Proposal to amend law for cashless wage payments

[Informalisation and Labour Rights - Related News]

The Centre has proposed amending a law to empower States and allow industries to pay wages by cheque or by direct credit into bank accounts. The Union Labour ministry has proposed changes to the Section 6 of the Payment of Wages Act of 1936. The present law states that all payment of wages should be made in cash, with a provision enabling employers to obtain written permission of the worker to pay either by cheque, or by crediting the wages to his or her bank account.