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Govt Cracks Down on Delayed Wages, Defaulting Contractors Face 3-Year Ban
The Finance Ministry has issued strict directives to ensure timely payment of wages to contract workers in government departments. Contractors who fail to pay will be blacklisted.
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“Govt Cracks Down on Delayed Wages, Defaulting Contractors Face 3-Year Ban”
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en.sangritimes.com/s/01b668
10 May 2026
The following policy changes were introduced by the Expenditure Department of the Finance Ministry after implementing the new Labor Code.
If the contractors fail to pay the workers employed under their contracts in any ministry, government department, private firm, or any government establishment, then these contractors shall be blacklisted. In no case shall these contractors be allowed to work in any department.
On top of timely payments, the provision of social security to the contract workers is another important issue. The firms failing to meet both requirements may face restrictions of three years from carrying out business with the government departments.
