In a further push to cashless economy, the
Central cabinet has approved the ordinance for paying wages via electronic means
- which means that the government has given its nod for cashless salary.
Accordingly, the government approved to amend Section 6 of the Payment Of Wages
Act. The new ordinance will be applicable to public sector, with the private
sector coming under the purview of the new move later, CNN News 18 reported.
"The Union Cabinet today approved the ordinance
route to amend the Payment of Wages Act, 1936, to allow employers of certain
industries to make payment through the electronic mode and cheques," a source
said. Employers will also have the option to pay wages in cash, the source
added.
As per practice, the government introduces
ordinance to amend laws for immediate implementation of new rules. An ordinance
is valid for six months only. The government is required to get it passed in
Parliament within that period.
According to CNN-News18, companies can pay
their employees only through cheque or through electronic means. All wage
workers, who earn less than Rs 18,000 will be come under the new ordinance.
However, the specific sectors where the rule will be applicable will be notified
later.
The state government will additionally have the
discretion whether to pay employees via cheques or electronic transfer.
According to reports, the government aims to check under-reporting of salaries,
bring transparency in transactions and end exploitation of wage workers.
However, the Opposition lashed out at the
government for the ordinance. "Nothing can distract people from the fact that
Prime Minister Narendra Modi and his government have failed. Government should
trust people and they cannot move without proper infrastructure", the Congress
party said.
"It will create a problem for the employees as
withdrawal from the banks is difficult. Cashless society is not possible. We
will move amendment in the Parliament," Gurudas Dasgupta, CPM leader told
CNN-News 18.
Wages, as opposed to salaries, have
traditionally tended to be cash payments. The Payment of Wages Act covers
employees whose wage does not exceed Rs 18,000 per month. The new procedure will
serve the objective of "digital and less-cash economy", the Bill stated.
Introduced by Bandaru Dattatreya in the Winter Session of Parliament, the
passage of the Bill was disrupted as the government and opposition clashed over
demonetisation.
It will also allow state governments to specify
industrial or other establishments that adopt cashless modes for salary
payments. The new procedure will serve the objective of "digital and less cash
economy", the bill states. Andhra Pradesh, Uttarakhand, Punjab, Kerala and
Haryana have already made provisions for payment of wages through cheque and
electronic transfers after making state-level amendments to the Act.
The original Act had come into force on 23
April 1936, providing for payment of wages in coin or currency notes, or in
both. At present, with the written authorisation of an employee, wages can be
given through cheque or transferred to his or her bank account.
With inputs from agencies
Source :http://m.firstpost.com/
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