Archive · 21 Jul 2026
New Labour Code Mandates Salary Payment by 7th
The new labour code in India says employers must pay monthly salaries by the 7th of the next month.
It also requires final dues to be paid within two working days if an employee leaves or is let go.
This law applies to all employees, no matter their salary.
If wages are delayed or deductions are unauthorised, employees can file claims.
The law replaces older rules and makes sure everyone gets paid on time.
Monthly salaries must be paid by the 7th of the next month.
Final dues must be paid within two working days after resignation, dismissal, removal, or retrenchment.
The law applies to all employees, regardless of salary.
Employees can file claims for delayed wages or unauthorised deductions within three years.
The new code replaces multiple older wage-related laws.
- Who
- All employees, irrespective of their salary
- What
- New labour code mandating timely payment of wages
- When
- Effective immediately upon implementation
- Where
- India
- Why
- To ensure timely payment of wages and protect employees from unauthorised deductions
Employer Perspective
Employee Perspective
Payment Timelines
Employer Perspective
Employers may face challenges in adhering to strict payment timelines, especially for final dues within two working days.
Employee Perspective
Employees benefit from clear and timely payment schedules, ensuring financial stability.
Compliance and Penalties
Employer Perspective
Employers may argue that the penalties for non-compliance are too severe, potentially leading to financial strain.
Employee Perspective
Employees appreciate the strong enforcement mechanisms that protect their rights to timely payments.
- Payment Timeline for Monthly Salaries
- Before the 7th of the succeeding month
- Payment Timeline for Weekly Wages
- Before the last working day of the week
- Payment Timeline for Fortnightly Wages
- Within two days after the end of the fortnight
- Payment Timeline for Daily Wages
- At the end of the workday
- Final Dues Payment Timeline
- Within two working days after resignation, dismissal, removal, or retrenchment
- Limitation Period for Filing Claims
- Three years