Labour Ministry seeks early passage of Amendment Bill to Wages Act

Hyderabad: Union Labour Minister Bandaru Dattatreya today said his ministry will seek the passage of Amendment Bill to Payment of Wages Act in the Parliament for allowing business and industrial establishments to pay salaries to their workers through cheques or electronic modes.

The Government had in December Last year issued an Ordinance which will enable the Centre and states to classify industries and establishments that will have to pay wages to workers either through cheque or by crediting that into their bank accounts.

“Amendment to Payment of Wages Act will be introduced in the Parliament. So far, wages to workers are mostly paid in cash or kind. Most of the workers get their salaries in cash. There is scope that workers may be exploited with this system. They mention one figure in the salary register and the salary they actually get is different. Trade Unions have been asking the Government to control such practices.

Now the Government in a bid to bring transparency and also encourage digital transactions, would like to amend the Act. Cabinet has also agreed for modification. Once passed, the Act mandates that all the salaries should be paid through bank accounts. This will ensure social security of the workers also," Dattatreya told PTI.

The Act came into force on April 23, 1936, providing for payment of wages in coin or currency notes, or in both.

The provision for payment of wages by cheque or crediting it into bank account after obtaining the requisite authorisation of employee was inserted in 1975.

At present, the Act covers all those employees in certain categories of establishments whose wage does not exceed Rs 18,000 per month.

Dattatreya further said Maternity Benefit Act, and Employees Compensation Act are also expected to be passed by the Parliament during the current session.

Describing the Budget presented by Finance Minister Arun Jaitley as “pro-poor” the Labour Minister said Telangana would largely benefit with the provisions made in the budget.

According to him, the state government is expected get Rs 1000 crore additionally every month on account of high tax collection. The state will get about Rs 1600 crore to provide safe drinking water in fluoride-affected areas, he said.