The Bangko Sentral ng Pilipinas (BSP) and the Department of Labor and Employment (DOLE) are encouraging labor and employer sector leaders to adopt digital wage payments. This push was emphasized during the 2nd Financial Inclusion Forum for the Labor and Employers Sector, held recently at the BSP office.
The BSP and DOLE forum highlighted the benefits of digital wage payments for employees and employers. According to the 2021 Financial Inclusion Survey by the BSP, around 70% of salaries in the private sector are still paid in cash. Moving toward digital payments is seen as a key strategy for promoting financial inclusion in the Philippines.
BSP Deputy Governor Bernadette Romulo-Puyat reinforced the importance of sustaining the shift to digital payments, seeing it as crucial for achieving a more financially inclusive Philippines.
For employees, digital wage payments can open doors to financial services like savings accounts and insurance, enhancing their financial stability. Employers, on the other hand, could see improvements in productivity, accuracy, and safety, along with better access to finance and markets.
DOLE Assistant Secretary Amuerfina Reyes highlighted that digital payments make wage distribution more convenient, faster, and safer, ensuring that workers receive their full salaries on time. She also mentioned that this shift provides workers with greater access to financial services and savings opportunities, strengthening family security and resilience.
The forum included discussions on financial products that enhance employee financial health, such as microinsurance and retirement accounts, and addressed measures to protect consumers of these financial services. Participants also shared insights on improving security and infrastructure to support the broader adoption of digital wage payments.