New Delhi: The Union Cabinet on Wednesday approved the ordinance route to amend the Payment of Wages Act 1936, to allow business and industrial establishments to pay salaries through cheques or electronic route, in line with the government’s ambitious cashless campaign.
Sources said that the Cabinet decided to take the ordinance route to implement the legislation, as the Payment of Wages (Amendment) Bill, 2016 was introduced in Lok Sabha during the last session of Parliament, but could not be taken up owing to disruption on the demonetisation issue.
With this, employers will also have the option to pay wages in cash, official sources added. The Bill seeks to amend Section 6 of the principal Act to enable employers to pay wages to employees through cheques or to their bank accounts electronically.
