Japan to Allow Biz to Pay Salaries into App Accounts
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Tokyo, Sept. 14 (Jiji Press)--Japan is expected to allow businesses to pay salaries into employees' accounts of cashless payment services provided via smartphone apps.
A subcommittee of the Labor Policy Council, which advises the labor minister, discussed the so-called digital salary payments at a meeting Tuesday.
At the meeting, the labor ministry presented a plan to put a 1-million-yen cap on the amount of digital salary payments that can be made at one time and the balance of funds in cashless accounts used for such salary payments.
With no major objections raised, the ministry will work on details of the new method of salary payments. The ministry will make a necessary revision to ordinances by the end of March 2023 after receiving a policy proposal covering the issue from the council.
The labor standards law stipulates that salaries be paid in cash in principle. But companies are allowed to pay salaries into accounts held at banks and other financial institutions.
[Copyright The Jiji Press, Ltd.]