Bank Statement For Job; Cash Salary Issue

Hello Friends,

I am Makrand. I work as a software engineer since the last 2 years in a small company in India. Recently, I got selected in one of the software companies in Bangalore. I just received an email demanding a bank statement of my salary account for the entire work period in the current company. However, I am paid a cash salary by my current employer as it's a startup company. Also, the salary is not under taxation (Rs.15k). I don't know what I should do now. Should I clearly tell the demanding company that I am paid a salary by cash? What is the logic behind asking for a bank statement? Aren't they sneaking into my bank account, which is supposed to be personal? Please enlighten me. I would really appreciate your guidance.

Thanks, Makrand

Thank you, Jignesh, but I don't understand how to put these things into words. I mean, this is a very uncomfortable situation for me. During my three interviews, I wasn't asked about this, and suddenly they are asking me to show bank statements. Now, when they have asked me about the bank statement, I would have to say that I am paid in cash, so wouldn't that look very embarrassing? I have already submitted my last three months' salary slips. Can you please suggest a way for me to approach the company's HR or manager in the recruitment team?

Dear Makrand,

We are also convinced with Jignesh. They are demanding your bank statement for the purpose of cross-verifying "what amount is getting transferred into your account on a monthly basis," or if there is any variation in the salary paid, or to know your longevity with the company. Furthermore, Makrand, you should not hesitate to disclose the truth that you have been provided your salary through cash. In fact, if the payment option is mentioned as cash, then it will solve your purpose. Otherwise, share with the HR of the company; they may provide you with another alternative.

Regards,
Rach

Thank you both, Jignesh & Rach. That meant a lot to me. I have talked to my HR about my predicament. My HR told me to be straightforward about my mode of payment if the company asks about it. Additionally, my salary slip does not show the mode of payment, so if the company needs to confirm any details regarding my employment or CTC, they can consult my HR. However, my HR mentioned that they rarely disclose the CTC to any verifying entity. I hope this will not be an issue. Furthermore, my company does not have any PF benefits.

You should ask your current company to provide you with a salary statement. If they inquire why you need it and you are not forthcoming about your job search, you should inform them that you are planning to apply for a loan and require the statement for that purpose. It will be issued by your HR department on the company letterhead so that the new company will accept it. Do not hesitate to disclose the payment mode, as smaller companies typically pay in cash to avoid excessive tax liabilities.

Ok... that's a nice suggestion, Priya. Can anybody tell me the format for a salary statement? I would really be thankful for that.

Regards, Makrand

The salary statement would be your annual salary break up. You can also ask for a monthly break up; some companies will provide it. It will also include your variable salary (performance incentives) if you have any. The HR will have the normal format, just ask them for it.

[QUOTE=jiguparmar;1217915]

The logic behind asking for a bank statement is to verify the salary provided by your past company. Normally, a good company submits the employee's salary to their bank account. Some people may exaggerate their salary during interviews and even provide fake salary slips. Therefore, a bank statement is an easy tool to verify an employee's actual salary.

If you have not clarified your payment method (Bank/Cash) yet, inform them if you received your salary in cash and not through a bank account.

Hi Jignesh,

My problem is that initially, I started my career in a small company as a software engineer with a salary of ₹8,000. They provided my salary through a bearer cheque from South Indian Bank. I had to submit the cheque to the branch where the company held its account, and then the bank would provide me with cash. I worked like this for 2 years before joining CMC LTD. They conducted a comprehensive background verification, and I worked there as a contract employee for the past year. Now, while attending interviews at CTS and Wipro, they are requesting the bank statement from my first company.

I do not have the bank statement. What can I do? I want to join CTS, Wipro, or TCS but I am unable to do so due to this issue.

Please help.

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I have one query. Due to company financial problems, I received half of my salary 8 days late from the scheduled salary date. The remaining salary was received after 15 to 20 days. How should the company reflect my salary on the salary slip?