Can a New Employee Get Their Salary in Someone Else's Name Without a Bank Account?

Hi,

Is there any provision that we can get a Salary DD other than the employee's name if the employee gives a declaration on the same? Got a query regarding this from one of the employees in our office. This employee is newly joined and doesn't have a bank account in his name. That's why he is checking the same. His salary account is not opened yet.

Looking forward to your kind reply.

Thanks in advance.

Cheers, Dhanjith

I don't think that account people would allow that; generally, this is not done. But you can do one thing: you can ask the accounts department to pay him cash. That they could do easily.

Regards, EAFIL

Hi Dnajith,

No, according to me, it is not possible to give the DD in someone else's name. The person has to have a bank account in his name where the salary can be transferred or DD can be given. One option is to ask your Accounts people to give him some cash as an advance from the salary until the time the bank account is set up.

Cheers,
Archna

If the salary cannot be paid in cash, the check can be issued in his name without crossing so that the person can go to that particular bank and collect the amount in cash.

Hi Swastik,

Can you be more specific on that? How does a Bearer Demand Draft work? Sorry, I am hearing that for the first time.

Regards,
Dhanjith

Hi,

This has occurred in my company as well, and we gave cash to the employee. You cannot issue a cheque or DD in any other name than the employee's. You need to convince the accounts to give cash, and if it's not working, give a cheque which can be deposited once the account is opened. Let me know the solution you follow...

Regards,
Manasi

Dear Dhanjit,

Demand drafts are of two types: crossed and normal. In a crossed demand draft, you need to have an account to encash it. An ordinary draft requires the person to present the draft at the bank where it is payable, and they will be paid in cash.

We have used it in the case of a recent transfer for an employee.

Regards,
SC