Cabinet Will Consider Ordinance To Make Cashless Salary Mandatory


New Delhi: The cabinet will soon have two ordinances or executive orders before it to approve – the payment of wages ordinance that relates to payment of wages and the enemy property ordinance, which will be passed for a record fifth time, sources said.

The Payment Of Wages Ordinance will make it mandatory for employers to pay salaries by cheque or credit salary in employees’ bank accounts. This executive order will be only applicable to central government administered establishments. It will not apply to the local state administered institutions unless they too adopt the same measures since Labour is in the concurrent list, the sources said.

It will help bring a section of the industrial sector and other establishments under the ambit of the government’s plan of checking corruption by going cashless. The government has encouraged employers to go for digital payment, especially after the ban on high denomination notes on November 8.

Currently a huge chunk of the organized sector, especially factories, tea gardens and construction companies, pay the wages of labourers by cash.

The Enemy Property Ordinance is coming up after President Pranab Mukherjee twice red flagged parliament’s failure to pass the ordinance and the Prime minister’s decision to by pass Cabinet is set to lapse on December 27.

The Enemy Property Act, which dates back to 1968, plugs the loopholes in the law that guards against claims on properties left by people who migrated to Pakistan and China after the wars of 1962, 1965 and 1971.

Under the law, such property was vested with a department called the Custodian of Enemy Property for India.

The landed enemy properties in India are spread across many states. In addition, there are movable properties categorised as enemy properties.