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Payment of Wages Act,1936

Act No : 4


Section : WAGES TO BE PAID IN CURRENT COIN OR CURRENCY NOTES

SECTION 06: 1[WAGES TO BE PAID IN CURRENT COIN OR CURRENCY NOTES

All wages shall be paid in current coin or currency notes, or in both:

Provided that, where the amount of any bonus payable to an employed person exceeds an amount equal to one-fourth of his earnings (exclusive of dearness allowance) for the year to which the bonus relates, such excess shall be paid or invested in the manner prescribed.

Explanation. -For the purpose of this section, the expressions-

(1) “wages’ shall include any bonus of the description given in sub-clause (1) of clause (vi) of Section 2; and

(2) ‘bonus” means any bonus payable to an employed person under the terms of employment or under an award or settlement or order of a Court, and also includes any bonus of the description given in sub-clause (1) of clause (vi) of Section 2:]

2[Provided that the employer may, after obtaining the written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account.]

Footnotes:

1 S.6 was subs, by Mah. 13 of 1961, S.4.

2 Ins, by Act No.29 of 1976 (w.e.f. 12.11.1975)

STATE AMENDMENTS
ANDHRA PRADESH

In Section 6, add another proviso-
‘Provided further that the State Government may, by notification in the Andhra Pradesh Gazette, specify the industrial establishments, the employers of which shall pay to the persons employed therein, the wages either by cheque or by crediting the wages in their bank account.-AP Act 15 of 1982, S.2”
Assam

In Section 6, add the following proviso and Explanation:-

‘Provided that notwithstanding anything contained in the Payment of Bonus Act, 1965, one-third of the amount of bonus payable to an employed person in a particular year in excess of rupees forty may be paid or invested into the National Defence Certificates or National Savings Certificates (First Issue), if the employed person records its assent by furnishing a no objection certificate, in the manner to be prescribed, to his employer.

Explanation. -For the purposes of this section, the expression (1) "wages shall include any bonus of the description given in sub-clause (1) of clause (vi) of Section 2; and (2) "bonus" means bonus payable to an employed person under the terms of employment or under an award or settlement or order of a Court and also includes any bonus of the description given in sub-clause 1 of clause (vi) of Section 2."-Assam Act I of 1970 Section 2.

BIHAR

The Payment of Wages Bihar Amendment Acts IV of 1961 and 4 of 1963, Section 2-Amendment of Section 6 of Act IV of 1936-To Section 6 of the Payment of Wages Act, 1936 (IV of 1936) the following proviso shall be added, namely:

"Provided that where the amount of entire bonus payable during a year to an employed person under the terms of the employment or under any award or settlement or orders of a Court exceeds an amount equal to one-fourth of his earnings (exclusive of dearness allowance) for that year such excess shall be paid to him or invested on his behalf in the manner prescribed."

GUJARAT

The Payment of Wages (Gujarat Provisions for Uniform Application and Amendment) Act, 1961 (Guj. Act 26 of 1961)

MAHARASHTRA

Section 4: Amendment of Section 6 of Act IV of 1936- In the Payment of Wages Act, 1936, as in force in the whole of the State of Maharashtra (hereinafter referred to as "the Principal Act") for Section 6 the following shall be substituted

"6. Wages to be paid in current coins or currency notes.-All wages shall be paid in current coins or currency notes, or in both:
Provided that, where the amount of any bonus payable to an employed person exceeds an amount equal to one-fourth of his earnings (exclusive of dearness allowance) for the year to which the bonus relates, such excess shall be paid or invested in the manner prescribed.

Explanation. -For the purpose of this section, the expression-

(1) "Wages" shall include any bonus of the description given, in sub-clause (1) of clause (vi) of Section 2, and

(2) "bonus" means any bonus payable to an employed person under the terms of employment or under an award or settlement or order of a Court and also includes any bonus of the description given in sub-clause (1) of clause (vi) of Section 2" (Vide Mah. Act XIll of 1961).

ORISSA

In S.6 of the Principal Act, a proviso similar to the proviso of the Maharashtra Act added by Orissa Act 4 of 1961.



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