Punjab ends cash wages: every establishment and factory must pay by cheque, bank credit or electronic mode
TaxByKK · Compliance News · taxbykk.com30 Oct 2026
In short
The Punjab Department of Labour has notified, under section 15 of the Code on Wages, 2019, that every establishment or factory in the State shall pay wages only by cheque, by crediting the wages directly into the employee's bank account, or through electronic mode. The notification, No. Lab0MISC/193/2025-4L/593, is dated 30 October 2026 and was published in the Punjab Government Gazette Extraordinary of 3 November 2026. In practice, paying wages in cash is no longer an option for employers in Punjab.
- Authority
- Government of Punjab, Department of Labour (Labour Branch)
- Notification
- No. Lab0MISC/193/2025-4L/593 dated 30 October 2026 (Punjab Government Gazette Extraordinary, 3 November 2026)
- Type
- Notification
- Made under
- Section 15 of the Code on Wages, 2019 (29 of 2019)
- Applies to
- Every establishment or factory (the notification makes no exception by size or sector)
- Permitted modes
- Cheque; direct credit to the employee's bank account; electronic mode
- Effective from
- Not stated in the notification
What changed
| Item | Before | Now |
|---|---|---|
| Mode of paying wages | Coin or currency notes allowed alongside cheque, bank credit and electronic payment | Only cheque, direct bank credit or electronic mode |
The notification is one paragraph. It does not state a start date, any exemption (for example for small units or casual workers), a transition period, or a penalty; it does not define 'electronic mode'. Read it with the Code on Wages (Punjab) Rules, 2026, notified the day after.
Who it applies to
- Employers, factories and contractors in Punjab, especially those still paying some staff in cash
- Principal employers using contract labour in Punjab
- Payroll teams, labour law advisers, CAs and CSs
- Workers in Punjab, who should now receive wages through a bank account or electronic transfer
What to do
- Find any employees, casual or contract workers still paid in cash and move them to bank credit, cheque or electronic transfer.
- Help workers without a bank account to open one before the next wage period.
- Ask contractors to confirm in writing that they pay their workers by bank or electronic mode, and keep the transfer records.
- Keep bank statements or transfer records with the wages register as proof of payment.
Reference
Government of Punjab, Department of Labour (Labour Branch), notification No. Lab0MISC/193/2025-4L/593, 30 October 2026, mode of payment of wages, under section 15 of the Code on Wages, 2019 (published in the Punjab Government Gazette Extraordinary of 3 November 2026).
Read the official PDF: Punjab notification No. 593Written by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
Can an employer in Punjab still pay wages in cash?
No. The notification says every establishment or factory shall pay wages only by cheque, direct bank credit or electronic mode.
Does the notification exempt small establishments?
No exemption is stated. It covers every establishment or factory.
From when does it apply?
The notification does not state a start date. It is dated 30 October 2026 and was published in the Gazette on 3 November 2026.
Under which law is it issued?
Section 15 of the Code on Wages, 2019, which deals with the mode of paying wages.