Department of Labor and Employment (DOLE)-Central Visayas Regional Director Salome Siaton. (Photo courtesy of Luchel Sinarlo Taniza's Facebook page)
CEBU CITY – Central Visayas employers are urged to explore the use of transaction accounts, known as bank or e-money accounts, as a preferred mode to pay wages and other monetary benefits to workers.
Salome Siaton, Department of Labor and Employment (DOLE)-7 regional director, said this initiative is purposely designed to help promote the safety, security and financial inclusivity of the workers amid the ongoing pandemic.
“The use of transaction accounts will also enable the employers to timely pay wages and other wage-related benefits and afford the workers access to formal financial services. More importantly, doing so would also reduce the costs and risks of physical cash disbursements,” she said in a statement on Wednesday.
Siaton’s statement came after Labor Secretary Silvestre Bello III issued a labor advisory urging the electronic payment of wages.
In the face of the pandemic, she added, it is important that there is an alternative mode of payment of wages through digital payments, which are safer than the physical exchange of bills and coins thus reducing physical contact and minimizing the spread of viruses, such as coronavirus disease 2019 (Covid-19).
“We have started doing this with the Tri-City Field Office. There was one complaint which they settled online. Then, the payment of the separation pay of the worker was also done through bank transfer. It was quick, easy and safe,” she said.
Siaton encouraged the use of basic deposit accounts, electronic money, financial service access points; PESONet, and transaction accounts.
“Social dialogue will play a big role here since employers will have to communicate to their workers the benefits of using transaction accounts for receiving wages and other remunerations. There is also a need to assist workers who have no existing transaction accounts in applying for transaction accounts,” she said.
Workers with existing transaction accounts should be given the option to receive their wages and other monetary benefits in their existing transaction accounts.
Employers should also assist their workers, who do not have the facility yet, in opening their transaction accounts in the banks or e-money issuers (EMIs), where the employers maintain an account.
“Employers could require their partner banks or EMIs to provide their employees with information on the features of their transaction accounts and updated list of nearest financial service access points,” Siaton said.
Financial service access points refer to physical touch points where clients can transact their bank or e-money account such as making deposits, withdrawals, bills payment and fund transfer.
Siaton further said while there is now a need to go for digital payment of wages, employers must also ensure this does not result in any additional fees or expenses or diminution of wages and other monetary benefits being received by employees.
She said employers will also still have to issue pay slips or records of the payment of wages and other monetary benefits, as well as the deductions for a particular period.
Employers may get in touch with the Bangko Sentral ng Pilipinas for the provision of reference materials and for the conduct of financial literacy seminars. (PNA)
