The Payment of Wages Act, 1936

Sec. 
 The Payment of Wages Act, 1936 
 

1 

 

THE PAYMENT OF WAGES ACT, 1936 

Sec. 

[ACT 4 OF 1936] 
[23rd April, 1936] 

An Act to regulate the payment of wages of certain classes of 1[employed 

persons]. 
Whereas it is expedient to regulate the payment of wages to certain classes 

of [employed persons]; 
It is hereby enacted as follows:- 

 

1. Short title, extent, commencement and application.- (1) This Act may 

be called the Payment of Wages Act, 1936. 
2[(2) It extends to the whole of India 3[***].] 

(3) It shall come into force on such date 4as the Central Government may, by 

notification in the Official Gazette, appoint. 
(4) It applies in the first instance to the payment of wages to persons 

employed in any 5[factory, to persons] employed (otherwise than in a factory) 

upon any railway by a railway administration or, either directly or through a sub-

contractor, by a person fulfilling a contract with a railway administration, 6[and 

to persons employed in an industrial or other establishment specified in sub-
clauses (a) to (g) of clause (ii) of Section 2]. 

(5) The 7[Appropriate Government] may, after giving three months' notice of 

its intention of so doing, by notification in the Official Gazette, extend the 

provisions of 8[this Act or any of them to the payment of wages to any class of 

persons employed in 9[any establishment or class of establishments specified by 

the Central Government or a State Government under sub-clause (h) of clause (ii) 
of section 2.] 

10[Provided that in relation to any such establishment owned by the Central 

Government, no such notification shall be issued except with the concurrence of 
that Government.] 

11[(6) This Act applies to wages payable to an employed person in respect of 

a wages period is such wages for that wage period do not exceed 12[ten thousand 

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 

                            
1  Subs. by Act No.38 of 1982, S. 2, for “persons employed in industry” (w.e.f. 15.10.1982) 
2  Subs. by A.O. 1950, for sub-sec 

3  Omitted by Act 51 of 1970 
4  28th March, 1937, see Gaz. of India 1937, Pt. 1, p. 626. 
5  Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982) 
6  Ins. by Act No.38 of 1982 (w.e.f. 15.10.1982) 

7  Subs. by Act 41 of 2005, sec. 3 for “The State Government” (w.e.f 09-11-2005) 
8  Subs. by Act No.68 of 1957 (w.e.f. 1.4.1958) 
9  Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982) 
10  Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982) 

11  Subs. by Act 41 of 2005, sec. 2, for sub-section “(6) Nothing in this Act shall apply 
to wages payable in respect of a wage-period which over such wage period, average 
one thousand six hundred rupees a month or more” (w.e.f 09-11-2005). 

12  Substituted for “six thousand five hundred rupees per month” by S.O. 1380(E), 

dated 8th August, 2007. 



2 The Payment of Wages Act, 1936 
 

Sec. 
 

 

Organisation, the Central Government may, after every five years, by notification 
in the Official Gazette, specify.] 

 
2. Definitions.- In this Act, unless there is anything repugnant in the 

subject or context,- 
1[(i) “appropriate Government” means, in relation to railways, air 

transport services, mines and oilfields, the Central Government 
and, in relation to all other cases, the State Government;] 

2[ 3[(ia)  “employed person” includes the legal representative of a 

deceased employed person; 
(ib)  “employer” includes the legal representative of a deceased 

employer; 
4[ 5[(ib)  “factory” means a factory as defined in clause (m) of Section 2 of 

Section 2 of the Factories Act, 1948 (63 of 1948) and includes 
any place to which the provisions of that Act have been applied 
under sub-section (1) of Section 85 thereof;] 

(ii)  6[industrial or other establishment means] any- 
7[(a)  tramway service, or motor transport service engaged in 

carrying passengers or goods or both by road for hire or 
reward; 

(aa)  air transport service other than such service belonging to 
or exclusively employed in the military, naval or air 
forces of the Union or the Civil Aviation Department of 
the Government of India; 

(b)  dock, wharf or jetty;] 
8[(c)  inland vessel, mechanically propelled;] 

(d)  mine, quarry or oil-field; 
(e)  plantation; 
(f)  workshop or other establishment in which articles are 

produced, adapted or manufactured, with a view to their 
use, transport or sale; 

9[(g)  establishment, in which any work relating to the 

construction, development or maintenance of buildings, 
roads, bridges or canals, or relating to operations 
connected with navigation, irrigation or the supply of 
water, or relating to the generation, transmission and 
distribution of electricity or any other form of power is 
being carried on. 

                            
1  Ins. by Act 41 of 2005, sec. 4(a) (w.e.f 09-11-2005) 
2  Clauses (i), (ia) and (ib) subs. by  Act 53 of 1964, sec. 3 for clause (i) (w.e.f. 1-2-1965). 
3   Clauses (i), (ia) and (ib) renumbered as clauses (ia), (ib) and (ic) by Act 41 of 2005, 

sec. 4(a) (w.e.f 09-11-2005).  
4  Clauses (i), (ia) and (ib) subs. by Act 53 of 1964, sec. 3 for clause (i) (w.e.f. 1-2-1965). 
5    Clauses (i), (ia) and (ib) renumbered as clauses (ia), (ib) and (ic) by Act 41 of 2005, 

sec. 4(a) (w.e.f 09-11-2005).  

6  Subs. by Act No. 38 of 1982, sec. 3 for “industrial establishment” means‟ (w.e.f. 
15.10.1982) 

7  Subs. by Act No.53 of 1964 (w.e.f. 1.2.1965) 
8  Subs. by Act No.68 of 1957 (w.e.f. 1.4.1958) 

9  Ins. by Act No.68 of 1957 (w.e.f. 1.4.1958) 



Sec. 2 The Payment of Wages Act, 1936 
 

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1[(h) any other establishment or class of establishments 

which the Central Government or a State Government 
may, having regard to the nature thereof, the need for 
protection of persons employed therein and other 
relevant circumstances, specify, by notification in the 
Official Gazette]. 

2[(iia)  “mine” has the meaning assigned to it in clause (j) of sub- section 

(1) of Section 2 of the Mines Act, 1952 (35 of 1952);] 
3[(iii) “Plantation” has the meaning assigned to it in clause (f) of 

Section 2 of the Plantations Labour Act, 1951 (69 of 1951);] 
(iv)  “prescribed” means prescribed by rules made under this Act, 
4[(v)  “railway administration” has the meaning assigned to it in clause 

(32) of section 2 of the Indian Railways Act, 1989 (24 of 1989);] 
5[(vi) “wages” means all remuneration (whether by way of salary, 

allowances or otherwise) expressed in terms of money or capable 
of being so expressed which would, if the terms 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, and includes- 
(a)  any remuneration payable under any award or 

settlement between the parties or order of a Court; 
(b)  any remuneration to which the person employed is 

entitled in respect of overtime work or holidays or any 
leave period; 

(c)  any additional remuneration payable under the terms of 
employment (whether called a bonus or by any other 
name); 

(d)  any sum which by reason of the termination of 
employment of the person employed is payable under 
any law, contract or instrument which provides for the 
payment of such sum, whether with or without 
deductions but does not provide for the time within 
which the payment is to be made; 

(e)  any sum to which the person employed is entitled under 
any scheme framed under any law for the time being in 
force; 

but does not include— 
(1)  any bonus (whether under a scheme of profit sharing or 

otherwise) which does not form part of the remuneration payable 
under the terms of employment or which is not payable under 
any award or settlement between the parties or order of a Court; 

(2)  the value of any house-accommodation, or of the supply of light, 
water, medical attendance or other amenity or of any service 

                            
1  Ins. by Act No.38 of 1982 (w.e.f.15.10.1982) 
2  Ins. by Act No.53 of 1964 (w.e.f. 1.2.1965) 

3  Subs. by Act No.53 of 1964 (w.e.f. 1.2.1965) 
4  Subs. by Act 41 of 23005, sec. 4(b), for clause “(v)” railway administration” has the 

meaning assigned to it in clause (6) of section 3 of the Indian Railways Act, 1890 (9 of 
1890), and”. 

