The Minimum Wages Act, 1948 has been amended in its applicability to the State of Uttar Pradesh by way of the Minimum Wages (Uttar Pradesh Amendment) Act, 2017 (“Principal Act”).
The Minimum Wages (Uttar Pradesh Amendment) Act, 2017 is dated 12th January, 2018.
Background:
During the last sixty years of the implementation of the Principal Act, due to change in financial and banking scenario, to ensure full payment of wages to workers and to reduce cash economy, it was felt that the implementation of the Principal Act would be more effective and convenient, if the payment of wages is made through cheque or other banking instruments.
In light of the above, the Uttar Pradesh Government, after due consideration and consultation with the association of employers and trade unions, decided to make provisions for payment of wages through cheque, RTGS, NEFT and other banking solutions. However, under specific circumstances, the employers may be allowed to make cash payments of not more than Rs.5000 to a worker once in three months.
Implications:
Doing away with the practice where minimum wages were required to be paid in cash, the Government of Uttar Pradesh now makes it mandatory for an employer of an industrial or any other establishment to pay wages to its employees only through cheque or N.E.F.T., E.C.S or other banking solutions.
For employee/s whose employment is in the nature of temporary / casual / fixed term, then upon their consent in writing and by submitting a self attested copy of Aadhar Card, the employer can make cash payment of wages not more than Rs. 5,000/- once in three months.
Source: Gazette, Uttar Pradesh
