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Finance Ministry warns contractors of wage delays and social security failures with potential three year bans
Business
Published on 9 May 2026
Monthly checks will decide who gets banned next
The Finance Ministry has tightened procurement rules for government contracts, requiring strict compliance with labour laws. Contractors that fail to pay wages or deposit social security contributions can be debarred for up to three years. To enforce the change, ministries and departments will verify contractor compliance every month, targeting protections for outsourced and contractual workers.
- Government contracts now demand labour law compliance
- Non payment of wages or social security can trigger debarment
- Debarment can last up to three years
- Monthly compliance checks will be carried out by ministries
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times