Japan Advisory Panel OKs "Digital Salaries"

Economy Politics

Tokyo, Oct. 26 (Jiji Press)--Japan is set to allow companies to pay salaries directly into accounts for smartphone payment services, as a subcommittee of the Labor Policy Council, which advises the labor minister, approved related ministerial ordinance revisions on Wednesday.

The government plans to begin next April accepting applications from payment app operators wishing to handle such "digital salaries." It is expected to take several months before workers can actually receive salaries in that form.

The labor standards law requires salaries to be paid in cash in principle, with payments to bank accounts allowed if employees consent.

Under the new system, companies will be allowed to transfer salary amounts of up to 1 million yen to employees' smartphone payment accounts with their consent.

Recipients of digital salaries will be able to withdraw cash from their smartphone payment accounts at automated teller machines without fees once a month.

[Copyright The Jiji Press, Ltd.]

Jiji Press