Question
Which of the following statements is/are correct
regarding the Payment of Wages Act, 1936? I. The Act applies to employees earning wages above Rs.24,000 per month. II. The maximum time to pay wages for establishments with fewer than 1000 employees is seven days after the last day of the wage period. III. Payment of wages can only be made in currency notes or coins, unless the employee consents to receive payments through direct bank transfer.Solution
Statement I is incorrect. The Payment of Wages Act, 1936 applies to employees earning wages below Rs.24,000 per month (or a higher amount, as notified by the Central Government). Therefore, employees earning above Rs.24,000 are not covered under the Act. Statement II is correct. The Act mandates that if an establishment has fewer than 1000 employees, wages must be paid within seven days after the end of the wage period. Statement III is incorrect. The Act allows payment through currency notes, coins, or cheques, and wages can be transferred to a bank account with the employee's consent, not solely through physical notes or coins.
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