Dear All,
Recently, I learned from my friend that she needed her salary certificate for previous financial years. However, since her company paid her salary in cash, they were hesitant to provide the certificate. She has asked for my support in this matter, which is unfamiliar to me as well.
Could you please advise if her salary, received in cash, can be reflected in the salary certificate? Perhaps only the cheque portion can be documented since there is no objection from the company regarding that. Can she obtain a salary certificate from the company despite this situation? Also, what concerns might her company have about issuing the salary certificate for the period when payments were made in cash?
Cheers and regards to all.
From India, Jalandhar
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12Recently, I learned from my friend that she needed her salary certificate for previous financial years. However, since her company paid her salary in cash, they were hesitant to provide the certificate. She has asked for my support in this matter, which is unfamiliar to me as well.
Could you please advise if her salary, received in cash, can be reflected in the salary certificate? Perhaps only the cheque portion can be documented since there is no objection from the company regarding that. Can she obtain a salary certificate from the company despite this situation? Also, what concerns might her company have about issuing the salary certificate for the period when payments were made in cash?
Cheers and regards to all.
From India, Jalandhar
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hi friends, may i request ur noble thoughts and guidance in reference to belowmentioned please regards
From India, Jalandhar
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From India, Jalandhar
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Dear Kartiken,
The company will have to issue the salary certificate irrespective of the fact that they are paying the salary in cash or by cheque. Now, the question is whether they are showing the salary in the books or not. If they are showing the salary in the books, then there is no problem issuing the salary certificate to the employee.
Regards,
Deepak Singh
From India, Mumbai
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The company will have to issue the salary certificate irrespective of the fact that they are paying the salary in cash or by cheque. Now, the question is whether they are showing the salary in the books or not. If they are showing the salary in the books, then there is no problem issuing the salary certificate to the employee.
Regards,
Deepak Singh
From India, Mumbai
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Hi Deepak,
Thank you for your suggestions. May I know if the company has the record in books of accounts, irrespective of the same in cash or cheque, then there is no issue. But if there is no entry of the salary in books of accounts, then what can be the harm to the company of issuing the salary certificate to the employee?
Regards,
(For other friends' suggestions too as this is an open forum)
From India, Jalandhar
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Thank you for your suggestions. May I know if the company has the record in books of accounts, irrespective of the same in cash or cheque, then there is no issue. But if there is no entry of the salary in books of accounts, then what can be the harm to the company of issuing the salary certificate to the employee?
Regards,
(For other friends' suggestions too as this is an open forum)
From India, Jalandhar
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Dear Friend,
It is not possible for the company to issue a salary certificate to an employee if the salary is not shown in the company's books of accounts. Off the record, the company cannot issue a salary certificate if the employee claims to have received a certain amount of salary from the company. In such cases, the company must have recorded the salary in the books of accounts.
However, this situation is manageable, and the accounts department can easily handle it.
Regards, Deepak Singh
From India, Mumbai
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It is not possible for the company to issue a salary certificate to an employee if the salary is not shown in the company's books of accounts. Off the record, the company cannot issue a salary certificate if the employee claims to have received a certain amount of salary from the company. In such cases, the company must have recorded the salary in the books of accounts.
However, this situation is manageable, and the accounts department can easily handle it.
Regards, Deepak Singh
From India, Mumbai
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Dear Sir,
If an employee is being paid in cash, it means that individual is not on the company's payroll. Company payroll includes employees whose salaries and other payments are recorded in the company's accounting records. Cash payments to employees are not accounted for in the records, indicating that these payments are considered as miscellaneous expenses of the company.
When an employee receives cash payments, they are not eligible for any company benefits. However, when an employee is paid officially, they become eligible for all company benefits. Some managements may opt to pay in cash only to avoid providing company benefits to employees on the payroll.
It is unwise for employers to pay in cash as they may overlook other necessary expenses, focusing solely on the employees. In case of any incidents involving cash-paid employees during their employment, the management, particularly the principal employer, bears responsibility and may face legal consequences.
