The Bangko Sentral ng Pilipinas (BSP) and the Department of Labour and Employment (DOLE) are urging labour and employer sector leaders to transition to digital wage payments, highlighting the benefits of safe and efficient payroll solutions.
During the 2nd Financial Inclusion Forum for the Labour and Employers Sector, discussions emphasized the advantages of digital wage payments for both employees and employers.
Currently, around 70 percent of private sector salaries in the Philippines are still paid in cash, according to the 2021 Financial Inclusion Survey by the BSP.
Digital wage payments are seen as a key driver of financial inclusion.
Studies show that many adults in developing countries opened their first bank accounts to receive digital wages, providing access to financial products like savings and insurance, which can improve financial stability.
For employers, the shift to digital payments offers benefits such as increased productivity, enhanced accuracy, and improved safety.
It also facilitates access to finance and markets, while encouraging enterprise formalisation.
DOLE Assistant Secretary Amuerfina Reyes said,
“Through the promotion of financial inclusion and digital wage payment system, receiving income will be more convenient, fast, and secure.
It also ensures that workers receive their wages in full and on time. In addition, it provides greater access to financial services and savings information that will strengthen the security and stability of every family.”
BSP Deputy Governor Bernadette Romulo-Puyat highlighted that financial inclusion requires a collective national effort.
She emphasized that digital wage payments hold significant benefits for both workers and businesses, making it essential to continue promoting the transition from cash to digital methods.
“Let us continue working together to make the goal of a more financially inclusive and resilient Philippines a reality,”
she added.
In a similar move, the Department of Labour Peninsular Malaysia (JTKSM) had approved six entities to offer digital wage payments effective 1 August 2024.
Featured image: (From left) BSP Director Rochelle Tomas, BSP Bank Officer Ruel Despabiladeras, Employers Confederation of the Philippines Governor Federico Marquez, Jr., BSP DG Romulo-Puyat, DOLE Asec. Reyes, Maya Philippines Business Development Head of Ecosystem and Tech Partnerships Beatrice Carla Bengzon, and Cooperative Insurance System of the Philippines Chief of Underwriting Officer and Chief Technology Officer Christopher Marquez.