5  Subs. by Act No.68 of 1957 (w.e.f. 1.4.1958) 



4 The Payment of Wages Act, 1936 
 

Sec. 3 

 

excluded from the computation of wages by a general or special 

order of 1[the appropriate Government]; 

(3)  any contribution paid by the employer to any pension or 
provident fund, and the interest which may have accrued 
thereon; 

(4)  any travelling allowance or the value of any travelling 
concession; 

(5)  any sum paid to the employed person to defray special expenses 
entailed on him by the nature of his employment; or 

(6)  any gratuity payable on the termination of employment in cases 
other than those specified in sub-clause (d)] 

 
2[3. Responsibility for payment of wages.- Every employer shall be 

responsible for the payment of all wages required to be paid under this Act to 
persons employed by him and in case of persons employed,-- 

(a)  in factories, if a person has been named as the manager of the 
factory under [clause (f) of sub-section (1) of Section 7 of the 
Factories Act, 1948 (63 of 1948)]; 

[(b)  in industrial or other establishments, if there is a person 
responsible to the employer for the supervision and control of the 
industrial or other establishments;] 

(c) upon railways (otherwise than in factories) if the employer is the 
railway administration and the railway administration has 
nominated a person in this behalf for the local area concerned. 

(d) in the case of contractor, a person designated by such contractor 
who is directly under his charge; and 

(e) in any other case, a person designated by the employer, the 
person so nominated or the person so designated, as the case 
may be, shall be responsible for such payment.  

the person so named, and the person so responsible to the employer, or the 

person so nominated, as the case may be, 3[shall also be responsible] for such 

payment. 
(2) Notwithstanding anything contained in sub-section (1), it shall be the 

responsibility of the employer to make payment of all wages required to be made 
under this Act in case the contractor or the person designated by the employer 

fails to make such payment.] 

 
4. Fixation of wage-periods.- (1) Every person responsible for the payment 

of wages under Section 3 shall fix periods (in this Act referred to as wage-periods) 
in respect of which such wages shall be payable. 

(2) No wage-period shall exceed one month. 
 

5. Time of payment of wages.- (1) The wages of every person employed 
upon or in - 

(a)  any railway, factory or 4[industrial or other establishment] upon 

or in which less than one thousand persons are employed, shall 
be paid before the expiry of the seventh day. 

                            
1  Subs. by Act 41 of 2005, sec. 3 for “The State Government” (w.e.f 09-11-2005) 
2   Subs. by Act 41 of 2005, sec. 5 (w.e.f 09-11-2005)  
3  Subs. by Act No.53 of 1964 (w.e.f. 1.2.1965) 

4  Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982) 



Sec. 7 The Payment of Wages Act, 1936 
 

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(b)  any other railway, factory or 1[industrial or other establishment, 

shall be paid before the expiry of the tenth day, 
after the last day of the wage-period in respect of which the wages are payable: 

2[Provided that in the case of persons employed on a dock, wharf or jetty or 

in a mine, the balance of wages found due on completion of the final tonnage 
account of the ship or wagons loaded or unloaded, as the case may be, shall be 
paid before the expiry of the seventh day from the day of such completion.] 

(2) Where the employment of any person is terminated by or on behalf of the 
employer, the wages earned by him shall be paid before the expiry of the second 
working day from the day on which his employment is terminated: 

3[Provided that where the employment of any person in an establishment is 

terminated due to the closure of the establishment for any reason other than a 

weekly or other recognised holiday, the wages earned by him shall be paid before 
the expiry of the second day from the day on which his employment is so 
terminated.] 

(3) The 4[5[The appropriate Government] may, by general or special order, 

exempt, to such extent and subject to such conditions as may be specified in the 
order, the person responsible for the payment of wages to persons employed 

upon any, railway (otherwise than in a factory) 6[or to persons employed as daily-

daily-rated workers in the Public Works Department of 7[the appropriate 

Government] from the operation of this section in respect of the wages of any 
such persons or class of such persons: 

8[Provided that in the case of persons employed as daily-rated workers as 

aforesaid, no such order shall be made except in consultation with the Central 
Government;] 

(4) 9[Save as otherwise provided in sub-section (2), all payments] of wages 

shall be made on a working day. 
 

6. Wages to be paid in current coin or currency notes.- All wages shall be 
paid in current coin or currency notes or in both: 

10[Provided that the employer may, after obtaining the written authorisation 

of the employed person, pay him the wages either by cheque or by crediting the 
wages in his bank account.] 

 

7. Deductions which may be made from wages.- (1) Notwithstanding the 

provisions of 11[the Railways Act, 1989 (24 of 1989)], the wages of an employed 

person shall be paid to him without deduction of any kind except those 
authorised by or under this Act. 

                            
1  Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982) 
2  Added by Act No.53 of 1964 (w.e.f. 1.2.1965) 
3  Added by Act No.53 of 1964 (w.e.f. 1.2.1965) 
4  Subs. by the A.O. 1937, for “Governor-General in Council” 

5  Subs. by Act 41 of 2005, sec. 3 for “the State Government” (w.e.f 09-11-2005) 
6  Ins. by Act No.53 of 1964 (w.e.f. 1.2.1965) 
7  Substituted by the Payment of Wages (Amendment) Act, 2005 (41 of 2005), S.3, 

for “the State Government or the Central Government” (w.e.f 09-11-2005).   

8  Ins. by Act No.53 of 1964 (w.e.f. 1.2.1965) 
9  Subs. by Act No.53 of 1964 (w.e.f. 1.2.1965) 
10  Ins. by Act No.29 of 1976 (w.e.f. 12.11.1975) 
11  Subs. by Act 41 of 2005, sec. 6(a) for “sub-section (2) of section 47 of the Indian 

Railways, Act, 1890 (9 of 1890)”.3 for “the State Government” (w.e.f 09-11-2005) 



6 The Payment of Wages Act, 1936 
 

Sec. 7 

 

1[Explanation I].- Every payment made by the employed person to the 

employer or his agent shall, for the purposes of this Act, be deemed to be a 
deduction from wages. 

2[Explanation II.- Any loss of wages resulting from the imposition, for good 

and sufficient cause, upon a person employed of any of the following penalties, 
namely— 

(i)  the withholding of increment or promotion (including the 
stoppage of increment at an efficiency bar); 

(ii)  the reduction to a lower post or time-scale or to a lower stage in 
a time-scale; or 

(iii)  suspension; 
shall not be deemed to be a deduction from wages in any case where the rules 

framed by the employer for the imposition of any such penalty are in conformity 
with the requirements, if any, which may be specified in this behalf by the State 
Government by notification in the Official Gazette.] 

