PAYMENT OF WAGES ACT, 1936

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THE PAYMENT OF WAGES ACT, 1936 
(IV of 1936) 
CONTENTS 
1. Short title, extent, commencement and application. 
2. Definitions. 
3. Responsibility for payment of wages. 
4. Fixation of wage-periods. 
5. Time of payment of wages. 
6. Wages to be paid in current coin or currency notes. 
7. Deductions which may be made from wages. 
8. Fines. 
9. Deductions for absence from duty. 
10. Deductions for damage or loss. 
11. Deductions for services rendered. 
12. Deductions for recovery of advances. 
13. Deductions for payments to co-operative societies and insurance schemes. 
14. Inspectors. 
15. Claims arising out of deductions from wages or delay in payment of wages and 
penalty for malicious or vexatious claims. 
16. Single application in respect of claims from unpaid group. 
17. Appeal. 
18. Powers of authorities appointed under section 15. 
19. Power to recover from employer in certain cases. 
20. Penalty for offences under the Act. 
21. Procedure in trial of offences. 
21A. [Omitted] 
22. Bar of suits. 
23. Contracting out. 
24. [Omitted] 
25. Publicity of the Act. 
26. Rule-making power. 
 
 
TEXT 
1
THE PAYMENT OF WAGES ACT, 1936 
(IV of 1936) 
[2nd May, 1936] 
An 
Act 
to regulate the payment of wages to certain classes of persons employed in industry. 
 WHEREAS it is expedient to regulate the payment of wages to certain classes 
of persons employed in industry; 
 It is hereby enacted as follows:– 
1. Short title, extent, commencement and application .– (1) This Act may be 
called the Payment of Wages Act, 1936. 
 
2
[(2) It extends to the whole of 
3
[the Punjab].] 
 (3) It shall come into force on such date
4
 as the 
5
[
6
[
7
[*] Government]] may, 
by notification in the 
8
[Official Gazette], appoint. 
 (4) It applies 
9
[****] to the payment of wages to persons employed in any 
factory 
10
[industrial establishment or commercial est ablishment] and to persons 
employed (otherwise than in a factory) upon any railway by a railway administration 
or, either directly or through a sub -contractor, by a person fulfilling a contract with a 
railway administration. 
 
1
For Statement of Objects and Reasons see G azette of India,  Part V, 1936, p. 20; and for Report of Select Committee, see 
ibid., p. 77. This Act received the assent of the Governor General on April 23, 1936 , published in the Gazette of India, Part -IV, 
dated May 2, 1936, pp. 21-29.  
2
Substituted by t he Central Laws (Statute Reform) Ordinance , 1960  (XXI of 1960), published in the Gazette of Pakistan 
(Extraordinary), dated June 9, 1960, pp. 725-845, s. 3. 
3
Substituted for the word “Pakistan” by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2 014), published in the 
Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2. 
4
March 28, 1937, see Gazette of India, 1937, Part I, p. 626. 
5
Substituted for the words “Governor -General in Council or” by the Government of India (Adaptatio n of Indian Laws) Order, 
1937, published in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule. 
6
Substituted for the words “Central Government” by the Labour Laws (Amendment) Act, 1975 (XI of 1975), publishe d in the 
Gazette of Pakistan (Extraordinary), pp. 17-31, s. 2 read with Schedule. 
7
Omitted by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), published in the Punjab Gazette 
(Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2.  
8
Substituted for the word “Gazette” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 4(1) read with Table of General Adaptations. 
9
Omitted the words “in the first instance” by the Labour Laws (Amendment) Ordinance, 2001 (LIII of 2001), published in the 
Gazette of Pakistan (Extraordinary), Part I, (w.e.f. July 1, 2001), dated October 6, 2001, pp.  1475-1481, s.  2 read with 
Schedule.  
10
Inserted by the Ordinance ibid.  
 
1
[(5) * * * * * * * * *   ]  
 
2
[(6) * * * * * * * * *   ]  
2. Definitions.– In this Act, unless there is anything repugnant in the subject or 
context,– 
3
[(i) “commercial establishment” means a commercial establishment as 
defined in the West Pakistan Industrial and Commercial (Standing 
Orders) Ordinance, 1968 (W.P. Ordinance VI of 1968).] 
4
[(ia) “Government” means Government of the Punjab;]  
5
[(ia)] “factory” means a factory as defined in clause (j ) of secti on 2 of the 
Factories Act, 1934
6
; 
(ii) “Industrial establishment” means any– 
(a) tramway or motor omnibus service; 
(b) dock, wharf or jetty; 
(c) inland steam-vessel; 
(d) mine, quarry or oil-field; 
(e) plantation; 
(f) workshop or other establishment in which articles are produced, 
adapted or manufactured, with a view to their use, trans port or 
sale; 
7
[(g) establishment of a contractor who, directly or  indirectly, employs 
persons 
8
[*****] to do any  skilled or unskilled, manual or clerical 
labour for hire or reward in connection with the execution of a 
contract to which he is a party, and includes the premises in 
which, or the site at which, any process connected with such 
execution is carried on; 
Explanation.– “Contractor” includes a sub-contractor, headman or agent;] 
(iii) "plantation" means any estate which is maintained for the purpose of 
growing cinchona, rubber, coffee or tea, and on which twenty -five or 
 
