If your employer does not pay your salary, you have the legal right to file a complaint with the Labour Commissioner or approach the labour court for recovery. Under the Payment of Wages Act, 1936, your employer must pay your wages before the 7th or 10th of the following month (depending on the size of the establishment). If wages are delayed, you can file a claim and the employer faces penalties including fines and imprisonment.
Why this matters
Delayed or unpaid wages is one of the most common workplace violations in India, affecting millions of workers across industries. Many employees — especially those in unorganised sectors, small firms, or startups — suffer in silence because they fear retaliation or do not know that the law protects them. The reality is that Indian law treats wage payment as a strict obligation, and the system provides accessible remedies even for low-income workers.
Your rights when your employer does not pay
1. Right to timely payment
Your employer must pay your wages on a fixed date every month. Under the Payment of Wages Act, 1936, establishments with fewer than 1,000 workers must pay by the 7th of the next month. Establishments with 1,000 or more workers get until the 10th. The Code on Wages, 2019 (passed by Parliament but not yet notified into force as of March 2026) retains similar timelines under Section 17.
In practice: Check your offer letter or employment contract for the stated pay date. If your salary is even one day late past the statutory deadline, it is technically a violation of law.
2. Right to full payment without unauthorised deductions
Your employer cannot deduct amounts from your salary without legal basis. The Payment of Wages Act restricts deductions to a specific list: absence from duty, damage or loss caused by the employee's negligence, housing or amenities provided by the employer, income tax, provident fund contributions, and court-ordered amounts. Deductions cannot exceed 50% of your wages in total (Section 7).
In practice: If your employer is cutting your salary citing "performance penalties," "training recovery," or "notice period adjustment" beyond what the law permits, this is an illegal deduction and you can challenge it.
3. Right to file a complaint with the Labour Commissioner
If your employer fails to pay your wages, your first and most effective remedy is to file a complaint with the Labour Commissioner (also called the Assistant Labour Commissioner or the Authority under the Payment of Wages Act) in the jurisdiction where you work.
In practice: Visit the office of the Labour Commissioner in your district. Bring your appointment letter, salary slips (if any), bank statements showing non-receipt of salary, and an ID proof. You can also file online through the SAMADHAN portal (clc.gov.in) for central government establishments, or through your state's labour department website.
4. Right to claim the unpaid amount plus compensation
When you file a claim under Section 15 of the Payment of Wages Act, the Authority can order the employer to pay the delayed wages along with compensation of up to ten times the amount of the delayed wages. This compensation is in addition to the wages themselves.
In practice: This compensation provision makes it costly for employers to delay payments. The Authority must decide your claim within a prescribed time period.
5. Right to approach the labour court
If the Payment of Wages Act does not cover your category (it applies mainly to employees earning below a specific wage ceiling and in scheduled employments), you can raise an "industrial dispute" under the Industrial Disputes Act, 1947. Non-payment of wages is a valid ground for an industrial dispute. You can approach the Conciliation Officer or the Labour Court.
In practice: This route is particularly useful for managerial-level employees or those in sectors not covered by the Payment of Wages Act. Conciliation is the first step — the Conciliation Officer tries to mediate. If that fails, the case goes to the Labour Court.
Step-by-step: What to do
Step 1: Document everything
Before taking any action, collect evidence: your offer letter or appointment letter, salary slips from previous months, bank statements showing salary credits (and the gap), emails or messages discussing salary delays, and any written communication from HR or management about the delay.
Step 2: Send a written demand to your employer
Write a formal letter or email to your HR department or management demanding payment of your pending salary. State the exact amount owed, the months for which it is pending, and a deadline for payment (typically 7-15 days). Keep a copy of this letter — it serves as evidence that you tried to resolve the matter internally.
Step 3: File a complaint with the Labour Commissioner
If your employer does not respond or refuses to pay, file a complaint with the Labour Commissioner of your district. You can do this in person or, in many states, online. The Labour Commissioner will issue a notice to your employer and attempt to mediate.
Step 4: File a claim under the Payment of Wages Act
If mediation fails, you can file a formal claim under Section 15 of the Payment of Wages Act before the Authority appointed under the Act. The Authority will hear both sides and can order the employer to pay your wages plus compensation.
Step 5: Approach the labour court or civil court
For amounts above the Payment of Wages Act ceiling, or if you are not covered by it, file a case in the labour court under the Industrial Disputes Act. As a last resort, you can also file a civil suit for recovery of money in the appropriate civil court.
Important: The time limit for filing a claim under the Payment of Wages Act is 12 months from the date the wages became due. Do not delay.
What if things go wrong
If your employer retaliates after you file a complaint
Retaliation for filing a lawful complaint is itself a violation. If your employer terminates you for raising a wage dispute, the termination can be challenged as victimisation before the labour court. Under the Industrial Disputes Act, such termination may be treated as an unfair labour practice (Section 25T).
