- Payment of Wages Act
Courtesy: Sundarraman, trainers forum
Regarding Changes in Section 1(6) of the Payment of Wages Act
Recently, the Government of India issued a Notification S.O. No.2260(E) dated 20th September, 2012 by which Section 1(6) of the Payment of Wages Act has been amended. The monthly ceiling on the wages is now Rs.18,000/- per month.
What is the effect of the amendment?
By this change, the payment of Wages Act provisions does not apply to those drawing Rs.18,000/- per month and above. Those below the ceiling alone will have the benefit of the provisions of the Payment of Wages Act.
Similar to what is done now by the Central Govt when the ceiling was increased the Andhra High Court in the matter of The Singareni Collieries ... vs The Singareni Collieries Company decided on 7 th July, 2011, the HON'BLE SRI JUSTICE K.C.BHANU has held as follows:
“Therefore, when the Central Government issued a Gazette notification extending all the provisions of the Act to all classes of persons, it can be made applicable to all the persons working in the first respondent company irrespective of their wages. While substituting the present provision under Section 1(6) of the Act, the statement of objects and reasons of the Amendment Act 1947 of 2003 is very clear that, the then existing ceiling of Rs.1,000/- per month was last revised to Rs.1,600/0 per month in 1982 and since then a large number of persons have gone out of the purview of the Act due to successive rise in wage levels resulting from rise in the cost of living, and with a view to cover more employed persons, it is proposed to enhance the wage ceiling from Rs.1,600/- per month to Rs.6,500/- per month. So, the legislature thought it fit to regulate the payment of wages to certain classes of persons as indicated in this Act so as to benefit certain classes of employed persons.”
Further His Lordship Mr Justice K. Chandru of the Madras High Court in a recent judgment of 28.02.2011 in the matter of P.Palani vs The District Manager on 28 February, 2011 has observed that:
“Under Section 1(6) of the Payment of Wages Act, the Act has been made applicable to persons who are drawing wages not exceeding Rs.10000/- per month which limit can be increased periodically at the interval of every five years. The said notification has been issued on 8.8.2007 by the Central Government's notification in S.O.1380 (E).”
Advocate - Labour & HR & Consumer Law Consultant - Chennai
Post your comments to Facebook
Designed and maintained by AKR Consultants