1
Omitted by the Labour Laws (Amendment) Ordinance, 2001 (LIII of 2001), published in the Gazette of Pakistan 
(Extraordinary), Part I, (w.e.f. July 1, 2001), dated October 6, 2001, pp. 1475-1481, s. 2 read with Schedule.  
2
Ibid.  
3
Inserted by the Ordinance ibid. 
4
Inserted by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), published in the Punjab Gazette 
(Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 4(a).  
5
Renumbered by the Labour Laws (Amendment) Ordinance, 2001 (LI II of 2001), published in the Gazette of Pakistan 
(Extraordinary), Part I, (w.e.f. July 1, 2001), dated October 6, 2001, pp. 1475-1481, s. 2 read with Schedule.  
6
XXV of 1934. 
7
Inserted by the Payment of Wages (Amendment) Act , 1973  (XVII of 1973), publishe d i n the Gazette of Pakistan  
(Extraordinary), dated February 7, 1973, pp. 37-53, s. 3.  
8
Omitted the words “in any industrial establishment” by the Labour Laws (Amendment) Act, 1977 (XVII of 1977), published in 
the Gazette of Pakistan (Extraordinary), dated May 9, 1977, pp. 239-244, s. 2 read with First Schedule. 
more persons are employed for that purpose; 
(iv) "prescribed" means prescribed by rules made under this Act; 
(v) "railway administration" has the meaning assigned to it in clause (6) o f 
section 3 of the Indian Railways Act, 1890
1
; and 
(vi) "wages" means all remuneration, capable of being expresse d in terms 
of money, which would, if the terms of the contract of employment, 
express or implied, were fulfilled, be payable, whether condition ally 
upon the regular attendance, good work or conduct or other behaviour 
of the person employed, or otherwise, t o a person employed in respect 
of his employment or of work done in such employment, and includes 
any bonus or other additional remuneration of  the nature aforesaid 
which would be so payable and any sum payable to such person by 
reason of the termination of his employment, but does not include– 
(a) the value of any house -accommodation, supply of light, water, 
medical attendance or other amenity, or of any service excluded 
by general or special order of the 
2
[****] 
3
[
4
[Government]]; 
5
[(b)  * * * * * * * *   ] 
(c) any travelling allowance or the value of any travelling 
concession; 
(d) any sum paid to the person employed to defray special 
expenses entailed on him by the nature of his employment; or 
6
[(e)  * * * * * * * *   ] 
3. Responsibility for payment of wages .– Every employer 
7
[including a 
contractor], shall be responsible for the payment to persons employed by him of all 
wages required to be paid under this Act: 
 Provided that, in the case of persons employed (otherwise than by a 
contractor)– 
(a) in factories, if a person has been named as the manager of the factory 
under clause (e) of sub -section (1) of section 9 of the Factories Act, 
1934
8
, 
 
1
IX of 1890. 
2
Leave out the words “Governor -General in Council or” by the Government of India (Adaptation of Indi an Laws) Order, 1937, 
published in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule.  
3
Substituted for the words “Local Government” by the Order ibid., Article 4(1) read with Schedule. 
4
Substituted for the  words “Provincial Government” by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2.  
5
Omitted by the Punjab Payment of Wages (Amendment) Act, 2014 (V II of 2014), published in the Punjab Gazette 
(Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 4 (b).  
6
Ibid. 
7
Inserted by the Labour Laws (Amendment) Ordinance, 1972 (IX of 1972), published in the Gazette of Pakistan (Extraordinary), 
dated April 13, 1972, pp. 485-519, s. 2 read with First Schedule. 
8
XXV of 1934. 
(b) in i ndustrial establishments, if there is a person responsible to the 
employer for the supervision and control of the industrial establishment, 
(c) upon railways  (otherwise than in factories), if the employer is the 
railway administration and the railway admin istration has nominated a 
person in this behalf for the local area concerned, the person so 
named, the person so r esponsible to the employer, or the person so 
nominated, as the case may be, shall be responsible for such payment. 
4. Fixation of wage-periods.– (1) Every person responsible for the payment of 
wages under section 3 shall fix periods (in this Act referred t o as wage -periods) in 
respect of which such wages shall be payable. 
 (2) No wage-period shall exceed one month. 
5. Time of payment of wages.– (1) The wages of every person employed upon 
or in– 
(a) any railway, factory or industrial establishment 
1
[or commer cial 
establishment] upon or in which less than one thousand persons are 
employed, shall be paid before the expiry of the seventh day, 
(b) any other railway, factory or industrial establishment  
2
[or commercial 
establishment], shall be paid before the expiry  of the tenth day, after 
the last day of the wage -period in respect of which the wages are 
payable. 
 (2) Where the employment of any person i s terminated by or on behalf of 
the employer, the wages earned by him shall be paid before the expiry of the second 
working day from the day on which his employment is terminated. 
 (3) The 
3
[
4
[Government]] may, by general or special order, exempt, to such 
extent and subject to such conditions as may be specified in the order, the person 
responsible for the payment of wag es to persons employed upon any railway 
(otherwise than in a factory) from the operation of this section in respect of the 
wages of any such persons or class of such persons. 
 (4) All payments of wages shall be made on a working day. 
6. Wages to be paid in current coin or currency notes .– All wages shall be 
paid in current coin or currency notes or in both. 
7. Deductions which may be made fro m w ages.– (1) Notwithstanding the 
provisions of sub -section (2) of  section 47 of the Indian Railways Act, 1890
5
, the 
wages of an employed person shall be paid to him without deductions of any kind 
 
