Time limits for payment of salaries & wages
This query is : Resolved
07 May 2010
hello friends,
Can some body tell me time limits for various payments made to labours and staff under different acts like Wages Act, Bonus Act.
Can some body tell me time limits for various payments made to labours and staff under different acts like Wages Act, Bonus Act.
Ankur Garg
(Expert)
07 May 2010
As per section 5 of THE PAYMENT OF WAGES ACT, 1936:
Maximum time limit for POW.
Where employees are 1000 or less === on or before 7th day of the next month.
Where employees are More than 1000 === on or before of 10th day of the next month.
In any case 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 2nd working day from the day on which his employment is terminated.(Sec. 5 Clause.2)
Maximum time limit for POW.
Where employees are 1000 or less === on or before 7th day of the next month.
Where employees are More than 1000 === on or before of 10th day of the next month.
In any case 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 2nd working day from the day on which his employment is terminated.(Sec. 5 Clause.2)
07 May 2010
is there any provision for payment of Leave Travel allowance or Medical Reimbursement or Leave Salary or any other which is yearly paid.
02 August 2025
Great question!
Here’s a breakdown of **time limits for payment of salaries and wages** under various Acts and also about other yearly payments like Leave Travel Allowance (LTA), Medical Reimbursement, and Leave Salary:
---
### 1. **Payment of Wages Act, 1936**
* **Salary/Wages Payment Time Limit:**
* **If ≤ 1000 employees:** Wages must be paid on or before the **7th day of the next month**.
* **If > 1000 employees:** Wages must be paid on or before the **10th day of the next month**.
* **In case of termination:** Wages must be paid **within 2 working days** from the date of termination.
---
### 2. **Bonus Payment (Payment of Bonus Act, 1965)**
* Bonus must be paid **within 8 months** from the end of the accounting year.
*For example, for FY ending March 31, bonus should be paid by November 30.*
---
### 3. **Provident Fund (PF) Contributions**
* Employer must deposit PF contributions **within 15 days** of the close of each month.
---
### 4. **Leave Travel Allowance (LTA), Medical Reimbursement, Leave Salary (typically per Income Tax rules and company policy)**
* These payments **do not have fixed statutory payment deadlines** like wages or bonus.
* They are usually paid **once or twice a year** as per company policy or employment agreement.
* LTA and Medical Reimbursement are **reimbursed on submission of proof** by employees.
* Leave Salary is paid **on leave encashment or during resignation/retirement** as per company policy.
---
### Summary Table
| Payment Type | Time Limit (Statutory) | Notes |
| ------------------------------- | ------------------------------------------------------ | -------------------------------------- |
| Salary/Wages | By 7th/10th day of next month (depending on employees) | Within 2 days if employment terminated |
| Bonus | Within 8 months from end of accounting year | |
| Provident Fund | Within 15 days of the following month | |
| LTA/Medical Reimb./Leave Salary | As per company policy, no fixed statutory limit | Paid yearly or on claim basis |
---
If you want, I can also help you with drafting policies or payment schedules for these!
Here’s a breakdown of **time limits for payment of salaries and wages** under various Acts and also about other yearly payments like Leave Travel Allowance (LTA), Medical Reimbursement, and Leave Salary:
---
### 1. **Payment of Wages Act, 1936**
* **Salary/Wages Payment Time Limit:**
* **If ≤ 1000 employees:** Wages must be paid on or before the **7th day of the next month**.
* **If > 1000 employees:** Wages must be paid on or before the **10th day of the next month**.
* **In case of termination:** Wages must be paid **within 2 working days** from the date of termination.
---
### 2. **Bonus Payment (Payment of Bonus Act, 1965)**
* Bonus must be paid **within 8 months** from the end of the accounting year.
*For example, for FY ending March 31, bonus should be paid by November 30.*
---
### 3. **Provident Fund (PF) Contributions**
* Employer must deposit PF contributions **within 15 days** of the close of each month.
---
### 4. **Leave Travel Allowance (LTA), Medical Reimbursement, Leave Salary (typically per Income Tax rules and company policy)**
* These payments **do not have fixed statutory payment deadlines** like wages or bonus.
* They are usually paid **once or twice a year** as per company policy or employment agreement.
* LTA and Medical Reimbursement are **reimbursed on submission of proof** by employees.
* Leave Salary is paid **on leave encashment or during resignation/retirement** as per company policy.
---
### Summary Table
| Payment Type | Time Limit (Statutory) | Notes |
| ------------------------------- | ------------------------------------------------------ | -------------------------------------- |
| Salary/Wages | By 7th/10th day of next month (depending on employees) | Within 2 days if employment terminated |
| Bonus | Within 8 months from end of accounting year | |
| Provident Fund | Within 15 days of the following month | |
| LTA/Medical Reimb./Leave Salary | As per company policy, no fixed statutory limit | Paid yearly or on claim basis |
---
If you want, I can also help you with drafting policies or payment schedules for these!
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