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22
December 2016
The
union cabinet on Wednesday passed an ordinance to facilitate digital transfer
of salaries by employers across the country. However, several trade unions
associations and parties opposed the move, calling it impractical. The Total Investment & Insurance
Solutions
The
government, while moving the ordinance to amend Section 6 of the Payment of
Wages Act, 1936, clarified that the option of cash payment of wages would
continue to exist.
"An
additional way of payment has been introduced through this ordinance. The old
system of cash would also remain," a senior official said following a
meeting of the Cabinet.
"This
is being done to facilitate the employers from making payment of wages using
the banking facilities in addition to the existing modes of payment of wages in
current coin or currency notes," he added.
The
Labour Ministry, in a statement, clarified that the proposed amendment would
not make mandatory the payment of wages only through cheques or account
transfers.
"The
proposal is an additional facility of 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," it said. The Total Investment & Insurance
Solutions
Also,
the appropriate government (centre or state) will have to come up with the
notification to specify the industries or other establishments where the
employer shall pay wages through cheques or by credit the wages in the
employees' bank account, it said, adding that that the proposed amendment would
also ensure that "minimum wages are paid to the employees and their social
security rights are protected".
"The
employers can no longer under-quote the number of employees employed by them in
their establishments to avoid becoming a subscriber to the EPFO or ESIC
schemes," it said.
However,
most trade unions refused to buy the government's arguments.
Centre
of Indian Trade Unions (CITU) General Secretary Tapan Sen wondered as to why
the government was so rushed that it needed to bring an ordinance. The Total Investment & Insurance
Solutions
"The
government is rushing with the amendment to Wages Act. What is the hurry? The
whole banking system is in disarray right now. Couldn't the decision be put on
hold for a while?" Sen told IANS.
He said
that said that the employees' right to decide the mode of his payment should
not be withdrawn and said the government action "is not above
doubt".
Indian
National Trade Union Congress (INTUC) too opposed the move and threatened to
call for a strike.
"We
strongly oppose this move. This is not practical," INTUC President G
Sanjeeva Reddy told IANS.
"What
would happen in places where banks don't exist or workers are without bank
accounts? The contract workers should be paid their wages in cash," he
said.
Some
opposition parties too questioned the practicality of the move.
Janata
Dal-United leader K.C. Tyagi said that it was not possible or even practical to
go entirely cashless in a country like India, noting even the US is only around
40 per cent digital.
However,
the RSS-affiliated Bharatiya Mazdoor Sangh (BMS) welcomed the decision and said
that it was demanding it for some time.
The Total Investment & Insurance Solutions
"This
is a good move. It would end the two register system. Some employers would pay
less payment to workers and show it more in their registers. This practice
would end with transfer of salary in bank accounts," said BMS General
Secretary Virjesh Upadhyay.The Total
Investment & Insurance Solutions
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