Payment of Wages bill passed

Q.  Which Act does the Payment of Wages (Amendment) Bill 2017 impact?
- Published on 20 Apr 17

a. Payment of Wages Act 1926
b. Payment of Wages Act 1936
c. Payment of Wages Act 1963
d. Payment of Wages Act 1962

ANSWER: Payment of Wages Act 1936
The Payment of Wages (Amendment) Bill, 2017 was introduced in Lok Sabha on Feb 3, 2017 by the Minister of Labour and Employment.

The Bill amends the Payment of Wages Act, 1936.

The Bill replaces the Payment of Wages Ordinance, 2016 which was promulgated on December 28, 2016.

As per the 1936 Act, all wages must be paid either in coin or currency notes, or both.

However, the employer may pay his employee’s wages either by cheque or by crediting it into his bank account, after obtaining his written authorisation.

The Bill amends the 1936 Act to permit the employer to pay an employee’s wages:

(i) in coin or currency notes; or
(ii) by cheque; or
(iii) by crediting them into his bank account.

The Bill removes the requirement of obtaining written authorisation for payment of wages by cheque or through a bank account.

However, the relevant central or state government may specify certain industrial or other establishments where the employer should pay his employees by cheque or crediting into account.

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