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:
Compliance requirements under the Rules in accordance with the Act
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.
(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
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.
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.
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.
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.
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.
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.
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.
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.
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.
All wages shall be paid in current coin, currency notes, by cheque, or by crediting the wages to the employee’s bank account.
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.
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.
No fine shall be imposed on any employed person who is under the age of fifteen 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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