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Cabinet nod to draft ordinance for digital payment of salaries

The Union cabinet on Wednesday approved a draft ordinance to additionally empower states and allow industries to pay wages digitally, through direct bank transfers or by cheque. At present, the 80-year-old law only permits cash payments.

“The government proposes to bring an amendment to Section 6 of the Payment of Wages Act, which will further provide crediting the wages in the bank account of the employees or payment through cheque along with the existing provisions of payment in current coin or currency notes,” a cabinet statement read.

A government official said on condition of anonymity that the cabinet has forwarded the draft ordinance to President Pranab Mukherjee for his assent.

The draft ordinance proposes changes to Section 6 of the Payment of Wages Act of 1936. The section sought to be amended says that “all payment of wages should be made in cash, with a provision enabling employers to obtain written permission of the worker to pay either by cheque, or by crediting the wages to his or her bank account”.

The move will also boost the centre’s efforts to encourage cashless transactions.

The government had introduced the amendment during the winter session of Parliament but failed to get it passed.

“The payment of wages through cheque or crediting it in the bank account of employed persons will reduce the complaints regarding nonpayment or less payment of minimum wages, besides serving the objectives of digital and less cash economy,” the amendment bill said.

The cabinet also approved the sale of part of an 87.70-acre surplus and vacant piece of land at Pimpri in Pune, Maharashtra for meeting the Rs821.17 crore net liabilities of state-owned Hindustan Antibiotics Ltd.

The cabinet committee on economic affairs gave its approval for doubling of the Rajpura-Bhatinda railway line at an estimated cost of Rs1,251.25 crore, expected to be completed in five years.

“The doubling will ease the traffic bottlenecks and will bring more revenue to Indian Railways by capacity enhancement of the route,” the government said.

The cabinet gave its approval to the creation of the Indian Enterprise Development Service (IEDS) under the ministry of micro, small and medium enterprises (MSME). The new cadre will help achieve targets under the Start-up India, Stand-up India and Make in India initiatives.

The new service will be created in the office of the development commissioner of MSME and will help enhance the capacity and efficiency of the organization.

The cabinet also approved the Cadre Review of Indian Telecommunications Service (ITS – Group A). A new post of director general of telecom has been created, while restricting the cadre strength to the current 1,690.

“The decision will result in strengthening of the cadre structure both at the department of telecom (DoT) headquarters and in the field units on the basis of functional requirement. It will also meet the requirement of skilled manpower in BSNL and MTNL, reducing the existing stagnation of ITS officers,” the cabinet statement said.  

22 nd DECEMBER,2016, MINT , NEW-DELHI

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