Bill to allow firms to pay salaries through cashless mode in Lok Sabha

NEW DELHI: With the government focusing on cashless transactions post demonetisation, a bill seeking to allow employers of certain business and industrial establishments to pay salaries to their employees either through cheque or electronic means, was introduced in the Lok Sabha today.

Once passed by Parliament, The Payment of Wages (Amendment) Bill, 2016 will amend Section 6 of the principal Act to enable employers to pay wages to their employees also by cheque or crediting it to their bank accounts.

The Bill was introduced by Labour Minister Bandaru Dattatreya amid din over demonetisation issue.


It will also allow state governments to specify industrial or other establishments "which shall pay to every employed person the wages only by cheque or by crediting in his bank account."

The bill states that by adopting the new procedure, complaints regarding non-payment or less payment of minimum wages.

It will also serve the objective of "digital and less cash economy", the bill states.

By making state-level amendments to the Act, Andhra Pradesh, Uttarakhand, Punjab, Kerala and Haryana have already made provisions for payment of wages through cheque and electronic transfer.

As of now, with the written authorisation of an employee, wages can be given through cheque or transferred to his or her bank account.