If you are employed, then this news is very important for you. Under the new Labor Code of the Central Government, the rules for paying salary have been made clearer than before. According to the Code on Wages, if an employee gets salary every month, then his salary should be credited to his account by the 7th of the next month.
Not only this, if an employee leaves the job, is fired or his service is terminated for any reason, the company will have to pay his entire dues within two working days.
Who will get the benefit of this rule?
Earlier, many rules related to salary payment were applicable only to employees up to a certain salary limit, but under the new Code on Wages, these rules will be applicable to all employees, whether their salary is low or high. This means that now every employee will have the legal right to get salary on time.
When will the salary have to be paid?
According to the new rules, the time limit for salary payment will be as follows. Employees receiving monthly salaries will have to pay their salaries before the 7th of the next month. Those receiving weekly salary will have to make payment by the last working day of the week. Those receiving salary on 15 day basis will have to make payment within two days of the end of the 15 day period. Those working on daily wages will have to be paid for the same day after the work is over.
When will I get full money after leaving the job?
If an employee resigns, the company fires him or his employment is terminated, the company must pay his entire outstanding salary, leave money and other dues within two working days. The purpose of this rule is to save employees from waiting for their money for a long time.
What will happen if the company delays paying salary?
If a company does not pay salary on time or deducts money from the employee’s salary without permission, then the employee can lodge a complaint. For this, the government will appoint inspector-cum-facilitator, who will ensure that the companies follow the rules. The employee can lodge his complaint within three years. If after investigation the concerned officer orders the company to pay salary or compensation and the company still does not pay, then the government can recover that amount as land revenue.
What changed from the old rules?
The new Code on Wages is a new and unified law replacing several separate laws related to wages, including the old Payment of Wages Act 1936. The biggest change in this is that now the rules of paying salary on time and not making wrongful deductions will apply to every employee, no matter what his salary is. Apart from this, it will also be mandatory for companies to give salary slips to their employees. This slip can be given in both paper or digital form. Besides, clear rules have also been made for how much the company can deduct from the salary.