(2) Deductions from the wages of an employed person shall be made only in 
accordance with the provisions of this Act, and may be of the following kinds 
only, namely- 

(a)  fines;  
(b)  deduction for absence from duty; 
(c)  deductions for damage to or loss of goods expressly entrusted to 

the employed person or custody; or for loss of money for which 
he is required to account, where such damage or loss is directly 
attributable to his neglect or default; 

3[(d)  deductions for house-accommodation supplied by the employer 

or by Government or any housing board set up under any law for 
the time being in force (whether the Government or the board is 
the employer or not) or any other authority engaged in the 
business of subsidising house-accommodation which may be 

specified in this behalf by 4[the appropriate Government] by 

notification in the Official Gazette;] 
(e)  deductions for such amenities and services supplied by the 

employer as the 5[***] State Government 6[or any officer specified 

specified by it in this behalf] may, by general or special order 
authorise. 

Explanation.- The word “services” in 7[this clause] does not include the 

supply of tools and raw materials required for the purposes of employment; 
8[(f)  deductions for recovery of advances of whatever nature 

(including advances for travelling allowance or conveyance 
allowance), and the interest due in respect thereof, or for 
adjustment of over-payments of wages; 

                            
1  Re-numbered by Act No.68 of 1957 (w.e.f. 1.4.1958) 
2  Ins. by Act No.68 of 1957 (w.e.f. 1.4.1958)  
3  Subs. by Act No.68 of 1957 (w.e.f. 1.4.1958) 
4  Substituted by the Payment of Wages (Amendment) Act, 2005 (41 of 2005), S.3, 

for “the State Government” (w.e.f 09-11-2005).   
5  Omitted by the A.O. 1937 
6  Ins. by Act No.53 of 1964 (w.e.f. 1.2.1965) 
7  Subs. by Act No.56 of 1974, sec. 3 and Sch. II, for “this sub-clause” 

8  Subs. by Act No.53 of 1964 (w.e.f. 1.2.1965) 



Sec. 7 The Payment of Wages Act, 1936 
 

7 

 

(ff)  deductions for recovery of loans made from any fund constituted 
for the welfare of labour in accordance with the rules approved 
by the State Government, and the interest due in respect thereof; 

(fff)  deductions for recovery of loans granted for house-building or 
other purposes approved by the State Government and the 
interest due in respect thereof;] 

(g)  deductions of income-tax payable by the employed person; 
(h)  deductions required to be made by order of a Court or other 

authority competent to make such order; 
(i)  deductions for subscriptions to, and for payment of advances 

from any provident fund to which the Provident Funds Act, 1925 
(19 of 1925), applies or any recognised provident fund as defined 
1[in clause (38) of section 2 of the Income-tax Act, 1961 (43 of 

1961) or any provident fund approved in this behalf by 2[the 

appropriate Government], during the continuance of such 

approval; 3[***]  

(j)  deductions for payments to co-operative societies approved by 
4[the appropriate Government] 5[or any officer specified by it in 

this behalf] or to a scheme of insurance maintained by the 

Indian Post Office; 6[and]; 
7[8(k) deductions, made with the written authorisation of the person 

employed for payment of any premium on his life insurance 
policy to the Life Insurance Corporation of India established 
under the Life Insurance Corporation Act, 1956 (31 of 1956), or 
for the purchase of securities of the Government of India or of 
any State Government or for being deposited in any Post Office 

Savings Bank in furtherance of any savings scheme of any such 
Government;] 

9[(kk) deductions made, with the written authorisation of the employed 

person, for the payment of his contribution to any fund 
constituted by the employer or a trade union registered under 
the Trade Unions Act, 1926 (16 of 1926) for the welfare of the 

employed persons or the members of their families, or both, and 

approved by 10[the appropriate Government], or any officer 

specified by it in this behalf, during the continuance of such 
approval; 

(kkk) deductions made, with the written authorisation of the employed 
person, for payment of the fees payable by him for the 

                            
1 Subs. by Act 41 of 2005, sec. 6(b), for “in section 58A of the Indian Income Tax 

Act, 1922 (11 of 1922) (w.e.f 09-11-2005) 

2  Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f 09-11-2005) 
3  Omitted by Ordinance 3 of 1940 
4  Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f 09-11-2005) 
5  Ins. by Act No.53 of 1964 (w.e.f. 1.4.1965) 

6  Added by Ordinance 3 of 1940 
7  Added by Ordinance 3 of 1940, sec. 2. 
8  Subs. by Act No.68 of 1957 (sec. 5, for clause (k) (w.e.f. 1-4-1958) 
9  Ins. by Act 38 of 1982 (w.e.f. 15.10.1982) 

10  Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f 09-11-2005) 



8 The Payment of Wages Act, 1936 
 

Sec. 
 

 

membership of any trade union registered under the Trade 
Unions Act, 1926 (16 of 1926); 

1[(l)  deductions for payment of insurance premia on Fidelity 

Guarantee Bonds; 
(m) deductions for recovery of losses sustained by a railway 

administration on account of acceptance by the employed person 
of counterfeit or base coins or mutilated or forged currency 
notes; 

(n)  deductions for recovery of losses sustained by a railway 
administration on account of the failure of the employed person 
to invoice, to bill, to collect or to account for the appropriate 
charges due to that administration, whether in respect of fares, 

freight, demurrage, wharfage and cranage or in respect of sale of 
food in catering establishments or in respect of commodities in 
grain shops or otherwise; 

(o)  deductions for recovery of losses sustained by a railway 
administration on account of any rebates or refunds incorrectly 
granted by the employed person where such loss is directly 
attributable to his neglect or default.] 

2[(p)  deductions, made with the written authorisation of the employed 

person, for contribution to the Prime Minister's National Relief 
Fund or to such other Fund as the Central Government may, by 
notification in the Official Gazette, specify.] 

3[(q)  deductions for contributions to any insurance scheme framed by 

the Central Government for the benefit of its employees.] 
4[(3) Notwithstanding anything contained in this Act, the total amount of 

deductions which may be made under sub-section (2) in any wage-period from 
the wages of any employed person shall not exceed- 

(i)  in cases where such deductions are wholly or partly made for 
payments to co-operative societies under clause (j) of sub-section 
(2), seventy-five per cent of such wages, and 

(ii)  in any other case, fifty per cent of such wages: 
Provided that where the total deductions authorised under sub-section (2) 

exceed seventy-five per cent or, as the case may be, fifty per cent of the wages, 
the excess may be recovered in such manner as may be prescribed. 

(4) Nothing contained in this section shall be construed as precluding the 
employer from recovering from the wages of the employed person or otherwise 
any amount payable by such person under any law for the time being in force 

other than 5[the Railways Act, 1989 (24 of 1989)]. 

