmen employed by contractors having the same or similar work as those workmen directly employed by the principal employer of an establishment need to be the same.

Employees employed by contractors should receive wages that are the same/similar to workers employed by principal employers. This should be the case all work that is same or similar between the two types of workers.

In case of a disagreement on the type of work, the Labour Commissioner’s decision would be final.

Source: Section 25, U.P. Contract Labour (Regulation Abolition)Rules, 1975

Fines (on employees) should be imposed only according to the provisions of the Payment of Wages Act 1936, when it is in force by the officer authorised to impose fines under the said Act. The proceeds of all the actual fines are paid to the Welfare Commissioner under U. P. Welfare Funds Act, 1965.

Source: Section 22 and 25 of the  U.P. Industrial Employment Model Standing Orders, 1991

 

For teachers or employees at schools and/or colleges:

The salary of a teacher or other employee of a UP Junior High School institution during any period after the appointed day, should be paid to him before the expiry of the twentieth day, or an earlier day despite any contract signed.

The State Government may issue a general or special order and order the payment at an earlier day or on the expiry date of 20 days after the teacher’s day of appointment of work.

In case of pending payments up to a month or more, the salary needs to be paid to the teacher regardless.

If the salary is not paid before the expiry of the 20th day of working, an Inspector may pay or cause to be paid the salary to the teacher from the money credited to the account at the rate of salary last drawn by such teacher or employee.

The payment needs to be made within ten days from the date mentioned in that sub-section.

As per the provision, the salary would be paid without deductions of any kind except the provision(s) approved  by the Sections made under this Act or by any other law in force, at that time.

In case of fresh appointment of a teacher and failure to be paid the salary before the expiry of the twentieth day of working, Inspector may pay or cause to be paid the salary to the teacher from the money credited to the account at the minimum rate of the pay scale in which he has been appointed. Any adjustment in respect of such payment should, then, be made as soon as possible.

The laws also provide for creation of safety joint accounts with labour inspectors and special powers of fee collection to the inspector, in situations of nonpayment from the management.

Source: Section 3,  U.P. Junior High Schools (Payment of Salaries Of Teachers And Other Employees) Act, 1978;

Section 3, U.P. High Schools and Intermediate Colleges (Payment of Salaries of Teachers and Other Employees) Act, 1971

Section 3, U.P. Training Colleges (Payment of Salaries of Teachers and other Employees) Act, 1978

Every convicted criminal prisoner employed for labour in a prison and working satisfactorily is entitled to get remuneration at the rate periodically notified by the State Government.

An amount of 15% would be deducted out of the remuneration earned by a convicted criminal prisoner and be paid to the deserving victims of the offence committed by that prisoner.

If there is no deserving victim of the offence committed by the prisoner or the victim is unwilling to receive the amount referred, it should be returned to the convicted criminal prisoner.

The victims of the offences would be identified by the District Magistrate of the District where the offence was committed.

The amount would be paid to the victims subject to the satisfaction of the Committee by Money Order.

The expenses of the Money Order would be borne by the convicted criminal prisoner.

Source: Section 3 and 5 of the U.P. Payment of Remuneration to Prisoners and Compensation to Victims Rules, 2005

 

Minimum Wages Regulations in Rajasthan

For Minimum Wage Employees:

Every employer is required to display notices in a visible place, specifying the rate of minimum wages according to the Minimum Wages Act (1948), and the time for payment of wages.

Source: Section 22 of the Rajasthan Minimum Wages Rules, 1959

For Construction Workers:

Every employer is required to display a notice at a visible place showing the rates of wages, hours of work, wage periods, date of payment, names and addresses of the Inspectors having jurisdiction to the establishment and date of payment of unpaid wages to workers.

Source: Section 65 of the Rajasthan Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Rules, 2009

 

Minimum Wages Regulations in Tamil Nadu

For agricultural labourers in Thiruvarur and Nagapattinam districts:

For agricultural labourers working in the Thiruvarur and Nagapattinam districts, the State government reserves the right to determine and regulate ‘Fair Wages’ payable.  ‘Fair Wages’ are the sum of a specified quantity of produce (calculated in terms of their monetary value) and money. In addition, it also regulates and mandates the payment of harvest on the threshing floor. As per the Act, no stock can be taken from the harvest unless the harvest wages have been paid. The Minimum wages Act of 1948 does not apply on the subject of this Act.

