Transition to digital wage payments eyed -- DOLE

The Department of Labor and Employment (DOLE) on Monday said it is eyeing the transition from cash-based payments to digital wage payments in enterprises in a bid to promote financial inclusion and prevent dishonest practices.

DOLE Secretary Bienvenido E. Laguesma pointed out that digital wage payments are vital in creating an inclusive and safe financial system for workers.

“By choosing to open formal accounts, we can collectively promote financial inclusion and protect workers from unscrupulous practices," Laguesma said in his message delivered by Assistant Secretary Amuerfina R. Reyes during the 2nd Financial Inclusion Forum for the Labor and Employers Sector held at the Bangko Sentral ng Pilipinas Head Office in Pasay.

"Equally important is the discussion on ways to enhance, ensure, and strengthen digital payment infrastructures, considering the geographical locations and capabilities of micro and small enterprises,” Reyes added.

To support this shift, DOLE has issued Labor Advisory No. 26, Series of 2020, and conducted related webinars and training programs, including the 1st Financial Inclusion Forum in 2019.

DOLE’s Labor and Employment Education Services e-learning platform also offers resources on digital wage payments.

Addressing the difficulty concerns of small and medium-sized enterprises in transitioning to digital wage payments, Reyes said DOLE offers technical and financial assistance to facilitate the transition through the DOLE-Adjustment Measures Program for Workers and Enterprises.

 “Under the guidelines, we can assist technically and financially. Part of the Adjustment Measures Program could be in the implementation of digitization and other advanced technology, especially in online transactions,” Reyes added.