Industrial, factory workers to get pay by cheque, online payments soon

A cabinet note has been circulated in which the Modi government plans to make it mandatory for salary payment to factory and industrial workers through cheques or online transfer.

Industrial, factory workers to get pay by cheque, online payments soon

The Narendra Modi government is planning to make it mandatory for salary payment to factory and industrial workers through cheque or online transfer. A Cabinet note in this regard is in circulation.

The idea is in line with the Modi government’s efforts to promote cashless economy post-demonetisation. This move will impact salary payment to millions of factory and industrial workers.

The new effort also aims at ensuring that workers are paid the minimum wages stipulated by the Centre and states. Workers whose wages do not exceed Rs 18,000 per month will be covered under the new rule.


"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," said senior government sources.

"The time has come to adopt technology, as emphasised by Digital India."

While the Central government will have the mandate for workers employed by the railways, in air transport services and mines, and at oilfields (directly or through a sub-contractor), the respective state governments will identify other industrial and factory establishments.

The government will enforce the measure by amending Section 6 of the Payment of Wages Act, 1936, which will enable the appropriate government to specify the industrial or other establishments in which payments are to be made through cheque or bank accounts.