Short title and

commencement.

Substitution of

section 6 of

Act 4 of

1936.

LOK SABHA

————

The following Bill was presented in Lok Sabha on 15th December, 2016:—

BILL NO. 327 OF 2016

A Bill further to amend the Payment of Wages Act, 1936.

BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as

follows:—

1. (1) This Act may be called the Payment of Wages (Amendment) Act, 2016.

(2) It shall come into force on such date as the Central Government may, by notification

in the Official Gazette, appoint.

2. For section 6 of the Payment of Wages Act, 1936, the following section shall be

substituted, namely:—

"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.".

Wages to be

paid in

current coin

or currency

notes or by

cheque or

crediting in

bank

account.

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EXTRAORDINARY

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PART II — Section 2

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Separate paging is given to this Part in order that it may be filed as a separate compilation.

REGISTERED NO. DL—(N)04/0007/2003—16

STATEMENT OF OBJECTS AND REASONS

The Payment of Wages Act, 1936 (the Act) regulates the payment of wages of certain

classes of employed persons. The Act was amended several times and last amended in the

year 2005. Section 6 of the Act provides that all wages shall be paid in current coin or

currency notes or in both. However, proviso to said section enables the employer to pay the

wages to an employee either by cheque or by crediting the wages in his bank account after

obtaining his written authorisation.

2. With the passage of time, technology has been changed and a large section of the

employed persons have their bank accounts. The payment of wages through cheque or

crediting it in the bank account of employed persons will reduce the complaints regarding

non-payment or less payment of minimum wages, besides serving the objectives of digital

and less cash economy. The State Governments of Andhra Pradesh, Uttrakhand, Punjab,

Kerala and Haryana have already made provisions in the said Act for payment of wages to

the employed persons either by cheque or by crediting the wages in their bank account, by

making State amendments to the Act.

3. In view of the above, it has been decided to substitute section 6 of the Act so as to

enable the employer to pay the wages to the employed person also by cheque or crediting it

to their bank account and also to enable the appropriate Government to specify the

industrial or other establishments, by notification in the Official Gazette, which shall pay to

every employed person, the wages only by cheque or by crediting in his bank account.

4. The Bill seeks to achieve the above objectives.

NEW DELHI;

BANDARU DATTATREYA.

The 08th December, 2016.

————

ANOOP MISHRA,

Secretary General.

GMGIPMRND—3948GI(S3)—16-12-2016.

2

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—SEC.2]

UPLOADED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002

AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.

RAM

DAYAL

Digitally signed

by RAM DAYAL

Date: 2016.12.19

12:40:40 +05'30'