Source: The Tamil Nadu Agricultural Labourer Fair Wages Act, 1969

For workers in Beedi Establishments:

Minimum wages for workers in Beedi Industrial Establishment should be paid as per the Minimum Wages Act of 1948. However, in case of payment on a piece rate, for reference of all provisions involving overtime pay, paid leaves, etc., authorities should (in consultation with employers and employees) calculate an ‘Ordinary Wage’. The 'Ordinary Wage' will be considered as the monthly wage of the worker. It must be calculated by multiplying the piece rate into average pieces/day and the total number of days in a month.

 This must include basic pay, dearness allowance and cash equivalent of concession from sale of food grain at concessional prices [calculated from the admissible limit for standard family].  A standard family involves an employee, spouse and two children, totalling to three adults.

Worker’s pay is supposed to include a provision of grains for their families. Employers can either pay the worker a cash equivalent of the cost of grains (in the nearest ‘market’). Or, they can provide these grains at a concessional rate. In case of the latter, employers are supposed to provide in cash the difference between the concessional rate and the ‘market rate’. This is done to ensure that employers do not supply poor quality grains under the garb of concessional grain supply.

Source: The Tamil Nadu Beedi Industrial Premises (Regulation of Conditions of Work) Act, 1958

For workers in Shops and Commercial Establishments:

Workers covered under the Tamil Nadu Shops and Establishments Acts are to receive complete payment without any deductions from the employer (other than those permitted by the State Government). These are a) Fines; b) deductions for absence of duty; c) accommodation supply; d) amenities supply, e) advance taxes; f) those ordered by court; g) provident funds; h) cooperative societies; i) saving schemes approved by the State Government. Deduction of any fine requires a notice to the worker and approval from the concerned labour authority. No fine can be more than 1/32nd portion (3.13 percent) of the wage paid during a particular month.

Source: Tamil Nadu Shops and Establishments Act, 1947 

 

Minimum Wages Regulations in Gujarat

To ensure an adequate supply and full and proper utilization of unprotected workers in scheduled employments, the State government may particularly provide a scheme for the security of minimum wages to registered unprotected workers available for work.

The provision needs to be in respect of the period during which employment or full employment is not available to them subject to conditions of the scheme.

Source: Section 3 of the Gujarat Unprotected Manual Workers (Regulation of Employment and Welfare) Act, 1979

 

Minimum wage Regulations in West Bengal

For House Rent Allowance of all workers:

All workers are eligible to be paid a minimum house rent allowance that is not less than 5% or Rs 20 (Whichever is higher). In case the worker has been there for less than a month, the same should be paid on a pro-rata basis. For this calculation, the period of a month includes lay-offs, lockouts, disablements, leaves and maternity leaves (in case of women). Workers receiving amounts that are greater than 5% under respective agreements and contracts should not be disadvantaged by the act.

For workers paying housing rents in the forms of deduction, (a) in case of a deduction being higher than the said amount, workers should only be charged the difference between the percentage deducted and the said amount [A worker paying 8% as house rent may only be 3% i.e. the excess of the amount stipulated to be covered by the employer under law]; (b) in case of a deduction being less than the said amount, the difference between the deduction and 5% (of salary) should be paid to the worker. Lastly, house rent allowances are not to be paid to workers experiencing no deductions from their salaries for housing facilities.

Source: Section 4, West Bengal Workmen's House-Rent Allowance Act, 1974.

 

Regular Pay

Wages means all remuneration capable of being expressed in terms of money, which would, if the terms of the contract 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. It, however, does not include the value of any house-accommodation, supply of light, water, medical attendance, or any other prescribed amenity or service; any pension or provident fund, or social insurance scheme, contributions paid by the employer; travelling allowances or concessions; reimbursement for special expenses incurred by the employee; or gratuity payable on discharge. 

In accordance with the Minimum Wage Act, the employer is obliged to pay wages on regular and timely basis at least once a month.  Wage period may be fixed on hourly, daily, weekly or monthly basis. The employer is under obligation to pay wages in cash on a working day before the expiry of the 7th day after the last day of the wage period (in establishments with less than 1000 workers). In other establishment, i.e., those hiring more than 1,000 workers, wages must be paid before expiry of 10th day after the last day of the wage period. If the employment of a worker is terminated by or on behalf of the employer, the outstanding wages are paid within two days of employment termination. Wage periods can't be fixed for duration longer than one month.

Minimum wages are generally payable in cash however if it is customary to pay wages wholly or partly in kind, the appropriate Government may authorize the payment of minimum wages either wholly or partly in kind.