Employers who pay in cash may be reluctant to issue salary certificates due to the reasons mentioned above. Consequently, employees paid in cash may not receive salary certificates.
Karan
Hyderabad
Email: karanlal_aj@rediffmail.com
From India, Hyderabad
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If an employee is being paid in cash, it means that individual is not on the company's payroll. Company payroll includes employees whose salaries and other payments are recorded in the company's accounting records. Cash payments to employees are not accounted for in the records, indicating that these payments are considered as miscellaneous expenses of the company.
When an employee receives cash payments, they are not eligible for any company benefits. However, when an employee is paid officially, they become eligible for all company benefits. Some managements may opt to pay in cash only to avoid providing company benefits to employees on the payroll.
It is unwise for employers to pay in cash as they may overlook other necessary expenses, focusing solely on the employees. In case of any incidents involving cash-paid employees during their employment, the management, particularly the principal employer, bears responsibility and may face legal consequences.
Employers who pay in cash may be reluctant to issue salary certificates due to the reasons mentioned above. Consequently, employees paid in cash may not receive salary certificates.
Karan
Hyderabad
Email: karanlal_aj@rediffmail.com
From India, Hyderabad
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Dear Deepak and Karan,
Thank you for your guidance. Karan, your suggestions have helped me better understand the issue my friend is facing. It was qualitative as well as quantitative. (Have you been working in compensation and benefits for more than a year?)
Take care, friends, and God bless.
From India, Jalandhar
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Thank you for your guidance. Karan, your suggestions have helped me better understand the issue my friend is facing. It was qualitative as well as quantitative. (Have you been working in compensation and benefits for more than a year?)
Take care, friends, and God bless.
From India, Jalandhar
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Is it mandatory to mention the various allowances like HRA, Other Allowances, Medical Reimbursements in the Payslip if the employee is contracted and their salary is paid through cash on a term basis?
From India, Bangalore
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From India, Bangalore
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Dear,
I am not able to understand the explanation given by my friends. If the salary is paid in cash, then a certificate is mandatory, and besides that, a payslip is also required. Basically, as per the Payment of Wages Act, the salary has to be paid in cash. Only with the written consent of the employee, it can be paid in any other mode.
If the salary is paid in cash, why can a certificate not be issued?
Regards,
JS Malik
From India, Delhi
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I am not able to understand the explanation given by my friends. If the salary is paid in cash, then a certificate is mandatory, and besides that, a payslip is also required. Basically, as per the Payment of Wages Act, the salary has to be paid in cash. Only with the written consent of the employee, it can be paid in any other mode.
If the salary is paid in cash, why can a certificate not be issued?
Regards,
JS Malik
From India, Delhi
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Hi Deepak,
Can you please guide me on whether the person is not on the company payroll (meaning not shown in the books of accounts), then the employer is not providing him with the salary certificate, "irrespective of whether he is paid in cash or by cheque," right? (Please correct me if I am wrong).
Similarly, is there any issue in obtaining the experience letter and relieving letter from the current employer? I mean to ask, if the employee is not on the company payroll, can the employer still provide the experience letter and relieving letter to the employee if he wants to quit the job?
Please advise me on this as soon as possible.
Regards,
Sandip Gajjar
From India, Ahmadabad
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Can you please guide me on whether the person is not on the company payroll (meaning not shown in the books of accounts), then the employer is not providing him with the salary certificate, "irrespective of whether he is paid in cash or by cheque," right? (Please correct me if I am wrong).
Similarly, is there any issue in obtaining the experience letter and relieving letter from the current employer? I mean to ask, if the employee is not on the company payroll, can the employer still provide the experience letter and relieving letter to the employee if he wants to quit the job?
Please advise me on this as soon as possible.
Regards,
Sandip Gajjar
From India, Ahmadabad
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Hi Deepak,
Can you please guide me on whether the person is not on the company payroll (meaning not shown in the books of accounts), then the employer is not giving him the salary certificate, "irrespective of whether he is getting salary in cash or by cheque," right? (Correct me if I am wrong.)
