Hi seniors,
I am working in a company as a hr executive.
One employee has requested me to pay salary in cash because of personal reason,so i want to draft a letter as a proof so that no issues or claims raised by employee in future.
please send me a letter format or letter as soon as possible.

From India, Delhi
Process Industry Consultant / Soft Skill
Administration & Liaisoning Head
Adoni Suguresh
Sr.executive (per & Adm)
Legal And Hr Advisor
Ashutosh Thakre
Hr Professional
+1 Other

Ashutosh Thakre

Dear Bimlendu,
Kindly ask the employee to submit the request in his own handwriting as an written application, the reasons mentioned therein with his signature and employee code and name. File this application in the personal file. There is no need for you to provide him any return letter.
Also, if there is no policy of your company to pay by cash, please refrain from making exceptions. This will only create for you to work. ATM's are as good as salary in cash. Also you will have to create cash vouchers for his salary and take his signatures and file them properly for verification, whereas with Bank transfer the same is very easy and also the data is with the outside party(duplicate data). so refrain from making exceptions...
Ashutosh Thakre

From India, Mumbai

Being an HR Executive, you are not responsible for distributing salary but accounts department, therefore, you can ask the employee to contact them directly.
But If you have no such system and only HR is responsible for distributing salary, still you dont need to pay him cash but can transfer the salary amount to his personal bank accounts (if having no employee individual bank account) by getting signed an authorization letter for supplied 'bank details for transferring the salary to employee on his bank personal account directly' by him in this regard.
You must adhere to the Organizational policies and rules have (if) created by the authority and the said employee can withdraw the amount anytime.
No any personal reason/excuse in this regard is applicable. Be professional.

From India, Gurgaon
Adoni Suguresh

Dear Bimlendu,
As per the Payment of Wages Act, the salary should be paid in cash. If the net salary is exceeds Rs.20,000/- then you cannot pay salary in cash but to pay by means of cheque as per provisions of Income Tax Act, 1961, Since the employee is requesting to pay in cash subject to above terms you can pay it. Normally, now days most of the organizations salary disbursement are done through banks by crediting to employees respective bank account. This is the normal practice of disbursement of salary. However, whatever may be mode of payment, but you should have acquittance of employees on your wage register or wage slip as required under payment of wages act.
Adoni Suguresh
Sr.Executive (pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant

From India, Bidar

Please remember one rule.
Exception made in standard policy / policies of the companies of the company, become precedent in the longer term (for other employees to quote against the one who has made the exception) and create more problems for HR personnel. therefore payment of salary should be through bank only.

From India, Pune

Hi Bimlendu,
In addition to the views expressed above, please ensure that creating an exception ( of paying cash) does not pose
problems to the accounts department and to your organization as a bad precedence.

From India

Under Section 1(6) of the Payment of Wages Act, 1936 any employee drawing a wage of more than Rs. 10,000/- per month will stand excluded from the purview of the Act. This would mean that such a worker cannot insist on payment of his wages in cash as a matter of right. It is not clear from the query if the worker involved is such an excluded worker. Assuming that he is, you can accommodate his request for payment in cash, provided such cash payment does not exceed Rs. 20,000/-, so that you do not get involved in Income Tax Rules violations, as rightly mentioned by Mr. Adoni Suguresh.
Pradeep Sukumar

From India, Coimbatore

first if all you should ask the employee to share as what are the personal reasons due to which he is asking the salary in cash. it is very difficult to assume .
From India, Delhi
Hi, I am working in a company as a Accountant & my salary 16,000/-. Can any one give me the salary format of 16,000/-. Regards Mahesh Samant
From India, Bhubaneswar

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