, ET Online|
Timeline for salary
Presently, the provisions of Payment of Wages Act, 1936, which governs the wage settlement timelines is applicable only to workers with wages not exceeding Rs 24,000 per month. For this purpose, wages include all salaries and allowances including bonus payable in accordance with the terms of employment. However, the new law does not specify any salary limit and covers all employees, thereby, making this timeline universal. Hence, it is important for organisations to understand the implications in terms of meeting the related compliances and how this would impact the payroll process and timelines.
Full and final settlement of wages
Wage settlement for new joinees
Cap on deductions
(Saraswathi Kasturirangan is Partner with Deloitte India, Radhika Viswanathan is Executive Director with Deloitte Haskins and Sells LLP and Vijayalakshmi Kartik is Manager with Deloitte Haskins and Sells LLP.)
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