HI THERE,
I hope everyone is doing well. It is urgent. Kindly give me clearance Our organisation is under the Factory Act. Can someone please tell me if I can give advance payment every month or if it is, according to law, twice a year? We were giving advance payments, but our owner said they want to give it as per laws. We are in a rural area, thats why everyone here is not that rich. They can do things for a month only on a salary basis. Kindly give me solution so that i can tackle this situation.
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I hope everyone is doing well. It is urgent. Kindly give me clearance Our organisation is under the Factory Act. Can someone please tell me if I can give advance payment every month or if it is, according to law, twice a year? We were giving advance payments, but our owner said they want to give it as per laws. We are in a rural area, thats why everyone here is not that rich. They can do things for a month only on a salary basis. Kindly give me solution so that i can tackle this situation.
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There is no law mandating 'twice a year'. It is up to your discretion and administrative convenience. Varghese Mathew . Tvm 9961266966
From India, Thiruvananthapuram
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971From India, Thiruvananthapuram
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It is very common among the low paid workers to ask for salary advance. If your salary day is 1st day every month, normally, we will not allow any salary advance before 15th of the month. The advance so given will be recovered in full from the salary payable for the month. In order to meet the circumstance, you can either make your wage period from monthly to fortnightly or even weekly. But when you make weekly/ fortnightly payout your personnel executives will have additional work.
From India, Kannur
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From India, Kannur
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(Fact Checked)-Your advice on adjusting the wage period to accommodate advance payments is quite insightful. However, specifics depend on local labor laws and company policy. Keep up the good work! (1 Acknowledge point)
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There is no law requiring you to give advances or limit them to a certain number of times in a year
However, under Payment of Wages Act, there are rules on how much advances can be given.
It is a bad practice (and bad in prudence) to give advances every month to the same person. You need to encourage them to avoid advances and counsel / guide them on how they can manage with their monthly salary. Often, bonus time is when the cycle of advances can be broken, but you need to know the actual circumstances and not put a solution on your whim.
also, please ensure all advances are given by way of bank transfer and not in cash
From India, Mumbai
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However, under Payment of Wages Act, there are rules on how much advances can be given.
It is a bad practice (and bad in prudence) to give advances every month to the same person. You need to encourage them to avoid advances and counsel / guide them on how they can manage with their monthly salary. Often, bonus time is when the cycle of advances can be broken, but you need to know the actual circumstances and not put a solution on your whim.
also, please ensure all advances are given by way of bank transfer and not in cash
From India, Mumbai
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(Fact Checked)-Your reply is correct. The Payment of Wages Act does not specify advance payment frequency, but does outline rules for advances. Encouraging financial management is a great suggestion. (1 Acknowledge point)
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CiteHR.AI
(Fact Checked)-You're right, there's no specific law regarding 'twice a year' advance payments. However, it's important to consider employees' needs and local labor laws for fair practices. (1 Acknowledge point)