 
8. Fines.- (1) No fine shall be imposed on any employed person save in 

respect of such acts and omissions on his part as the employer with the previous 

                            
1  Ins. by Act No.53 of 1964 (w.e.f. 1.4.1965) 

2  Ins. by Act No.29 of 1976 (w.e.f. 12.11.1975 
3  Ins. by Act No.19 of 1977 (w.e.f. 30.6.1977) 
4  Ins. by Act No.53 of 1964 (w.e.f. 1.2.1965) 
5  Subs. by Act 41 of 2005, sec. 6(c) for “the Indian Railways, Act, 1890 (9 of 1890)”  

(w.e.f 09-11-2005) 



Sec. 9 The Payment of Wages Act, 1936 
 

9 

 

approval of 1[the appropriate Government] or of the prescribed authority, may 

have specified by notice under sub-section (2). 
(2) A notice specifying such acts and omissions shall be exhibited in the 

prescribed manner on the premises in which the employment is carried on or in 
the case of persons employed upon a railway (otherwise than in a factory), at the 
prescribed place or places. 

(3) No fine shall be imposed on any employed person until he has been given 
an opportunity of showing cause against the fine, or otherwise than in 
accordance with such procedure as may be prescribed for the imposition of fines. 

(4) The total amount of fine which may be imposed in any one wage- period 

on any employed person shall not exceed an amount equal to 2[three per cent] of 

the wages payable to him in respect of that wage-period. 

(5) No fine shall be imposed on any employed person who is under the age of 
fifteen years. 

(6) No fine imposed on any employed person shall be recovered from him by 

instalments or after the expiry of 3[ninety days] from the day on which it was 

imposed. 
(7) Every fine shall be deemed to have been imposed on the day of the act or 

omission in respect of which it was imposed. 
(8) All fines and all realisations thereof shall be recorded in a register to be 

kept by the person responsible for the payment of wages under Section 3 in such 
form as may be prescribed; and all such realisations shall be applied only to such 
purposes beneficial to the persons employed in the factory or establishment as 
approved by the prescribed authority. 

Explanation.- When the persons employed upon or in any railway, factory or 
4[industrial or other establishment] are part only of a staff employed under the 

same management, all such realisations may be credited to a common fund 
maintained for the staff as a whole, provided that the fund shall be applied only 
to such purposes as are approved by the prescribed authority. 

 

9. Deductions for absence from duty.- (1) Deductions may be made under 
clause (b) of sub-section (2) of Section 7 only on account of the absence of an 
employed person from the place or places where, by the terms of his employment, 
he is required to work, such absence being for the whole or any part of the period 
during which he is so required to work. 

(2) The amount of such deduction shall in no case bear to the wages payable 
to the employed person in respect of the wage-period for which the deduction is 
made a larger proportion than the period for which he was absent bears to the 
total period, within such wage-period, during which by the terms of his 
employment, he was required to work: 

Provided that, subject to any rules made in this behalf by 5[the appropriate 

Government], if ten or more employed persons acting in concert, absent 
themselves without due notice (that is to say without giving the notice which is 
required under the terms of their contracts of employment) and without 
reasonable cause, such deduction from any such person may include such 

                            
1  Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f 09-11-2005) 
2  Subs. by Act 38 of 1982 
3  Subs. by Act 41 of 2005, sec. 7, for “sixty days” (w.e.f 09-11-2005) 
4  Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982) 

5  Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f 09-11-2005) 



10 The Payment of Wages Act, 1936 
 

Sec. 
 

 

amount not exceeding his wages for eight days as may by any such terms be due 
to the employer in lieu of due notice. 

1[Explanation.- For the purposes of this section, an employed person shall be 

deemed to be absent from the place where he is required to work if, although 
present in such place, he refuses, in pursuance of a stay-in strike or for any 
other cause which is not reasonable in the circumstances, to carry out his work]. 

 

10. Deductions for damage or loss.- 2[(1) A deduction under clause (c) or 

clause (o) of sub-section (2) of Section 7 shall not exceed the amount of the 
damage or loss caused to the employer by the neglect or default of the employed 
person. 

(1-A) A deduction shall not be made under clause (c) or clause (m) or clause 

(n) or clause (o) of sub-section (2) of Section 7 until the employed person has 
been given an opportunity of showing cause against the deduction, or otherwise 
than in accordance with such procedure as may be prescribed for the making of 
such deductions.] 

(2) All such deductions and all realisations thereof shall be recorded in a 
register to be kept by the person responsible for the payment of wages under 
Section 3 in such form as may be prescribed. 

 
11. Deductions for services rendered.- A deduction under clause (d) or 

clause (e) of sub-section (2) of Section 7 shall not be made from the wages of an 
employed person, unless the house-accommodation amenity of service has been 
accepted by him, as a term of employment or otherwise, and such deduction 
shall not exceed an amount equivalent to the value of the house-accommodation 
amenity or service supplied and, in the case of a deduction under the said clause 

(e) shall be subject to such conditions as 3[****] 4[the appropriate Government]  

may impose. 
 

12. Deductions for recovery of advances.- Deductions under clause (f) of 
sub-section (2) of Section 7 shall be subject to the following conditions, namely- 

(a)  recovery of an advance of money given before employment began 
shall be made from the first payment of wages in respect of a 
complete wage-period, but no recovery shall be made of such 
advances given for travelling expenses; 

5[(aa) recovery of an advance of money given after employment began 

shall be subject to such conditions as 6[the appropriate 

Government],  may impose]; 
(b)  recovery of advances of wages not already earned shall be 

subject to any rules made by 7[the appropriate Government]  

regulating the extent to which such advances may be given and 
the instalments by which they may be recovered. 

 

                            
1  Added by Act No.22 of 1937 
2  Subs. by Act No.53 of 1964 (w.e.f. 1.2.1965) 

3  Omitted by the A.O. 1937 
4  Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f 09-11-2005) 
5  Ins. by Act No.53 of 1964 (w.e.f. 1.2.1965) 
6  Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f 09-11-2005) 

7  Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f 09-11-2005) 



Sec. 14 The Payment of Wages Act, 1936 
 

11 

 

1[12A. Deductions for recovery of loans.- Deductions for recovery of loans 

granted under clause (fff) of sub-section (2) of Section 7 shall be subject to any 

rules made by 2[the appropriate Government] regulating the extent to which such 

loans may be granted and the rate of interest payable thereon.] 
 

13. Deductions for payments to co-operative societies and insurance 

schemes.- Deductions under clause (j) 3[and clause (k)] of sub-section (2) of 

Section 7 shall be subject to such conditions as the State Government may 
impose. 

 

4[13A. Maintenance of registers and records.- (1) Every employer shall 

maintain such registers and records giving such particulars of persons employed 

by him, the work performed by them, the wages paid to them, the deductions 
made from their wages, the receipts given by them and such other particulars 
and in such form as may be prescribed. 

(2) Every register and record required to be maintained under this section 
shall, for the purposes of this Act, be preserved for a period of three years after 
the date of the last entry made therein]. 

 

14. Inspectors.- (1) An Inspector of Factories appointed under 5[sub-section 

section (1) of Section 8 of the Factories Act, 1948 (63 of 1948)], shall be an 
Inspector for the purposes of this Act in respect of all factories within the local 
limits assigned to him. 

(2) 6[the appropriate Government], may appoint Inspectors for the purposes 

of this Act in respect of all persons employed upon a railway (otherwise than in a 
factory) to whom this Act applies. 

