Can you demand your salary in cash in case of a crisis? Latvia's labour inspectorate explains

Amid growing public discussion about being prepared for possible crisis situations, including advice to keep a cash reserve at home, a reader of Latvian news portal LA.LV who identified himself as Mārtiņš raised a practical question: can an employee ask their employer to pay their salary in cash instead of transferring it to a bank account, and would such a request raise suspicion of wrongdoing?

According to Dace Stivriņa, a representative of the State Labour Inspectorate (VDI), receiving a salary in cash is not illegal in itself. Under Article 70 of the Labour Law, cash payment is actually designated as the primary method of salary payment, though the law allows employers and employees to agree on non-cash payment instead, such as a bank transfer.

Changes cannot be made unilaterally

If an employment contract already includes an agreement to pay salary via bank transfer, the employer is bound by that arrangement, and the employee cannot unilaterally demand a switch to cash payments. To change the payment method, the employee must approach the employer with such an initiative — for example, through a written request — and the employer has the right to decide whether to agree to the change. The VDI notes that no legal provisions cause an existing non-cash payment agreement to automatically lose effect. Any change must be formalized through amendments to the employment contract, and disputes are resolved between the parties or through civil court.

Burden of proof and the advantage of bank transfers

When paying salary in cash, the employer must be able to prove both that the payment was made and its amount — typically through a document signed by the employee acknowledging receipt, or a cash disbursement voucher. The VDI points out that in the event of a dispute, it is the employer who must prove the salary was paid.

The inspectorate also notes an advantage to receiving salary via bank transfer: a bank statement serves as strong, readily available proof of income at any time, whereas with cash payments, an employee may later need to request an income certificate from the employer based on the company's accounting records.