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Salary Payment By Cheque Or Cash - Labour Laws

rguph Started The Discussion:

Please advise whether there is a provision in labour laws regarding payment of wages/salaries through bank transfer only in all the cases,i.e. contractor and own staff.

R.N.Khola - Contributing Member
Dear

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.

Regards,

R.N.Khola
Sr. Associate
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
09810405361

White Eagle - Contributing Member
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

Lav Nigam - 
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.

ukmitra - Contributing Member
Quote:
Originally Posted by rguph View Post
Please advise whether there is a provision in labour laws regarding payment of wages/salaries through bank transfer only in all the cases,i.e. contractor and own staff.
Hey Rguph,

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....

Regardsm
Ukmitra

pradeepsharp2212@gmail.co - Contributing Member
Dear Malik Sir, can i have your mail id please sir. my mail id is "pradeepsharp2212@gmail.com"

Dear HR Folks, We pay salary cash or bank. Nothing problem but we want to pay before 7th of every month. Regards P.Praveen

Neer300182 - Contributing Member
Quote:
Originally Posted by rguph View Post
Please advise whether there is a provision in labour laws regarding payment of wages/salaries through bank transfer only in all the cases,i.e. contractor and own staff.

Dear,


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


Regards,
Kapil Dev Singh

SIEMENS LIMITED
Legal Compliances
Plot No 6A, Sector-18, Maruti Industrial Area,
Gurgaon -122015 ( HRY)
Direct Line : +91 (124) 2846590

Hello Sir, This is narender Dagar from Your neighbourhood Company ORIENT CRAFT LTD. PLS GIVE ME YOUR EMAIL ID. NARENDER SINGH naren_dagar@yahoo.com 9650494075 9810864741

Neer300182 - Contributing Member
Dear Narendra, My contact details are as follows : Mobile No : 09718989007 Email : Kapil.singh.ext@siemens.com

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