PAYMENT OF WAGES ACT 1936 OBJECT - This Act aims at securing prompt and regular payment of wages without

any arbitrary deductions to certain class of persons employed in industrial establishment including Railway, either directly or through sub-contract. It applies to employees whose wages are up to Rs. 6500/- per month. [RBE No. 216/05] WAGES - Wages means all type of remunerations (whether by way of salary/ allowances or otherwise) capable of being expressed in terms of money which would be payable to the employed persons on fulfillment of the contract of service, expressed or implied. It does not include Travelling allowance or concession value of housing accommodation or any contributions paid to any pension and PF or gratuity payable on the termination of employment. The employer shall fix wage period which shall not exceed one month in any case. The mode of payment would be as under :(a) The wages shall be paid only on working day. (b) All wages shall be paid in current currency but not in kind. (c) The wages shall be paid: (i) Where less than 1000 persons are employed within 07 days of the expiry of wages period. (ii) Where more than 1000 persons are employed, before the expiry of the 10th day after the wages period. (d) When the employment is terminated by the employer, wages shall be paid before the expiry of the 2nd day after termination. FINES [Section 08 of the Act.] 1. Fines can be imposed only in respect of Acts and omissions and list of such acts and omissions should be displayed. 2. No fine shall be imposed without giving an opportunity of show-cause against the fine. 3. Fine cannot be imposed / recovered after the expiry of 90 days from the date of offense and also cannot be recovered in installments. 4. The total amount of fine which may be imposed in any one wage period on any employed person shall not exceed an amount equal to 3% of the wage payable to him in respect of the wage period. 5. Fines cannot be imposed on any employed person who is under the age of 15 years. 6. All fines recovered should be used for the benefit of staff, credited to SBF. LIST OF ACTS AND OMISSIONS (a) Disregard or disobedience of orders. (b) In subordination and breach of discipline. (c) Late or irregular attendance. (d) Improper behavior such as drunken, quarrelling or sleeping on duty. (e) Causing inconvenience to the public. (f) Making false and misleading statement. (g) Malingering. (h) Failure to observe rules and regulations not involving more severe disciplinary action. (i) Causing loss to Railway property. PTC., NWR, Jodhpur 1

DEDUCTIONS PERMISSIBLE [Section 07] No unauthorized deductions shall be made and following are the authorized deductions:(a) Fines. (b) Deduction on account of absence from duty. (c) Deductions for damage to or loss of goods expressly entrusted to the employed person for custody, or for loss of money for which he is required to account, where such damage or loss is directly attributable to his neglect or default. (d) Deduction for the amenities or service supplied by the employer. (e) Deduction for the housing accommodation provided. (f) Deduction for recovery of advances and adjustment of over payment of wages. (g) Deduction of Income Tax. (h) Deduction required by the orders of court. (i) Subscription for PF and repayment of PF advances. (j) Deduction for Payment to Co-operative societies approved by State Govt. and credit societies. (k) Any other deduction with written authority of employee concerned. Like premium of LIC, purchase of securities, Post Office, Savings Banks etc. NOTE: Deduction shall not exceed 75% of wages where payment towards cooperative society are to be made and shall not exceed 50% of wages in other cases. INSPECTORS [Section 14] An inspector appointed under Factory Act 1948 shall be an inspector for the purpose of this Act. An Inspector may. (a) Make such examination and enquiry as he thinks fit. (b) Enter, inspect and search any premises of any Railway, Factory or other establishment at any reasonable time. (c) Supervise the payment of wages to persons employed upon any Railway factory or other establishment. (d) Require by a written order the production of any register or record maintained in pursuance of this Act. (e) Seize or take copies of such registers or documents as he may consider relevant in respect of any offense under this Act. (f) Exercise such other powers as may be prescribed. PENALTY FOR BREACH OF ACTS [Section 20] (a) Delay in payment, non-payment or unauthorized deductions, penalty upto Rs. 3750/(b) In all other cases Viz. non display of notices, non-maintenances of register of fines etc. the employer is liable to be fined not less than Rs. 1500/- but which may extend to Rs. 7500/- . DISPLAY OF NOTICES [Section 25, 25A] The following notices are required to be displayed. (a) Abstraction of Act. (b) Notice of wages period. (c) Date of payment, and (d) List of Acts and omissions shall be displayed in English, Hindi and regional languages.

PTC., NWR, Jodhpur