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THE PAYMENT OF WAGES ACT, 1936
[Act 4 of 1936' as amended by Act Nos. 20 of 1937, 22 of 1937, Ordinance 3 of 1940, 3 of 1951, Bom 40 of 1953, Bom 62 of 1953, Bom 70 of 1954, Bom 48 of 1955, Bom 37 of 1956, Act 68 of 1957, Bom 8 of 1960, Mah. 13 of 196 1, Mah. 42 of 1961, 53 of 19642, Regulation 5 of 1965, 51 of 1970, Regulation 2 of 1974, 56 of 1974,- 29 of 1976, 19 of
1977 and 38 of 19823
Modified by A O 1937, A.O 1048 and A.O 1950
[23rd April, 1936]
An Act to regulate the payment of wages to certain classes of 4 [employed persons].
Whereas it is expedient to regulate the payment of wages to certain classes of 4 [employed persons];
It is hereby enacted as follows:
SECTION 01: SHORT TITLE, EXTENT, COMMENCEMENT AND APPLICATION
(1) This Act may be called the Payment of Wages Act, 1936.
5[(2) It extends to the whole of India 6[******]
(3) It shall come into force on such 7[date as the Governor General in Council may, by notification in the Official Gazette of India, appoint.
(4) It applies in the first instance to the payment of wages to persons employed in 8[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, 9[and to persons employed in an industrial or other establishment specified in sub-clauses (a) to (g) of clause (ii) of Section 21.
(5) The 10[State] Government may, after giving three months notice of its intention of so doing, by notification in the 11[Official Gazette], extend the provisions of 12[this Act or any of them to the payment of wages to any class of persons employed in 13[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]:
14[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].
(6) Nothing in the Act shall apply to wages payable in respect of a wage-period which, over such wage-period, average 15[one thousand six hundred rupees] a month or more.
Footnotes:
1. For Statement of Objects and Reasons see Gazette of India, 1935, Pt. V, p.20, for Report of Select Committee, see ibid. p.77
2. The amending Act No.53 of 1964 came into force from 1.2.1965.
3. Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982)
4. Subs. ibid.
5. Subs. by AD 1950, for sub-sec.
6. Omitted by Act 51 of 1970.
7. 28th March, 1937, see Gaz of India 1937, Pt. 1, p. 626.
8. Subs. by Act No.38 of 1982 (w.e.f. 15.10.1982)
9. Ins. ibid.
10. These words substituted for the word "provincial" by A.O 1950
11. These words substituted for the words "Local Official Gazette", by the A.O 1937
12. Subs. by Act No.68 of 1957 (w.e.f. 1.4.1958)
13. Subs. for the words "any industrial establishment or in any class or group of industrial establishments" by Act No.38 of 1982 (w.e.f. 15.10.1982)
14. Subs. by Act No.38 of 1982 S.3 (w.e.f. 15.10.1982)
15. Subs. for the words "one thousands rupees". by Act No.38 of 1982 S.3(i) (w.e.f. 15.10.1982)
SECTION 02: DEFINITIONS
In this Act, unless there is anything repugnant in the subject or context,
1[(i) "employed person" includes the legal representative of a deceased employed person;
(ia) "employer" includes the legal representative- of a deceased employer;
(ib) "factory" means a factory as defined in clause (m) 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]
2[(ii) (industrial or other establishments) means any
3 [(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;
4[(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;
5[(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 to the supply of water, or relating to the generation, transmission and distribution of electricity or any other form of power is being carried on;
6[(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];
7[(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)
8[( iia) "legal representative" means the person who in law represents the estate of a deceased employed person]
9[(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;
(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]
10[(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 excluded from the computation of wages by a general or special order of the State 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)]
Footnotes:
1. Subs. by Act No.53 of' 1964 S.3(i) (w.e.f. 1.2.1965)
2. Subs. for the words "Industrial Establishments" by Act No.38 of 1982 S.4(a) (w.e.f. 15.10.1982)
3. Subs. by Act No.53 of 1964 S.3(ii) (w.e.f. 1.2.1965)
4. Subs. by Act No.68 of 1957 S.3(i) (w.e.f. 1.4.1958)
5 Ins. by Act No.68 of 1957 S,3(ii)(2) (w.e.f. 1.4.1958)
6 Ins. by Act No.38 of 1982 S4(b) (w.e.f. 15.10.1982)
7 Ins. by Act No.53 of 1964 S.3(iii) (w.e.f. 1.2.1965)
8 This clause was inserted by Bom.48 of 1955 S.2(a). -
9 Subs. by Act 53 of 1964 S.3(iv) (w.e.f. 1.2.1965)
10 Subs. by Act No.68 of 1957 S.3(iii) (w.e.f. 1.4.1958)
STATE AMENDMENTS
GUJARAT
By Section 2 of Act No.26 of 1967 the provisions of the Payment of Wages (Bombay Amendment Act, 1955 were extended to the whole of Gujarat)
JAMMU & KASHMIR
In Sec.2 after sub-clause (9) of clause (ii) insert "(h) 'forest' where any category of labour is engaged by the Government or by a forest lessee in any operation connected with the extraction of timber or fire wood or exploitation of the forest in any other manner. - J.K Act 6 of 1974.
