Govt to bring ordinance for salary payment by cheque, digital method

The new ordinance will amend the Payment of Wage Act to help business establishments to pay their workers through electronic modes

Govt to bring ordinance for salary payment by cheque, digital method

Faced with task of resolving the cash crisis in the country, government is likely to bring a new ordinance soon to allow the employers to pay wages through cheque or by using electronic modes. 

According to Economic Times, the new ordinance will  amend the Payment of Wage Act to help business establishments to pay their workers through electronic modes. The report added that government already tabled a bill in this regard in Lok Sabha on December 15, 2016. 



The bill was brought by the Labour Minister Bandaru Dattatreya during the ruckus in Parliament over demonetisation issue. Sources said, now instead  of instead of waiting for two more months, the government can issue the ordinance and later it will be passed in Parliament."

"The government may bring an ordinance to amend Payment of Wage Act, 1936, to nudge employers of certain industries to make payment through electronic modes and cheques," a senior official of Finance Ministry told PTI.

PTI further added, "The bill for the purpose was tabled in the Lok Sabha on December 15, 2016. It can be pushed for passage in the Budget session next year. Thus, instead of waiting for two more months, the government can issue the ordinance and later it will be passed in Parliament."

The new ordinance will pave way for major push for government’s plan for "digital and less cash economy", claimed sources.