No more cash: All wages to be paid via bank transfer, cheques

The Labour Ministry has said that it will bring changes to the Payment of Wages Act 1986 in order to make it compulsory for all wages to be paid through bank transfer or cheque. 

The ordinance to bring these changes to the Act have been approved by the Government. 

Bandaru Dattatreya, in a statement, said, "With the passage of time, technology has been changed and a large section of the employed persons have their bank accounts. The payment of wages through cheque or crediting it in the bank account of employed persons will reduce the complaints regarding non-payment or less payment of minimum wages, besides serving the objectives of digital and less cash economy."

He further said that state governments of Punjab, Andhra Pradesh Kerala, Haryana and Uttrakhand have already provisions in the said Act by making state amendments to the Act. 

He said, "It has been decided to substitute section 6 of the Act so as to enable the employer to pay the wage to the employed person also by cheque or crediting it to their bank account."