Hello Friends, can anyone clarify the doubts regarding monthly wages payment to workmen? Is it mandatory to pay through a bank account only under any Act of Labour Law? Is it applicable in the Central Sphere at present or under any state government act? If yes, please provide supporting documents to show where it has been specified.
Also, can you clarify if under the Central Sphere, there is any specific provision for a height allowance, i.e., 20% extra pay for workers working at a height greater than 30 feet?
Your valuable advice and support are appreciated.
Regards, Mahesh Gupta
From India, Delhi
Also, can you clarify if under the Central Sphere, there is any specific provision for a height allowance, i.e., 20% extra pay for workers working at a height greater than 30 feet?
Your valuable advice and support are appreciated.
Regards, Mahesh Gupta
From India, Delhi
Sec 6 of the Payment of Wages Act has been amended by the central government during the demonetization period to make it mandatory for the salary to be paid only by bank transfers or crossed cheques where the same is notified by the relevant state government.
The Maharashtra government had already amended Sec 6 in 2013 to make it compulsory to pay wages only by bank transfer or crossed cheques. For other states, you need to find the relevant notification. I think most states have issued the notifications. In any case, for better control and safety, paying by bank transfer is better so no one can accuse you of short payment, non-payment, or fraudulent records.
From India, Mumbai
The Maharashtra government had already amended Sec 6 in 2013 to make it compulsory to pay wages only by bank transfer or crossed cheques. For other states, you need to find the relevant notification. I think most states have issued the notifications. In any case, for better control and safety, paying by bank transfer is better so no one can accuse you of short payment, non-payment, or fraudulent records.
From India, Mumbai
Payment of Wages
Monthly wages payment to workmen is not mandatory to be paid through a bank account. The Payment of Wages Act directs that payment can be made in cash or through the bank according to the choice of the workmen. However, paying by bank is easier but not feasible for all, especially in areas where banks are located far away, such as project areas under B&OCW in remote regions.
From India, Mumbai
Monthly wages payment to workmen is not mandatory to be paid through a bank account. The Payment of Wages Act directs that payment can be made in cash or through the bank according to the choice of the workmen. However, paying by bank is easier but not feasible for all, especially in areas where banks are located far away, such as project areas under B&OCW in remote regions.
From India, Mumbai
Amendment to Section 6 in 2017
Section 6 was amended in 2017 as follows:
"6. All wages shall be paid in current coin or currency notes or by cheque or by crediting the wages in the bank account of the employee: Provided that the appropriate Government may, by notification in the Official Gazette, specify the industrial or other establishment, the employer of which shall pay to every person employed in such industrial or other establishment, the wages only by cheque or by crediting the wages in his bank account."
Details of the amendment are available at https://labour.gov.in/sites/default/...WAct2017_0.pdf.
After the amendment, where notified (and most states have notified it), payment through a bank account is mandatory.
From India, Mumbai
Section 6 was amended in 2017 as follows:
"6. All wages shall be paid in current coin or currency notes or by cheque or by crediting the wages in the bank account of the employee: Provided that the appropriate Government may, by notification in the Official Gazette, specify the industrial or other establishment, the employer of which shall pay to every person employed in such industrial or other establishment, the wages only by cheque or by crediting the wages in his bank account."
Details of the amendment are available at https://labour.gov.in/sites/default/...WAct2017_0.pdf.
After the amendment, where notified (and most states have notified it), payment through a bank account is mandatory.
From India, Mumbai
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