India Payroll RulesWhen wages and the final settlement are due
Section 17 of the Code on Wages, 2019 sets the time limits for paying wages (read on 13 November 2026). The appropriate Government may provide another time limit under section 17(3).
The limits
| Wage period | Wages must be paid |
|---|---|
| Daily | At the end of the shift |
| Weekly | On the last working day of the week, before the weekly holiday |
| Fortnightly | Before the end of the second day after the fortnight |
| Monthly | Before the expiry of the seventh day of the next month |
| Removal, dismissal, retrenchment, resignation, closure | Within two working days |
Example
An employee who resigns on Friday 13 November 2026, with Sunday as the only weekly off, is owed the wages by Monday 16 November 2026.
What is not in these Codes
Leave encashment and notice pay are not set by the Code on Wages or the Code on Social Security texts read for this site: they come from the contract, the establishment’s policy or other law, so no calculator is offered. Gratuity is a separate payment under the gratuity rules.
Common questions
When must the final wages be paid?
Section 17(2) of the Code on Wages: within two working days of removal, dismissal, retrenchment or resignation, or of unemployment due to closure of the establishment.
When must monthly wages be paid?
Section 17(1)(iv): before the expiry of the seventh day of the succeeding month. Daily wages are paid at the end of the shift, weekly wages on the last working day of the week, and fortnightly wages before the end of the second day after the fortnight.
Sources
- The Code on Social Security, 2020 (Act 36 of 2020), India Code: section 53 (payment of gratuity), section 54 (continuous service) and section 2(88) (wages). Text downloaded from indiacode.nic.in and read on 13 November 2026.
- The Code on Wages, 2019 (Act 29 of 2019, text as on 21 November 2025), India Code: section 17 (time limit for payment of wages) and section 26 (bonus). indiacode.nic.in, read on 13 November 2026.
- Press Information Bureau, "Code on Social Security, 2020: Towards Universal and Inclusive Social Protection" (pib.gov.in): gratuity for fixed-term employees after one year, and the wage definition.
Rules read on 13 November 2026 from the Codes named above. Several amounts are fixed by notifications or rules that are not in the Codes (the gratuity ceiling, the bonus wage limit). Check the current notification before you pay. This site is independent, not connected with any government, and gives information, not legal advice.