The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, along with the Department of Labor and Employment (DOLE) held the 2nd Financial Inclusion Forum for the Labor and Employers Sector on July 30 at the BSP’s Manila Head Office.
The discussions centered on the transition from traditional cash payments to digital wage payments as a significant step towards modernizing payroll systems for the benefit of both employees and employers.
Despite the ongoing shift towards digitalization, the 2021 Financial Inclusion Survey by the BSP reveals that approximately 70 percent of private sector salaries in the Philippines are still disbursed in cash.
This mode of payment, while traditional, often lacks the efficiency and security provided by digital transactions.
Digital wage payments not only streamline processes but also open up access to a broader range of financial services for employees, including savings accounts and insurance, thus enhancing their financial resilience and overall well-being.
From an employer’s perspective, the adoption of digital payments can lead to better productivity, accuracy in wage distribution, safer transactions, and easier access to financial markets and services.
These improvements can aid in the formalization and growth of enterprises, contributing to a more structured economic environment.
During the forum, DOLE Assistant Secretary Amuerfina Reyes emphasized the comfort, speed, and security that digital wage payment systems offer, ensuring timely and complete salary payments.
She also highlighted the broader access to financial services and information that can strengthen family security and stability.
BSP Deputy Governor Bernadette Romulo-Puyat reiterated the importance of sustained efforts towards financial inclusivity.
“Let us continue working together to make the goal of a more financially inclusive and resilient Philippines a reality,” she stated, acknowledging the mutual benefits of digital wage systems for the labor and business sectors.
The forum featured insights from various experts, including International Labor Organization’s Valérie Breda, Employers Confederation of the Philippines’ Federico Marquez, Jr., and officials from Maya Philippines and the Cooperative Insurance System of the Philippines.
They discussed the protective measures and innovative financial products, like microinsurance and the Personal Equity and Retirement Account, designed to foster the financial health of employees.
With the objective of expanding digital payment use cases, the BSP-DOLE forum aligns with the National Strategy for Financial Inclusion (NSFI) 2022-2028, underscoring the commitment to enhance the financial landscape and security in the Philippines through digital initiatives.