Receive Salaries in Cash or Through Bank Transfers?

When considering a job, we may pay more attention on work content, location, working hours, and wages. But the way to receive salary is also a key point. Salary payment through bank transfers is popular around the whole world, including Japan. Salary will be transferred to a bank account which is in employee's name and provided to employees in advance every month. Employee can draw the salary on ATM and buy things in cash or buy things directly with account balance.

While salary payment in cash is also common in Japan. Salary will be handed by the employer directly every month or every work day. Employee can use the cash directly or put the money in a bank account on ATM. Receiving salary in cash may seem old fashioned for many people, but it is still a perfect even only choice for many others. We are going to talk about the pros and cons of these two ways, and introduce jobs in a cash payment way.

Bank transfer is much common

Japan's labor standards law in 1947 requires salaries be paid directly in cash, while an exemption was added to allow direct bank transfers later. Currently big businesses choose bank transfer to pay salaries. Compared with paying by cash, it is more convenient and safer to transfer money to a bank account. Besides avoiding troublesome small changes, employers also have no need to draw a large sum of money from bank, carry the money to company, and keep them safe until the pay day.

But small businesses and short-term part-time jobs still choose cash to pay salaries. From the view of small business or old fashioned owners, paying by cash may be much more easier for them, as they don't have to manage employees' bank accounts just for a small account of salary, and they can do their accounting without checking bank transfer histories, and can save the bank transfer fee. Then what about from the view of workers?

The pros of receiving salary in cash

As a worker, receiving salary in cash has the following advantages:

Salary can be received without a bank account

It is not a problem for most people to open a bank account, but for low-income workers, or some foreign nationals residing in Japan, they may face hurdles in opening a bank account in Japan because they lack domestic assets and transaction histories. In these cases salary payment in cash is a necessary and only way for them to support their living in Japan.

Salary can be received in time

Many short-term part-time jobs pay salary by cash, which means that salary can be paid immediately after one or some work days. In the case of bank transfer, the pay day is usually fixed advancely and workers have to wait even their work ends already. Most people won't feel trouble with the waiting, but people who need the money to support their living will expect to receive money as soon as possible, for example international students supporting themselves.

Workers may feel motivated by receiving cash

By receiving salary in cash, workers may see the achievements of their work, feel rewarded, proud, and motivated to their future work, which is absolutely a plus point to both their career and private life. Also, receiving money from employers or leaders can develop trust with them and make a better work environment.

Bank account troubles can be avoided

If a wrong bank account was provided to the employer, or any system error occured to the bank, workers can't access their salary even the employer has already transferred the money. Or if the bank card has been lost, employees can't draw their money before a new bank card issued. All these troubles can be avoided by receiving salary in cash.

The cons of receiving salary in cash

For workers, there are also some disadvantages of receiving cash.

The cash may be lost or stolen

We all have the experience of losing money, trust me that it feels really bad. Imagine that you worked for a whole day and earned a piece of paper, 10,000 yen, you feel so happy and put it in the wallet. Then you find the wallet lost after going back home. You will absolutely feel depressed and feel your whole day's work has been wasted, then you may blame yourself. Receiving salary in cash may face these risks.

The cash may be spent quickly than thought

People tend to spend cash quickly unconsciously. As there is 10,000 yen at hand, one may decide to eat out as a 2000-yen dining out seems not that expensive. Then one may buy a 2000-yen dress as there is still 8000 yen left. Finally only a little money is left. We have to control ourselves to use the cash reasonably.

It takes time to deposit the cash to a bank account

According to the above, it may be better to deposit the money to a bank account if we don't use it at the moment. But as there are usually many people lining up before an ATM machine, it will take time to deposit. A salary payment through bank transfer can save this time.

Jobs that can receive salary in cash

After understanding the pros and cons, some people may decide to find a job paying in cash. As said above, big businesses are not options, while small businesses like a restaurant which is not a chain store may be possible. One-day part-time jobs are also good choices, such as event staff, exam proctors, assistants at construction site, etc. These jobs only need labor force for a certain day, and pay salary in cash immediately at the end of the day.

If you have no problem with opening a bank account in Japan, or waiting for the pay day, receiving salary through bank transfer may be much more convenient for you, and there are also more job chances in this way.