The term “Wages” means all economic benefits including salary, any bonus, remuneration for overtime work, holiday or leave, termination of employment, or other additional remuneration payable under the terms of employment. Every employer is responsible for the payment of compensation to workers employed by him. In the case where the pay of a worker employed by a contractor are not paid by the contractor, the wages must be paid by the employer of the establishment. The maximum pay period is one month. The wages of every worker must be paid before the expiry of the seventh working day after the last day of the wage period in respect of which the wages are payable.
Where the employment of a worker is terminated by retirement or by the employer, whether by way of retrenchment, discharge, removal, dismissal, or otherwise, the compensation payable to him must be paid before the expiry of the 30th working day from the day on which his employment is so terminated. Wages have to be paid in legal tender, through cheque and in some cases (given the requirement of the workers) through an electronic transfer in favor of the bank account of the worker or through any other digital medium. Compensations must be paid on a working day. No deduction can be made from the wages of a worker except those authorised by the Labour Act.
