Rajasthan Payment of Wages Rules, 1961

Background

The Payment of Wages Act, 1936 was enacted to regulate timely payment of wages and prevent unauthorised deductions. To enforce its provisions in Rajasthan, the Rajasthan Payment of Wages Rules, 1961 were framed. These Rules prescribe registers, forms, notices, and procedures related to fines, deductions, wage slips, and displays, ensuring transparency in wage disbursement and accountability of employers.

Applicability

  • It applies in the first instance 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.
  • This Act applies to 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 requirement under the Rule in accordance with the Act

  1. Form I: Register of Fines in Rajasthan (Section 26(3)(A), Rule 3)

In any factory or industrial establishment where the employer has obtained approval under Section 8(1) to a list of acts and omissions for which fines may be imposed, the paymaster shall maintain a Register of Fines in Form I.

  1. Form II: Register of Deductions for Damage or Loss in Rajasthan (Section 26(3)(A), Rule 4)\

Every factory or industrial establishment in which deductions for damage or loss are made shall maintain a Register of Deductions in Form II.

  1. Wage Register and Wage Slips in Rajasthan (Section 26(3)(A), Rule 5(1), (3), (4))
    A Register of Wages shall be maintained, preserved for three years, and contain details such as gross wages earned by each employee for each wage period, deductions made, and net wages actually paid.
  2. Form VII: Wage Slips in Rajasthan (Section 26(3)(A), Rule 5(2), (3), (4))

Wage slips in Form VII shall be issued to every employee at least one day prior to disbursement of wages, and such wage slips shall not be returnable.

  1. Form VI: Display of Wage Rates in Rajasthan (Section 26(3)(B), Rule 7)

A notice in Form VI, in Hindi, shall be displayed prominently at or near the entrance of each department, specifying the rates of wages payable to workers (excluding supervisory or managerial staff).

  1. Notice of Dates of Payment in Rajasthan (Section 26(3)(D), Rule 9)

The paymaster shall display, at or near the main entrance of the factory, a notice in Hindi specifying, at least one month in advance, the dates on which wages will be paid.

  1. Application in Respect of Fines in Rajasthan (Section 26(3)(E) & (H), Rule 11)

A list shall be sent to the Chief Inspector of Factories in Rajasthan to seek approval for imposing fines in respect of acts and omissions by employees, providing the required details.

  1. Display of List of Approved Acts or Omissions in Rajasthan (Section 26(3)(E) & (H), Section 8(2), Rule 13)

The employer shall display, at or near the main entrance of the factory or establishment, a copy in Hindi of the approved list of acts and omissions for which fines may be imposed.

  1. Persons Authorised to Impose Fines in Rajasthan(Section 26(3)(E) & (H), Rule 14)
    No fines may be imposed by any person other than the employer or a person holding an appointment whose name is included in the list submitted under Rule 11.
  2. Procedure to Impose Fines and Deductions in Rajasthan
    (Rajasthan Payment of Wages Rules, 1961 – Section 26(3)(E) & (H), Rule 15)
    Acts or omissions, or damage or loss for which fines or deductions are proposed, must be explained to the employee either orally in the presence of at least one witness or in writing, as preferred.
  3. Deduction for breach of contract from wages of employed person in Rajasthan (Section 26(3)(G), Rule-17(1), (2))
    No deduction for breach of contract from wages of a woman or person under the age of 15 years. There should be a provision in terms of the contract of employment requiring the employed person to give specified notice of the termination of his employment, and such notice should be displayed in the factory.
  4. Specified limit for deduction for breach of contract from wages of employed person in Rajasthan (Section 26(3)(G), Rule-17(3), (4))
    No deduction for breach of contract shall exceed the wages of the person employed for the period by which the notice of termination of service given falls short of the period of such notice required by the contract of employment. If conditions have been specified in the displayed notice, no deduction for breach of contract shall be made from any person who has complied with these conditions.
  5. Limit over Advances of wages & Form III (Register of Advances) in Rajasthan (Section 26(3)(I), Rule-18)
    Advance of wages in Rajasthan should not exceed the amount equivalent to twice the wages earned during the preceding two months, or expected to earn if not previously employed. Advance may be recovered in instalments not exceeding 12 months. The advances may be recovered in instalments by deductions from wages spread over not more than twelve months, and no instalment shall exceed one-third of wages (or one-fourth where wages are not more than twenty rupees). All advances sanctioned and repayments must be entered in a register in Form III.
  6. Form IV: Annual Return under Payment of Wages Rules Rajasthan (Section 26(3)(A), Rule-19)
    In respect of every factory or industrial establishment, return shall be sent in Form IV to the Chief Inspector of Factories not later than the 15th of February following the end of the calendar year to which it relates.
  7. Form V: Abstract of the Act and Rajasthan Payment of Wages Rules (Section 26(3)(L), Rule-23)
    The abstract of the Act and of the Rules made thereunder, to be displayed under Section 25, shall be in Form V.
  8. Responsibility for payment of wages in Rajasthan (Section 3)
    The employer / Manager / other responsible person shall be responsible to make payment of all wages under this Act if a contractor or designated person fails to make such payment. Payment of Wages Act, 1936 applies in the first instance to wages of persons employed in factories, railways, or industrial/other establishments specified under Section 2. This Act applies to wages payable for a wage period if such wages do not exceed ₹24,000 per month (or such other higher sum as may be notified every five years by the Central Government).
  9. Fixation of wage-periods in Rajasthan (Section 4)
    Every person responsible for the payment of wages shall fix wage periods, and no wage-period shall exceed one month.
  10. Time period for payment of wages in Rajasthan (Section 5(1))
    Wages should be paid before the expiry of the following days after the last day of the respective wage period:
  • 7th day – If less than 1000 persons employed
  • 10th day – If 1000 or more persons employed
    For persons employed in dock, wharf, jetty, or mines, the balance of wages shall be paid before the expiry of the 7th day from completion of final tonnage account or loading/unloading.
  1. Time Period for Payment of Wages in case of termination of employment in Rajasthan (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 of termination. In case of termination due to closure of the establishment, wages shall be paid before the expiry of the second day from such closure.
  2. Payment of wages to be made on a working day in Rajasthan (Section 5(4))
    All payments of wages shall be made on a working day, except in the case of termination of employment.
  3. Wages to be paid in current currency notes / coins / cheque / crediting in bank account in Rajasthan (Section 6)
    All wages shall be paid in current coin, currency notes, by cheque, or by crediting wages in the employee’s bank account.
  4. Deductions which may be made from wages in Rajasthan (Section 7)
    Wages of an employed person shall be paid without deductions of any kind except those authorised by or under the Payment of Wages Act. Deductions shall be as prescribed in Section 7(2) of the Act. Payments made by an employed person to the employer shall be deemed deductions. Loss of wages resulting from penalties such as withholding of increments, demotion, or suspension shall not be deemed as deductions if imposed in conformity with prescribed rules.
  5. Total amount of deductions from wages of an employee during a wage period in Rajasthan (Section 7(3))
    The total amount of deductions from wages in any wage-period shall not exceed:
  • 70% where deductions are for payments to co-operative societies under Section 7(2)(j),
  • 50% in all other cases.

