Delay in salaries possible, say experts
Posted on: 26/Nov/2016 12:38:25 PM
According to a report in a leading business daily, before the major financial move of demonitisation, banks witnessed maximum withdrawals in the first week of the month, with almost 50 -70 per cent of salary withdrawn in the first seven days. Considering that most bills and dues are paid in the first week of the month, the employers will face a tough time providing cash to the employee.
In light of this, the central government and a few state governments have decided to help their employees by paying a certain portion of the salary in cash. However, a few state governments are even finding it hard to pay a full month`s salary to its employees. The brunt o f the cash crisis will be felt by the private sector as well. Smaller businesses will struggle with methods of payment. However, the corporate sector will witness minimum hindrance as they already cater to a technologically sound work force.
