The Bangko Sentral ng Pilipinas (BSP) and the Department of Labor and Employment (DOLE) asked labor leaders and employers to promote the use of safe and efficient digital wage payments.
Discussions at the 2nd Financial Inclusion Forum for the Labor and Employers Sector at the BSP Manila Head Office on July 2 focused on the benefits and advantages of digital wage payments payroll solutions for both employees and employers.
Based on the results of the 2021 Financial Inclusion Survey of the BSP, around 70 percent of salaries from the private sector in the country are still paid in cash.
Digitalizing wage payments is one of the most effective tools in driving financial inclusion. A study indicated that more than half of adults in developing countries opened their first bank accounts to receive digital wage payments.
The BSP said that for employees, wage digitalization can unlock access to financial products and services – such as savings and insurance – which enhance resilience and financial health. For employers, digital wage payments bring significant gains such as productivity improvement, accuracy, safety, access to finance and markets and enterprise formalization.
BSP Deputy Governor Bernadette Romulo-Puyat said that given the value of digital wage payments to both the labor and the business sectors, the promotion of the shift from cash to digital payments should be sustained.
“Let us continue working together to make the goal of a more financially inclusive and resilient Philippines a reality,” she said.
The forum’s resource persons included International Labor Organization social finance technical expert Valérie Breda, Employers Confederation of the Philippines governor Federico Marquez Jr., Maya Philippines business development head of ecosystem and tech partnerships Beatrice Carla Bengzon, Cooperative Insurance System of the Philippines chief of underwriting officer and chief technology officer Christopher Marquez, BSP director Rochelle Tomas and BSP bank officer Ruel Despabiladeras.
