All workers to get wages via banking channels

The Ministry of Labour and Employment is keen that the amendments to the Payment of Wages Act, 1936 are passed in the current session of Parliament itself in order to ensure that all industrial workers get their wages only through the banking channel and not otherwise.

Proposed Amendment The Payment of Wages Act, 1936 regulates the payment of wages of certain classes of employed persons. Section 6 of the Act envisages that all wages shall be paid in current coin or currency notes or in both. However, a proviso was inserted in section 6 of the said Act in the year 1975 enabling the employer, after obtaining the written authorization of the employed person, to pay him the wages either by cheque or by crediting the wages in his bank account.

Sl. No.	Section	Existing Provision	Proposed Provision
1	Section 6	“6. Wages to be paid in current coin or currency notes.- All wages shall be paid in current coin or currency notes or in both:	“6. Wages to be paid in current coin or currency notes.- All wages shall be paid in current coin or currency notes or in both:
		Provided that the employer may, after obtaining the written authorization of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account.”	Provided that the appropriate Government may, by notification in the Official Gazette, specify the industrial or other establishment, the employer of which shall pay to every person employed in such industrial or other establishment, the wages either by cheque or by crediting the wages in his bank account.”