Narendra Modi govt makes cashless salary mandatory, amends 80-year-old law

In a further push to cashless economy, the Central cabinet has approved the ordinance for paying wages via electronic means — which means that the government has given its nod for cashless salary. Accordingly, the government approved to amend Section 6 of the Payment Of Wages Act. The new ordinance will be applicable to public sector, with the private sector coming under the purview of the new move later, CNN News 18 reported.

“The Union Cabinet today approved the ordinance route to amend the Payment of Wages Act, 1936, to allow employers of certain industries to make payment through the electronic mode and cheques,” a source said. Employers will also have the option to pay wages in cash, the source added.

As per practice, the government introduces ordinance to amend laws for immediate implementation of new rules. An ordinance is valid for six months only. The government is required to get it passed in Parliament within that period.