Employer not paying your salary? How to recover unpaid wages under the Code on Wages, 2019

What happened to the Payment of Wages Act 1936?

The Payment of Wages Act 1936 no longer applies. The Code on Wages, 2019 came into force on 21 November 2025, and section 69 of the Code repealed the old Act. If advice you find online still tells you to file under the 1936 Act, it is out of date.

Section 69 of the Code on Wages repealed four older wage laws at once:

• the Payment of Wages Act 1936
• the Minimum Wages Act 1948
• the Payment of Bonus Act 1965
• the Equal Remuneration Act 1976

For an employee chasing unpaid salary, these are the rules that now matter:

What are your salary rights under the Code on Wages, 2019?

The Code puts the duty to pay wages on time on the employer. For most salaried employees, three questions matter: whether the Code covers you, when your salary is due, and what your employer may deduct.

Does the Code on Wages apply to salaried employees?

Yes. The Code on Wages has no wage ceiling. Its rules on paying wages apply to all employees, whether you earn ₹15,000 or ₹1,50,000 a month.

This is one of the biggest changes from the old law, which protected only employees below a monthly wage limit. Managers, IT staff and other higher earners who fell outside the 1936 Act can now use the same claim process as everyone else.

When must your employer pay your salary?

Under section 17 of the Code on Wages, 2019, monthly wages must be paid before the 7th day of the following month. If you resign, or are removed or dismissed, your wages must be paid within 2 working days.

So your salary for September must reach you before 7 October. If it hasn't, your employer is already late, and you can start the steps below.

What can your employer deduct from your salary?

Only deductions the law permits. Your employer should be able to explain every deduction on your payslip. A deduction that has no lawful basis can be challenged in a claim before the section 45 authority.

Check each payslip against your offer letter. Deductions such as income tax (TDS) and your own PF contribution are normal. Deductions labelled as penalties for "poor performance", client complaints, or unexplained "adjustments" and "recoveries" are the ones to question.

How to recover unpaid salary in India — 5 steps from demand to order

Follow these steps in order. Many employers pay once they receive a formal written demand, so you may never need to file a claim. If informal demands fail, you can file a complaint to recover unpaid salary.

What documents do you need to file a salary claim in India?

A strong section 45 claim should include:

1. Appointment letter or employment contract — proof of your employment and the agreed salary.
2. Salary slips — for all months that were paid. These show the salary amount and that the employer treated you as an employee.
3. Bank statements — showing salary credits for months paid, and the gap where no credit appears for the unpaid month(s).
4. Written demand sent to employer — a copy of your email, WhatsApp message or letter demanding payment, with proof it was sent.
5. PF or ESI records — your UAN passbook or ESI card showing your employer's registration and contributions. This is strong proof of employment.
6. Any employer communication about the delay — emails or messages where the employer admits the salary is pending or gives reasons for the delay.
7. ID and address proof — Aadhaar, PAN or any government-issued ID.

Common salary dispute situations in India — and how each is handled

I earn a high salary. Can I still claim under the Code on Wages?

Yes. The Code on Wages has no wage ceiling, so the section 45 claim is open to you whatever your salary.

Higher earners also keep their contractual remedies. You can send a legal notice for breach of your employment contract, and a civil suit for recovery of money remains an option where the dispute turns on complicated contract terms. A lawyer can help you choose the right forum for a large or complex claim.

What if the employer deducts salary claiming notice period breach in India?

This is one of the most common salary disputes in India — an employee resigns, gives less than the stipulated notice period, and the employer deducts the remaining notice period salary as "notice pay recovery."

Whether this deduction is lawful depends on your employment contract. If your contract lets the employer recover salary in place of unserved notice, that recovery may be valid — but it should not exceed the salary for the notice days you did not serve, and it cannot swallow wages for days you actually worked. If your contract is silent, or the deduction goes beyond what it allows, you can challenge it in a claim before the section 45 authority.

What if the employer pays salary in cash and there is no bank record?

Cash salaries are common, especially in smaller businesses. Without bank records, use other evidence: salary receipts, attendance records, statements from co-workers, the employer's own records or filings showing you as staff, or any written message acknowledging your employment and pay. Labour authorities regularly deal with informal employment, so a cash job does not stop you from claiming.

What if multiple employees at the same company have unpaid salaries?

Under the Code on Wages, a claim can be filed not only by an individual employee but also by a registered trade union or by the Inspector-cum-Facilitator. If several of you are owed wages by the same employer, filing through a registered union, or asking the Inspector-cum-Facilitator to act, can be more effective than separate claims. Keep a shared record of each person's unpaid months and amounts.

What if the employer has shut down or disappeared?

You can still file a claim if the employer has closed operations. Act quickly — records, assets and the people responsible get harder to trace as time passes. Include the business address and the names of the owners or managers you dealt with. If the business is being wound up, speak to a lawyer promptly about how to protect your claim.

Employer not paying salary India — questions people actually ask

Official sources

• India Code — official repository of Indian Bare Acts (Code on Wages, 2019)

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