10.03.2022

IS THE PAYMENT OF THE SALARY REQUIRED BY BANK?

Although the use of banking services regarding payments has been popular in our country for many years, one of the questions that concerns local workers is whether it is mandatory to pay the salary by bank transfer. The reason for these issues is the penetration of banking services in most institutions and companies from both the budget and the real sector.

It is now normal for most workers to receive their remuneration by bank transfer, and it is even largely the preferred method of payment. However, it should be noted that there are citizens who, for one reason or another, feel uncomfortable receiving their money in this way, even sometimes doubting the correctness of the procedure.

Let us not forget that there are small settlements in Bulgaria where it is impossible to operate with a debit card, for example, purely infrastructurally, due to the fact that in the same settlement there is no ATM through which to withdraw the amount so that a person can pay possible expenses and some purchases.

In other cases, ignorance of the correctness of banking operations and especially ignorance of the fact that this area is one of the best regulated in general, leads to distrust or fear of the "new" and hesitation in people to move to a more convenient and technological method of payment of wages.

Because the payment of wages to the bank account is a time-saving mechanism for employers, they prefer to do so, even when there is opposition from workers in this regard.

However, is there a legal basis to secure the decision of one or another employer to pay the remuneration of its employees by bank transfer?

First of all, it should be clarified that the regulations governing the payment of wages (Labor Code and the Ordinance on the structure and organization of wages) do not contain explicit provisions governing the obligation to pay wages by bank transfer.

According to the law, the remuneration is paid in the enterprise where the work is performed. Payment is made in advance or final twice a month unless otherwise agreed (maybe three times and only once). Remuneration is paid personally to the employee on the payroll or against a receipt or at the written request of the employee - to his relatives. An important clarification is that at the written request of the employee, his/her remuneration is transferred to a deposit in the bank indicated by him/her.

Ultimately, in order for the salary to be paid by bank transfer, the employee must submit a written request to the employer, in which he/she declares a wish for his/her remuneration to be transferred by bank transfer to the bank indicated by him/her. If such an explicit written request is not made, the employer has no right to unilaterally decide on such action. He must have a bank account opened in advance.

In order to receive his salary from a bank, the employee must have an open bank account and have explicitly stated it in his written request.

Reference:

Art. 270 of the Labor Code