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Section 17 of the Code on Wages, 2019: Time Limit for Payment of Wages

Daily-paid employees are paid at the end of the shift; weekly-paid on the last working day of the week, before the weekly holiday; fortnightly-paid before the end of the second...

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Labour Laws
Published
October 1, 2026
Last updated
Oct 1, 2026
Reading time
7 min
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Last updated: October 2026Verified against: Government sources

Section 17 of the Code on Wages, 2019 tells an employer by when wages must reach the employee. The deadline depends on the wage period (daily, weekly, fortnightly or monthly), and a shorter deadline of two working days applies when an employee leaves the job. The appropriate Government can notify a different time limit.

Sub-section (1): the four regular deadlines

The wage period itself is fixed under section 16, which allows daily, weekly, fortnightly or monthly periods and no period longer than a month. Section 17(1) then attaches a deadline to each.

Employees engaged on aWages must be paidReference
Daily basisAt the end of the shifts.17(1)(i)
Weekly basisOn the last working day of the week, that is, before the weekly holidays.17(1)(ii)
Fortnightly basisBefore the end of the second day after the end of the fortnights.17(1)(iii)
Monthly basisBefore the expiry of the seventh day of the succeeding months.17(1)(iv)
Removed, dismissed, retrenched or resignedWithin two working dayss.17(2)

Three details deserve attention.

  1. "Pay or cause to be paid." The duty is on the employer, and it is met when wages are actually paid. Section 15 (mode of payment) says how, including by crediting the bank account; read it together with this section.
  2. Weekly wages fall due before the weekly holiday. The text defines the last working day of the week by reference to the weekly holiday. If the holiday is a Sunday, payment is due by Saturday, or whichever day is the last working day.
  3. Monthly wages: "before the expiry of the seventh day". On a plain reading, payment has to be made on or before the seventh day of the next month. The wording is "before the expiry of", so the seventh day itself is within time. Do not plan to pay on the eighth.

Employers who find they are close to the line each month can have the payroll calendar reviewed through our payroll compliance audit service, which compares pay dates against the deadlines above.

Sub-section (2): when employment ends

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 must be paid within two working days of his removal, dismissal, retrenchment or, as the case may be, his resignation.

Two points follow from the text.

  • The trigger for closure. The sentence lists "removal, dismissal, retrenchment or ... resignation" as the events from which two working days run. It does not name closure as a separate starting event, although clause (ii) covers an employee who "became unemployed due to closure". The section is silent on exactly which day starts the clock in a closure. Treat the date the employee ceases to be employed as the safe starting point and check any State rules.
  • "Working days", not calendar days. Weekly holidays and other non-working days are not counted. The Code uses the words "two working days" and does not define them in this section.

Sub-sections (3) and (4): other time limits

  • Section 17(3). Notwithstanding sub-sections (1) and (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". The text does not say whether this may be done by notification, by rule or by order, and it does not say the new limit must be shorter or longer. Check what your State or the Centre has provided for your sector.
  • Section 17(4). Sub-sections (1) and (2) do not affect any time limit for payment of wages provided in any other law in force. If another law gives a shorter deadline for your industry, that law continues to apply.

What the Central Rules add. The Code on Wages (Central) Rules, 2026 (G.S.R. 343(E), 8 May 2026) do not set a separate time limit under s.17. They do deal with the wage slip, which must be issued electronically or in physical form in Form V on or before payment of wages (rule 52). The Central Rules apply only where the Central Government is the appropriate Government; where the State Government is the appropriate Government, the State's own wage rules apply. See Rules 51 and 52.

Worked example (hypothetical)

An establishment pays monthly. Its September 2026 wages are Rs 30,000 for an employee, and the payroll team releases them on 9 October. Section 17(1)(iv) required payment before the expiry of 7 October. The payment is late by two days, even if the amount is correct.

A second employee resigns, and her last day is a Friday. If Saturday and Sunday are holidays, her wages are due by Tuesday. Putting her dues in the monthly run on the 7th of next month would be outside the limit.

Section 17 itself does not state a penalty; offences and penalties sit elsewhere in the Code. The earlier time limits were in the Payment of Wages Act, 1936, covered in our guide to that Act.

Need help with wage payment deadlines?

Late wages are one of the easier things to prove and one of the easier things to prevent. Our payroll compliance audit team can map your pay dates for every wage period and your exit settlements to s.17 and flag where processes need changing.

Key takeaways

  • Daily, weekly, fortnightly and monthly wage periods each have their own deadline under s.17(1).
  • Monthly wages must be paid before the expiry of the seventh day of the next month.
  • Leavers must be paid within two working days of removal, dismissal, retrenchment or resignation.
  • The appropriate Government may provide another time limit, and time limits in other laws are not disturbed.
  • Section 17 does not itself state a penalty for delay.

Read next

Disclaimer: Based on the Code on Wages, 2019 (as enacted) and, where noted, the Code on Wages (Central) Rules, 2026 (G.S.R. 343(E), 8 May 2026), as on 1 October 2026. The Code is in force from 21 November 2025; State Governments make their own rules for establishments where the State is the appropriate Government, and wage rates are notified separately. Verify the current position before acting.

Quick recapKey facts & short answers

Key Facts About Section 17

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What is the last date to pay monthly wages under the Code on Wages?

Before the expiry of the seventh day of the succeeding month (s.17(1)(iv)).

When must wages be paid to an employee who resigns?

Within two working days of the resignation taking effect, as the section puts it, "of his ... resignation" (s.17(2)).

Section 17: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Before the expiry of the seventh day of the succeeding month (s.17(1)(iv)).

Within two working days of the resignation taking effect, as the section puts it, "of his ... resignation" (s.17(2)).

Yes. Removal, dismissal, retrenchment and resignation are all named in s.17(2).

Not on the strength of the contract alone. Only the appropriate Government can provide another time limit under s.17(3).

No. Bonus has its own time limit, in s.39, of eight months from the close of the accounting year. See section 39.

Not in s.17. The penalty provisions of the Code deal with offences; this section only sets the time limits.