In line with Modi government's efforts to move towards a cashless economy, the Centre is planning to make it mandatory for payments to be made only through cheque or directly into the bank accounts of the factory and industrial workers.
Labour ministry has also issued an advisory stating,"All wages shall be paid in current coin or currency notes or in both (provided that the employer may, after obtaining written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account).
Union Minister for Labour and Employment Bandaru Dattatreya has also said that the Centre will soon amend law to ensure that the salaries and payments to be made for the all employees will have to be done through banks using the electronic platforms.
"We will be bringing an amendment to Payment of Wages Act to see that salaries are given in bank account or cheque. Cabinet has passed (it)," he told reporters in Hyderabad.
The move would put an end to the exploitation of workers in payment of wages, he added.
Workers whose wages do not exceed Rs 18,000 per month will be covered under the new rule, Times of India reported.
The move — for which a Cabinet note has been circulated — is in line with demonetisation and also aimed at ensuring that workers are paid the minimum wages stipulated by the Centre and states, senior government sources told TOI.
"One of the reasons for ineffective enforcement of payments of wages to workers is the payment of wages in cash... With the passage of time, technology has undergone a sea change. A large section of employed persons now have bank accounts," TOI quoted its source as saying.
Prime Minister Narendra Modi has also appealed to his party workers to promote digital transactions and bring everyone under cashless economy, which was the only way to curb corruption.
