For example, imagine that there are 6 people and salary of each person is $1000. They determine via coin flip who is the 1st, 2nd, 3rd, 4th, 5th and 6th. First gets $6000 in the end of the month, in the next month, the second gets $6000 and in 6th month, the 6th person gets $6000. You may ask me how do they live for 6 months without a salary? Family members take care of them. Too many people work for fun because sitting at home is boring for them but they don't have enough money to have fun too.
We call this Paluwagan in our country. Yes, the concept is very similar to what you describe, but it only works if all participants have a commitment and are honest.
Many locals here are involved in this concept, but not in a way that consists of committing their full salary. The norm is to commit 10 to 20% of your salary or income. It’s challenging when you commit your full wage, because you never know if there’s an emergency or unexpected expenses. If you commit your full salary, you will have to take out loans to cover those unexpected expenses.
I only joined once on this concept, and I do not repeat. I prefer to keep my money, so if there’s an emergency, I can easily retrieve it from either a safe deposit box or a bank.