Under Sections 15 to 17 of the Code on Wages, 2019

Solution

Section 16 of the Code on Wages, 2019 empowers the employer to fix the wage period as daily, weekly, fortnightly, or monthly but no wage period shall exceed one month, and different wage periods may be fixed for different establishments. Section 17 then prescribes the strict time limits for payment based on the chosen wage period: daily-basis workers must be paid at the end of the shift; weekly-basis workers on the last working day of the week before the weekly holiday; fortnightly workers within 2 days after the end of the fortnight; and monthly workers within 7 days after the month ends. An important exception applies on termination wages of any employee whose services are terminated must be paid within 2 working days of termination, irrespective of the usual wage period. Section 15 governs the mode of payment, permitting wages to be paid in current coin, currency notes, cheque, by crediting to the employee's bank account, or through electronic mode the Code's recognition of electronic payment is a new reform not present in older wage laws. Section 18(3) caps the total deductions in any wage period at 50% of wages but for employees of cooperative societies, this cap is extended to 75%, recognising the unique employer-employee relationship in such organisations.