Similarly, is there any issue in obtaining the experience letter and relieving letter from the current employer? I mean, if the employee is not on the company payroll, can the employer still provide the experience letter and relieving letter to the employee if he wants to quit the job?
Please guide me on this as soon as possible.
Regards,
Sandip Gajjar
From India, Ahmadabad
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Can you please guide me on whether the person is not on the company payroll (meaning not shown in the books of accounts), then the employer is not giving him the salary certificate, "irrespective of whether he is getting salary in cash or by cheque," right? (Correct me if I am wrong.)
Similarly, is there any issue in obtaining the experience letter and relieving letter from the current employer? I mean, if the employee is not on the company payroll, can the employer still provide the experience letter and relieving letter to the employee if he wants to quit the job?
Please guide me on this as soon as possible.
Regards,
Sandip Gajjar
From India, Ahmadabad
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Hi Deepak,
Can you please guide me, do you mean to say that if the employee is not on the company payroll, then his employer cannot give him the salary certificate (regardless of whether he receives the salary in cash or check)? Please correct me if I am wrong.
In the same situation, if the employee is not on the company payroll, is there any issue for the employer to provide the experience certificate and relieving letter to the employee when they quit the job?
Thank you.
From India, Ahmadabad
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Can you please guide me, do you mean to say that if the employee is not on the company payroll, then his employer cannot give him the salary certificate (regardless of whether he receives the salary in cash or check)? Please correct me if I am wrong.
In the same situation, if the employee is not on the company payroll, is there any issue for the employer to provide the experience certificate and relieving letter to the employee when they quit the job?
Thank you.
From India, Ahmadabad
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Hi Deepak,
Can you please guide me, do you mean to say that if the employee is not on the company payroll, then his employer cannot give him the salary certificate? (regardless of whether he receives the salary in cash or check mode, right?) Please correct me if I am wrong.
In the same situation, if the employee is not on the company payroll, is there any issue for the employer to provide the experience certificate and relieving letter to the employee when they quit the job?
Regards,
Sandip Gajjar
From India, Ahmadabad
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Can you please guide me, do you mean to say that if the employee is not on the company payroll, then his employer cannot give him the salary certificate? (regardless of whether he receives the salary in cash or check mode, right?) Please correct me if I am wrong.
In the same situation, if the employee is not on the company payroll, is there any issue for the employer to provide the experience certificate and relieving letter to the employee when they quit the job?
Regards,
Sandip Gajjar
From India, Ahmadabad
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I am working as a Business Development Manager, but I receive my salary in cash. Recently, I have been offered a good opportunity from an IT company. However, they are asking for my PF number and Form 60. I am unsure what to do in this situation.
My current salary is 5.20 lakhs per annum with a 10% variable component.
From India, Amravati
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My current salary is 5.20 lakhs per annum with a 10% variable component.
From India, Amravati
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Sometimes employers keep certain employees off the payroll, meaning these employees work for the employer and are paid in cash. No official records are kept for these employees, which helps the employer avoid providing benefits to them as they would for on-payroll employees.
These employees do not receive appointment letters, offer letters, salary slips, salary certificates, or experience letters. If these documents were provided, it could create problems for the employer.
From India, Mumbai
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These employees do not receive appointment letters, offer letters, salary slips, salary certificates, or experience letters. If these documents were provided, it could create problems for the employer.
From India, Mumbai
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Hi,
As you mentioned, your friend needs a salary certificate, then that employer is correct. The company where your friend worked should provide a salary certificate stating the duration of employment and the mode of payment, whether it was in cash or not.
The certificate should be on the company letterhead to establish trust with the new employer. It must bear the stamp and signature of the managing director for validity with other organizations.
Thanks
From India, Agra
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As you mentioned, your friend needs a salary certificate, then that employer is correct. The company where your friend worked should provide a salary certificate stating the duration of employment and the mode of payment, whether it was in cash or not.
The certificate should be on the company letterhead to establish trust with the new employer. It must bear the stamp and signature of the managing director for validity with other organizations.
Thanks
From India, Agra
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SALARY CERTIFICATE- MINISTRY OF FINANCE's Notification on formats.docx