Can employer credit cash to salary account? Or should it be 'Bank to Bank Transfer'? - CiteHR
Hr Executive

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Quoting The Payment of Wages Act, 1936
6. Wages to be paid in current coin or currency notes - All wages shall be paid in current coin or currency notes or in both
5* [Provided that the employer may, after obtaining the written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account.]
The above statement is not very clear. It says Employer can pay wages or salary by cheque or by crediting the wages or salary to the bank account. When we say credit to Bank account doesn't that mean by 'Bank to Bank Transfer' or employer can credit cash to Salary account. My employer manually deposits salaries to our accounts in CASH mode.
Is this fine or should it be 'Bank to Bank Transfer'?

Hi Partner,
By bank to bank transfer I believe you would be referring to the electronic mode such as NEFT mode of transfer. If this is the case, this would just be only one of the modes of salary credit. As long as your employer is crediting the salary into your bank account, even direct credit of cash to your bank accounts should be acceptable as long as there is a record that it is your employer who is crediting the cash as your salary into your bank account.

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