Bill moved in Lok Sabha for cashless payment of wages

New Delhi, Dec 16 : A bill was introduced in the Lok Sabha on Thursday to amend the Payment of Wages Act to give employers the liberty to decide whether to pay wages in cash or through cheques or bank transfers.

As the government is promoting cashless transactions, the Payment of Wages (Amendment) Bill will amend the 1936 act, which states that payment of wages in cheque or through bank transfer can only be made after taking the employee's permission in writing, said Labour Minister Bandaru Dattatreya.

Once the amendment bill is passed by Parliament, this authorisation will not be needed.

Stating the objects and reasons of the bill, Dattatreya said the act is being amended to enable the employer to "pay the wages to the employed person also by cheque or crediting it to their bank account".

The amendments brought by the bill will also "enable the appropriate government to specify the industrial or other establishments, by notification in the Official Gazette, which shall pay to every employed person the wages only by cheque or by crediting to his bank account".

The bill comes as Prime Minister Narendra Modi announced demonetization of Rs 500 and Rs 1,000 currency notes on November 8. The Prime Minister is now pushing for a "cashless" economy, promoting online and other modes of transaction aiming at curbing black money.