1
Inserted by the P unjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), published in the Punjab Gazette 
(Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 5. 
2
Ibid. 
3
Substituted for the words “Governor-General in Council” by the Government of India (Adaptation o f Indian Laws) Order, 1937, 
published in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule. 
4
Substituted for the words “Pr ovincial Government” by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 20 14), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2.  
5
IX of 1890. 
except those authorised by or under this Act. 
Explanation.– Every payment made by the employed person to the employer or his 
agent shall, for the purposes of this Act, be deemed to be a deduction from wages. 
 (2) Deductions from the wages of an employed person shall be made only 
in accordance with the provisions of this Act, and may be of the following kinds only, 
namely:– 
(a) fines; 
(b) deductions for absence from duty; 
(c) deductions for damage to or loss of goods expressly entrusted to the 
employed person for custody, or for loss of money for which he is 
required to account, where such damage or loss is directly attributable 
to his neglect or default; 
(d) deductions for house-accommodation supplied by the employer; 
(e) deductions for such amenities and services supplied by the employer 
as the  
1
[***] 
2
[
3
[Government]] may, by general or special order, 
authorise
4
; 
Explanation.– The word 'services' in this sub -clause does not includ e the supply of 
tools and raw materials required for the purposes of employment. 
(f) deductions for recovery of advances or for adjustmen t o f over -
payments of wages; 
(g) deductions of income-tax payable by the employed person; 
(h) deductions required to be  made by order of a Court or other authority 
competent to make such order; 
(i) deductions f or subscriptions to, and for re payment of adva nces from 
any provident fund to which the Provident Funds Act, 1925
5
, applies or 
any recognised provident fund as defin ed in section 
6
[clause (37) of 
 
1
Omitted the words “Governor -General in Council or” by the Go vernment of India (Adaptation of Indian Laws) Order, 1937, 
published in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule. 
2
Substituted for the words “Local Government” by the Order ibid., Article 4(1) read with Table of General Adaptations. 
3
Substituted for the words “Provincial Governmen t” by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2.  
4
(a)  Deductions authorised from the wages of employees of the Pakistan Railway for the supply of tea and eatables to them on 
credit by canteens managed and fina nced by the railways, vide Noti fication No. 27(24)/52, March 4, 1952, Gazette of 
Pakistan Part I, March 7, 1952, p. 158.  
(b)  Central Government authorised the supply of diet in the hosp itals of the Attock Oil Co. Ltd., at Khaur and Balkassar as a 
service for which deduction from the wages of persons employed that Company may be made at their written request vide 
Ministry of Labour Notification No. LC 27 (32)/53, April 16, 1953, Gazette of Pakistan, Part II, April 24, 1953, p. 94.  
(c)  Punjab Government authorised the supply of hospital diet to the in-patients in hospitals maintained by the employer for the 
employees and their families if accepted by him as a term of service or otherwise,  as a service for which deduction from 
wages may be made vide Punjab Government Notification No. 2841-53/Ind. May 5, 1953, Punjab Gazette, Part I, May 15, 
1953, p. 405. 
5
XIX of 1925. 
6
Substituted for the figures, letter, words and comma “58A of the Income -tax Act, 1922” by the Federal Laws (Revision and 
Declaration) Ordinance, 1981 (XXVII of 1981), published in the Gazette of Pakistan (Extraordinary), dated July 8, 1981, pp.  
345-475, s. 3 read with Second Schedule.  
section 2 of the Income Tax Ordinance, 1979 (XXXI of 1979)] , or any 
provident fund approved in this behalf  by the 
1
[
2
[Government]], during 
the continuance of such approval; 
3
[*] 
(j) deductions for payments to co -operative soc ieties approved by the  
4
[
5
[Government]] or to a scheme of insurance maintained by the  
6
[Pakistan Post Office].
7
[and 
(k) deductions, made with the written authorisation of the employed 
person, in furtherance of any War Savings scheme, approved by the 
8
[Government], for the purchase of securities of the 
9
[Government of 
Pakistan] 
10
[****].] 
8. Fines.– (1) No fine shall be imposed on any employed person save in respect 
of such acts and omissions on his part as the employer, with the previous approval 
of the 
11
[
12
[Government]] or of the prescribed authority, may have specified by notice 
under sub-section (2). 
 (2) A notice specifying such acts and o missions shall be exhibited in the 
prescribed manner on the premises in which the employment is carried on or in the 
case of persons employed upon a railway (otherwise than in a factory), at the 
prescribed place or places. 
 (3) No fine shall be imposed on any employed person until he has been 
given an opportunity of showing cause against the fine, or otherwise than in 
accordance with such procedure as may be prescribed for the imposition of fines. 
 