Payment of Wages Act 1936 required that all wages be paid in current coin or currency notes or in both (in legal tender). An employer may, after obtaining the written authorization by the worker, pay worker the wages either by cheque or by crediting the wages in bank account. A 2017 amendment in the 1936 Act, applicable from 28 December 2016, now allows the employer to pay wages in coins or currency notes; or by check; or by crediting the wages in worker’s account. The amended Act has withdrawn the requirement of taking prior authorization from worker about mode of wage payment. The relevant (central or state) government may however specify certain industrial or other establishments requiring those to pay either by check or bank transfer.

Workers are entitled to the wages without any kind of deduction except in cases prescribed by the Payment of Wages Act 1936. It may include deductions as fine; for absence; for damage or loss of goods or money; for house accommodation supplied by employer; for recovery of advances or loans; for income-tax; and any other kind of deduction that is made by order of a Court or other authority competent to make such order.

The Wage Code proposed that wages are paid in (i) coins, (ii) currency notes, (iii) by cheque, (iv) by crediting to the bank account, or (v) through electronic mode.  

The wages can be paid by the employer on (i) daily, (ii) weekly, (iii) fortnightly, or (iv) monthly basis. The industrial or commercial establishments may be required by notification to pay wages through cheque or by crediting the wages directly in the worker’s bank account. 

The Wage Code also specifies the time limit for payment of wages. For daily wagers, the wages must be paid at the end of daily shift. In the weekly wage period, the wages must be paid on the last working day of the week; for fortnightly wage period, the wages must be paid within 2 days at the end of fortnight. For monthly wage period, the wages must be paid within 7 days of the end of working month. 

Under the Wage Code, workers’ wages may be deducted on certain grounds including: (i) fines, deductions for loss of goods or money due to the worker’s neglect (ii) absence from duty, (iii) accommodation given by the employer or other amenities, (iv) recovery of loans and advances given to the employee, among others, (v) deductions for payment of trade union fees or contribution to social security schemes, or (vi) deductions of income tax. The total deductions should not exceed 50% of the worker’s total wage.

The Wage Code also has provision on determination and payment of bonus. All such worker who have worked at least 30 working days in a year with an establishment and whose wages do not exceed a specific monthly amount, as notified by the central or state government, will be entitled to an annual bonus.  The bonus will be at least: (i) 8.33% of his/her wages, or (ii) Rs 100, whichever is higher.  In addition to the minimum bonus (where the allocable surplus exceeds the minimum bonus), the employer is required to distribute a part of the gross profits amongst the workers.  It is distributed in proportion to the annual wages of a worker.  The worker can receive a maximum bonus of 20% of his annual wages.

The Code on Wages Bill, 2019 was passed by the Lok Sabha on July 30, 2019 and Rajya Sabha on 02 August 2019. 

The Wage Code regulates wage and bonus payments in all employment.  The Code combines the provision of the following four laws: (i) the Payment of Wages Act, 1936, (ii) the Minimum Wages Act, 1948, (iii) the Payment of Bonus Act, 1965, and (iv) the Equal Remuneration Act, 1976. The Wage Code repeals the above 4 laws.

Source: §3-6 & 11 of the Minimum Wages Act 1948; §3-7 of the Payment of Wages Act 1936, amended in 2017

Non-Standard Workers' Rights on Regular Pay  - Platform Workers

The payment system in the platform economy is quite varied. Some platforms apply an hourly rate, others offer a specific amount per delivery, ride or task. The platforms do not ask for a service fee. However, it is often required that workers use their own equipment or means of transport to perform their worker duties.

This varies per platform. For independent contractors, offering bonuses is legally allowed in any way, shape or form. Uber offers Quest and Boost incentives/bonuses. Quest promotions allow drivers/partners to earn extra money for reaching certain trip goals in a set amount of time (a week). Select drivers/partners receive weekday and weekend boosts as well.

For independent contractors, applying deductions is legally allowed in any way, shape or form. Deductions from payment on account of service fees are covered under the Indian Contracts Act 1872.

 

Regular Pay Under State Laws 

Andhra Pradesh

Maharashtra

Karnataka

Uttar Pradesh

Rajasthan

Tamil Nadu

Gujarat

West Bengal

 

Regular Pay in Andhra Pradesh

Every employer is responsible for the payment by him to employees of all wages and sums, required to be paid under this Act. Every employer must fix periods in which wages are payable. No wage period can be more than one month. The wages of every employee must be paid before the end of the fifth day after the last day of the wage period. Where the service of any employee is terminated by the employer, the employee should receive their wage before the expiration of two days from termination.

