Maharashtra Payment of Wages Rules, 1963

Background

The Maharashtra Payment of Wages Rules, 1963 were framed under the Payment of Wages Act, 1936 to regulate the timely and fair disbursement of wages to workers in the state. These rules establish procedures regarding permissible deductions, fines, maintenance of registers, and conditions for wage payment. The intent is to prevent arbitrary or unauthorized deductions and to protect employees from exploitative practices by ensuring transparency and accountability in wage administration.

Applicability:

These rules apply to:

  • The payment of wages to persons employed in any factory, to persons employed otherwise than in a factory upon any railway by a railway administration or, either directly or through a sub-contractor, by a person fulfilling a contract with a railway administration, and to persons employed in an industrial or other establishment specified in sub-clauses (a) to (g) of clause (ii) of section 2 of the Payment of Wages Act, 1936.
  • Wages payable to an employed person in respect of a wage period if such wages for that wage period do not exceed twenty four thousand rupees per month or such other higher sum which, on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey Organisation, the Central Government may, after every five years, by notification in the Official Gazette, specify.

Compliance requirements under the Rules in accordance with the Act

  1. Notice of dates of payment in Maharashtra (Rule 8)

The paymaster shall display, in a conspicuous place at or near the main entrance of the factory or industrial establishment, a notice in English and in the language of the majority of the persons employed therein, showing the days on which wages are to be paid.

  1. Manner of payment of excess bonus in Maharashtra (Rule 9)
  • The excess amount of the bonus payable to an employed person in Maharashtra under the proviso to Section 6 shall be paid in the manner prescribed by the State Government by notification in the official gazette.
  • The excess amount of the bonus payable to an employed person under the proviso to Section 6 shall be paid to him in the following manner:

(a)  In 10 – year National Defence Deposit Certificates or in 12- years in National Defence Certificates of rupees ten or higher denomination or both or in any other certificates or bonds or securities issued by Government which the State Government may, by notification in the Official Gazette, direct

(b) if the balance remaining after such payment is five rupees or more but less than ten rupees, a 12-Year National Defence Certificate or any other certificate, bond or security referred to in clause (a) of rupees five denomination in addition shall

be given to the employed person;

(c) any balance thereafter remaining shall be paid in cash

  1. Application in respect of fines in Maharashtra (Rule 11)
  • A list shall be sent to the Chief Inspector of Factories in Maharashtra to request power to impose fines in respect of acts and omissions by employed persons, intimating required details as specified.
  • Every paymaster requiring the power to impose fines in respect of any acts and omissions on the part of employed persons shall send to the Chief Inspector of Factories
    (a) a list, in English duplicate, clearly defining such acts; and omissions; and
    (b) in cases where the paymaster himself does not intend to the sole person empowered to impose fines, a list in duplicate, showing those appointments in his factory the incumbent of which may pass orders imposing fines and the class of establishment on which the incumbent of each such appointment may impose fines.
  1. Display of list of approved acts or omissions in Maharashtra (Rule 13)
    The employer shall display at or near the main entrance of the factory or industrial establishment, a copy in English along with a literal translation in the language of the majority of the persons employed, of the approved list of acts and omissions.
  2. Persons authorised to impose fines in Maharashtra (Rule 14)

No fine may be imposed by any person other than an employer, or a person holding an appointment named in the list submitted under Rule 11.

  1. Procedure to impose fines and deduction in Maharashtra (Rule 15)

Any act, omission, damage, or loss for which a fine is proposed to be imposed shall be explained to the employee, either orally in the presence of at least one person or in writing, as may be preferred.

  1. Deduction for breach of contract from wages of employed person in Maharashtra
    (Rule 17(2), (3), (4))

No deduction for breach of contract shall be made from the wages of a woman or a person under 15 years of age. There should be a provision in the contract of employment requiring specified notice of termination. Such notice must also be displayed in the factory.

  1. Limit over Advances of wages in Maharashtra (Rule 18)

An advance of wages in Maharashtra shall not exceed an amount equivalent to twice the wages earned during the preceding 4 months, or likely to be earned if not previously employed. The rate of interest charged shall not exceed 6.25% per annum.

  1. Form IV: Register of Advances in Maharashtra (Rule 18(3))

The amounts of advances sanctioned and repayments thereof shall be entered in Form IV Register of Advances. This register need not be maintained if the employer is keeping a muster-roll-cum-wage register in Form II, as prescribed under the Maharashtra Minimum Wages Rules.

  1. Display of wage rates in cotton spinning, weaving factory & artificial silk factory in Maharashtra (Rule 20(1))

A notice shall be displayed in each department of cotton spinning, weaving, and artificial silk factories, specifying the wage rates payable to all persons employed, except those in supervisory, managerial, or confidential positions.

  1. Display of rates of wages in every industrial establishment in Maharashtra
    (Rule 20(2))

In every industrial establishment, a notice shall be displayed by the paymaster specifying the wage rates payable to all persons employed, except those in supervisory, managerial, or confidential positions.

  1. Responsibility for payment of wages in Maharashtra (Section 3)
    The employer, manager, or other responsible person shall ensure payment of wages under this Act if a contractor or designated person fails to do so.
  2. Fixation of wage-periods in Maharashtra (Section 4)

Every person responsible for the payment of wages under Section 3 shall fix wage periods for which such wages are payable. No wage period shall exceed one month.

