Pakistan is looking forward to making advancement towards ensuring labor rights and modifying wages as a law is on the point to make all employers that have more than fifteen employees on their payroll to pay their respective wages via a banking system.

Pakistan is majorly suffering because of the undocumented economy, including labor forces statistics and is a center of tax delusion. Employers especially linked to construction businesses pay their workers/ labor force via cash keeping them out of the formal systems and freeing them from meeting the labor rights.

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The Senate Standing Committee on Interior passed the Payment of Wages (Amendment) Bill 2017. This bill was passed in a bid for regulating the wages system. The bill once put into action would prevent employers from paying their employees in cash.

Senator Muhammad Javed Abbasi presented the bill. As per the bill, all the employers having above fifteen people on their payrolls need to be paid salaries via account transfers or cheques.

While briefing the Senate, Abbasi on Friday said that making the payment system more official and via banks would assist and help the employees to take or claim any legal action in case their rights are violated. He further added that paying in a cash was a procedure adopted by the private sector to erase and avoid any leading trails.

Senator Rehman Malik—Chairperson Committee said that the employers should be responsible for opening bank accounts of their employees.

He further added that getting an account opened is not an easy task especially for those labors working at a brick kiln. He said that he proposes that the employers must make sure to make the needed arrangements for getting the bank accounts for their employees opened.

The committee with agreement adopted the Chairman’s additions and passed the law. The draft of the law now lies at the table of Senate, if successfully gets accepted with consensus then would be presented to the National Assembly before could be made a law.

The proposed bill would be applicable only at the federal level, however, the chairperson of the committee has advised the Law Division to send recommendations to all the provincial governments for passing similar kinds of laws.

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