Workforce · Provision

Section 17 of the Code on Wages, 2019 — Salary Payment Date, and Wages Within Two Working Days of an Exit

Monthly wages before the expiry of the 7th of the next month, daily, weekly and fortnightly limits, and wages due on an exit within two working days. (Section 17, Code on Wages, 2019.) In force since 21 November 2025 · Replaced the time limits in section 5 of the Payment of Wages Act, 1936 · Text checked against India Code on 25 October 2026.

Quick Statutory Answer

Under Section 17 of the Code on Wages, 2019, in force from 21 November 2025, wages must be paid to daily workers at the end of the shift, weekly workers on the last working day before the weekly holiday, fortnightly workers before the end of the second day after the fortnight, and monthly-paid staff before the expiry of the seventh day of the following month. When an employee is removed, dismissed, retrenched or resigns, or loses the job because the establishment closes, the wages due must be paid within two working days. The appropriate Government may set another time limit, and time limits in other laws are unaffected.

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The text of 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.

What the section does

  • Monthly-paid employees must be paid before the expiry of the seventh day of the following month. Daily workers are paid at the end of the shift, weekly workers on the last working day before the weekly holiday, and fortnightly workers before the end of the second day after the fortnight.
  • Where an employee is removed or dismissed, retrenched, resigns, or becomes unemployed because the establishment closes, the wages payable must be paid within two working days.
  • The appropriate Government may set a different time limit where it considers that reasonable, and the section does not displace a time limit in any other law.
  • Under the Payment of Wages Act, 1936 an establishment with a thousand or more workers had until the tenth; the Code sets the seventh for all monthly wages.

Section 17: when wages must be paid

Section 17: when wages must be paid
Employee paid Pay by Provision
Daily The end of the shift s.17(1)(i)
Weekly The last working day of the week, before the weekly holiday s.17(1)(ii)
Fortnightly Before the end of the second day after the fortnight s.17(1)(iii)
Monthly Before the expiry of the 7th day of the next month: October 2026 salary by 7 November 2026 s.17(1)(iv)
Removed, dismissed, retrenched, resigned, or establishment closed Within two working days s.17(2)
A different limit Only if the appropriate Government provides one; other laws' limits stand s.17(3), (4)

Monthly salary

By the 7th. Before the expiry of the seventh day of the next month; wages due on an exit within two working days.

Where people go wrong

  • Paying exit wages with the next payroll run. Section 17(2) gives two working days.
  • Working to the old tenth-of-the-month date for a large establishment. The Code sets the seventh for every monthly-paid employee.
  • Treating gratuity as part of the two-day rule. Gratuity has its own limit, thirty days, under section 56 of the Code on Social Security.
  • Assuming a state notification changes the date without checking it. Only a time limit the appropriate Government actually provides under section 17(3) does.

Common questions

What is the last date to pay salary under the new labour code?

For monthly wages, before the expiry of the seventh day of the following month, under section 17(1)(iv) of the Code on Wages, 2019. October 2026 salary is due by 7 November 2026.

Does full and final settlement have to be paid within two days?

The wages due must be paid within two working days of the employee's removal, dismissal, retrenchment or resignation, or the establishment's closure, under section 17(2). Gratuity has its own thirty-day limit under section 56 of the Code on Social Security.

What replaced section 5 of the Payment of Wages Act?

Section 17 of the Code on Wages, 2019, from 21 November 2025. The tenth-day limit the old Act allowed larger establishments is gone; monthly wages are due by the seventh.

Can the government change these time limits?

Yes. Section 17(3) lets the appropriate Government provide another time limit where it considers it reasonable, and section 17(4) keeps any time limit in another law.

Act on this

  • Full and final settlement format
  • Full and final settlement: timeline and what is owed
  • Section 2(y) — what counts as wages
  • Labour code salary calculator

Other provisions

  • Section 2(y), Code on Wages
  • Section 17, Digital Personal Data Protection Act
  • Section 32, Digital Personal Data Protection Act
  • Section 9, Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act
  • Section 11, Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act
  • Section 13, Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act

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About this summary

The section in its own words, with a plain-English explanation of what it requires. Not legal advice: take advice on anything turning on your own facts.