Avoid costs at banks? – Can the employer pay the salary in cash?

There is no statutory provision for this. So, in theory, an employee could insist on being paid in cash. It depends on the agreement between employer and employee.

Cash payments are possible, but cumbersome

Depending on the size of the company, paying the salary in cash involves more work. For every payment, a receipt must be issued with the amount of salary, purpose, date and name, which the employee must sign. Instead, a witness can also be called in who can attest to the lawful transfer of wages. This is to prevent the employee from demanding the wage twice.

In addition, a place must be determined where the money will be handed over. As a rule, this is the place of performance – i.e. the place where the work was performed. For the employee, this means that he has to drive to the company regularly to collect his salary (obligation to collect). In exceptional cases, the money can also be sent to his place of residence (delivery obligation) if collecting it means high costs or particular effort for him.

However, salary transfers via bank account are associated with fees that the employer must pay for. In a larger company, this can result in higher costs. If he only paid out the money in cash, he could bypass them.

Cash payment equals motivation?

An employer must therefore weigh up the circumstances as to whether or not he can meet his employee’s claim. Although the cash payment of the salary is associated with greater circumstances, it can still act as a special motivating factor. Because the feeling of receiving money in cash is different and cannot be compared to a sterile number on paper or a screen.

Editorial office finanzen.net

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