PH central bank pushes for digital wage payments

PH central bank pushes for digital wage payments

The Philippine central bank is pushing labor and employment sectors to promote the use of digital wage payments.

A 2021 Financial Inclusion Survey by the Bangko Sentral ng Pilipinas (BSP) found that around 70% of salaries from the private sector in the Philippines are still paid in cash.

BSP said that digitizing wage payments is one of the most effective tools in driving financial inclusion, citing a separate study that found that more than half of adults in developing countries opened their first bank accounts to receive digital wage payments.

“For employees, therefore, wage digitalization can unlock access to financial products and services – such as savings and insurance – which enhance resilience and financial health,” the BSP said in a press release published on 16 August 2024.

For employers, digital wage payments bring significant gains such as productivity improvement, accuracy, and access to finance and markets, amongst others, officials from the BSP and Department of Labor and Employment (DOLE) said, speaking during the 2nd Financial Inclusion Forum for the Labor and Employers Sector at the BSP Manila Head Office held last July 2024.

BSP and DOLE, along with leaders from the financial sector and employment sector spoke about the different products and services available that promote the financial health and resilience of employees.

Forum participants reportedly shared valuable insights such as strengthening security and infrastructure to enable wider adoption of digital wage payments. 

The forum also highlighted the measures and mechanisms in place that protect the consumers of financial products and services, the BSP said.