1
Substituted for the words “Local Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published 
in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 4(1) read with Table of General Adaptations. 
2
Substituted for the words “Provincial Governm ent” by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2.  
3
Omitted the word “and” by the Payment of Wages (Amendment) Ordinance, 1940 (III of 1940),  published in the Government 
Gazette, Punjab, Part IV, dated July 12, 1940, pp. 159-160, s. 2(a). 
4
Substituted for the words “Local Government” by the Government of India ( Adaptation of Indian Laws) Order, 1937, published 
in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 4(1) read with Table of General Adaptations. 
5
Substituted for the words “Provincial Government” by the Punjab Payment of Wag es (Amendment) Act, 2014 (VII of 2014), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2.  
6
Substituted for the words “Indian Post Office” by the Federal Laws (Revision and Declaration) Act, 1951 (XXVI of 1951), 
published in the Gazette of Pakistan (Extraordinary), dated May 12, 1951, pp. 331-388, s. 4 read with Third Schedule. 
7
Added by the Payment of Wages (Amendment) Ordinance, 1940 (III of 1940), published in the Government Gazette, Punjab, 
Part IV, dated July 12, 1940, pp. 159-160, s. 2(b). 
8
Substituted for the words “Provincial Government” by  the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2. 
9
Substituted f or the words “Government of India” by the Adaptation of Central Acts and Ordinances Order, 1949, vide 
Notification No. G.G.O. 4, dated March 25, 1949, published in the Gazette of Pakistan (Extraordinary), dated March 28,  1949, 
pp. 223-283, s. 3(1) read with Schedule. 
10
Omitted the words “or the Government of the United Kingdom” by the Punjab Payment of Wages (Amendment) Act, 2014 (VII 
of 2014), published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 6.  
11
Substituted for the words “Local Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published 
in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 4(1) read with Table of General Adaptations. 
12
Substituted for the words “Provincial Government” by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of  2014), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2.  
 (4) The total amount of fine which may be imposed in any on e w age-
period on any employed person shall not exceed an amount equal to  
1
[three percent] 
of the wages payable to him in respect of that wage-period.  
 (5) No fine shall be imposed on any employed person who is under the 
age of fifteen years. 
 (6) No fine imposed on any employed person shall be recovered from him 
by installments or after the expiry of sixty days from the day on  which it was 
imposed. 
 (7) Every fine shall be deemed to have been imposed on the day of the act 
or omission in respect of which it was imposed. 
 (8) All fines and all realisations thereof shall be recorded in a register to be 
kept by the person responsible  for the payment of wages under section 3 in such 
form as may be prescribed; and all such realisations shall be applied only to su ch 
purposes beneficial to the persons employed in the factory or establishment as are 
approved by the prescribed authority. 
Explanation.– When the persons employed upon or in any railway, factory or 
industrial establishment are part only of a staff employe d u nder the same 
management, all such realisations may be credited to a common fund maintained for 
the staff as a whole, provided that the fund shall be applied only to such purposes as 
are  approved  by the prescribed authority. 
9. Deductions for absence from duty .– (1) Deductions may be made under 
clause (b) of sub -section (2) of section 7 only on account of the absence of an 
employed person from the place or places  where, by the terms of his employment, 
he is required to work, such absence being for the whole or any part of the period 
during which he is so required to work. 
 (2) The amount of such deduction shall in no case bear  to the wages 
payable to the employed person in respect of the wage -period for which the 
deduction is made a larger proportion th an the period for which he was absent bears 
to the  total period, within such wage period, during which by the terms of his 
employment, he was required to work: 
 Provided that, subject to any rules made in this behalf by the 
2
[
3
[Government]], 
if ten or more  employed persons acting in concert absent themselves without due 
notice (that is to say without giving the notice which is requ ired under the terms of 
their contracts of employment) and without reasonable cause, such deduction from 
any such person may inc lude such amount not exceeding his wages for eight days 
as may by any such terms be due to the employer in lieu of due notice. 
4
[Explanation.– For the purposes of this section, an employed person shall be 
 
1
Substituted for the words “half-an-anna in the rupee” by the Act ibid., s.7.  
2
Substituted for the words “Local Government” by the Government of India (Ad aptation of Indian Laws) Order, 1937, published 
in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 4(1) read with Table of General Adaptations. 
3
Substituted for the words “Provincial Government” by the Punjab Payment of Wages  (Amendment) Act, 2014 (VII of 2014), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2. 
4
Added by the Payment of Wages (Amendment)  Act, 1937 (XXII of 1937), passed by the Indian Legislature and received the 
assent of the Governor General on April 14, 1937, s. 2. 
deemed to be absent from the place where he is requ ired to work if, although 
present in such place, he refuses, in pursuance of a stay -in strike or for any other 
cause which is not reasonable in the circumstances, to carry out his work.] 
10. Deductions for damage or loss .– (1) A deduction under clause (c) of sub-
section (2) of section 7 shall not exceed the amount of the damage or loss caused to 
the employer by the neglect or default of the employed person and shall not be made 
until the employed person has been given an opportunity of showing cause against  
the deduction, or otherwise than in accordan ce with such procedure as may be  
prescribed for the making of such deductions. 
 (2) All such deductions and all realisations thereof shall be recorded in a 
register to be kept by the person responsible for the payment of wages under section 
3 in such form as may be prescribed. 
11. Deductions for services rendered .– A deduction under claus e (d) or clause 
(e) of sub-section (2) of section 7 shall not be made from the wages of an employed 
person, unless the house-accommodation amenity or service has been accepted by 
him, as a term of employment or otherwise, and such deduction shall not excee d an 
amount equivalent to the value of the house -accommodation amenity or service 
supplied and, in the case of a deduction under the said clause (e), shall be subject to 
such conditions as 
1
[***] the 
2
[
3
[Government]] may impose. 
12. Deductions for recovery of advances.– Deductions under clause (f) of sub -
section (2) of section 7 shall be subject to the following conditions, namely:– 
(a) recovery of an advance of money given before employment began 
shall be made from the first payment of wages in respect of a complete 
wage-period, but no recovery shall be made of such advances given 
for travelling-expenses; 
(b) recovery of advances of wages not already earned shall be subject to 
any rules made by the 
4
[
5
[Government]] regulating the extent to which 
such advances may be given and the installments by which they may 
be recovered. 
13. Deductions for payments to co -operative societies and insurance 
schemes.– Deductions under clause (j) 
6
[and clause (k)] of sub-section (2) of section 
 