In organizations with less than 1000 workers, contract labourers should be paid their wages within 7 days after their wage cycle. In other organizations, this payment should be paid before the 10th day. All payments of wages must be made on a working day at the work premises and during the working time. This date and time should be notified to the workers in advance. In case the work ends before the average wage period, contract workers should be paid within 48 hours of the last working day.

Wages due to every worker must be paid to such workers directly or to another person authorized by the worker. Wages must be paid without any deductions of any kind except those specified by the State Government by general or special order. Employers are supposed to display a notice with all the payable wages at a visible place at the establishment. A representative of the principal employer should be present every time the contractor is giving out the wages. The contractor should ensure that such an authorized representative is present. The principal employer may also ensure written slips of all disbursed wages.


Source: Section 63-73 of Andhra Pradesh Contract Labour (Regulation and Abolition) Rules, 1971; Section 35, 36, 38, Andhra Pradesh Shops and Establishments Act, 1988

 

Regular Pay in Maharashtra

For Mathadis, Hamals, Manual Workers, and Private Security Guards:

In case of employment of mathadis, hamals, manual workers, and private security guards, the State Government reserves rights to ascertain time limits for payment of wages. Where the concerned authorities find certain employers to be defaulters, they may compel such employers to deposit an average amount of monthly wages payable to workers.

Private security guards are entitled to full payment of wages even in cases where the employers (usually security agencies) are unable to provide them with complete or partial employment; despite the guards being available for duty.

Source: Section 3, Maharashtra Mathadi, Hamal and other Manual Workers' (Regulation of Employment and Welfare) Act, 1969

Section 3, Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981

 

Regular Pay in Karnataka

For Daily Wage Employees:

Daily wage employees in the establishments whose names are notified by the Government, are continued on a daily wage basis till they complete the age of sixty years.

Source: Section 3 Karnataka Daily Wage Employees Welfare Act, 2012 

 

Regular Pay in Uttar Pradesh

For Building and Construction Workers:

The wage of every building worker employed at a construction site with less than one thousand employed building workers need to be paid before the expiry of the seventh day.

In other cases, wages for of every building worker needs to be paid before the expiry of tenth day after the last day of the period regarding which wages are due.

Source: Section 49, U.P. Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Rules, 2009

For Contract Labourers and Inter-State Migrant Workmen:

The employees are entitled to wages at fixed periods of times. The time will be fixed by the contractor at anything not exceeding one month.

The wages of every person employed as contract labour or migrant workman in an establishment or employed by a contractor should be paid before the expiry of the seventh day, where less than one thousand such persons are employed.

In other cases, wages should be paid before the expiry of tenth day after the last day of wage period regarding which the wages are payable.

All payments of wages should be made during the working time on a working day at the work premises on a date notified in advance. In case the work is completed before the expiry of the wage period, final payment should be made within 48 hours of the last working day.

Wages entitled to every worker should be paid to him directly or to another person authorized by him in this behalf.

Wages should be paid without any deductions of any kind except those specified by the State Government by general or special order in this behalf or permissible under the Payment of Wages Act, 1936 (Act no. 4 of 1936).

Employers are supposed to display a notice with all the payable wages at a clearly visible place at the establishment.

The Principal Employer should ensure the presence of his authorized representative at the place and time of payment of wages by the contractor to workmen.

The contractor is obligated to ensure the wage payment in the presence of such authorized representative. The principal employer may also ensure written particulars of all wages paid out.

Source: Sections 63-72,  U.P. Contract Labour (Regulation Abolition) Rules, 1975  & Sections 26-34  U.P. Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Rules, 1983

On receipt of information about the default of payment of wages exceeding-fifty thousand rupees in an industrial establishment, the Labour Commissioner should serve a notice on its occupier in Form II to find out the wage bill concerning which the default in payment has been committed.

The Labour Commissioner may also require the occupier to furnish to him the information in Form III and to produce such other information and material he may consider necessary.

The Labour Commissioner may sign and forward a certificate to the Collector, specifying the amount of wages due from an industrial establishment if the occupier of an industrial establishment is in default of payment of wages and if the wage-bill of the occupier exceeds fifty thousand rupees.

Source: Section 4, U.P. Industrial Peace (Timely Payment of Wages) Rules, 1981

Section 3, U.P. Industrial Peace Timely Payment of Wages Act, 1978

Any wages due to a workman, but not paid on the usual pay day, should be paid by the employer on any working day before the expiry of the second working day after the day on which a demand is made.

