Amendment in Payment of wages act 1936 to increase the wage limit

MINISTRY OF LABOUR AND EMPLOYMENT

NOTIFICATION

New Delhi, the 28th August 2017

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

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

BRIEF NOTE

Under sub-section (6) of section 1 of the Payment of Wages Act, 1936 the Central Government is empowered to enhance the wage-limit for applicability of the Act, after every five years, on the basis of the Index of Consumer Expenditure Survey brought out by the National Sample Survey Office of Ministry of Statistics Programme Implementation, by notification in the Office Gazette.

2. The existing wage limit for applicability of the Act has been enhanced from Rs.18000/- per month to Rs.24,000/- per month vide Gazette Notification S.O. No. 2806 (E) dated 28th August, 2017.

3. The Payment of Wages Act, 1936 has been amended by Payment of Wages (Amendment) Act, 2017 (w.e.f.28.12.2016) as under:

“6.All wages shall be paid in current coin or currency notes or by cheque or by crediting the wages in the bank account of the employee:

Provided that the appropriate Government may, by notification in the Official Gazette, specify the industrial or other establishment, the employer of which shall pay to every person employed in such industrial or other establishment, the wages only be cheque or by crediting the wages in his bank account.”