Yes, cash payment is legal — but it doesn't remove any of your other payroll obligations. It's simply a payment method.
A common misconception is that paying cash means payroll doesn't need to be formally tracked. It does — SARS can audit cash-paid employees the same as any other, and unrecorded cash wages are a common source of disputes when an employee later claims they weren't paid correctly, or tries to claim UIF with no contribution history to show for it.
Bank transfer (EFT) is more common for salaried staff and easier to reconcile and prove. Cash remains common for casual and day labour, but the same PAYE, UIF and record-keeping rules apply regardless of payment method.
Yes, cash payment is legal. However, PAYE and UIF must still be deducted and paid to SARS, and a written payslip must still be issued for every payment, exactly as with bank transfers.
It's strongly recommended — a signed acknowledgement of receipt protects both employer and employee if a dispute arises later.
Yes — cash payment doesn't exempt an employer from normal PAYE, UIF and record-keeping obligations or SARS audit.
TSS Payroll generates compliant payslips and records for every employee, regardless of how they're actually paid.
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