Centre to tweak wage law soon

New Delhi: Aiming to move towards a cashless India, the Centre and states could soon have powers to specify categories of employers who will have to pay wages either through cheques or by crediting the amount directly into the workers’ bank account.

“The government is ready with the Payment of Wages (Amendment) Bill, 2016 which seeks to empower the Centre as well as states to specify industrial or other establishments where employers shall pay workers either by cheque or by crediting wages into their bank accounts,” a source said. “The proposal to amend the Payment of Wages Act 1936, is likely to be placed before Union Cabinet for approval in the next few days. The government intends to push the bill during the ongoing winter session of the Parliament after Cabinet nod,” the source added.

At present, an employer is required to obtain a written authorisation from the employee to pay wages either through cheque or by crediting it into the employee’s bank account.

Explaining further, the source said that the move will reduce complaints and also help in moving towards a cashless society.