The Payment of Wages Act, 1936 is a central legislation which applies to the persons employed in the factories and to persons employed in industrial or other establishments specified in sub-clauses (a) to (g) of clause (ii) of section 2 of this Act. This Act does not apply on workers whose wages payable in respect of a wage period average Rs. 1600/- a month or more. Since the present minimum wages anywhere are much higher, this Act has become almost redundant in its present form. The Ministry of Labour has already initiated the process for suitable amendment of this Act.
- This Act has been enacted with the intention of ensuring timely payment of wages to the workers and for payment of wages without unauthorized deductions.
- The salary in factories/establishments employing less than 1000 workers is required to be paid by 7th of every month and in other cases by 10th day of every month.
- A worker, who either has not been paid wages in time or an unauthorized deductions have been made from his/her wages, can file a Claim either directly or through a Trade Union or through an Inspector under this Act, before with the Authority appointed under the Payment of Wages Act. The power for hearing and deciding Claims under this Act has been vested at present with the Presiding Officer of a Labour Court.