Background
The Telangana Payment of Wages Rules, 1937 were originally framed as the Andhra Pradesh Payment of Wages Rules, 1937 under the Payment of Wages Act, 1936 and were subsequently adopted for the state of Telangana through The Telangana Payment of Wages Rules, 1937 (Telangana Adoption) Order, 2015. These rules provide detailed procedural guidelines for wage payment, deduction management, record maintenance, and enforcement mechanisms specific to factories and industrial establishments in Telangana. The rules aim to ensure timely and fair wage payments, regulate permissible deductions, establish proper documentation requirements, and protect workers from unauthorized wage cuts while providing clear operational guidelines for employers.
Applicability
The Rules apply to Every Factory / Industrial or Other Establishment covered under the Payment of Wages Act, 1936
Compliance requirements under the Rules in accordance with the Act
Every industrial establishment shall maintain a record of the salaries or wages paid to its employees & preserved for 3 years in any convenient manner showing the particulars as prescribed in Rule 5 of Telangana Payment of Wages Rules, 1937
A list to be sent to Chief Inspector of Factories in Telangana to require power to impose fines in respect of acts and omissions by employed persons intimating required details as specified.
The paymaster shall display at or near the main entrance of the factory a copy in English, together with a correct translation thereof, in the language of the majority of the persons employed therein of the list approved acts or omissions.
No fine may be imposed by any person other than the paymaster or a person holding an appointment named in a list submitted under Rule 10.
Act or omission or damage or loss for which fine is proposed to be imposed is required to be explained to the person employed, either orally in presence of at least 1 person or writing as may be preferred.
Advance of wages in Telangana should not exceed amount equivalent to twice the wages earned during preceding 2 months or like to earn if not previously employed. Advance may be recovered in instalments not exceeding 12 months.
An amount equal to 20 percent of 36 monthly wages of the employed person may be granted as loan for purchase of house site.
Excess amount of deduction from the wages of an employed person in Telangana shall be carried forward and recovered from wages for succeeding wage period in instalments as prescribed.
Annual Return in Form IV should be sent to Inspector (or labour officer) within whose jurisdiction factory or establishment is situated not later than 31 January following the end of respective calendar year.
The employer / Manager / other responsible person shall be responsible to make payment of all wages under this Act if contractor or designated person fails to make such payment.
Every person responsible for the payment of wages under section 3 shall fix periods in respect of which such wages shall be payable. (2) No wage-period shall exceed one month
Wages should be paid before the expiry of following days after the last day of respective wage period: a. 7th day – If employed less than 1000 persons b. 10th day – If employed equal or more than 1000 persons
Where the employment of any person is terminated by or on behalf of the employer, the wages, earned by him shall be paid before the expiry of the second working day from the day on which his employment is terminated.
All payment of wages shall be made on a working day except in case of termination
All wages shall be paid in current coin or currency notes or by cheque or by crediting the wages in the bank account of the employee
The wages of an employed person shall be paid to him without deductions of any kind except those authorised by or under Payment of Wages Act
Deductions from wages shall be as prescribed in Section 7(2) of the Payment of Wages Act 1936
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 Sec. 7(2)(j); (ii) 50% – In any other case.
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 prescribed authority, may have specified in the notice exhibited in prescribed manner.
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 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 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.
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
No fine shall be imposed on any employed person who is under the age of fifteen years.
No fine imposed on any employed person shall be recovered from him by instalments or after the expiry of 90 from the day on which it was imposed
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.
Deductions may be made only on account of absence from the place where, by the terms of employment, he is required to work or although present but refuses to work due to strike or any other cause not reasonable
A deduction for damage or loss under clause (c) or clause (o) of sub-section (2) of section 7 of 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
Deduction for house accommodation or other amenities provided by employer shall not be made unless accepted by employee as terms of employment and shall not exceed the value of such accommodation or amenity.
Deductions for recovery of advances shall be subject to prescribed conditions
Penalties & Punishments
(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 Telangana Payment of Wages Rules, 1937 provide a robust regulatory framework for ensuring fair and timely wage payments across factories and industrial establishments in Telangana. Through comprehensive provisions covering wage periods, payment timelines, permissible deductions, and fine imposition procedures, these rules create a balanced system that protects worker interests while providing employers with clear compliance pathways.
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