Whether It Is Mandatory To Provide Pay Slips To Workers

Dear all,

Please let me know whether it is mandatory to provide monthly payslips to workers in a factory. If yes, under which law and specific provision?

Regards,
Swapnil

Dear Swapnil,

If your establishment is covered under MW Act, then you are required to issue wage slips to employees as per Sec. 18(3) of the Minimum Wages Act, 1948 and the rules made thereunder. If your appropriate government is the Central Government, then go through MW (Central Rules) 1950; otherwise, go through your applicable State Rules.

With Regards,
R.N.KHOLA I LL & IR I
Skylark Associates I Gurgaon I Haryana

Dear member,

Can you please inform me of the relevant section of the Payment of Wages Act that states it is mandatory to provide payslips?

Regards,
Swapnil

Section 13A Maintenance of Registers and Records.

If we read between the lines, it talks about receipts given by the employer. A pay slip is the receipt that should be given to the employee, providing details of salary and various deductions.

[QUOTE=White Eagle;1692391]
Section 13A Maintenance of registers and records. If we read between the lines, it talks about receipts given by the employer, and a payslip is the receipt that should be given to the employee, providing details of salary and various deductions.

Dear member,
Thank you very much for the reply. But in s. 13A, it states, "the receipts given by them," here "them" refers to employees and not the employer. So, it is the receipt given by the employee. Do you still think that section 13A covers the issuing of wage slips?

Regards,
Swapnil

Hi,

According to me, Section 13A covers the point of issuing wage slips because in earlier times and still in some small industries, workers were paid in cash. At the time of payment, they had to sign in a salary register where details of income were mentioned. This allowed workers to check and confirm the details. As HR processes developed and organizations spread over more than one location, salaries were directly credited into employees' accounts. Salary slips then became a common practice as a mode of communication through which employees could check their income and deductions. It is not practical or convenient for employers to show them the salary register. "The receipts given by them" for employers in today's form serve as confirmation from the bank that the salary has been credited into the employee's account.

I am working for a private company on a contractual basis. However, for the past 7 years, the company has not provided any pay slips or benefits such as PF, insurance, etc. Could you please advise if there are any laws that require them to do so?

SAMUAL

Hi Sameera,

Can anyone suggest the salary breakup method with variable DA? My company is following an old practice where the total salary is being divided differently for different employees. Is this correct? The VDA amount for every employee is the same each month, and the remaining salary will unevenly go to other salary heads. Please share the salary breakup method with VDA.

Regards,
Sameera