1
Omitted the words “the Governor-General in Council or” by the Government of India (Adaptation of Indian Laws) Order, 1937,  
published in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule. 
2
Substituted for the words “Local Government” by the Order ibid., Article 4(1) read with Table of General Adaptations. 
3
Substituted for the w ords “Provincial Government” by the Punjab Payment of Wages (Amendment) Act, 2014 (V II of 2014), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2.  
4
Substituted for the words “Local Government” by the Government of  India (Adaptation of Indian Laws) Order, 1937, published 
in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 4(1) read with Table of General Adaptations. 
5
Substituted for the words “Provincial Government” by the Punjab Paymen t of Wages (Amendment) Act, 2014 (VII of 2014), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2.  
6
Inserted by the Payment of Wages (Amendment) Ordinance, 1940 (III of 1940), published in the Government Gazette, Punjab, 
Part IV, dated July 12, 1940, pp. 159-160, s. 3. 
7 shall be subject to such conditions as the 
1
[
2
[Government]] may impose. 
14. Inspectors.– (1) An Inspector of Factories appointed under sub -section (1) of 
section 10 of the Factories Act, 1934
3
, shall be an Inspector for the purposes of this 
Act in respect of all factories within the local limits assigned to him. 
 (2) The 
4
[
5
[Government]] may appoint Inspectors for the purposes of this 
Act in respect of all persons employed upon a railway (otherwise than in a factory) to 
whom this Act applies. 
 (3) The 
6
[
7
[Government]] may, by notification in the  
8
[Official Gazette], 
appoint such other persons as it thinks fit to be Inspectors for the purposes of this 
Act, and ma y d efine the local limits within which and the class of factories and 
industrial establishments in respect of which they shall exercise their functions. 
 (4) An Inspector may, at all reasonable hours, enter on any premises, and 
make such examination of any  register or document relating to the calculation or 
payment of wages and take on the spot or otherwise such evidence of any person,  
and exercise such other powers of inspection, as he may deem necessary for 
carrying out the purposes of this Act. 
 (5) Every I nspector shall be deemed to be a public servant within the 
meaning of the Indian
9
 Penal Code
10
. 
15. Claims arising out of deduction s fr om wages or delay in payment of 
wages and penalty for malicious or vexatious claims .– (1) The 
11
[
12
[Government]] 
 
1
Substituted for the words “Local Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published 
in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 4(1) read with Table of General Adaptations. 
2
Substituted for the words “Provi ncial Government” by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2.  
3
XXV of 1934. 
4
Substituted for the words “Governor-General in Council” by the Government of India (Adaptation of Indian Laws) Order, 1937, 
published in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule. 
5
Substituted for the words “Provincial Government” by the Punjab Payment of Wage s (Amendment) Act, 2014 (VII of 2014), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2.  
6
Substituted for the words “Local Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published 
in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 4(1) read with Table of General Adaptations. 
7
Substituted for the words “Provincial Govern ment” by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2.  
8
Substituted for the words “local official Gazette” by the Government of India (Adaptatio n of Indian Laws) Order, 1937, 
published in the Gazette of India (Extraordinary), da ted April 1, 1937, pp.75 -344, Article 4(1) read with Table of General 
Adaptations. 
9
Now it is ‘Pakistan Penal Code’ as the word “Pakistan” substituted with the word “Indian” by the Adaptation of Central Acts and 
Ordinances Order, 1949, published in the Gazette of Pakistan (Extraordinary), dated March 28, 1949, pp. 223-283, Article 3(1). 
10
XLV of 1860. 
11
Substituted for the words “Local Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published 
in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 4(1) read with Table of General Adaptations. 
12
Substituted for the words “Provincial Government” by the Punjab Payment of Wage s (Amendment) Act, 2014 (VII of 2014), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2.  
may, by notification in the  
1
[Official Gazette ], appoint any Commissioner for 
Workmen's Compensation or other officer with experience as a Ju dge of a Civil 
Court or as a stipendiary Magistrate to be the authority to hear and decide for any 
specified area all claim s arising out of deductions of  the wages, 
2
[or non-payment of 
dues relating to provident fund or gratuity payable under any law ,] or delay in the 
payment of wages, of persons employed or paid in that area. 
 (2) Where contrary to the provisions of this Act any deduction has been 
made from the wages of an employed person, or any payment of wages  
3
[, or of any 
dues relating to provident fund or gratuity payable under any law,] has been delayed, 
such person himself, or any legal practitioner or any official of a r egistered trade 
union authorised in writing to act on his behalf, or any Inspector under this Act, 
4
[or 
any of the heirs of an empl oyed person who has died,] or any other person acting 
with the permission of the authority appointed under sub -section (1), m ay apply to 
such authority for a direction under sub-section (3): 
 Provided that every such application shall be presented within 
5
[three years] 
from the date on which the deduction from the wages was made or from the date on 
which the payment of the wages was due to be made, as the case may be: 
 Provided further that any application may be admitted after the said period of 
6
[three years] when the applicant satisfies the authority that he had sufficient cause 
for not making the application within such period. 
 (3) When any application under sub -section (2) is entertained, the 
authority shall hear the applicant and the employer or other pe rson responsible for 
the payment of wages under section 3, or give them an opportunity of being heard, 
and, after such further inquiry (if any) as may be necessary, may, without prejudice 
to any other penalty to which such employer or other person is liabl e under this Act, 
direct the refund to the employed person 
7
[or, if the applicant is one of the heirs of an 
employed pe rson, t he payment to such applicant,] of the amount deducted, or the 
payment of the delayed wages  
8
[or of any dues relating to provident fund or gratuity 
payable under any law] , together with the payment of such compensation as the 
authority may think fit,  not exceeding ten times the amount deducted in the former 
 
