The Bangko Sentral ng Pilipinas (BSP) and the Department of Labor and Employment (DOLE) are urging leaders in both the labor and employer sectors to embrace digital wage payments, emphasizing the benefits of this shift for both employees and employers.
At the 2nd Financial Inclusion Forum for the Labor and Employers Sector, held on July 30 at the BSP Manila Head Office, discussions centered on the advantages of digital payroll solutions.
According to the 2021 Financial Inclusion Survey by the BSP, about 70% of salaries in the private sector in the Philippines are still paid in cash.
Digital wage payments, as noted in the forum, are instrumental in promoting financial inclusion.
A study cited during the discussions revealed that over half of adults in developing countries opened their first bank accounts to receive digital wage payments.*
For employees, this shift opens doors to financial services like savings and insurance, which contribute to financial health and resilience.
“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,” DOLE Assistant Secretary Amuerfina Reyes said.
Reyes also pointed out that digital payments provide broader access to financial services and information, enhancing the security and stability of families.
Employers, too, stand to gain from digital wage payments, which can lead to improved productivity, accuracy, safety, access to finance, and market opportunities. Moreover, it can facilitate enterprise formalization.
BSP Deputy Governor Bernadette Romulo-Puyat underscored the importance of financial inclusion as a nationwide effort. She stated, “Let us continue working together to make the goal of a more financially inclusive and resilient Philippines a reality.”
The forum, which featured speakers from the International Labor Organization, Employers Confederation of the Philippines, and various financial service providers, also discussed products like microinsurance and the Personal Equity and Retirement Account, which are designed to enhance the financial health and resilience of employees.
Additionally, participants emphasized the need to strengthen security and infrastructure to support the wider adoption of digital wage payments.
The BSP-DOLE initiative aligns with the National Strategy for Financial Inclusion (NSFI) 2022-2028, which prioritizes expanding digital payment use cases in the Philippines.
*International Labor Organization – Global Center on Digital Wages for Decent Work and Better Than Cash Alliance
