Cash Wages

Posted in Finance, Accounting and Economics Terms, Total Reads: 575

Definition: Cash Wages

It refers to the wages paid to the employees in the form of hard cash, cheques and money orders. It essentially means the wages given in the form of spendable money by the employer to the employee. By definition, it doesn’t include employee stock options, fringe benefits, insurance etc. which are also provided by an employer to an employee.


For example: Consider ABC Co. It pays its permanent labor INR 35K per month. It has also insured them for 2 lac insurance. In this case the cash wages component would be equal to INR 35K.


Paying wages without a payslip or under the table is illegal and is a punishable offense. 

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