1
Substituted for the words “local official Gazette” by the Government of India (Adaptation of Indian Laws) Order, 1937, 
published in the Gazette of India (Extraordinary), dated April 1, 1937, pp.  75-344, Arti cle 4(1) read with Table of General 
Adaptations. 
2
Inserted by the Payment of Wages (Amendment) Act,  1973 (XVII of 1973), published in the Gazette of Pakistan  
(Extraordinary), dated February 7, 1973, pp. 37-53, s. 3.  
3
Inserted by the Labour Laws (Amendment ) Act, 1977 (XVII of 1977), published in the Gazette of Pakistan (Extraordinary), 
dated May 9, 1977, pp. 239-244, s. 2 read with First Schedule. 
4
Ibid. 
5
Substituted for the  words “six months” by the Payment of Wages (Amendment) Act, 1973 (XVII of 1973), pu blished in the 
Gazette of Pakistan (Extraordinary), dated February 7, 1973, pp. 37-53, s. 4(b). 
6
Ibid. 
7
Inserted by the Labour Laws (Amendment) Act, 1977 (XVII of 1977), pu blished in the Gazette of Pakistan (Extraordinary), 
dated May 9, 1977, pp. 239-244, s. 2 read with First Schedule. 
8
Inserted by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), published in the Punjab Gazette 
(Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 8.  
case and not exceeding 
1
[one thousand rupees] in the latter: 
 Provided that no direction for the payment of compensation shall be made In 
the case of delayed wages if the authority is satisfied that the delay was due to– 
(a) a bona fide error or bona fide dispute as to the amount payable to the 
employed person, or 
(b) the occurrence of an emergency, or the existence of exceptional 
circumstances, such that the person responsible for the payment of th e 
wages was unable, though exercising reasonable diligence, to make 
prompt payment, or 
(c) the failure of the employed person to apply for or accept payment. 
 (4) If the authority hearing any application under this section is satisfied 
that it was either m alicious or vexatious, the authority may direct that a penalty not 
exceeding 
2
[five hundred] rupees be paid to the employer or other person  
responsible for the payment of wages by the person presenting the application. 
 (5) Any amount directed to be paid under this section may be recovered– 
(a) if the authority is a Magistrate, by the authority as if it were a fine 
imposed by him as Magistrate, and 
3
[(b) if the authority is not a Magistrate, by the authority as an arrear of land-
revenue, or, in the prescribed manner, by the authority by distress and 
sale of the moveable prope rty belonging to the person by whom the 
amount is to be paid, or by attachment and sale of the immoveable 
property belonging to such person.] 
16. Single application in respect of claims from unpaid group .– (1) Employed 
persons are said to belong to the sam e unpaid group if they are borne on the same 
establishment and if their wages for the same wage-period or periods have remained 
unpaid after the day fixed by section 5. 
 (2) A single application may be presented under  section 15 on behalf or in 
respect of a ny number of employed persons belonging to the same unpaid group, 
and in such case the maximum compensation that ma y b e aw arded under sub -
section (3) of section 15 shall be 
4
[one thousand] rupees per head. 
 (3) The authority may deal with any number of sepa rate pending 
applications, presented under section 15 in respect of persons belonging to the 
same unpaid group, as  a single application presented under sub -section (2) of this 
section, and the provisions of that sub-section shall apply accordingly. 
 
1
Substituted for the words “ten rupees” by the Act ibid.  
2
Substituted for the word “fifty” by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), published in the Punjab 
Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 8. 
3
Substituted by the Labour Laws (Amendment) Act, 1976 (XI of 1976), published in the Gazette of Pakistan (Extraordinary), 
dated April 16, 1976, pp. 201-209, s. 2 read with Schedule. 
4
Substituted for the word “ten” by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), published in the Punjab 
Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 9. 
17. Appeal.– (1) An appeal against a direction made under 
1
[sub-section (3)  or 
sub-section (4)]  of section 15 may be pref erred, within thirty days of the date on 
which the direction was made, 
2
[*** 
3
[***] ****] before the 
4
[Labour Court constituted 
under the 
5
[Punjab Industrial Relations Act, 2010 (XIX of 2010)], with in whose 
jurisdiction the cause of action to which the appeal relates arose]– 
(a) by the employer or other person responsible for the payment of wages 
under section 3, if the total sum directed to b e paid by way of wages 
and compensation exceeds 
6
[ten thousand] rupees 
7
[:] 
8
[Provided that no appeal under this cl ause shall lie unless the 
memorandum of appeal is accompanied by a certificate of the authority 
to the effect that the appellant has deposite d with the authority the 
amount payable under the direction appealed against, or]  
9
[(b) by an employed person or, if he has died, by any of his heirs, if the total 
amount of wages claimed to have been withheld from the employed 
person or from the unpaid g roup to which he belonged exceeds 
10
[five 
hundred] rupees, or]  
(c) by any person directed to pay a penalty under 
11
[sub-section ( 4)] of 
section 15. 
 
12
[(1A) All appeals pending before any District Court under this section 
immediately before the commencement of the Labour Laws (Amendment) Act, 1975, 
shall, on such commencement, stand transferred to, and be disposed of by,  the 
Labour Court within whose jurisdiction the cause of action to which the appeal 
relates arose.] 
 
