Wage Sheet Signatures: Are They Needed When Salaries Are Paid by Bank Transfer?

It is necessary to take a signature on the wage sheet if we do salary by cheque, i.e., transfer the salary to the employee's salary account. If we pay the salary by cash, then we take a signature on the wage sheet. But in the case of transferring the salary to their salary account, what do we need to do?

Hi,

It is necessary to take the signature when giving cash, but in the case of credit through a bank, it is not necessary. It can be verified by the IP bank account, and even the bank can verify the credit if asked.

Regards,
Vishal

Hi,

It is not necessary to take the signature on the wage sheet if you deposit the salary into the bank account.

Regards,
Gopal

Signature in Wage Sheet

Even in government offices, the salary paid to the employees through ECS, i.e., crediting employees' SB account, is exempted from requiring a signature. Hence, salary payments by means of crediting employees' accounts need no signature. However, you should have the accounting proof to accompany the wage sheet for future reference and verification.

Dear Member,

According to Section 6 of The Payment of Wages Act, 1936, we are required to pay wages in cash. However, if the employed person provides written consent to the employer, then the employer can make payment by cheque or credit the wages to the employee's bank account. Rule 26(3) of the Punjab Minimum Wages Rules, 1950 states that every employer must obtain the signature or thumb impression of each employed person on the wage book and wage slips. The Register of Wages (Form X) also indicates in column 8 that signatures or thumb impressions of employees are to be obtained. Therefore, it is evident that we should collect signatures or thumb impressions when making payments by cheque or in cash. However, if wages are transferred directly to the employee's bank account, it is unclear whether a receipt should be obtained. Typically, we note "B/T" (bank transfer) in column 8. It is noted that Labour Officers/Inspectors have not raised any objections to this practice.

Opinions/Comments submitted as requested.

Regards,
R.N. Khola

"It is necessary to obtain a signature on the wage sheet when we disburse salaries via cheque, i.e., transfer salary to employees' salary accounts. If we pay salaries in cash, we need to collect signatures on the wage sheet. However, in the case of transferring salaries directly to their accounts, what should we do?" - Mangesh Pangare

Hi,

If you are paying the salary by cheque or through a bank, it is not necessary to take a signature on the wage sheet. In the other case, if you are paying the salary in cash, you must take the signature on the Salary Register.

Regards,
Rajiv

Payment of Wages: Authentication Requirements

Payment of wages is received and signed by the worker and authenticated by the principal employer. In the case of wages through a bank, how is this requirement fulfilled?

It is necessary to take a signature on the wage sheet if we pay the salary in cash or create a cash voucher for the same amount.

Amendment is there to make salaries through cheque or bank accounts. But it is not clear from any notification whether signatures are required on paysheet in such mode of payment.

Please provide notification if any.