Ministry of Labour and Employment increases the threshold limit of wages under the Payment of Wages Act, 1936

Ministry of Labour and Employment increases the threshold limit of wages under the Payment of Wages Act, 1936

September 1, 2017 Labour 0

The Ministry of Labour and Employment has amended the Payment of Wages Act, 1936 (“Act”) vide a notification dated 28th August, 2017. The implication of the amendment is presented below in a tabular form:

Present ProvisionAmended ProvisionImplication
Section 1 (6):

 

This Act applies to wages payable to an employed person in respect of a wage period if such wages for that wage period do not exceed eighteen 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 Organisation, the Central Government may, after every five years, by notification in the Official Gazette, specify”.

 

 

Section 1 (6) has been amended accordingly:

 

This Act applies to wages payable to an employed person in respect of a wage period if such wages for that wage period do not exceed eighteentwenty four 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 Organisation, the Central Government may, after every five years, by notification in the Official Gazette, specify”.

The amended provision has modified the applicability of the Act by increasing the threshold limit of wages for a particular wage period to Rs. 24,000 per month.

Prior to this amendment the threshold limit of wages was Rs.18,000 per month.

Source: Ministry of Labour and Employment.

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