(3) 7[the appropriate Government], may, by notification in the Official 

Gazette, appoint such other persons as it thinks fit to be Inspectors for the 
purposes of this Act, and may define the local limits within which and the class 

of factories and 8[industrial or other establishments] in respect of which they 

shall exercise their functions. 
9[(4) An Inspector may,- 

(a)  make such examination and inquiry as he thinks fit in order to 
ascertain whether the provisions of this Act or rules made 
thereunder are being observed; 

(b)  with such assistance, if any, as he thinks fit, enter, inspect and 

search any premises of any railway, factory or 10[industrial or 

other establishment] at any reasonable time for the purpose of 
carrying out the objects of this Act; 

                            
1  Ins. by Act No.53 of 1964 (w.e.f. 1.2.1965) 

2  Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f 09-11-2005) 
3  Ins. by Ordinance of 1940 
4  Ins. by Act No.53 of 1964 (w.e.f. 1.2.1965) 
5  Subs by Act No.68 of 1957 (w.e.f. 1.4.1958) 

6  Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f 09-11-2005) 
7  Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f 09-11-2005) 
8  Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982) 
9  Subs. by Act No.53 of 1964 (w.e.f. 1.2.1965) 

10  Subs. by Act 38 of 1982 S.9 (w.e.f. 15.10.1982) 



12 The Payment of Wages Act, 1936 
 

Sec. 14A 

 

(c)  supervise the payment of wages to persons employed upon any 

railway or in any factory or 1[industrial or other establishment]; 

(d)  require by a written order the production at such place, as may 
be prescribed, of any register or record maintained in pursuance 
of this Act and take on the spot or otherwise statements of any 
persons which he may consider necessary for carrying out the 
purposes of this Act; 

(e)  seize or take copies of such registers or documents of portions 
thereof as he may consider relevant in respect of an offence 
under this Act which he has reason to believe has been 
committed by an employer; 

(f)  exercise such other powers as may be prescribed: 

Provided that no person shall be compelled under this sub-section to answer 
any question or make any statement tending to incriminate himself. 

(4-A) The provisions of the 2[Code of Criminal Procedure, 1973 (2 of 1974)], 

shall, so far as may be, apply to any search or seizure under this sub- section as 
they apply to any search or seizure made under the authority of a warrant issued 

under 3[Section 94] of the said Code.] 

(5) Every Inspector shall be deemed to be a public servant within the 
meaning of the Indian Penal Code (45 of 1860). 

 

4[14A. Facilities to be afforded to Inspectors.- Every employer shall afford 

afford an Inspector all reasonable facilities for making any entry, inspection, 
supervision, examination or inquiry under this Act]. 

 

15. Claims arising out of deductions from wages or delay in payment of 

wages and penalty for malicious or vexatious claims.- (1) 5[the appropriate 

Government], may, by notification in the Official Gazette, appoint  
(a) any Commissioner for Workmen's Compensation; or 
(b) any officer of the Central Government exercising functions as,— 

(i) Regional Labour Commissioner; or 
(ii) Assistant Labour Commissioner with at least two years‟ 

experience; or 
(c) any officer of the State Government not below the rank of  

Assistant Labour Commissioner with at least two years 
experience; or 

(d) a presiding officer of any Labour Court or Industrial Tribunal, 
constituted under the Industrial Disputes Act, 1947 (14 of 1947) 
or under any corresponding law relating to the investigation and 
settlement of industrial disputes in force in the State; or 

(e) any other officer with experience as a Judge of a Civil Court or a 
Judicial Magistrate, 

as the authority to hear and decide for any specified area all claims arising out of 
deductions from the wages, or delay in payment of the wages of persons 
employed or paid in that area, including all matters incidental to such claims: 

                            
1  Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982) 
2  Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982) 
3  Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982) 
4  Inserted by the Payment of Wages (Amendment) Act, 1964, w.e.f. 1-2-1965 

5  Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f 09-11-2005) 



Sec. 15 The Payment of Wages Act, 1936 
 

13 

 

Provided that where the State Government considers it necessary so to do, it 
may appoint more than one authority for any specified area and may, by general 
or special order, provide for the distribution or allocation of work to be performed 
by them under this Act.] 

(2) Where contrary to the provisions of this Act any deduction has been 
made from the wages of an employed person, or any payment of wages has been 
delayed, such person himself, or any legal practitioner or any official of a 
registered trade union authorised in writing to act on his behalf, or any Inspector 
under this Act, or any other person acting with the permission of the authority 
appointed under sub-section (1), may apply to such authority for a direction 
under sub-section (3): 

Provided that every such application shall be presented within 1[twelve 

months] from the date on which the deduction from the wages was made or from 
the date on which the payment of the wages was due to be made, as the case 
may be: 

Provided further that any application may be admitted after the said period 

of 2[twelve months] when the applicant satisfies the authority that he had 

sufficient cause for not making the application within such period. 
3[(3) When any application under sub-section (2) is entertained, the 

authority shall hear the applicant and the employer or other person responsible 
for the payment of wages under section 3, or give them an opportunity of being 
heard, and, after such further inquiry (if any) as may be necessary, may, without 
prejudice to any other penalty to which such employer or other person is liable 
under this Act, direct the refund to the employed person of the amount deducted, 
or the payment of the delayed wages, together with the payment of such 
compensation as the authority may think fit, not exceeding ten times the amount 
deducted in the former case and not exceeding three thousand rupees but not 
less than one thousand five hundred rupees in the latter, and even if the amount 
deducted or delayed wages are paid before the disposal of the application, direct 
the payment of such compensation, as the authority may think fit, not exceeding 
two thousand rupees: 

Provided that a claim under this Act shall be disposed of as far as 
practicable within a period of three months from the date of registration of the 
claim by the authority: 

Provided further that the period of three months may be extended if both 

parties to the dispute agree for any bona fide reason to be recorded by the 
authority that the said period of three months may be extended to such period as 
may be necessary to dispose of the application in a just manner:   

Provided also that no direction for the payment of compensation shall be 
made in the case of delayed wages if the authority is satisfied that the delay was 
due to- 

(a)  a bona fide error or bona fide dispute as to the amount payable 
to the employed person, or 

(b)  the occurrence of an emergency, or the existence of exceptional 

circumstances, the person responsible for the payment of the 
wages was unable, in spite of exercising reasonable diligence, or 

                            
1  Subs. by Act No.53 of 1964 (w.e.f. 1.2.1965) 
2  Subs. by Act No.53 of 1964 (w.e.f. 1.2.1965) 

3  Subs. by the Payment of Wages (Amendment) Act, 2005, sec. 8(ii) 



14 The Payment of Wages Act, 1936 
 

Sec. 
 

 

(c)  the failure of the employed person to apply for or accept 
payment. 

1[(4) If the authority hearing an application under this section is satisfied— 

(a)  that the application was either malicious or vexatious, the 

authority may direct that a penalty 2[not exceeding three 

hundred seventy five rupees] be paid to the employer or other 
person responsible for the payment of wages by the person 
presenting the application; or 

(b)  that in any case in which compensation is directed to be paid 
under sub-section (3), the applicant ought not to have been 
compelled to seek redress under this section, the authority may 

direct that a penalty 3[not exceeding three hundred seventy five 

rupees] be paid to 4[the appropriate Government], by the 

employer or other person responsible for the payment of wages. 

(4-A) Where there is any dispute as to the person or persons being the legal 
representative or representatives of the employer or of the employed person, the 
decision of the authority on such dispute shall be final. 

(4-B) Any inquiry under this section shall be deemed to be a judicial 
proceeding within the meaning of Sections 193, 219 and 228 of the Indian Penal 
Code (45 of 1860)]. 

