Is My Bank Statement Enough Proof of Salary When Paid in Cash? Seeking Advice from Fellow Freshers

Hi everyone, I have seen this kind of post on this platform, but I didn't get confirmation on whether depositing my entire salary into my account serves as valid proof that I am receiving a salary. I have opened a payment account in the bank as I am receiving a consolidated salary. If I switch jobs, will that bank statement be enough proof of my salary? Please guide me. I am a fresher working in a small firm that does not have PF and ESI.

That can only be considered valid if it is supported by Form 16 of the organization. Please let me know if you need further assistance or have any other questions.

I assume that you are referring to proof of salary in the absence of salary slips when you join a different company. There is no rule as such. However, if the new company insists on a salary slip and you do not have one, your offer to show them your bank statement where the salary in cash was deposited every month would be considered by most HR teams as adequate proof. However, they will also look at the pattern of withdrawal. For example, if the entire salary is withdrawn 3 days after deposit, it becomes possible that it was probably borrowed and then returned just to show a deposit of salary, and probably the salary is quite different.

While this is not necessarily a guaranteed method to convince the HR in the new company, it is the most logical evidence for them to see that you got the salary you claim to be getting.

Generally, if you have a salary slip, you do not even need to show a bank statement. The bank statement will come into the picture if the new employer disbelieves your claim of salary. As a practice, depositing cash in the bank is good. It also helps at a later date if you need bank loans, etc.

Direct credit from the employer to the bank account of the employee shall only be considered as proof of salary.

Proof of Salary Through Bank Deposits

Salary slip or wage payment by the employer through the bank is justifiable proof of the wage. Please note that since the wage is paid through the bank, an acquittance register (signed by the employee and the employer or their representative) is not officially withdrawn. Therefore, the register is still in operation.

Additional Supporting Documents

To address the specific question, a PF slip or PF yearly statement, along with downloaded details from EPFO, can assist you to some extent. Additionally, ESI details, if available, are official documents.

In any case, depositing your salary in the bank is not valid at all. It is recommended to follow the suggested method.

Regards.

Using Bank Statements as Proof of Salary

In the absence of a payslip issued by a company for its employees, a bank statement of an employee could be sufficient to prove that he/she received a salary from the employer on a specific date. However, salary breakup details will not be available, and only the net paid salary in respect of such an employee will appear in the statement itself. Therefore, by viewing the bank statement, one could not understand the gross salary of an employee.

If possible, the employee needs to submit the original salary slip as proof to secure a new job. If this is not possible, as a second option, a bank statement could be produced as proof of salary payment.

Regards,

Actually, the best way to prove your salary is to obtain an HR letter from your employer that shows your job title, joining date, and your salary details. The letter should be on the company's letterhead and stamped to be recognized and valid. If your employer refuses to issue it for you, you could show your bank statement that demonstrates the continuous depositing of your salary by your employer and the amount submitted periodically.

In the scenario you described, I feel that a salary slip will be required to substantiate the proof.

Warm regards,
Sourav Mukherjee