The Payment of Wages Act of 1936 was made to make sure that workers get paid properly, on time, as well as without any unfair deductions. For decades, this law has been an important means of maintaining stable wages in the official job market in India. But it doesn’t have a significant effect on the massive informal economy where more than 90% of the people of the country work for. In this sector, it is often seen that the employees are not given any formal contracts, or they do not have a good relationship with the employer, which makes them more prone to be subjected to inconsistent rules, poor surveillance, and they do not have any effective way to file any complaint as well. This study analyses the effectiveness of the application of the Act in protecting these workers by using a variety of documentary sources, consisting of the legislative argumentation, official sources and the interpretation of courts, as well as the contemporary policy assessments. A study shows that the Act has a progressive goal as a law, but it doesn’t do so well in practice because of problems with institutions, not enough power of enforcement, and the secretive character of unregulated employment agreements. The Code on Wages, 2019 has raised questions on whether these amendments to the legislation in recent times can resolve the flaws that have persisted in the legislation, making it difficult to protect wages. At the end of the evaluation, people discuss things that could be done in order to assist, such as making it easier to register complaints and get them fixed, scrambling digital wage transfers, and strengthening local monitoring groups. If these steps are taken correctly, they could help India’s wage safeguards become more flexible and open to all. This would be more beneficial for an evolving employment environment that is less structured and growing less formal.