(5) Any amount directed to be paid under this section may be recovered— 
(a)  if the authority is a Magistrate, by the authority as if it were a 

fine imposed by him as Magistrate, and 
(b)  if the authority is not a Magistrate, by any Magistrate to whom 

the authority makes application in this behalf, as if it were a fine 
imposed by such Magistrate. 

 
16. Single application in respect of claims from unpaid group.- (1) 

Employed persons are said to belong to the same unpaid group if they are borne 

on the same establishment and if 5[deductions have been made from their wages 

in contravention of this Act for the same cause and during the same wage-period 
or periods or if] their wages for the same wage-period or periods have remained 
unpaid after the day fixed by Section 5. 

(2) A single application may be presented under Section 15 on behalf or in 
respect of any number of employed persons belonging to the same unpaid group, 

and in such case 6[every person on whose behalf such application is presented 

may be awarded maximum compensation to the extent specified in sub-section 
(3) of Section (15)]. 

(3) The authority may deal with any number of separate pending 
applications, presented under Section 15 in respect of persons belonging to the 
same unpaid group, as a single application presented under sub-section (2) of 
this section, and the provisions of that sub-section shall apply accordingly. 

 

                            
1  Subs. by Act No.53 of 1964 (w.e.f. 1.2.1965) 
2  Subs. by Act 41 of 2005, sec. 8 (iii) for “not exceeding fifty rupees” (w.e.f 09-11-

2005)  

3  Subs. by Act 41 of 2005, sec. 8 (iii) for “not exceeding fifty rupees” (w.e.f 09-11-
2005) 

4  Subs. by Act 41 of 2005, sec. 3, for “the State Government” (w.e.f 09-11-2005) 
5  Ins. by Act No.53 of 1964 (w.e.f.1.2.1965) 

6  Subs. by Act No.53 of 1964 (w.e.f.1.2.1965) 



Sec. 17A The Payment of Wages Act, 1936 
 

15 

 

17. Appeal.- (1) 1[An appeal against an order dismissing either wholly or in 

part an application made under sub-section (2) of Section 15, or against a 
direction made under sub-section (3) or sub-section (4) of that section] may be 

preferred within thirty days of the date on which 2[the order or direction] was 

made, in a Presidency town 3[***] before the Court of Small Causes and elsewhere 

before the District Court- 
(a)  by the employer or other person responsible for the payment of 

wages under Section 3, if the total sum directed to be paid by 
way of wages and compensation exceeds three hundred rupees 
4[or such direction has the effect of imposing on the employer or 

the other person a financial liability exceeding one thousand 
rupees], or 

5[(b)  by an employed person, or any legal practitioner or any official of 

a registered trade union authorised in writing to act on his 
behalf or any Inspector under this Act, or any other person 
permitted by the authority to make an application under sub-
section (2) of Section 15, if the total amount of wages claimed to 
have been withheld from the employed person exceeds twenty-
rupees or from the unpaid group to which the employed person 
belongs or belonged exceeds fifty rupees, or] 

(c)  by any person directed to pay a penalty under 6[sub-section (4)] 

of Section 15. 
7[(1-A) No appeal under clause (a) of sub-section (1) shall lie unless the 

memorandum of appeal is accompanied by a certificate by the Authority to the 
effect that the appellant has deposited the amount payable under the direction 
appealed against.] 

8[(2) Save as provided in sub-section (1), any order dismissing either wholly 

or in part an application made under sub-section (2) of Section 15, or a direction 
made under sub- section (3) or sub- section (4) of that section shall be final]. 

9[(3) Where an employer prefers an appeal under this section, the Authority 

against whose decision the appeal has been preferred may, and if so directed by 
the court referred to in sub-section (1) shall, pending the decision of the appeal, 
withhold payment of any sum in deposit with it. 

(4) The court referred to in sub-section (1) may, if it thinks fit, submit any 
question of law for the decision of the High Court and, if it so does, shall decide 
the question in conformity with such decision.] 

 
10[17A. Conditional attachment of property of employer or other person 

responsible for payment of wages.- (1) Where at any time after an application 
has been made under sub-section (2) of Section 15 the authority, or where at any 

                            
1  Subs. by Act No.68 of 1957 (w.e.f. 1.4.1958) 

2  Subs. by Act No.68 of 1957 (w.e.f. 1.4.1958) 
3  Omitted by A.O. 1937 
4  Ins. by Act No.53 of 1964 (w.e.f.1.2.1965) 
5  Subs. by Act No.53 of 1964 (w.e.f. 1.2.1965) 

6  Subs. by Act No.20 of 1937 sec. 2 and sch. I, for “sub-section (5)” 
7  Ins. by Act No.53 of 1964 (w.e.f. 1.2.1965) 
8  Subs. by Act No.68 of 1957 (w.e.f. 1.4.1958) 
9  Ins. by Act No.53 of 1964 (w.e.f. 1.2.1965) 

10  Ins. by Act No. 68 of 1957 (w.e.f. 1.4.1958) 



16 The Payment of Wages Act, 1936 
 

Sec. 18 

 

time after an appeal has been filed under Section 17 by an employed person or 
1[any legal practitioner or any official of a registered trade union authorised in 

writing to act on his behalf or any Inspector under this Act or any other person 
permitted by the authority to make an application under sub- section (2) of 
Section 15] the Court referred to in that section, is satisfied that the employer or 
other person responsible for the payment of wages under Section 3 is likely to 
evade payment of any amount that may be directed to be paid under Section 15 
or Section 17, the authority or the Court, as the case may be, except in cases, 
where the authority or Court is of the opinion that the ends of justice would be 
defeated by the delay, after giving the employer or other person an opportunity of 
being heard, may direct the attachment of so much of the property of the 
employer or other person responsible for the payment of wages as is, in the 

opinion of the authority or Court, sufficient to satisfy the amount which may be 
payable under the direction. 

(2) The provisions of the Code of Civil Procedure 1908 (5 of 1908), relating to 
attachment before judgment under that Code shall, so far as may be, apply to 
any order for attachment under sub-section (1)]. 

 

18. Powers of authorities appointed under Section 15.- Every authority 
appointed under sub-section (1) of Section 15 shall have all the powers of a Civil 
Court under the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of 
taking evidence and of enforcing the attendance of witnesses and compelling the 
production of documents, and every such authority shall be deemed to be a Civil 

Court for all the purposes of Section 195 and of 2[Chapter XXVI of the Code of 

Criminal Procedure, 1973] (2 of 1974)]. 
 

19. Power to recover from employer in certain cases]- [Repealed by the 
Payment of Wages (Amendment) Act, 1964 (53 of 1964), sec. 17 (w.e.f. 1-2-1965).] 

 

20. Penalty for offences under the Act.- (1) Whoever being responsible for 
the payment of wages to an employed person contravenes any of the provisions of 

any of the following sections, namely, 3[Section 5 except sub-section (4) thereof, 

Section 7, Section 8 except sub-section (8) thereof, Section 9, Section 10, except 
sub-section (2) thereof, and Sections 11 to 13], both inclusive, shall be 

punishable 4[with fine which shall not be less than one thousand five hundred 

rupees but which may extend to seven thousand five hundred rupees]. 