If your employer shuts down or disappears
If the company closes its operations while owing you salary, you still have rights. Under the Payment of Wages Act, the authority can attach the employer's property. If the company is undergoing insolvency proceedings under the Insolvency and Bankruptcy Code, 2016, workers' dues (up to 24 months of unpaid wages) get priority under Section 53 of the IBC Code.
If you are a gig worker or freelancer
The Payment of Wages Act applies to "employees" — if you are classified as an independent contractor, this Act may not directly cover you. However, you can still file a civil suit for recovery of dues based on your contract. The Code on Social Security, 2020 (not yet notified) recognises gig workers and platform workers, and future rules may expand their protections.
Documents and resources you need
- Appointment letter / offer letter — proves your employment and agreed salary
- Salary slips — shows the agreed compensation structure
- Bank statements — proves salary was not credited
- Written demand letter — copy of your communication to the employer
- SAMADHAN portal: clc.gov.in (for central government establishment complaints)
- State labour department: Search "[your state] labour department online complaint"
- Shram Suvidha Portal: shramsuvidha.gov.in (for establishment and compliance details)
- NALSA legal aid helpline: 15100 (if you need a free lawyer)
Common myths
Myth: If you are in your probation period, the employer does not have to pay your salary. Reality: Probation has nothing to do with your right to be paid. Whether you are a probationer, confirmed employee, or trainee, if you have worked, you must be paid. The Payment of Wages Act makes no distinction between probationers and confirmed employees.
Myth: You cannot claim salary if you did not have a written contract. Reality: The absence of a written contract does not mean you have no rights. If you can prove that you worked for the employer (through emails, attendance records, messages, colleague testimony, or bank statements showing past payments), you are entitled to your wages.
Myth: Only factory workers can file labour complaints. Reality: The Payment of Wages Act covers factory workers, railway employees, and persons employed in industrial or other establishments notified by the state government. Beyond this Act, any employee can raise a dispute under the Industrial Disputes Act or file a civil suit.
Myth: Filing a complaint will get you blacklisted. Reality: There is no formal blacklisting mechanism in Indian law. Labour complaints are confidential between the parties and the Authority. In practice, large companies settle quickly once they receive a Labour Commissioner's notice because they want to avoid legal proceedings.
The law behind this
| Protection | Current Law | New Code (not yet notified) |
|---|---|---|
| Wage payment timeline | Section 5, Payment of Wages Act, 1936 | Section 17, Code on Wages, 2019 |
| Penalty for delayed wages | Section 20 (fine up to Rs 7,500) | Section 54 (fine up to Rs 1 lakh) |
| Unauthorised deductions | Section 7 (max 50% deduction) | Section 18, Code on Wages |
| Right to file claim | Section 15 (before Authority) | Section 45, Code on Wages |
| Compensation | Up to 10x the delayed amount | As prescribed under the Code |
| Industrial dispute for non-payment | Section 2(k), Industrial Disputes Act | Section 2(q), Industrial Relations Code |
| Workers' priority in insolvency | Section 53, IBC 2016 | Section 53, IBC 2016 |
Note on the Labour Codes: Parliament passed four Labour Codes between 2019-2020 (Code on Wages, Industrial Relations Code, Code on Social Security, and Occupational Safety Code). As of March 2026, these have NOT been notified into force. The old laws — Payment of Wages Act, Industrial Disputes Act, Minimum Wages Act — continue to apply.
Frequently asked questions
How long can my employer delay salary before it becomes illegal? Under the Payment of Wages Act, your employer must pay by the 7th of the following month (or 10th for larger establishments). Any delay beyond this statutory deadline is a violation. Even a single day's delay is technically actionable, though most employees allow a reasonable grace period before filing a complaint.
Can I refuse to work if my salary is not paid? While there is no specific legal provision that says you can stop working for non-payment, non-payment of wages is a fundamental breach of the employment contract. You can resign and claim your pending wages. However, simply not showing up without resigning could give the employer grounds to allege abandonment. The safer approach is to continue working while pursuing your complaint through the Labour Commissioner.
What is the maximum compensation I can get for delayed wages? Under Section 15(3) of the Payment of Wages Act, the Authority can award compensation of up to ten times the amount of the deducted or delayed wages, in addition to the wages themselves. The actual compensation depends on the circumstances, the duration of the delay, and whether the employer had a reasonable cause.
Can I file a criminal case against my employer for not paying salary? Under Section 20 of the Payment of Wages Act, non-payment is a punishable offence — the employer can face a fine of up to Rs 7,500 for a first offence and imprisonment of up to 6 months for repeat offences. However, criminal prosecution requires the complaint to be filed through the Inspector or Authority under the Act, not directly by you. The labour department initiates prosecution based on its findings.
Does this apply to domestic workers and part-time workers? Domestic workers are not covered under the Payment of Wages Act in most states. However, several states (like Kerala and Karnataka) have notified rules for domestic workers. Part-time workers who fall within the Act's coverage are entitled to wages proportionate to their hours. Regardless of the Act's coverage, every worker can file a civil suit for recovery of wages based on the employment arrangement.