Payment of Wages (Amendment) Ordinance, 2016

The ordinance amends the Payment of Wages Act, 1936 to encourage cashless transactions. It enable industries to pay wages by cheque or credit into the bank accounts of workers.
 
Key Provisions:
  • Allows industries to pay wages to workers earning up to Rs. 18,000 per month, without taking their explicit consent as required under present Act.
  • Empowers the Union and State governments to specify industries or establishments where wage payments can be made mandatory through banks.
  • However, it is not mandatory for employers to make wage payments through the banking system and they can still pay in cash.

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