The demand could be made by the workman or his legal representative, on his behalf.

This demand must be in accordance with the provisions of Payment of Wages Act, 1936 applicable to the industrial establishment.

If the workman is unable to present himself, the employer should send his pay by money order at his cost if so requested by him.

Source: Section 14, U.P. Industrial Employment Model Standing Orders, 1991

The Labour Welfare Fund Board is empowered to charge and procure all unpaid labour wage accumulations from employers and further put them up for claims from employees/unions for the same.

Source: Section 6,  Uttar Pradesh Labour Welfare Fund Act, 1965

 

Regular Pay in Rajasthan

For Minimum Wage Employees:

In scheduled employment, the wage period is not more than a month. The payment for the wage period should be made before the expiry of the 7th day after the wage period ends in an establishment with less than 1000 employees, and before the expiry of the 10th day in all other establishments. There should be no deductions in the wages except those mentioned in the Minimum Wages Rules.

Source: Section 34 of the Rajasthan Minimum Wages Rules, 1959

For Construction Workers:

Employers at construction sites should pay the building workers their wages before expiry of the 7th day after the wage period in case of the site having less than 1000 workers, and before the expiry of 10th day in case of all other construction sites. In case the work of an employee is terminated, he/she should be paid before the end of the second working day after the termination. In case the employer completes his work then he/she should be paid within 48 hours of work completion.

Source: Section 75 of the Rajasthan Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Rules, 2009

 

Regular Pay in Tamil Nadu

For construction workers:

Construction employers are supposed to display all notices about payment of wages, date of payment, and labour authority in accessible places for all workers. In construction sites with less than one thousand workers, payment of wages should be done before the expiry of the 7th day of the next month. In cases otherwise, it should be done before the expiry of the 10th day. Terminated workers should be paid all due before expiry of the 2nd day from the termination. All other final payments on the completion of work should be made within 48 hours of completion.

Source: Tamil Nadu Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Rules, 2006

For everyone:

Amendment of the Payment of Wages Act by Tamil Nadu allows complaints of non-payment from any person, employee, legal practitioner, trade union representatives, or any inspector. The concerned authority may then issue a certificate of amount to the Collector. Unpaid wages (after the issuance of this certificate) will be treated equivalent to land arrears. This significantly adds to the accountability and seriousness of the provision.

Source: Payment of Wages (Tamil Nadu Amendment) Act, 1986

For workers in Shops and Commercial Establishments:

Workers subject to the Tamil Nadu Shops and Establishments Act must rightfully receive payments of wages before the expiry of the 5th day from the end of the fixed one-month period. In case of terminations, the dues ought to be cleared before the expiry of the 2nd day from the termination date.

Source: Tamil Nadu Shops and Establishments Act, 1947

 

Regular Pay Regulations in Gujarat

The State Government may, through notification in the Official Gazette, direct that all or any of the provisions of the Payment of Wages Act 1936 should apply to all workers to which this Act applies.

Source: Gujarat Unprotected Manual Workers (Regulation of Employment and Welfare) Act, 1979

 

Regular Pay Regulations in West Bengal

For Employees at Establishments:

Every employer is responsible for the payment by him to employees of all wages and sums, required to be paid under this Act. Every employer must fix periods in which wages are payable. No wage-period can be more than one month. The wages of every employee must be paid before the end of the tenth day after the last day of the wage-period. Where the service of any employee is terminated by the employer, the employee should receive their wage before the expiration of two days from termination.

In organizations with less than 1000 workers, contract laborers should be paid their wages within 7 days after their wage cycle. In other organizations, this payment should be paid before the 10th day. All payments of wages must be made on a working day at the work premises and during the working time. This date and time should be notified to the workers in advance. In case the work ends before the average wage period, contract workers should be paid within 48 hours of the last working day.

Wages due to every worker must be paid to such workers directly or to another person authorized by the worker. Wages must be paid without any deductions of any kind except those specified by the State Government by general or special order. Employers are supposed to display a notice with all the payable wages at a visible place at the establishment. A representative of the principal employer should be present every time the contractor is giving out the wages. The contractor should ensure that such an authorized representative is present. The principal employer may also ensure written slips of all disbursed wages.


Source: Section 63-73 of West Bengal Contract Labour (Regulation and Abolition) Rules, 1972; Section 14, West Bengal Shops and Establishments Act, 1963.

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