The Bangko Sentral ng Pilipinas (BSP) and the Department of Labor and Employment (DOLE) are encouraging leaders of the labor and employer sectors to promote the use of safe and efficient digital wage payments.
At the 2nd Financial Inclusion Forum for the Labor and Employers Sector on 30 July at the BSP Manila Head Office, discussions 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.
For employees, therefore, 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.[1]
In her remarks, DOLE Assistant Secretary Amuerfina Reyes said, “Sa pamamagitan ng pagsulong ng financial inclusion at digital na sistema ng pagbabayad ng sahod, mas magiging maginhawa, mabilis, at ligtas ang pagtanggap ng kita. Tinitiyak din nito na matatanggap ng mga manggagawa ang kanilang sahod nang buo at sa tamang oras.
The DOLE official added, “Bukod dito, nagbibigay ito ng mas malawak na akses sa serbisyong pampinansyal at impormasyon para sa pag-iimpok na magpapalakas ng siguridad at katatagan ng bawat pamilya.”
Emphasizing that financial inclusion is a whole-of-nation undertaking, 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.
She said, “Let us continue working together to make the goal of a more financially inclusive and resilient Philippines a reality.”
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, and 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.
Forum speakers from the financial service providers sector discussed products that promote financial health and resilience of employees, such as microinsurance and the Personal Equity and Retirement Account.
The forum also highlighted the measures and mechanisms in place that protect the consumers of financial products and services.
Forum participants shared valuable insights such as strengthening security and infrastructure to enable wider adoption of digital wage payments.
The BSP-DOLE forum supports the priority initiatives under the National Strategy for Financial Inclusion (NSFI) 2022-2028 to expand digital payment use cases in the country.