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
Acknowledge(0)
Amend(0)

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 got nearly 8,000 PMJDY accounts opened, but the idea did not work well since at civil engineering construction sites (the most unorganized sector), the average period of continuity of workmen is 3 to 4 months, and subcontractors bring in new groups to replace the old. The struggle thus continues.

Further, in civil engineering construction, there is a process of weekly payment of "Khoraki/Kharchi" in cash for workmen to maintain themselves. The problem is how to pay that? A process is suggested to rope in vegetable vendors and grocers into mobile transactions through JioMoney or Paytm, but I have serious doubts if that would be successful since to do that, laborers have to be trained on "smartphones," "Wi-Fi," and "transaction process" that seem absurd at this stage.

However, there is no other way but to adopt a "trial and error" process to resolve problems.

Regards,

From India, Pune
Attached Files (Download Requires Membership)
File Type: png Central Labour Office Circular.png (824.1 KB, 348 views)
File Type: png Govt. of India Circular.png (1.28 MB, 278 views)

Acknowledge(0)
Amend(0)

Are these circulars real or fake? They have been widely circulated on WhatsApp. It seems there is no copy on any of the government websites. Under which act is this notice issued? There is no mention of the same, which is never the case for any notifications from government departments. So I am not sure of the authenticity of this. Any clarity will be appreciated.
From India, Mumbai
Acknowledge(0)
Amend(0)

Dear Mr. Saswata Banerjee,

Earlier, Mr. PC Agarwal had raised a thread on the same subject. Please refer to the following link: https://www.citehr.com/575463-even-c...ough-bank.html

Thanks,
Dinesh Divekar

From India, Bangalore
Acknowledge(0)
Amend(0)

Dinesh,

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 labor 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
Acknowledge(0)
Amend(0)

You can contact banks like Ratnakar and Central Bank of India. They offer prepaid payroll cards that can be reloaded. Please purchase these cards, reload money weekly, and distribute them to your employees or laborers. In case they are leaving, kindly ask them to surrender the card. If anyone fails to return the card, you can block it by contacting the banks. Hope this helps.

Regards,
Abdul Basith

From India, Bangalore
Acknowledge(0)
Amend(0)

Dear Mr. Md. Basith,

I don't think a Rechargeable Cash Card available from banks is a solution to the cash demand of workmen who are looking for the cheapest groceries and vegetables for weekly consumption. I am referring specifically to the Civil Engineering Construction Industry where work is likely carried out in remote locations that hardly have such facilities. Additionally, the shopkeepers should be willing to participate in the process. This is indeed a critical problem. Perhaps a system of Cash-Coupons issued to workmen could be implemented, and arrangements could be made with shopkeepers so that these coupons can be exchanged for cheque payment. This would be a more straightforward process for workmen to operate.

Regards,

From India, Pune
Acknowledge(0)
Amend(0)

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
Acknowledge(0)
Amend(0)

Dear Mr. Md. Basith,

The payroll card concept is an administrative convenience that cannot replace the expected compliance of actual bank deposition of wages into the workers' bank accounts. The complexity can thus be gauged from two points. First, the principal employer has to open a bank account for the contractual employees. Second, the contractual employees have to visit the bank to withdraw wages for daily chores.

Thank you.

From India, Mumbai
Acknowledge(0)
Amend(0)

Dear Seniors, if you have notification as per above subject please share at prajapatis@alfaduct.com Regards, Sunil Prajapati
From India, Mumbai
Acknowledge(0)
Amend(0)

The government has introduced the amendment to the Payment of Wages Act to put this rule into effect. It will be effective once the act is passed by the parliament. However, the same rule has been implemented by Maharashtra 6 years back. Check the amendment to sec 6 by Maharashtra.
From India, Mumbai
Acknowledge(0)
Amend(0)

The corrected text with proper formatting is:

It is available at the link below:
http://labour.nic.in/sites/default/f...WAct2017_0.pdf

From India, Bangalore
Acknowledge(0)
Amend(0)

Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.