(2) Whoever contravenes the provisions of Section 4, 5[sub-section (4) of 

Section 5, Section 6, sub- section (8) of Section 8, sub-section (2) of Section (10)] 

or Section 25 shall be punishable 6[with fine which may extend to three thousand 

thousand seven hundred fifty rupees]. 
7[(2A) Whoever being required to nominate or designate a person under 

section 3 fails to do so, such person shall be punishable with fine which may 

extend to three thousand rupees.]  

                            
1  Subs. by Act No.53 of 1964 (w.e.f. 1.2.1965) 
2  Subs. by Act No.38 of 1982 
3  Subs. by Act No.53 of 1964 (w.e.f. 1.2.1965) 
4  Subs. by Act 41 of 2005, sec. 9 (a), for “with fine which shall not be less than two 

hundred rupees but which may extend to one thousand rupees” (w.e.f 09-11-2005) 
5  Subs. by Act No.53 of 1964 (w.e.f. 1.2.1965) 
6  Subs. by Act 41 of 2005, sec. 9 (b), for “with fine which may extend to five 

hundred rupees (w.e.f 09-11-2005) 

7  Subs. by Act 41 of 2005, sec. 9 (c) (w.e.f 09-11-2005) 



Sec. 20 The Payment of Wages Act, 1936 
 

17 

 

1[(3) Whoever being required under this Act to maintain any records or 

registers or to furnish any information or return,-  
(a)  fails to maintain such register or record; or 
(b)  wilfully refuses or without lawful excuse neglects to furnish such 

information or return; or 
(c)  wilfully furnishes or causes to be furnished any information or 

return which he knows to be false; or 
(d)  refuses to answer or wilfully gives a false answer to any question 

necessary for obtaining any information required to be furnished 
under this Act, 

shall for each such offence, be punishable with fine 2[with fine which shall not be 

less than one thousand five hundred rupees but which may extend to seven 

thousand five hundred rupees]. 
(4) Whoever- 

(a)  wilfully obstructs an Inspector in the discharge of his duties 
under this Act; or 

(b)  refuses or wilfully neglects to afford an Inspector any reasonable 
facility for making any entry, inspection, examination, 
supervision or (inquiry authorised by or under this Act in 

relation to any railway, factory or 3[industrial or other 

establishment]; or 
(c)  wilfully refuses to produce on the demand of an Inspector any 

register or other document kept in pursuance of this Act; or 
(d)  prevents or attempts to prevent or does anything which he has 

any reason to believe is likely to prevent any person from 
appearing before or being examined by an Inspector acting in 
pursuance of his duties under this Act, 

shall be punishable 4[with fine which shall not be less than one thousand five 

hundred rupees but which may extend to seven thousand five hundred rupees]. 
(5) If any person who has been convicted of any offence punishable under 

this Act is again guilty of an offence involving contravention of the same 
provision, he shall be punishable on a subsequent conviction with imprisonment 

for a term 5[which shall not be less than one month but which may extend to six 

months and 6[with fine which shall not be less than three thousand seven 

hundred fifty rupees but which may extend to twenty two thousand five hundred 
rupees] or with both: 

Provided that for the purpose of this sub-section, no cognizance shall be 
taken of any conviction made more than two years before the date on which the 
commission of the offence which is being punished came to the knowledge of the 
Inspector. 

                            
1  Ins. by Act No.53 of 1964 (w.e.f. 1.2.1965) 

2  Subs. by Act 41 of 2005, sec. 9 (d), for “with fine which shall not be less than two 
hundred rupees but which may extend to one thousand rupees” (w.e.f 09-11-2005) 

3  Subs. by Act No.38 of 1982 w.e.f. 15.10.1982 
4 Subs. by Act 41 of 2005, sec. 9 (e), for “with fine which shall not be less than two 

hundred rupees but which may extend to one thousand rupees” (w.e.f 09-11-2005) 
5  Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982) 
6  Subs. by Act 41 of 2005, sec. 9 (f), for “with fine which shall not be less than five 

hundred rupees but which may extend to three thousand rupees (w.e.f 09-11-

2005) 



18 The Payment of Wages Act, 1936 
 

Sec. 
 

 

(6) If any person fails or wilfully neglects to pay the wages of any employed 
person by the date fixed by the authority in this behalf, he shall, without 
prejudice to any other action that may be taken against him, be punishable with 

an additional fine which may extend to 1[seven hundred fifty rupees] for each day 

for which such failure or neglect continues]. 

 
21. Procedure in trial of offences.- (1) No Court shall take cognizance of a 

complaint against any person for an offence under sub-section (1) of Section 20 
unless an application in respect of the facts constituting the offence has been 
presented under Section 15 and has been granted wholly or in part and the 
authority empowered under the latter section or the appellate Court granting 
such application has sanctioned the making of the complaint. 

(2) Before sanctioning the making of a complaint against any person for an 
offence under sub-section (1) of Section 20, the authority empowered under 
Section 15 or the Appellate Court, as the case may be, shall give such person an 
opportunity of showing cause against the granting of such sanction, and the 
sanction shall not be granted if such person satisfies the authority or Court that 
his default was due to- 

(a)  a bona fide error or bona fide dispute as to the amount payable 
to the employed person, or 

(b)  the occurrence of an emergency, or the existence of exceptional 
circumstances, such that the person responsible for the payment 
of the wages was unable, though exercising reasonable diligence 
to make prompt payment, or 

(c)  the failure of the employed person to apply for or accept 
payment. 

(3) No Court shall take cognizance of a contravention of Section 4 or of 
Section 6 or of a contravention of any rule made under Section 26 except on a 
complaint made by or with the sanction of an Inspector under this Act. 

2[(3A) No Court shall take cognizance of any offence punishable under sub-

section (3) or sub-section (4) of Section 20 except on a complaint made by or with 
the sanction of an Inspector under this Act.] 

(4) In imposing any fine for an offence under sub-section (1) of Section 20 
the Court shall take into consideration the amount of any compensation already 
awarded against the accused in any proceedings taken under Section 15. 

 

22. Bar of suits.- No Court shall entertain any suit for the recovery of wages 
or of any deduction from wages insofar as the sum so claimed— 

(a)  forms the subject of an application under Section 15 which has 
been presented by the plaintiff and which is pending before the 
authority appointed under that section or of an appeal under 
Section 17; or 

(b)  has formed the subject of a direction under Section 15 in favour 
of the plaintiff; or 

(c)  has been adjudged in any proceeding under Section 15, not to be 

owed to the plaintiff; or 
(d)  could have been recovered by an application under Section 15. 

 

                            
1  Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982)  

2  Ins. by Act No.53 of 1964 (w.e.f. 1.2.1965) 



Sec. 25A The Payment of Wages Act, 1936 
 

19 

 

1[22A. Protection of action taken in good faith.- No suit, prosecution or 

other legal proceeding shall lie against the Government or any officer of the 
Government for anything which is in good faith done or intended to the done 
under this Act.] 

 

23. Contracting out.- Any contract or agreement, whether made before or 
after the commencement of this Act whereby an employed person relinquishes 
any right conferred by this Act shall be null and void insofar as it purports to 
deprive him of such right. 
  

