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Code on Wages · explainer

Wage Payment Deadlines by Wage Period

In forceSection 17, Code on Wages

Short answer: monthly wages must be paid by the 7th of the next month; daily, weekly and fortnightly periods have their own deadlines. On any exit, removal, retrenchment, resignation or closure, wages are due within two working days.

Every wage-payment deadline in one table

The Code on Wages sets a hard last date to pay wages, and a separate, shorter deadline when someone leaves. Both are below, with the governing section.

Wage period / eventPay bySection
Daily wage periodEnd of the shift17(1)(i)
Weekly wage periodLast working day of the week, before the weekly holiday17(1)(ii)
Fortnightly wage periodBefore the end of the second day after the fortnight ends17(1)(iii)
Monthly wage periodBefore the expiry of the 7th day of the following month17(1)(iv)
Removal or dismissalWithin 2 working days17(2)
RetrenchmentWithin 2 working days17(2)
ResignationWithin 2 working days17(2)
Closure of the establishmentWithin 2 working days17(2)

A wage period can be daily, weekly, fortnightly or monthly, but never longer than one month (section 16).

The rule in plain words

Section 16 lets the employer fix the wage period as daily, weekly, fortnightly or monthly, subject to one limit: it can never be longer than a month. Section 17 then fixes the last date to actually pay. For monthly-paid staff, that date is the seventh of the next month. When employment ends, whether by removal, dismissal, retrenchment, resignation or closure, the clock is much shorter: wages must be settled within two working days.

A worked example

An employee on a monthly wage period resigns on 20 September and serves the last day on 25 September. The September wages that would ordinarily be paid by 7 October are now due within two working days of 25 September, so by about 29 September once non-working days are excluded. Wages may be paid in cash, by cheque, by bank credit or electronically; the appropriate government can require bank or electronic payment for notified establishments.

Exceptions and fine print

What an employer must do

What a worker can do

How wages may be paid

Section 15 allows payment in current coin or currency, by cheque, by credit to the employee's bank account, or by electronic mode. The appropriate government can go further and require, for notified establishments, that wages be paid only by cheque or bank credit. So the lawful mode can depend on where you operate as well as on what you choose.

What counts as a working day

The two-working-day deadline on exit turns on working days, not calendar days, so weekly holidays and closed days do not count. An employee who leaves the day before a two-day closure will see the clock pause across those days. This is why full-and-final settlement has to be a ready process rather than an end-of-month task: the trigger is the exit, and the window is short.

When a different time limit applies

Two carve-outs exist. The appropriate government may set a different time limit where it is reasonable in the circumstances, and any shorter deadline in another law continues to apply, because section 17 does not displace it. Where two rules point at different dates, the earlier date is the safe one to work to.

Frequently asked questions

By when must monthly salary be paid?

Before the expiry of the seventh day of the month after the wage period, under section 17(1)(iv) of the Code on Wages.

How soon must final wages be paid after resignation?

Within two working days of the resignation, under section 17(2). The same two-working-day rule applies to removal, dismissal, retrenchment and closure.

Can the wage period be longer than a month?

No. Section 16 caps any wage period at one month, though it may be daily, weekly or fortnightly instead.

How can wages be paid?

In coin or currency, by cheque, by credit to a bank account or electronically. The appropriate government may require bank or electronic payment for notified establishments.

Sources and citations. Statute: Code on Wages, 2019, sections 15 to 17 (mode of payment, wage period, time limit for payment of wages). Restated in our own words from the official text; nothing is copied. Sources: indiacode.nic.in, labour.gov.in, egazette.gov.in.
Author: ZeniaHR Editorial Team  ·  Reviewer: pending named legal review  ·  Last verified against official sources: 10 September 2026
This page is general information, not legal advice. The labour codes and the Central Rules 2026 are being rolled out and state rules differ; confirm the current position on egazette.gov.in and labour.gov.in, or with a professional, before you act.

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