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This is similar to arisan/ROSCA in my country because the system is not much different, everyone will deposit money but there is still a slight difference from your version of the salary lottery, namely that arisan participants can be anyone, not necessarily office colleagues and also not necessarily the entire monthly salary to be deposited in other words the nominal amount is free according to the agreement at the beginning and finally the draw can be through a wheel spin or it can also be sequentially like in your system, but of course everyone will get it back.
there seems to be different variations in different cultures because this is also a thing in my country but as you have said it is also not exclusive to just offices or workplaces i think this can be only beneficial if the money you put in rotation is not your entire salary but only a few extra dollars so you do not need to think much about it