Cash salary pay limit

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2017 DEAR SIRS,

CAN YOU PLEASE ANSWER, CAN WE PAY WAGES IN CASH UNDER 10000/- TO OUR FACTORY WORKERS MONTHLY. MONTHLY WE HAVE TO PAY AROOUND 2 TO 3 LACS CASH WAGES.

PLEASE GUIDE.

Sandeep Dharar

Sandeep Dharar (Expert)
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01 December 2017 Better if the payment is made to their bank accounts directly through IMPS(fund transfer) or account payee cheque, coz ur monthly expenses are too high to b paid in cash.

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2017 Problem is workers has not a a
Bank account and they need in cash. So it is allow or not.

Sandeep Dharar

Sandeep Dharar (Expert)
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01 December 2017 It is allowed, but since cash payment is not the proper method of wages or salary payment, hence questions may arise for payment made by the company in cash. The number of workers may get increased in the coming months so its better to opt for payment through bank.

Regarding no bank account:-
It takes hardly once week to open a saving account or salary account of all your workers(employees) to a bank. Only aadhar will b required(which is now mandatory in all places).

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2017 Sir, workers are not permanently, every month workers replaced. That's why we have to pay in cash.

RAJA P M

RAJA P M (Expert)
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01 December 2017 If less than 10k to a single person no more restriction. If it's above 10k then it's not allowed and Bank payment is must required...