The cabinet cleared an ordinance to allow businesses to pay salaries through electronic mode and cheques
The cabinet has today cleared an ordinance or executive order to allow businesses to pay salaries through electronic mode and cheques.
The amendment to the Payment of Wages Act allows employers to pay salaries by cheque or credit salary in employees' bank accounts along with the existing provisions of payment in current coin or currency notes.
This move will ensure that minimum wages are paid to the employees and that their social security rights can be protected.
The order will only be applicable to central government-administered institutions.
The ordinance will help bring a section of the industrial sector and other establishments under the domain of the government's plan of checking corruption by going cashless.
The centre has encouraged employers to go for digital payment, especially after the notes ban on November 8.
Currently, a huge chunk of the organized sector, especially factories, tea gardens and construction companies, pay the wages of labourers by cash.