If deductions exceed the prescribed limit, the excess may be recovered in a prescribed manner. This does not preclude employers from recovering any statutory dues payable under other laws.

  1. Imposition of fines by employer in Rajasthan (Section 8(1))
    No fine shall be imposed on any employed person except in respect of such acts and omissions as approved by the prescribed authority and specified in a displayed notice.
  2. Restriction on imposing fine in Rajasthan (Section 8(3))
    No fine shall be imposed without giving the employed person an opportunity of showing cause or otherwise than in accordance with prescribed procedure.
  3. Total amount of fine which can be imposed in Rajasthan (Section 8(4))
    The total amount of fine imposed in any one wage-period on an employed person shall not exceed 3% of the wages payable to him in respect of that wage-period.
  4. No fine shall be imposed on any employed person under the age of fifteen years in Rajasthan (Section 8(5))
    No fine shall be imposed on any employed person who is under the age of 15 years.
  5. Time period for recovery of fine by way of instalments in Rajasthan (Section 8(6), (7))
    No fine imposed shall be recovered by instalments or after the expiry of 90 days from the day on which it was imposed. Every fine shall be deemed imposed on the day of the act or omission in respect of which it was levied.
  6. Deductions for absence of duty in Rajasthan (Section 9)
    Deductions may be made only for absence from the place of duty as per contract, or for refusal to work without reasonable cause. Deductions shall be proportionate to the absence. If 10 or more employed persons acting in concert absent themselves without due notice and without reasonable cause, the deduction may include up to 8 days’ wages as due under the contract.
  7. Deductions for damage or loss in Rajasthan (Section 10)
    Deductions for damage or loss shall not exceed the actual amount of such damage or loss caused by the neglect or default of the employed person. No deduction shall be made without giving the person an opportunity of showing cause and without following prescribed procedure. All such deductions shall be recorded in a prescribed register.
  8. Deductions for amenity or service rendered by employer in Rajasthan (Section 11)
    Deductions for house accommodation or other amenities provided by the employer shall not be made unless accepted by the employee as part of employment terms and shall not exceed the value of such accommodation or amenity. Such deductions shall also be subject to conditions imposed by the appropriate Government.
  9. Deductions for recovery of loans & advances in Rajasthan (Section 12)
    Deductions for recovery of advances shall be subject to prescribed conditions.
  10. Nomination and Declaration Forms (Section 25A, Rule 3)
    Every employed person shall make a declaration in Form I nominating a person with the right to receive the amount standing to his credit in the event of his death.

Penalties & Punishment

·       Contravention may lead to fine which may extend to Rs. 200/-

·       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, 8 [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 Rajasthan Payment of Wages Rules, 1961 strengthen the implementation of the Payment of Wages Act by requiring registers, wage slips, notices, and procedures to prevent arbitrary deductions or delays. These provisions protect employees’ rights while also creating a system of accountability for employers. Compliance ensures legal protection and promotes fair labour practices across Rajasthan.

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