ACSA

Payment of Salary

Fixation of salary period – Section 20

  1. An employer may fix salary periods
  2. No salary period shall exceed one month

 Computation of salary for incomplete month’s work – Section 20A

  1. Monthly gross rate of pay (Number of days on which the employee is required to work in that month) x Number of days the employee actually worked in that month
  2. Any day on which an employee is required to work for 5 hours or less under his contract of service shall be regarded as half a day

 Time of payment – Section 21

  1. Salary shall be paid before the expiry of the 7th day after the last day of the salary period
  2. Additional payments for overtime work shall be paid not later than 14 days after the last day of the salary period
  3. The total salary due to an employee on completion of his contract of service shall be paid to him on completion of the contract
ACSA