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.
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.
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.
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