According to section 6 of the Payment of Wages Act, 1936 all wages shall be paid in current coin or currency notes or in both provided that the employer may, after obtaining the written authorization of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account. This clearly shows that none of the payment other than that of wages of an employee & that is also with the written authorization the employee, can be transfer to the bank account.
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
Section 6 of Payment of wages 1936 deals with mode of payment. It says all wages shall be paid in current coin or currency notes or in both. (Provided that the employer may, after obtaining the written authorization of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account).
So it will depend on your company policy how you want to pay.
For more HR related information: White Eagle
Payment of salary is traditionally by cheque only. Now a days, even payment as low as Rs. 5,000/= or so is being made by cheque. There is a circular of the government that any payment beyond Rs. 20,000/= has to made by cheque. Further, you save a lot of hassles by making payment by cheque. However, the company can make payment less than Rs.20,000/= by cash also. All depends on the company's policy.
I guess our experts have already answered the query...but to answer the query straight and bluntly, "No such provision", you can either pay cash or cheque as per your convenience....
According to me firstly u have check that you are paying salary to your employees or labours...if u are paying to your employees then it can be either cash or cheque and if u were paying it to labours then it should be in cash according to payment of wages act.
There is a difference between labours & employees so pls alwys keep in mind the mentioned thing while giving wages to them.
Pls make note that wages has been paid to labours may be on weekly/ fortnightly or monthly basis.
date of payment of wages is 7th if no of employees is less than 1000 &
10th if no of employees exceeds 1000
Kapil Dev Singh
Plot No 6A, Sector-18, Maruti Industrial Area,
Gurgaon -122015 ( HRY)
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