New Delhi, Feb 8 (KNN) The Lok Sabha on Tuesday passed the Payment of Wages (Amendment) Bill after which the employers will soon be able to pay wages only via cheque or bank transfer.

The Payment of Wages (Amendment) Bill is a part of government’s ongoing drive to create a less-cash economy.

Under the Payment of Wages Act 1936, employers can use cheque or bank transfers to pay wages only with written authorization from the employee.

The amendment bill, once it becomes an Act, will replace the old legislation and allow employers to pay in cash, cheque or credit the amount directly to a bank account, even without a worker’s approval.

The Bill would help the unorganized sector formalize and avail the social security benefits.