2[24. Delegation of powers.-The appropriate Government may, by 

notification in the Official Gazette, direct that any power exercisable by it under 
this Act shall, in relation to such matters and subject to such conditions, if any, 

as may be specified in the direction, be also exercisable-- 
(a) where the appropriate Government is the Central Government, 

by such officer or authority subordinate to the Central 
Government or by the State Government or by such officer or 
authority subordinate to the State Government, as may be 
specified in the notification;  

(b) where the appropriate Government is a State Government, by 
such officer or authority subordinate to the State Government as 
may be specified in the notification.] 

 

25. Display by notice of abstracts of the Act.- The person responsible for 

the payment of wages to persons 3[employed in a factory or an industrial or other 

establishment] shall cause to be 4[displayed in such factory or industrial or other 

establishment] a notice containing such abstracts of this Act and of the rules 
made thereunder in English and in the language of the majority of the persons 

employed in the factory 5[or industrial or other establishment], as may be 

prescribed. 
 

6[25A. Payment of undisbursed wages in cases of death of employed 

person.- (1) Subject to the other provisions of the Act, all amounts payable to an 
employed person as wages shall, if such amounts could not or cannot be paid on 
account of his death before payment or on account of his whereabouts not being 
known,- 

(a)  be paid to the person nominated by him in this behalf in 
accordance with the rules made under this Act; or 

(b)  where no such nomination has been made or where for any 
reasons such amounts cannot be paid to the person so 

nominated, be deposited with the prescribed authority who shall 
deal with the amounts so deposited in such manner as may be 
prescribed.] 

(2) Where, in accordance with the provisions of sub-section (1), all amounts 
payable to an employed person as wages- 

                            
1  Ins. by Act No.53 of 1964 (w.e.f. 1.2.1965) 

2  Subs. by Act 41 of 2005, sec. 10, (w.e.f 09-11-2005)  
3  Subs. by Act No.38 of 1982 
4  Subs. by Act No.38 of 1982 
5  Ins. by Act No.38 of 1982 

6  Ins. by Act No.38 of 1982 



20 The Payment of Wages Act, 1936 
 

Sec. 26 

 

(a)  are paid by the employer to the person nominated by the 
employed person; or 

(b)  are, deposited by the employer with the prescribed authority, the 
employer shall be discharged of his liability to pay those wages. 

 

26. Rule-making power.- (1) 1[2[The appropriate Government] may make 

rules 3[***] to regulate the procedure to be followed by the authorities and Courts 

referred to in Sections 15 and 17. 

(2) 4[5[The appropriate Government] may 6[***] by notification in the Official 

Official Gazette make rules for the purpose of carrying into effect the provisions 
of this Act. 

(3) In particular and without prejudice to the generality of the foregoing 

power, rules made under sub-section (2) may- 
(a)  require the maintenance of such records, registers, returns and 

notices as are necessary for the enforcement of the Act 
7[prescribe the form thereof and the particulars to be entered in 

such registers or records]; 
(b)  require the display in a conspicuous place or premises where 

employment is carried on of notices specifying rates of wages 
payable to persons employed on such premises; 

(c)  provide for the regular inspection of the weights, measures and 
weighing machines used by employers in checking or 
ascertaining the wages of persons employed by them. 

(d)  prescribe the manner of giving notice of the days on which wages 
will be paid; 

(e)  prescribe the authority competent to approve under sub- section 
(1) of section 8 acts and omissions in respect of which fines may 
be imposed; 

(f)  prescribe the procedure for the imposition of fines under Section 
8 and for the making of the deductions referred to in Section 10; 

(g) prescribe the conditions subject to which deductions may be 
made under the proviso to sub-section (2) of Section 9; 

(h)  prescribe the authority competent to approve the purposes on 
which the proceeds of fines shall be expended; 

(i)  prescribe the extent to which advances may be made and the 
instalments by which they may be recovered with reference to 
clause (b) of Section 12; 

8[(i-a) prescribe the extent to which loans may be granted and the rate 

of interest payable thereon with reference to Section 12-A; 
(i-b)  prescribe the powers of Inspectors for the purposes of this Act;] 
(j)  regulate the scales of costs which may be allowed in proceedings 

under this Act; 

                            
1  Subs. by the A.O. 1937, for “Governor-General in Council” 
2  Subs. by Act 41 of 2005, sec. 3, for “The State Government” (w.e.f 09-11-2005) 
3  Omitted by A.O. 1937 

4  Subs. by the A.O. 1937, for “Governor-General in Council” 
5  Subs. by Act 41 of 2005, sec. 3, for “The State Government” (w.e.f 09-11-2005) 
6  Omitted by A.O.1973 
7  Subs. by Act No.53 of 1964 (w.e.f. 1.2.1965) 

8  Ins. by Act No. 53 of 1964 (w.e.f. 1.2.1965) 



Sec. 26 The Payment of Wages Act, 1936 
 

21 

 

(k)  prescribe the amount of court-fees payable in respect of any 

proceedings under this Act; 1[***] 

(l)  prescribe the abstracts to be contained in the notices required by 

Section 25; 2[***]  
3[(la)  prescribe the form and manner in which nominations may be 

made for the purposes of sub-section (1) of Section 25A, the 
cancellation or variation of any such nomination, or the making 
of any fresh nomination in the event of the nominee predeceasing 
the person making nomination, and other matters connected 

with such nominations; 
(lb)  specify the authority with whom amounts required to be 

deposited under clause (b) of sub-section (1) of Section 25A, shall 

be deposited and the manner in which such authority shall deal 
with the amounts deposited with it under that clause], 

4[(m) provide for any other matter which is to be or may be prescribed] 

(4) In making any rule under this section the State Government may provide 

that a contravention of the rule shall be punishable with fine 5[which shall not be 

be less than seven hundred fifty rupees but which may extend to one thousand 
and five hundred rupees]. 

(5) All rules made under this section shall be subject to the condition of 

previous publication, and the date to be specified under clause (3) of Section 23 
of the General Clauses Act, 1897 (10 of 1897) shall not be less than three months 
from the date on which the draft of the proposed rules was published. 

6[(6) Every rule made by the Central Government under this section shall be 

be laid, as soon as may be after it is made, before each House of Parliament while 
it is in session for a total period of thirty days which may be comprised in one 

session or in 7[two or more successive sessions], and if, before the expiry of the 

session 8[immediately following the session or the successive sessions aforesaid] 

both Houses agree in making any modification in the rule, or both Houses agree 
that the rule should not be made, the rule shall thereafter have effect only in 
such modified form or be of no effect, as the case may be; so however that any 
such modification or annulment shall be without prejudice to the validity of 
anything previously done under that rule.] 

9[(7) All rules made under this section by the State Government shall, as 

soon as possible after they are made, be laid before the State Legislature.] 

 

                            
1  Omitted by Act No.53 of 1964 (w.e.f. 1.2.1965) 

2  Omitted by Act No.38 of 1982 
3  Ins. by Act No.38 of 1982 (w.e.f. 15.10.1982) 
4  Ins. by Act No. 53 of 1964 (w.e.f. 1.2.1965) 
5  Subs. by Act 41 of 2005, sec. 11 (a), for “which may extend to two hundred 

rupees” (w.e.f 09-11-2005) 
6  Ins. by Act No. 53 of 1964 (w.e.f. 1.2.1965) 
7  Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982) 
8  Subs. by Act No.38 of 1982 

9  Ins. by Act 41 of 2005, sec. 11(b) (w.e.f 09-11-2005)