Cash Salary Concerns: Will It Affect My Future Job Opportunities and What Documents Do I Need?

Hi, I am working in a small software company as a .NET Developer. They are paying salaries by hand (cash). We have no salary accounts and no PF account. Will this affect me when joining another company? What documents should we submit when joining a new company?

Thanks,
Regards

Importance of PF and Salary Slip for Future Employment

PF and salary slip are essential for your future and next job. Yes, it will affect you when joining another company. If you want, you have many rights under labor laws. Contact the nearest labor/industrial inspector and higher authorities, and contact the regional Provident Fund Commissioner.

Regards,

Dear friend, there is no issue with providing your salary by hand, but PF and other statutory deductions should be made. You have not provided the employee count on the company's payroll, which is essential for all statutory returns. All statutory returns depend on this information.

Thank you for the replies. It's a small software company with only 8 employees. They are not providing any PF (Provident Fund) facilities, and they are not deducting other statutory returns. Could you please suggest what I can do? Is working here useless? Will any other company accept my work experience from here? Please suggest something; my future depends on your recommendations.

Thanks.

It is a small company with fewer than 10 employees and hence is not covered under ESI or PF, so your service will not be affected. Moreover, you must be earning more than Rs. 25,000 per month, and in that case, none of the above components are applicable to you. If you wish, you can open your own PF account at any post office or in some selected banks.

Regards,
Mahavir Mittal

It's not a serious concern that you do not have a PF account or a salary account.

Thank you.

There should not be any problem in receiving your salary in cash format if you are provided with a salary slip or receipt from the company as proof of your salary. Please ensure you request a salary slip from your company if you have not been receiving it, as it serves as proof on company letterhead.

Thanks,
Vikas

You don't need to worry about your PF. No one will ask you about it. However, having cash in hand means, do you have a payslip to show as you are an employee of that firm? If not, you may be earning black money. Can you provide any evidence of your income source? If your answer is no, then don't bother about the next employer; you are still in danger. If yes, there is no problem. You will receive an experience letter or relieving letter indicating the duration of your service from your present employer when you leave for the next firm.

Regards,
Biju

Biju has rightly said that if you are just taking cash, you may face a problem while filing your IT return. Confirm with your employer that they will be issuing Form-16 at the end of the financial year, wherein all your yearly earnings are shown. This Form 16 is also a valid document for showing to your next employer as your income proof.

Hope you have a proper appointment letter, and if so, a relieving letter issued at the time of this organization will be useful for you to prove your experience.