Job Offer Dilemma: Is It Wise to Accept a Position with Cheque Payments?

I have received an offer from a wine company, but they pay the salary through cheques. Is it advisable to work for a company that pays through cheques?

Hi Vikash, what is the problem in getting your salary through cheques? I really do not see it as a problem if all other things are on the positive side. There is no reason to worry.

Thank you for the quick reply, but there will not be any salary slip because they are paying through cheques, and there will be no PF deduction as well. Do you think that after some time when I change my job, it won't affect me?

Thank you for the quick reply, but there will not be any salary slip because they are paying through cheques, and there will be no PF deduction as well. So, do you think that after some time when I'll change my job, it won't affect me?

There is no problem in getting a salary by cheque. Anyways, you receive a payslip every month. Usually, companies tie up with banks and will credit the salary directly into your account. However, some small-scale companies will issue the salary through a cheque. There is nothing to worry about in this situation.

Hi Vikesh, as per the PF Act, a company falls under PF regulations when 20 or more employees are employed. It is mandatory to contribute to PF if an employee wishes to do so. Normally, payslips or wage slips have to be issued to the employees every month, but some companies fail to do so. In any case, you receive your salary by cheque, so you will have the bank statement as proof of salary.

Your question is not clear. First, if your company is paying your salary via a cross cheque (i.e., the cheque is in your name and is accounted for in the company's records), then it is absolutely fine as it is all accounted for. However, if it is an uncrossed cheque, then there is a problem. This situation is as good as being paid in cash, where nothing is accounted for, and you might not be considered a regular employee.

Some companies do not provide salary slips, but if you are an employee on the company's payroll, they are required to give you Form 16, which can serve as proof of your salary.

When you decide to change jobs, what is important is your education, experience, and your Cost to Company (CTC). If your CTC does not include Provident Fund (PF) contributions, it will hardly make any difference. Additionally, as Bhargav mentioned, only companies with more than 20 employees are mandated to contribute to PF.

Hope this answers your question.

Regards,
Krishna