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New Labour Code: Get Paid Within Days!
21 Jul
Summary
- Salaries must be paid within seven days of month-end.
- Daily wage workers paid at the end of each workday.
- Final dues settled within two working days of leaving.
The Code on Wages, 2019, has established strict timelines for salary disbursements, ensuring employees receive their pay promptly. For salaried employees, payment is mandated within seven days following the end of the month. Daily wage earners must be compensated at the close of each workday, while weekly-rated workers are to be paid before their holiday.
When an employee resigns or is terminated, their final dues must be settled within two working days. This new labour code applies universally to all employees, irrespective of their salary level, a significant expansion from previous laws. It also introduces a crucial role: an inspector-cum-facilitator is appointed to help resolve wage-related complaints and claims, offering a pathway for dispute resolution before escalating to tribunals.
