Salary Rule India: What Every Employee Needs to Know

Got a paycheck that looks off? Wondering if your boss can legally hold back your salary? You’re not alone. In India, the law has clear rules about when and how you should get paid, and you have more leverage than you might think.

First off, the Payment of Wages Act says you must receive your wages on time – usually by the 7th of the following month. If you’re on a weekly or fortnightly schedule, your employer must stick to that timeline. Missing a deadline isn’t just rude; it’s a legal breach that can land the company in trouble.

How to Handle Unpaid Salary

If your salary is late, start by sending a polite reminder in writing. Keep a copy of the email or message – that’s your evidence. If the reminder doesn’t work, you can file a complaint with the Labour Commissioner. The process is straightforward: fill out the form, attach pay slips and any communication you’ve had, and submit it. Most states also offer free legal aid if you can’t afford a lawyer.

Don’t forget the overtime rules. Under the Factories Act, overtime must be paid at double the ordinary rate. If you’ve logged extra hours and aren’t getting paid, that’s another violation you can raise.

Salary After Termination & What Counts as a ‘High’ Salary

When you’re let go, you’re entitled to a final settlement that includes all earned wages, unpaid overtime, and any accrued leave. The Payment of Wages Act also says the employer must pay this amount within 45 days of termination. If they drag their feet, you can claim interest on the delayed amount.

Talking about high salaries, 2025 data shows that anything above ₹15 lakhs per year is considered “high” in most Indian cities. In metros like Mumbai or Delhi, the benchmark nudges up to ₹25 lakhs. These figures help you gauge whether a job offer is truly competitive.

Remember, salary isn’t just the basic pay. Bonuses, dearness allowance, and travel reimbursements all count as part of your total compensation. When you negotiate, ask for a clear breakdown so you know exactly what you’re getting.

Lastly, if you suspect discrimination or unfair practices, the Equal Remuneration Act can protect you. It bans gender-based pay gaps for the same work. If you find out you’re earning less than a male colleague doing the same job, you have a strong case to bring before the labour court.

Bottom line: Indian salary rules are on your side. Keep records, act quickly if you’re underpaid, and don’t shy away from using the legal channels available. Knowing your rights makes it easier to get what you deserve and stay financially secure.