  1. Time period for payment of wages in Maharashtra (Section 5(1))
    Wages shall be paid before the expiry of the following days after the last day of the wage period:
  • 7th day, if fewer than 1,000 employees.
  • 10th day, if 1,000 or more employees.
  1. Time Period for Payment of Wages in case of termination of employment in Maharashtra (Section 5(2))

Where the employment of any person is terminated by or on behalf of the employer, the wages earned shall be paid before the expiry of the second working day from the day on which employment is terminated.

  1. Payment of wages to be made on a working day in Maharashtra (Section 5(4))
    All wages shall be paid on a working day, except in cases of termination.
  2. Wages to be paid in currency notes / coins / cheque / crediting in bank account in Maharashtra (Section 6)

All wages shall be paid in current coin, currency notes, by cheque, or by crediting the wages to the employee’s bank account.

  1. Deductions which may be made from wages in Maharashtra (Section 7)
    The wages of an employed person shall be paid to him without deductions of any kind except those authorised by or under the Payment of Wages Act. Deductions from wages shall be as prescribed in Section 7(2) of the Payment of Wages Act, 1936.
  2. Total amount of deductions from wages of an employee during a wage period in Maharashtra (Section 7(3))

The total amount of deductions which may be made in any wage-period from the wages of any employed person shall not exceed: (i) 70% if deductions are for payments to co-operative societies under Section 7(2)(j); (ii) 50% in any other case.

  1. Imposition of fines by employer in Maharashtra (Section 8(1))
    No fine shall be imposed on any employed person except in respect of such acts and omissions on his part as the employer, with the previous approval of the prescribed authority, may have specified in the notice exhibited in the prescribed manner.
    • A notice to be exhibited specifying such acts and omission.
    • Opportunity of showing cause to be given to concerned person.
    • Total amount of such fine should not exceed the amount as prescribed.
    • No fine to be imposed on person below 15 years of age.
    • Fine should be recovered within 90 days of such imposition.Details of such fines should be recorded in a register.

Display of Notice specifying acts and omissions in Maharashtra (Section 8(2))

A notice specifying such acts and omissions shall be exhibited in the prescribed manner on the premises in which the employment is carried on or, in the case of a person employed upon a railway (otherwise than in a factory), at the prescribed place or places.

  1. Restriction on imposing fine in Maharashtra (Section 8(3))
    No fine shall be imposed on any employed person until he has been given an opportunity of showing cause against the fine, or otherwise than in accordance with such procedure as may be prescribed for the imposition of fines.
  2. Total amount of fine which can be imposed in Maharashtra (Section 8(4))
    The total amount of fine which may be imposed in any one wage-period on any employed person shall not exceed an amount equal to 3% of the wages payable to him in respect of that wage-period.
  3. No fine shall be imposed on any employed person under the age of fifteen years in Maharashtra (Section 8(5))

No fine shall be imposed on any employed person who is under the age of fifteen years.

  1. Time period for recovery of fine by way of instalments in Maharashtra (Section 8(6), (7))
    No fine imposed on any employed person shall be recovered from him by instalments or after the expiry of 90 days from the day on which it was imposed.
  2. Register of Fines and Realisations in Maharashtra (Section 8(8))
    All fines and realisations thereof shall be recorded in a register in such form as may be prescribed; and all such realisations shall be applied only to such purposes beneficial to the persons employed in the factory or establishment as are approved by the prescribed authority.
  3. Deductions for absence of duty in Maharashtra (Section 9)
    Deductions may be made only on account of absence from the place where, by the terms of employment, the employee is required to work, or although present, but refuses to work due to strike or any other cause not reasonable.
  4. Deductions for damage or loss in Maharashtra (Section 10)
    A deduction for damage or loss under clause (c) or clause (o) of sub-section (2) of Section 7 of the Payment of Wages Act, 1936 shall not exceed the amount of the damage or loss caused to the employer by the neglect or default of the employed person.
  5. Deductions for amenity or service rendered by employer in Maharashtra (Section 11)
    Deduction for house accommodation or other amenities provided by the employer shall not be made unless accepted by the employee as terms of employment and shall not exceed the value of such accommodation or amenity.
  6. Deductions for recovery of advances in Maharashtra (Section 12)
    Deductions for recovery of advances shall be subject to prescribed conditions.
  7. Maintenance of Registers and Records in Maharashtra (Section 13A(1))
    Every employer shall maintain such registers and records giving particulars of persons employed by him, the work performed by them, the wages paid to them, the deductions made from their wages, the receipts given by them, and such other particulars as may be prescribed, and preserved for 3 years.

Penalties & Punishments

Rule 25: Any contravention of the Rule 29 and Rule 8 shall be punishable with a fine which may extend to two hundred rupees

Section 20 –

(1) Whoever being responsible for the payment of wages to an employed person contravenes any of the provisions of any of the following section, namely, section 5 except sub-section (4) thereof, section 7, section 8 except sub-section (8) thereof,  section 9, section 10 except sub-section (2) thereof, and sections11 to 13], both inclusive, shall be punishable [with fine which shall not be less than one thousand five hundred rupees but which may extend to seven thousand five hundred rupees.

(2) Whoever contravenes the provisions of section 4, sub-section (4) of section 5, section 6, sub-section (8) of section 8, sub-section (2) of section 10 or section 25 shall be punishable [with fine which may extend to three thousand seven hundred fifty rupees.

Conclusion

The Maharashtra Payment of Wages Rules, 1963 ensure that employees receive their wages without unauthorized deductions and that employers comply with prescribed standards of wage management. By setting limits on deductions and fines, mandating record-keeping, and safeguarding workers under fifteen years from penalties, these rules strengthen wage protection mechanisms in the state. Effective compliance promotes industrial harmony, prevents disputes, and upholds the rights of employees in Maharashtra.

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