The Payment of Wages Act was enacted in 1936 and it came into operation on 21st March 1937. It extends to the whole of India.
This Act regulates the payment of wages to certain classes of employed persons. It was enacted to ensure that wages payable to employees covered by the Act are disbursed by the employers within the prescribed time limit and that no deduction other than those authorised by Law are made by the employers. This act applies to person employed in any factory or person employed in a Railway by a Railway Administration either directly or through a sub-contractor. Further, the State Government are empowered to extend the provisions of the Act to cover persons employed in any Industrial Establishment or any class or Group of Industrial Establishment as defined in the Act by way of notification. The existing wage limit for the applicability of the Act is Rs. 6,500/- per mensem.
The Assistant Inspector of Labour, Deputy Inspector of Labour, Inspector of Labour and Inspector of Plantations have been notified as Inspectors under this Act.
Regional Deputy Commissioners of Labour have been notified as Authorities to hear and decide all claims under this Act.