Due Date for Salary Payment and Wages

HI Community-

A question- Can we pay our employees salaries little late this month as we are facing some financial issues? We usually pay on 05th but I think this month we will be paying on 15th only, is that fine?

Please advise.

Regards,
Jyoti

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HI Jyoti,

It is absolutely fine if this the only month going to be delay as you have a valid reason for the delay.

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It is fine if there is a delay. However, please ensure to keep all your employees informed well in advance. Transparent and timely communication is very important. Hope the leaders have have kept all employees informed on the Business updates to all employees in a All Hands session or Townhall.

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Hi @Jyoti-

Some information on how the process is-

As per the provisions of the Payment of Wages Act, 1936, wages need to be paid to employees before the expiry of the 7th day of the last day of the wage period, where number of employees are less than 1000. In case the number of employee is less than 1000, wages must be paid before the expiry of the 10th day of the last day of the wage period.

Further, wages must be paid only on working day and not on holiday. In case employment of any person is terminated, the wages earned by him must be paid before the expiry of the second working day from the date of termination.

But considering the economic crisis - this is a common scenario and majority of employees and Govt accepts the situation.

But it’s good to take a legal opinion the same form your consultant.

Hope it helps.

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In addtion i also would like to mention that once the code
on wages 2020 comes into effect the last date of payment will be 7 th of evey month.

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“7th day of the last day of the wage period, where the number of employees is less than 1000. In case the number of employees is less than 1000, wages must be paid before the expiry of the 10th day”

This is the current practice that everyone follows - in spite of having different Cut off dates for attendance across various industries.

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Hi Praveen,

Thanks for the details. However at the first occurrence of less than 100, it is mentioned 7th day and at 2nd occurrence it is mentioned 10th day. So I am confused. Will you please clarify this? Thanks.

Regards,
Shefali

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Hi @shefalipatil

It’s usually like this "within 7th day of the month, where the number of employees is less than 1000. In case the number of employees is greater than 1000, wages must be paid before the expiry of the 10th day”

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Thanks, Dinesh.

That’s what I also thought. But thought that let’s get confirmed from experts. :slightly_smiling_face:

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Ha ha. Sure :slight_smile: Keep rocking @shefalipatil

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“on wages 2020 comes into effect the last date of payment will be 7 th of evey month”. any notification for that

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Hi @aftlam01

You can find all such notifications under https://clc.gov.in/clc/min-wages

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