Skip to content

CS Professional · Labour Laws and Practice · Law of Wages

Gupta Foods Ltd pays its workers monthly wages. For the month of March, wages were credited on 9 April. No government notification provides a different time limit and no other law applies. Which is correct under the Code on Wages, 2019?

The payment is non-compliant. Monthly wages must be paid before the expiry of the seventh day of the succeeding month, so March wages had to be paid by 7 April. Crediting on 9 April is late. The two-working-day rule applies only to employees leaving service.

  1. ACompliant, as payment was made within the following month
  2. BCompliant, as the seventh day limit applies only to weekly staff
  3. CNot compliant, as payment had to be made before the expiry of the seventh day of the succeeding monthCorrect
  4. DNot compliant, as payment had to be made within two working days after month end

Explanation

Monthly wages must be paid before the expiry of the seventh day of the succeeding month. Crediting on 9 April is after 7 April, so it is late. The two-working-day rule is for employees whose service has ended, not for continuing employees.

Did you get it right without looking?

One question tells you little. A timed set on Law of Wages shows your real accuracy, how long you take and where you lose marks.

Practise Law of WagesFree diagnostic mock

More Law of Wages questions