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Thursday, December 22, 2016

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GOVERNMENT CLARIFICATION ON AMENDMENT TO PAYMENT OF WAGES ACT

Press Information Bureau
Government of India
Ministry of Labour & Employment

21-December-2016 13:41 IST

Government Clarification on Amendment to Payment of Wages Act 
            It is seen from the media reports that there is a general impression that is being created that the Government is bringing an amendment to the Payment of Wages Act to make mandatory the payment of wages to the workers only through cheque or accounts transfers. This is not the correct position.

            It is clarified that 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.

            This is being done to facilitate the employers from making payment of wages using the banking facilities also in addition to the existing modes of payment of wages in current coin or currency notes.

            Also, the appropriate Government (Centre or State) will have to come up with the notification to specify the industrial or other establishments where the employer shall pay wages through cheque or by crediting the wages in employees’ bank account. It is, therefore, clear that the option of payment through cash is still available with the employers for payment of wages.

            It may be understood that the Payment of Wages Act was passed in the year 1936 (eighty years ago) and the situation prevailing at that point of time has completely undergone a technological revolution. Most of the transactions now take place through the banking channels. The proposal of Ministry of Labour and Employment to bring an amendment to Section 6 of the Act 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.

            The above proposed amendment will also ensure that minimum wages are paid to the employees and their social security rights can be protected. Thus 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 is also pointed out that the states like Andhra Pradesh/Telangana, Kerala, Uttarakhand, Punjab and Haryana have already come out with notifications to provide for payment through banking channels.
AT (Release ID :155718)
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DELINKING OF REVISED PENSION FROM QUALIFYING SERVICE OF 33 YEARS
F. No. CPAO/Co-ord/(107)/2016-17/542
Government Of India
Ministry Of finance, Department of Expenditure,
central Pension Accounting Office,
Trikoot-II, Bhikaji Cama Place, New Delhi – 110066
Phone:011-26178990 e-mail: sraocord-cpao@nic.in
Dated: 20th Dec, 2016
OFFICE MEMORANDUM
Sub: OM No.38/37/08-P&PW (A) dated 6th April, 2016 of DP&PW: Delinking of revised pension from qualifying service of 33 years.
            Attention is invited to previously issued OMs to Ministries/Departments/ AGs/UTs by CPAO on the subject mentioned above. It is observed that progress in disposal of such cases has declined in spite of repeated requests for early settlement of pending cases and out of 89,481 cases, 25,692 cases are still pending for revision. To avoid delay in payment of revised pension and arrear to the pensioners, special drive is required to clear these cases
            It is requested to clear all the pending revision cases by 31st December, 2016.PAOs may be instructed to revise the remaining pending cases and send the revision authorities to CPAO for further authorization. It is also requested that in case some pending revisions are not covered under this OM, a certificate may be sent to CPAO in this regard so that these cases may be removed from the pendency list.
Sd/-
(Subhash Chandra)

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