Is Salary a Constitutional Right in India? 

Salary as a fundamental right

Is salary an earned right based on work performed, or does it hold the status of a constitutional and fundamental right? This question has sparked considerable legal and ethical debates. While some argue that salary is a contractual obligation between employer and employee, others emphasize that wages are directly linked to an individual’s right to life, dignity, and livelihood under Article 21 of the Indian Constitution.

The Indian judiciary has repeatedly ruled that withholding wages violates fundamental rights, equating salary payments to an essential requirement for survival and dignity. Furthermore, the Code on Wages, 2019, reinforces the need for timely and fair compensation. However, challenges remain, particularly in the enforcement of these rights across various sectors. This article examines the constitutional and legal framework governing salaries in India, key judicial precedents, and the way forward.

Are Wages an Earned Right or a Fundamental Right?

Salary is not merely a financial transaction but a constitutional entitlement that safeguards human dignity, economic stability, and social security. Courts have consistently ruled that wages are fundamental to a person’s right to livelihood, and withholding them violates constitutional protections under Article 21.

In Dr. Prabhas Ranjan Pradhan v. Union of India and Others, the Central Administrative Tribunal (CAT), Cuttack, ruled that wages are not a privilege but an earned right. The tribunal emphasized that payment for work is not an act of charity but a constitutional obligation of the employer. Failure to disburse salaries on time disrupts livelihoods, thereby violating fundamental rights.

Furthermore, courts have reinforced that employers are legally and morally obligated to ensure timely payment of wages. A delay in salary payments can have severe consequences on employees’ ability to meet their basic needs, thereby affecting their right to life and dignity. This judicial interpretation firmly establishes salary as a constitutional right essential for economic security.

Salary and Human Dignity

Salaries are deemed a fundamental right due to their direct impact on human dignity. Without wages, individuals cannot access basic necessities to lead a dignified life. The judiciary has often emphasised that salaries are not merely economic matters but also social and moral ones. This perspective imposes a significant responsibility on employers to honour their employees’ rights. Timely salary payment is both a legal obligation and a moral duty aligned with constitutional principles.

India’s Legal Framework for Wages

The Code on Wages, 2019 is India’s primary legislation governing wages. It addresses aspects such as minimum wages, payment schedules, and bonuses. Key provisions include:

  • Daily wage workers: Wages must be paid at the end of each shift.
  • Weekly wage workers: Wages must be paid on the last working day of the week.
  • Fortnightly wage workers: Wages must be paid by the end of the second day after the fortnight.
  • Monthly wage workers: Wages must be paid by the seventh day of the following month.

Employers who fail to comply face penalties, including fines of up to ₹50,000 for underpayment or non-payment of wages.

Article 21: Right to Life and Dignity

The Supreme Court of India has interpreted Article 21 to include the right to earn a livelihood with dignity. Salary delays or denials can violate this fundamental right, as wages are essential for maintaining a basic standard of living. Salary delays or denials directly impact an individual’s quality of life, making it a constitutional concern. Courts have repeatedly ruled that salary is not a mere contractual obligation but a fundamental right ensuring social justice and financial security.

Article 300A: Right to Property

Article 300A of the Constitution states that no person shall be deprived of their property except by the authority of law. Salaries and pensions are considered earned financial rights, and arbitrary withholding of these payments is deemed a violation of constitutional property rights.

In Sovakar Guru v. State of Odisha and Others, the Orissa High Court ruled that salaries and pensions are rightful entitlements under Article 21 and Article 300Ahttps://indiankanoon.org/search/?formInput=article%20300a%20constitution%20, which protects against the arbitrary deprivation of property. Employees must be paid their dues as per service rules, and any delays may attract interest payments.

Judicial Rulings Affirming Salary as a Right

Hind Kamgar Sanghatana through its President Shantaram Kadam and Others v. State of Maharashtra and Others

In this case, the Bombay High Court addressed the issue of non-payment of wages during the COVID-19 lockdown. The petitioners, representing workers, contended that their employer had failed to pay wages from December 2019 onwards, exacerbating hardships during the pandemic. The court emphasized that financial constraints do not absolve employers from their obligation to pay wages timely. It held that the right to life under Article 21 encompasses the right to live with dignity, which includes the right to livelihood. Delaying or denying wages infringes upon workers’ fundamental rights, impacting their dignity and means of living. The court directed the authorities to ensure payment of due wages and to take necessary actions against defaulting employers.

Sovakar Guru vs State of Odisha and Others (Orissa High Court)

This case involved a retired headmaster who faced significant delays in receiving his pension dues. The Orissa High Court examined whether such delays violated constitutional rights. The court reaffirmed that both salaries and pensions are not mere statutory rights but are integral to the right to life under Article 21 and the right to property under Article 300A. It emphasized that pensions are deferred portions of compensation for past services and are essential for a retiree’s sustenance. Withholding or delaying pension payments jeopardizes the retiree’s right to live with dignity and security. The court ordered the state to release the pending dues promptly and imposed interest on the delayed payments to ensure justice and deter future violations.

State of Andhra Pradesh vs Dinavahi Lakshmi Kameswari (Supreme Court)

In this landmark case, the Supreme Court addressed the deferment of salaries and pensions by the Andhra Pradesh government during the COVID-19 pandemic due to financial constraints. The High Court had previously directed the state to pay the deferred amounts with 12% interest, emphasizing that salaries and pensions are rightful entitlements under Articles 21 and 300A. On appeal, the Supreme Court acknowledged the state’s financial difficulties but upheld the principle that employees’ remuneration is a constitutional right. The Court reduced the interest rate to 6%, balancing the state’s economic challenges with the necessity to protect employees’ rights. This judgment underscored that while states may face fiscal emergencies, they must prioritize the timely payment of salaries and pensions, as these are crucial for the livelihood and dignity of individuals.

These judicial pronouncements collectively affirm that the timely payment of salaries and pensions is not merely a contractual or statutory obligation but a constitutional mandate essential for upholding the fundamental rights to life, dignity, and property.

Challenges and the Way Forward

Despite judicial affirmations, challenges persist in enforcing salary as a fundamental right. Wage delays and denials remain common, especially in unorganised sectors. Addressing these issues requires:

  • Strengthening labour laws and enforcement mechanisms.
  • Enhancing regulatory oversight.
  • Promoting ethical workplace practices prioritising employee welfare.

Recognising salary as a fundamental right is a legal obligation and a step toward building equitable workplaces. Employers must adopt practices that uphold constitutional values and contribute to societal progress. 

Conclusion

The recognition of salary as a basic right reflects the judiciary’s commitment to social justice and employee welfare. By interpreting Article 21 to include wages, courts have reinforced that dignity and livelihood are essential to the right to life. While implementation challenges persist, judicial pronouncements provide a solid foundation for advocating fair and timely payment of salaries. Embracing this principle can lead to a society rooted in justice, equality, and dignity, where salaries are more than transactions; they are lifelines for a dignified existence.

This article is written by – Avishi Saini, 2nd Year, B. Com. LL.B (Hons.), UILS, Pu.