1
Substituted for the word, brackets and figure “sub -section (3)” by the Repealing and Amending Act, 1937 (XX of 1937), 
published in the Gazette of India, Part IV, dated April 17, 1937, pp. 40-44, s. 2 read with First Schedule. 
2
Omitted the words “in a Presidency -town before the Court of Small Causes and elsewhere” by the Adaptation of Central Acts 
and Ordinances Ord er, 1949, vide Notification No. G.G.O.  4, dated March 25, 1949, published in the Gaz ette of Pakistan 
(Extraordinary), dated March 28, 1949, pp. 223-283, s. 3(1) read with Schedule. 
3
Omitted the words “or in Rangoon” by the Government of India (Adaptation o f Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344,  Article 3 read with Schedule. 
4
Substituted for the words “District Court” by the Labour Laws (Amendment) Act, 1975 (XI of 1975), published in t he Gazette of 
Pakistan (Extraordinary), pp. 17-31, s. 2 read with Schedule. 
5
Substituted for the words, comma, figures and brackets “Industrial Relations Ordinance, 1969 (XXIII of 1969)” by the Punjab 
Payment of Wages (Amendment) Act, 2014 (VII of 2014), p ublished in the Punjab Gazette (Extraordinary), dated March 19, 
2014, pp. 2835-2836, s. 10. 
6
Substituted for the words “three hundred” by the Act ibid. 
7
Substituted for the comma and word “, or” by the Labour Laws (Amendment) Act, 1976 (XI of 1976), publis hed in the Gazette 
of Pakistan (Extraordinary), dated April 16, 1976, pp. 201-209, s. 2 read with Schedule. 
8
Added by the Act ibid. 
9
Substituted by the Labour Laws (Amendment) Act, 1977 (XVII of 1977), published in the Gazette of Pakistan (Extraordinary), 
dated May 9, 1977, pp. 239-244, s. 2 read with First Schedule. 
10
Substituted for the word “fifty” by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), published in the 
Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 10. 
11
Substituted for the word, brackets and figure “sub -section ( 5)” by the Repealing and Amending Act, 1937 (XX of 1937), 
published in the Gazette of India, Part IV, dated April 17, 1937, pp. 40-44, s. 2 read with First Schedule. 
12
Inserted by the Labour Law s (Amendment) Act, 1975 (XI of 1975), published in the Gazette of Pakistan (Extraord inary), pp. 
17-31, s. 2 read with Schedule. 
 (2) Save as provided in sub -section (1), a ny direction made under sub -
section (3) or 
1
[sub-section (4)] of section 15 shall be final. 
18. Powers of authori ties appointed under  section 15.– Every authority 
appointed under sub -section (1) of  section 15 shall have all the powers of a Civil 
Court under the Code of Civil Procedure, 1908
2
, for the purpose of taking evidence 
and of enforcing the attendance of witn esses and compelling the production of 
documents, and every such authority shall be deemed to be a Civil Court for all the 
purposes of section 195 and of Chapter XXXV of the Code of Criminal Procedure, 
1898
3
. 
19. Power to recover from employer in certain c ases.– When the authority 
referred to in  section 15 or the Court referred to in  section 17 is unable to recover 
from any person (other than  an employer) responsible under  section 3 for the 
payment of wages any amount directed by such  authority under  sec tion 15 or  
section 17 to be paid by such person, the authority shall recover the amount from the 
employer of the employed person concerned. 
20. Penalty for offences under the Act .– (1) Whoever being responsible for the 
payment of wages to an employed perso n contravenes any of the prov isions of any 
of the following sections, namely, section 5 and sections 7 to 13, both inclusive, shall 
be punishable with fine which may extend to 
4
[ten thousand] rupees. 
 (2) Whoever contravenes the provisions of section 4, se ction 6 or section 
25 shall be punishable with fine which may extend to 
5
[five thousand] rupees. 
21. Procedure in trial of offences .– (1) No  Court shall take cognizance of a 
complaint against any person for an offence under sub -section (1) of  section 20 , 
unless an application in respect of the facts constituting the offence has been 
presented under section 15 and has been granted wholly or in par t and the authority 
empowered under the latter section or the appellate Court granting such application 
has sanctioned the making of the complaint. 
 (2) Before sanctioning the making of a complaint against any person for an 
offence under sub -section (1) of section 20, the authority empowered under section 
15 or the appellate Court, as the case may be, shall give suc h person an opportunity 
of showing cause against the granting of such sanction, and the sanction shall not be 
granted if such person satisfies the authority or Court that his default was due to– 
(a) a bona fide error or bona fide dispute as to the amount p ayable to the 
employed person, or 
(b) the occurrence of an emergency, or the existence of exceptional 
circumstances, such that the person responsible for the payment of the 
 
1
Substituted for the word, brackets and figure “sub -section (5)” by the Repealing and Amending Act, 1937 (XX of 1937), 
published in the Gazette of India, Part IV, dated April 17, 1937, pp. 40-44, s. 2 read with First Schedule. 
2
V of 1908. 
3
V of 1898. 
4
Substituted for the words “five hundred” by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), published in 
the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 10. 
5
Substituted for the words “two hundred” by the Act ibid., s.11.  
wages was unable, though exercising reasonable diligence, to make 
prompt payment, or 
(c) the failure of the employed person to apply for or accept payment. 
 (3) No Court shall take cognizance of a contravention of  section 4 or o f 
section 6 or of a contr avention of any rule made under  section 26 except on a 
complaint made by or with the sanction of an Inspector under this Act. 
 (4) In imposing any fine for an offence under sub -section (1) of section 20 
the Court shall take into con sideration the amount of any compensation already 
awarded against the accused in any proceedings taken under section 15. 
 
