DOLE Encourages Employers to Adopt Transactional Accounts in Payment of Wages and Monetary BenefitsAtty Elvin
DOLE or the Department of Labor and Employment issued Labor Advisory 26, Series of 2020 on August 3, 2020 in an effort to promote the use of transaction accounts as a preferred mode of payment of wages and other monetary benefits on account of its advantages in terms of safety, security, and financial inclusivity.
Under said advisory, the employers are encouraged to communicate to employees the benefits of using transaction accounts for receiving wages and other remunerations. Assist employees in applying for transaction accounts
Employers may recommend a bank account (such as a BDA) or e-money account depending on transactional needs and the payment arrangement with their bank or EMI.
BDA or Bank Deposit Account refers to interest or non-interest-bearing bank account with a minimal initial deposit of no more than P100.00, no minimum maintaining balance, no dormancy charges, maximum balance of P50,000.00 and with simplified KYC requirements.
EMI refers to e-money issuers or entities authorized by the BSP to offer e-money account (see BSP
website for the list).
Employer shall endeavor to provide employees who have existing transaction accounts the option to receive wages and other monetary benefits in their existing transaction accounts held in a PESONet-participating bank.
PESONet is an electronic fund transfer facility offered by a participating bank or EMI to its clients to allow them to transfer funds from their current to another held in other participating banks and EMI in the Philippines. Designed for bulk disbursements and payments, this is useful for payment of wages from the employer’s transaction account to the accounts of employees in other PESONet participating financial institutions.
Employers shall require partner banks or EMIs to provide employees with information on features of their transaction accounts and updated list of nearest financial service access points.
Employers, in doing this exercise, must ensure compliance with wage protection provisions of laws and regulations.
Payslip or record of payment of wages and other monetary benefits as well as deductions for a particular period must be issued.