Chapter III - Payment of Wages
Section 17
Section 17: time limit for payment of wages
Section 17 sets payment deadlines for daily, weekly, fortnightly and monthly wages and a separate two-working-day rule for certain employment exits.
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Need advice on Section 17?
This article is for general information. Refer to the Code on Wages, 2019 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Introduction
The Code on Wages provisions were brought into force by central notification in November 2025. Section 16 lets an employer fix a wage period of up to one month; section 17 then sets the corresponding latest payment time.
Subsections (3) and (4) matter: the appropriate government may provide another reasonable time limit, and a time limit in another applicable law is not displaced by the ordinary schedule in subsections (1) and (2). Employers should check the relevant government notification and other applicable rules before configuring payroll.
Key takeaways
Daily and weekly wages
Daily wages are due at the end of the shift; weekly wages are due on the last working day of the week before the weekly holiday.
Fortnightly and monthly wages
Fortnightly wages are due before the end of the second day after the fortnight; monthly wages are due before the end of the seventh day of the next month.
Exit payments
For removal, dismissal, retrenchment, resignation or unemployment due to establishment closure, section 17(2) requires payable wages within two working days.
Check variations
An appropriate-government time limit or another law's payment deadline can affect the payroll calendar.
Choose and record the wage period
Fix each worker's daily, weekly, fortnightly or monthly wage period under section 16, which caps the period at one month. Then map the matching section 17(1) deadline into payroll processing and bank-credit checks.
Apply the ordinary payment dates
Pay daily workers at shift end, weekly workers before the weekly holiday, fortnightly workers by the second day after the period, and monthly workers by the seventh day of the next month. Keep evidence of the actual payment date, not merely when payroll was approved internally.
Settle payable wages on exit
Section 17(2) sets a two-working-day deadline for wages payable when an employee is removed, dismissed, retrenched, resigns or becomes unemployed because the establishment closes. Identify the event date promptly so final payroll is not left in the next normal cycle.
Check notifications and other laws
The appropriate government may provide another reasonable payment time under section 17(3). Subsection (4) preserves other laws' time limits. Payroll policy should therefore identify the establishment and applicable government, rather than relying solely on a national summary.
Official sources
Read the official text and commencement notification used for this guide:
Practical checklist
Do
- Record the wage period assigned to each employee group.
- Schedule payroll and bank processing before the applicable statutory deadline.
- Create an exit-payment workflow triggered by resignation, termination, retrenchment or closure.
- Check the appropriate government's current notification and any other applicable time limit.
Avoid
- Do not assume all workers have a monthly wage period.
- Do not wait for the next regular payroll run to settle exit wages when section 17(2) applies.
- Do not ignore an applicable government variation or other law.
Glossary
- Wage period
- The daily, weekly, fortnightly or monthly period fixed by the employer under section 16.
- Appropriate government
- The Central or State Government applicable under the Code's definition for the establishment or employment.
Frequently asked questions
When are monthly wages due under section 17?
Ordinarily before the seventh day of the succeeding month, subject to an applicable government variation or another law's time limit.
What is the deadline when an employee resigns?
Section 17(2) requires wages payable on resignation to be paid within two working days, subject to the provision's variation and savings clauses.
Does an internal payroll approval date count as payment?
The section concerns paying wages; keep records showing the employee was actually paid within the applicable time.
Need help applying this provision to your situation?
Contact BizeneedLast updated 9 October 2026