City industrialists will start distributing salaries to their employees in cash from Wednesday, but in two or three instalments spread over two weeks. Owners of various industries in the district said both they and their employees are restricted by cash withdrawal limits on current and savings accounts and retaining workers is becoming a problem.
“We have helped many employees with advance salaries. Most of them have expressed concern about their families living in other districts or states. They need money urgently and we are helping them with advances. We will distribute the remaining salaries in two parts,” said Visharad Gautam, secretary, Indian Industries Association (IIA).
“From Wednesday, we will distribute salaries in three instalments to our employees who do not have bank accounts in cash. Our hands are also tied in the face of cash withdrawal limits on current accounts,” Harish Joneja, secretary, Noida Entrepreneurs’ Association (NEA), said, adding that employees have agreed to this arrangement.
This decision comes despite the Centre’s directions to transfer salaries through bank accounts.
“We are going through very difficult times these days. On one hand, the cash crunch has affected production badly, and on the other, resentment among employees who are not able to focus on their work due to shortage of money is a major hurdle in retaining them. We can only say that improper planning of demonetisation has badly affected industries,” said Rajesh Jain, general secretary, Noida Industrial Welfare Association (Niwa).
There are more than one and a half lakh workers in industries in Gautam Budh Nagar district who do not have bank accounts and are worried about their livelihood.
“I could not withdraw cash from ATMs because of long queues. I requested my employer to help me with Rs.2,500 I wanted to send to my family in Bihar where the situation is similar. Employers and employees have similar problems these days,” said Jatan Raghav, who works in a factory at Noida’s Sector 8.
Meanwhile, AK Singh, lead bank manager, Gautam Budh Nagar, held a meeting with bank managers on Monday to ensure that city branches provide entrepreneurs with the cash needed to distribute salaries.
“Banks have adequate cash arrangements for this purpose. I have spoken to bank managers and they have 20-25% additional cash,” Singh said.