Payment of Wages in India: What You Need to Know

If your employer hasn't paid you on time, you’re not stuck with a dead end. Indian labour law has clear rules that protect your salary, and there are simple steps you can take to get the money you deserve.

Employer Obligations – The Bare Minimum

Any company, big or small, must pay wages on the date agreed in the employment contract or, if none is mentioned, on the last working day of the month. The Payment of Wages Act, 1936 says you should receive the full amount before the 7th of the next month for monthly workers and before the 10th for weekly workers. No deductions are allowed unless the law specifically permits them—think taxes, provident fund, or court‑ordered fines.

What To Do When Salary Is Delayed

First, talk to your HR or manager. Keep the conversation polite but firm, and note the date, time, and what was said. If that doesn't move things, send a written reminder—email works fine. Make sure you keep a copy; it’s your evidence later.

When reminders fail, you have a few legal routes:

• Labour Commissioner: File a complaint with the local labour office. The commissioner can order the employer to pay within a set period, usually 15 days.
• Industrial Court: For bigger disputes or repeat offenders, you can approach the industrial court. They can impose penalties on the employer.
• Legal Notice: Have a lawyer send a formal notice. This often pushes employers to settle before costly litigation.

Remember, the law caps interest on delayed wages at 12% per annum. That means you can claim not just the unpaid amount but also the interest accrued.

Quick Tips to Protect Your Salary

• Keep all pay slips, employment contracts, and email confirmations.
• Track overtime, bonuses, and any variable pay in a spreadsheet.
• Register with the Provident Fund or ESIC if your salary exceeds the threshold; they act as a safety net.

If you’re a contract worker, check whether you’re covered under the contract labour law. Some employers try to dodge the Payment of Wages Act by labeling you a contractor, but the law still applies if you’re effectively an employee.

Lastly, don’t wait too long. The longer you delay, the harder it gets to prove the breach. Most cases settle once the employer sees you’re serious and knows the legal consequences.

Getting paid on time is a basic right, not a favor. Use these steps, stay organized, and you’ll have a solid chance of recovering any unpaid wages without a headache.