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

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Employees usually get their salary transferred to their bank account. But could the wages also be paid in cash?


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There is no regulation on the part of the legislature. In theory, an employee could insist on receiving their salary in cash. It depends on the agreement that the employer and employee make.

Cash payments are possible, but cumbersome

Depending on the size of the company, paying the salary in cash is associated with higher additional costs. This is because a receipt with the amount of the salary, purpose, date and name must be issued for each payment, which the employee must sign. Instead, a witness can be called in who can testify that the wages have been handed over lawfully. This is to prevent the employee from demanding double wages.

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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 must regularly drive to the company in order to collect his salary (debt to collect). In exceptional cases, the money can also be sent to his place of residence (obligation to send) if the collection means high costs or particular effort for him.

However, wage transfers by bank account come with fees that the employer has to pay for. A larger company can incur higher costs. If he were to only pay out the money in cash, he could bypass it.

Cash payment equals motivation?

An employer must therefore weigh up the circumstances, whether or not he can meet the demands of his employees. Although paying the salary in cash is associated with greater circumstances, it can still act as a special motivating factor. Because the feeling of getting cash in your hand is different and not comparable to a sterile number on paper or a screen. Finanzen.net editorial team


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