International Labor & Employment Law Committee Newsletter
Issue: October 2012
Editor: Tim Darby | European Editor: Paul Callaghan | Latin America Editor: Juan Carlos Varela | Canada Editor: Gilles
Touchette | Asia and Oceania Editor: Ute Krudewagen
India
Wage Limit Under the Payment of Wages Act, 1936 Increased to INR
18,000
Veena Gopalakrishnan and Vikram Shroff, Nishith Desai Associates, Mumbai/Bangalore/Delhi
Effective September 11, 2012, the wage ceiling under the Payment of Wages Act, 1936 ("Act") was increased to an
average wage ceiling of INR 18,000 per month from INR 10,000 per month, pursuant to a notification by the Indian
Government. As a result of such increase, the Act, which applies only with respect to employees who earn less than the
wage ceiling, will become applicable to a larger number of employees.
The Act regulates the payment of wages to certain classes of employed persons, and contains provisions in relation to,
inter alia, the responsibility for payment of wages, fixing of wage-periods, time of payment of wages, and maintenance
of registers and records. The Act defines the term "wages," which term is referred to in some of the other Indian labour
enactments. The Act also includes provisions regarding the deductions that may be made from wages.
American Bar Association Section of Labor and Employment Law
321 N Clark | Chicago, IL 60654 | (312) 988-5813