1
[
2
[21A. * * * * * * * * *  ]] 
22. Bar of suits .– No Court shall entertain any suit for the recovery of wages or 
of any deduction from wages in so far as the sum so claimed– 
(a) forms the subject of an application under section 15 which has be en 
presented by the plaintiff and which is pending before the authority 
appointed under that section or of an appeal under section 17; or 
(b) has formed the subject of a direction under section 15 in favour of the 
plaintiff; or 
(c) has been adjudged, in an y p roceeding under section 15, not to be 
owed to the plaintiff; or 
(d) could have been recovered by an application under section 15. 
23. Contracting out.– Any contract or agreement, whether made before or after 
the commencement of this Act, whereby an empl oyed person relinquishes any right 
conferred by this Act shall be null and void in so far as it purport s to deprive him of 
such right. 
3
[24.   * * * * * * * * *   ] 
4
[25. Publicity of the Act .– The person responsible for the payment of wages to 
persons emp loyed in the factory, industrial establishment or commercial 
establishment shall, at a prominent place in the factory, industrial establishment or 
commercial establishment, display a notice containing the abstracts of this Act and 
the rules made under it in English and Urdu, as may be prescribed.] 
26. Rule-making power .– (1) The  
5
[
1
[Government]] may make rules to regulate 
 
1
Inserted by the Labour Laws (Amendment) Ordinance, 1972 (IX of 1972, published in the Gazette of Pakistan (Extraordinary), 
dated April 13, 1972, pp. 485-519, s. 2 read with First Schedule.  
2
Omitted by t he Payment of Wages (Amendment) Act, 1973 (XVII of 1973), published in the Gazette of Pakistan  
(Extraordinary), dated February 7, 1973, pp. 37-53, s. 5. 
3
Omitted by the Central Adaptation of Laws Order, 1964 (1 of 1964), published in the Gazette of Pakistan (Extraordinary), dated 
May 28, 1964, pp. 251c-251aap, Article 2(1) read with Schedule. 
4
Substituted by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), pu blished in the Punjab Gazette 
(Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 12. 
5
Substituted for the words “Governor-General in Council” by the Government of India (Adaptation of Indian Laws) Order, 1937, 
published in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule. 
the procedure to be followed  by the authorities and Courts referred to in sections 15 
and 17. 
 (2) The 
2
[
3
[Government]] may, 
4
[***], by notification in the 
5
[Official Gazette], 
make rules for the purpose of carrying into effect the provisions of this Act. 
 (3) In particular and without  prejudice to the generality of the foregoing 
power, rules made under sub-section (2) may– 
(a) require the maintenance of such records, registers, returns and notices 
as are necessary for the enforcement of the Act and prescribe the form 
thereof; 
(b) require the display in a conspicuous place on premises where 
employment is carried on of notices specifying rate s of wages payable 
to persons employed on such premises; 
(c) provide for the regular inspection of the weights, measures and 
weighing machines used b y employers in checking or ascertaining the 
wages of persons employed by them; 
(d) prescribe the manner of giving notice of the days on which wages will 
be paid; 
(e) prescribe the authority competent to approve under sub -section (1) of 
section 8 acts and o missions in respect of which fines may be 
imposed; 
(f) prescribe the procedure for the imposition of fines under  section 8 and 
for the making of the deductions referred to in  section 10; 
(g) prescribe the conditions subject to which deductions may be mad e 
under the proviso to sub-section (2) of section 9; 
(h) prescribe the authority competent to approve the p urposes on which 
the proceeds of fines shall be expended; 
(i) prescribe the extent to which advances may be made and the 
installments by which they m ay be recovered with reference to clause 
(b) of  section 12; 
(j) regulate the scales of costs which may be allowed in proceedings 
under this Act; 
(k) prescribe the amount of court -fees payable in respect of any 
proceedings under this Act; and 
 
1
Substituted for the words “Provincial Government” by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2.  
2
Substituted for the words “Local Government” by the G overnment of India (Adaptation of Indian Laws) Order, 1937, published 
in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 4(1) read with Table of General Adaptations. 
3
Substituted for the words “Provincial Government” by the P unjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2.  
4
Omitted the words “subject to the control of the Governor-General in Council” by the Government of India (Adaptation of Indian 
Laws) Order, 1937, published in the Gazette of India (Extraordinary), dated April 1, 1937, pp.  75-344, Article 3 read with 
Schedule. 
5
Substituted for the words “local official Gazette” by the Order ibid., Article 4(1) read with Table of General Adaptations. 
(l) prescribe the abstracts to be contained in the notices required by 
section 25. 
 (4) In making any rule under this se ction the 
1
[
2
[Government]] may provide 
that a contravention of the rule shall be punishable with fine which may extend to  
3
[five thousand] rupees. 
 (5) All rules made under this section shall be subject to the condition of 
previous publication, and the dat e to be specified under clause (3) of section 23 of 
the General Clauses Act, 1897
4
, shall not be less than three months from the date on 
which the draft of the proposed rules was published. 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1
Substituted for the words “Local Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published 
in the Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 4(1) read with Table of General Adaptations. 
2
Substituted for the words “Provincial Government” by the Punjab Payment of Wages (Amendment) Act, 2014 (VII of 2014), 
published in the Punjab Gazette (Extraordinary), dated March 19, 2014, pp. 2835-2836, s. 2.  
3
Substituted for the words “two hundred” by the Act ibid., s.13.  
4
X of 1897.