Private companies were encouraged to help their workers open their own bank accounts in a bid to give them access to financial services for the promotion of their welfare.
Through the Department of Labor and Employment (DOLE) Advisory No. 026 series of 2020, Labor Secretary Silvestre Bello III encouraged employers to utilize transaction accounts to pay employees’ wages and other monetary benefits.
Pursuant to Article 5 of the Labor Code as amended, the advisory aims to enable private companies to pay wages and other monetary benefits without delay and to give employees access to financial services for the promotion of their welfare.
Workers can also be assisted by employers in opening accounts with any e-money issuer where the latter maintain accounts, the Bello said.
Bello said that aside from being a safe mode for fund transfer, using transaction accounts is financially inclusive and could also lead in the transition into cashless transactions and help abate the spread of the coronavirus.
“Paying wages and monetary benefits of workers the digital way helps the government promote financial inclusivity,” he said.
However, employers are still required to comply with existing laws including the issuance of pay slips or records of payment and deduction.
DOLE-Region 6 Director Cyril Ticao, on the other hand, stressed that there should be no additional expenses or fees on the workers’ part.
“Neither should there be diminution of wages and other monetary benefits,” he said.