Section 17: Time limit for payment of wages
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Prescribes payment deadlines for each wage period and accelerated settlement on removal, dismissal, retrenchment, resignation or closure, subject to the exact statutory wording.
Principal remaining provisions commenced on 21 November 2025 under S.O. 5322(E), read with the earlier partial commencement; check section-specific footnotes in the current India Code text.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
Finin2min analysis — what the section actually does
Operative clauses
- (1) The employer shall pay or cause to be paid wages to the employees, engaged on— (i) daily basis, at the end of the shift;
- (2) Where an employee has been— (i) removed or dismissed from service; or (ii) retrenched or has resigned from service, or became unemployed due to closure of the establishment, the wages payable to him shall be paid within two working days of his removal, dismissal, retrenchment or, as the case may be, his resignation.
- (4) Nothing contained in sub-section (1) or sub-section (2) shall affect any time limit for payment of wages provided in any other law for the time being in force.
Provisos, explanations & qualifications
- No proviso/explanation was separately extracted from this section text.
Thresholds and timelines in the text
- (ii) weekly basis, on the last working day of the week, that is to say, before the weekly holiday;
- (iii) fortnightly basis, before the end of the second day after the end of the fortnight;
- (iv) monthly basis, before the expiry of the seventh day of the succeeding month.
- (2) Where an employee has been— (i) removed or dismissed from service; or (ii) retrenched or has resigned from service, or became unemployed due to closure of the establishment, the wages payable to him shall be paid within two working days of his removal, dismissal, retrenchment or, as the case may be, his resignation.
Actors expressly appearing in the text
Employer, Employee / worker
Full statutory text — Section 17
17. Time limit for payment of wages.—(1) The employer shall pay or cause to be paid wages to the
employees, engaged on—
(i) daily basis, at the end of the shift;
(ii) weekly basis, on the last working day of the week, that is to say, before the weekly holiday;
(iii) fortnightly basis, before the end of the second day after the end of the fortnight;
(iv) monthly basis, before the expiry of the seventh day of the succeeding month.
(2) Where an employee has been—
(i) removed or dismissed from service; or
(ii) retrenched or has resigned from service, or became unemployed due to closure of the
establishment,
the wages payable to him shall be paid within two working days of his removal, dismissal, retrenchment
or, as the case may be, his resignation.
(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the appropriate
Government may, provide any other time limit for payment of wages where it considers reasonable
having regard to the circumstances under which the wages are to be paid.
(4) Nothing contained in sub-section (1) or sub-section (2) shall affect any time limit for payment of
wages provided in any other law for the time being in force.How to apply this provision
- Primary statutory test — (1) The employer shall pay or cause to be paid wages to the employees, engaged on— (i) daily basis, at the end of the shift;
- Additional operative limb — (2) Where an employee has been— (i) removed or dismissed from service; or (ii) retrenched or has resigned from service, or became unemployed due to closure of the establishment, the wages payable to him shall be paid within two working days of his removal, dismissal, retrenchment or, as the case may be, his resignation.
- Numerical or timing control — (ii) weekly basis, on the last working day of the week, that is to say, before the weekly holiday;
- Evidence file — retain facts and records proving the role/status of: Employer, Employee / worker.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
An employer configuring payroll for time limit for payment of wages should first identify the employee and wage period, then apply the exact provision and any linked rule. The system rule should be tested against a sample payslip and bank/payment record. A text point to test is: “(ii) weekly basis, on the last working day of the week, that is to say, before the weekly holiday;”
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 17
What does Section 17 of the Code on Wages cover?
Prescribes payment deadlines for each wage period and accelerated settlement on removal, dismissal, retrenchment, resignation or closure, subject to the exact statutory wording.
What is the main legal requirement or power in Section 17?
The first operative clause identified from the official text is: “(1) The employer shall pay or cause to be paid wages to the employees, engaged on— (i) daily basis, at the end of the shift;” Read it with the remaining subsections and any proviso below.
Does Section 17 contain a proviso or explanation?
No standalone proviso or explanation was extracted from this section text. Check the full text below for clause-level qualifications.
What time limit, percentage or amount appears in Section 17?
The provision contains this numerical/time expression: “(ii) weekly basis, on the last working day of the week, that is to say, before the weekly holiday;” Apply it only in the clause and context in which it appears.
Which 2026 Central Rules are linked to Section 17?
No direct Central Rule is recorded in the current concordance. That does not exclude a relevant scheme, notification, State rule or enabling provision.
Is Section 17 currently operative?
Principal remaining provisions commenced on 21 November 2025 under S.O. 5322(E), read with the earlier partial commencement; check section-specific footnotes in the current India Code text.
Source & verification trail
Act: Code on Wages, 2019 — official India Code PDF ↗
Central Rules: Code on Wages (Central) Rules, 2026 — G.S.R. 343(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.