KARNATAKA
The amendment made by Bom Act 48 of 1955 in force in Belgaum area repealed by Karnataka Act 2 of 1977, S.2 & Sch.
MADHYA PRADESH
The Payment of Wages (Madhya Pradesh Amendment) Act 1964- w.e.f. 15.5.64 Section 2: Amendment of Section 2-In Section 2 of the Payment, of Wages Act, 1936 (IV of 1936) hereinafter referred to as the Principal Act)(a) after clause (i), the following clause shall be inserted, namely"(ia) 'Industrial Court' means the Industrial Court constituted under Section 9 of the Madhya Pradesh Industrial Relations Act, 1960 (26 of 1960); (b) after clause (ii), the following clause shall be inserted, namely,(ii-a) 'Legal Representative' means the persons who in law represents the estate of a deceased employed person".
MAHARASHTRA
The Payment of Wages (Bombay Amendment) Act, 1955 (Act XLVIII of 1955) Section 2: Amendment of Section 2 of Act IV of 1936;
In Section 2 of the Payment of Wages Act, 1936, in its application to the State of Bombay (hereinafter referred to as the said Act)
(a) after clause (ii) the following new clause shall be inserted, namely,-
"(iia) 'legal representative' means the person who in law represents the estate of a deceased employed person";
(b) for clause (iii) the following shall be substituted, namely (iii) 'Plantation' means(a) any estate which is maintained for the purpose of growing cinchona, rubber, coffee or tea, or
(b) any farm which is maintained for the purpose of growing sugarcane and attached to a factory established or maintained for the manufacture of sugar:
Provided that on such estate or farm twenty-five or more persons are engaged for the purpose
TAMIL NADU
Section 2. Amendment of Section 2, Central Act IV of 1936.-(Prior to its amendment by Act 53 of 1964) In clause (ii) of Section 2 of the Payment of Wages Act,1936 (Central Act IV of 1936) (hereinafter referred to as the Principal Act)
(i) in item (a), after the words 'Omnibus Service" the words 'or motor of other transport undertaking' shall be added;
(ii) after item (g), the following item shall be added, namely,-
"(h) establishment or undertaking which the State Government may, by notification in the Official Gazette, declare to be an Industrial Establishment for the purpose of this Act" (Vide TN. Act IX of 1959) S.2, 19.8.1959.
SECTION 03: RESPONSIBILITY FOR PAYMENT OF WAGES
Every employer shall be responsible for the payment to, persons employed by him of all wages required to be paid under this Act:
1[Provided that, in the case of persons employed (otherwise than by a contractor)
(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) then the person so named, the employer jointly or severally;
(b) 2[in industrial or other establishments, if there is a person responsible to the employer for the supervision and control of the industrial or other establishment;]
(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, the person so named, 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.]
Footnotes:
1 This proviso was substituted by Born. 62 of 1953, S.2
2 Subs. by Act 38 of 1982, S.5 (w.e.f. 15.10.1982)
3 Subs. by Act No-53 of 1964 (w.e.f. 1.2.1965)
STATE AMENDMENTS
GUJARAT
Same as that of Maharashtra. (Guj. Act 26 of 1961)
KARNATAKA
Amendment made by Bom.Act 62 of 1953 in force in Belgaum area repealed by Karnataka Act 2 of 1977.
MADHYA PRADESH
Section 3: Amendment of Section 3 - for the proviso to Section 3 of the Principal Act, the following proviso shall be substituted, namely:
"Provided that, in the case of persons employed otherwise than by a Contractor]-
(a) in factories, if a person has been named as the manager of the factory under clause (j) of sub-section (1) of Section 7 of the Factories Act, 1948, (63 of 1948), then the person so named and the employer jointly and severally;
(b) in industrial establishment, it there is a person responsible to the employer for the supervision and control of the Industrial establishment, than the person so responsible and the employer jointly and severally;
(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 then the person so nominated; shall be responsible for such payment." [Vide M.P. Act XI of 1964].
MAHARASHTRA
Amendment of Section 3 of the Act IV of 1936 - In Section 3 of the Payment of Wages Act, 1936 (hereinafter referred to as the. said Act), for the proviso the following shall be substituted, namely.
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