Payment of Wages and Other Monetary Benefits Through Transaction Accounts

August 3, 2020LABOR ADVISORY NO. 026-20PAYMENT OF WAGES AND OTHER MONETARY BENEFITS THROUGH TRANSACTION ACCOUNTSPursuant to Article 5 of the Labor Code of the Philippines, as amended, the following guidelines are hereby issued: HTcADCSECTION 1. Objective. — This Advisory seeks to encourage and enable all private establishments to timely pay wages and other monetary benefits through transaction accounts, to afford their employees access to formal financial services for the promotion of their welfare, to reduce the costs and risks of physical cash disbursements, and to promote digital payments as a safer alternative to the physical exchange of bills and coins, thereby reducing physical contact and minimizing transmission or spread of viruses such as COVID-19.SECTION 2. Definition of Terms. — The terms used herein are defined as follows:a. Basic Deposit Account (BDA) — refers to interest or non-interest-bearing bank account with a minimal initial deposit of no more than one hundred pesos (Php100.00), no minimum maintaining balance, no dormancy charges, maximum balance of fifty thousand pesos (Php50,000) and with simplified know-your-customer or KYC requirements. The list...