In a bid to push cashless economy, Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday decided to bring in an ordinance to amend the Payment of Wages Act for allowing business and industrial establishments to pay salaries through cheques or electronically. This move will provide opportunity for employers to have an option to transfer the wages electronically or by cheques.
Due to chaos in Parliament, the Centre could not pass the Payment of Wages (Amendment) Bill, 2016, which seeks to amend Section 6 of the principal Act to enable employers to pay wages to employees through cheques or by crediting it to their bank accounts electronically.