No salary in cash for industrial workers; to get payment only in cheque or bank transfer

No salary in cash for industrial workers; to get payment only in cheque or bank transfer

The government is soon going to make it compulsory to make salary payments to industrial workers only in cheque or direct bank transfers.

As per the prevailing practice, industrial workers get their salary in cash.

The Times of India report said that this may change soon as Cabinet has cleared the proposal.

“This will not only promote transparency but also help in reducing the grievances of employees related to non-payment of minimum wages,”, the report quoted a government source.

The government will enforce the measure by amending Section 6 of the Payment of Wages Act, 1936, which will enable the appropriate government to specify the industrial or other establishments in which payments are to be made through cheque or bank accounts.

As and when the move happens, all the central government employees from railways, air transport services, mines oil fields etc. whose wages do not exceed Rs 18,000 per month will be covered under the new rule, while the respective state governments will identify the other industrial and factory establishments.

The report added that the states of Andhra Pradesh, Uttarakhand, Punjab, Kerala and Haryana have made or initiated provisions in the said Act for payment of wages to the employed persons either by cheque or through credit into bank accounts.A Bill – Payment of Wages (Amendment) Bill, 2016 – has been prepared which will be tabled after the Cabinet approves the measure.

The payment of salary in cheque of bank transfer is in line with the government’s efforts to promote a cashless economy in the country.