Payment & Wages act

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What is Payment & Wages act?

As per the Employment – Unemployment Survey of 2011-12, presented by the National Sample Survey Office (NSSO), the total workforce of India is 474.23 million. However, out of this total workforce, only 8 per cent belong to the formal sector, and the remaining 92 per cent are working in the informal sector. Additionally, 60 percent of the growth of GDP is due to the contribution of these informal sector workers. According to the Indian Constitution, the Government of India is required to create employment opportunities and ensure that all workers (formal and informal sectors) have access to a reasonable standard of living that includes all socioeconomic and other welfare opportunities.

Deliverables

The Payment of Wages Act regulates the payment of wages to certain classes of persons employed in industry and its importance cannot be underestimated. The Act guarantees payment of wages on time and without any deductions except those authorized under the Act. The Act provides for the responsibility for payment of wages, fixation of wage period, time and mode of payment of wages, and permissible deduction as also casts upon the employer a duty to seek the approval of the Government for the acts and permission for which fines may be imposed by him and also sealing of the fines, and also for machinery to hear and decide complaints regarding the deduction from wages or in delay in payment of wages, the penalty for malicious and vexatious claims. The Act does not apply to persons whose wage is Rs. 24,000/- or more per month. The Act also provides to the effect that a worker cannot contract out of any right conferred upon him under the Act.

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