Lok Sabha passes Payment of Wages (Amendment) Bill, 2017

Feb 8, 2017 12:41 IST

The Lok Sabha on 7 February 2017 passed the Payment of Wages (Amendment) Bill, 2017. The Bill seeks to enable employers to pay wages to workers through cheque or directly crediting to their accounts.

The Bill was moved by Labour and Employment Minister Bandaru Dattatreya in the House.

The Bill will replace the Ordinance promulgated by the President on 28 December 2016.

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About Payment of Wages (Amendment) Bill, 2017

The Payment of Wages (Amendment) Bill, 2017 amends the Payment of Wages Act, 1936.

It replaces the Payment of Wages Ordinance, 2016, which was promulgated on 28 December 2016.

Under the 1936 Act, all wages must be paid either in coin or currency notes, or both.  However, the employer may pay his employee’s wages either by cheque or by crediting it into his bank account, after obtaining his written authorisation.

The Bill amends the 1936 Act to permit the employer to pay an employee’s wages: (i) in coin or currency notes; or (ii) by cheque; or (iii) by crediting them into his bank account.  

The Bill eliminates the requirement of obtaining written authorisation for payment of wages by cheque or through a bank account.

However, the relevant central or state government may specify certain industrial or other establishments where the employer should pay his employees only by: (i) cheque; or (ii) crediting the wages in his bank account.

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