The government has asked all principal employers and contractors to ensure payment of wages to employees, including contract workers, only through bank accounts. So it is going to be tough for employers and contractors who still pay by cash. Computation, salary transfer statement of the prescribed format of the bank, salary statement and upcoming statutory compliance are going to make HR/Finance dept in a big fix this month end?
Is there any official circular on this? If any of the fellow citehr members received, please share.

From India, Bangalore
It is true. The process of opening Bank Accounts for Workers is a tough task. I had a hands-down experience in convincing workmen to open Bank Accounts under PMJDY (Pradhan Mantri Jan Dhan Yojna). We jot nearly 8,000 PMJDY accounts opened but the idea did not work good since at Civil Engineering Construction sites (the most unorganised sector) average period of continuity of workmen is 3 to 4 months and Subcontractors bring in new groups to replace the old. Struggle is thus continued.

Further, in Civil Engineering Construction there is a process of weekly payment of "Khoraki/Kharchi" in Cash for Workmen to maintain themselves. Problem is how to pay that? A process is suggested to rope in Vegetable Vendors and Grocers into Mobile transaction through JioMoney or Paytm but I have serious doubts if that would be successful since to do that Labours have to be trained on "Smartphone", "Wi-Fi" and "Transaction Process" that seem absurd at this stage.

However, there is no other go but adopt a "Trial & Error" process to resolve problems.


From India, Pune

Attached Images
File Type: png Central Labour Office Circular.png (824.1 KB, 297 views)
File Type: png Govt. of India Circular.png (1.28 MB, 239 views)

Are these circulars real or fake ?
They have been widely circulated in whatsapp
It there seem to be no copy on any of the government website.
Further, under which act is this notice issued ?
There is no mention of the same, which is never the case for any notification from the government departments
So I am not sure of the authenticity of this.
Any clarity will be appreciated.

From India, Mumbai
Dear Mr Saswata Banerjee,
Earlier Mr PC Agarwal had raised a thread on the same subject. Refer the following link:
Dinesh Divekar

From India, Bangalore
My point is the same even in the other thread.
Is this a real or fake letter ?
There is no copy online at the main labour department websites. There is no reference to law, section or rules under which the instructions are issued. I don't think a senior government officer can or will do something at his own whim and fancy.

From India, Mumbai
You can contact banks like Ratnakar and Central bank of India, they have prepaid payroll card which can be reloaded, please buy these cards and reload money weekly and give it to your employees or labour, in case if they are leaving please ask them to surrender...if anyone is not returning card u can block it by calling banks ...hope this help
Abdul Basith

From India, Bangalore
Dear Mr. Md. Basith,
I don't think Rechargeable Cash Card as available from Banks is a solution to Cash Demand of Workmen who look around for cheapest Groceries and Vegetables for weekly consumption. I am talking in particular of Civil Engineering Construction Industry where work is done probably at the remotest place which hardly have such facilities. Also, the Shopkeepers should also be willing to participate in the process. This truly is a critical problem. May be a system of Cash-Coupons issued to Workmen and should make arrangements with Shopkeepers that such coupons may be exchanged against Cheque Payment. This would be an easier process for Workmen to operate with.

From India, Pune
In TamilNadu, yesterday some of the Government Agencies paid salary to their employees - Rs. 3,000 to Rs. 5,000 as Cash and remaining in the account.
From India, Chennai
Dear Mr. Md. Basith,
The Payroll cards concept is administrative convenience cannot replace expected compliance of actual bank deposition of Wages in the workers bank account.
The complexity is thus can be gauged for the two points,
first, principal employer has to be open bank account of the contractual employees.
Second, The contractual employees has to visit bank to withdraw wages for daily chores

From India, Mumbai
Dear Seniors, if you have notification as per above subject please share at Regards, Sunil Prajapati
From India, Mumbai

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