The Act is intended for low and middle-income employees. Those earning above ₹24,000 per month are excluded from its protection.

As per the latest amendment, the Act covers employees earning wages not exceeding ₹24,000 per month, to safeguard low and middle-income workers.

The Act guarantees timely wage payment and prevents unfair deductions, which is its core benefit for employees.

Fines are allowed only for acts like negligence, disobedience, or breach of discipline. They cannot be used unfairly or to penalize good work or promotions.

The Act covers both organized and unorganized sectors wherever workers are employed for wages, making it widely applicable for worker protection.

Unlike Minimum Wages Act or Payment of Bonus Act, the Payment of Wages Act’s specific role is ensuring timely wage payment and controlling deductions.

The law permits deductions up to 50% of wages for reasons such as fines, absence, or recovery. This limit prevents exploitation by ensuring workers receive at least half their wages.

The Act allows employees, trade unions, or inspectors to file complaints, giving multiple channels for redressal.

If an employee or employer is dissatisfied with the Authority’s decision, they can appeal to the Appellate Court or District Court, ensuring a higher level of review.

Supervisors and managers earning above ₹24,000 are excluded, as the Act primarily protects lower and middle-level workers.