18.03.2022
ROMANIA APPROVES ELECTRICITY AND GAS PRICE CEILING FOR 1 YEAR
The Romanian government has approved an emergency decree to set a one-year ceiling on electricity and gas prices for both household and industrial consumers, Minister Virgil Popescu was quoted as saying by Agerpress.
"Romanians will have the support of the government to pay for energy bills for another year! The new measures, which take effect on April 1st, will benefit 8 million households for electricity and all households for natural gas, regardless of consumption", pointed out the Minister of Energy.
The price of electricity will be up to RON 0.68 per kilowatt-hour (the euro is exchanged for RON 4.95) including VAT for household consumers, whose average monthly consumption in 2021 was up to 100 kilowatt-hours. Household consumers, whose average monthly consumption in 2021 was between 100 and 300 kilowatt-hours, will pay up to RON 0.8 per kilowatt-hour.
The price of gas will be up to RON 0.31 per kilowatt-hour including VAT.
For non-household consumers, the price of electricity will be up to RON 1 per kilowatt-hour with VAT, and for gas - up to RON 0.37 per kilowatt-hour with VAT for annual gas consumption in 2021 up to 50,000 kilowatt-hours, as well as for heat producers, intended for other customers.
18.03.2022
ENTREPRENEURSHIP: WHAT IS BRANDING AND WHY IS IT NEEDED?
Brand and branding are important components of any company that plans to develop and expand its influence in the market. Specialists from the advertising agency Rebrand.bg advise you to place your outdoor advertising in prominent places such as shop windows, billboards, megaboards, on the facade of a large building or on a car. In this way, the information will reach more customers who will get to know your brand. According to Rebrand, for best results it is good to use wide format printing.
What is branding
Creating a positive image of the company, its distribution and consolidation in the minds of the client. In simple words, this is brand management. Outdoor advertising includes a range of marketing activities to develop the image and maintain long-term relationships with the consumer. Thanks to it, a unique style is created, the value of the product increases and trust in the company is formed.
What is branding for?
The main goal of outdoor advertising is for the company to stand out among its competitors. It must create a clear, understandable and positive vision to increase the visibility and loyalty to the company.
Outdoor advertising is used for:
Outdoor advertising should show the importance and value of your product to the audience, as well as distinguish the company from competitors.
Types of branding
The most important elements of outdoor advertising are bright colors and memorable symbols and inscriptions that will be easily perceived by customers. The main types of branding are:
personal brand - also called personal branding - is the promotion of a media person, as well as the formation of a certain opinion about him. This type became especially popular with the development of social networks and the emergence of experienced bloggers, influencers and other celebrities;
company branding - this is the development of culture, philosophy, mission within the company. An example is Google's human resources policy, which encourages the ideas of professionals;
political branding - it includes election campaigns of candidates, slogans, party symbols and advertising videos. This may include both a representative of the political sphere and the whole organization;
product branding - in this type the logo, design and packaging are important, as well as the philosophy and value of the product. The main task of the brand is to stand out from the competition.
18.03.2022
THE WORKFORCE IN 2021
In 2021, the economically active persons aged 15-64 were 3,155.3 thousand or 72.0% of the population of the same age, according to NSI data. Compared to 2020, the economic activity rate decreased by 0.1 percentage points.
18.03.2022
THE HEALTH INSURANCE FUND WILL NOW PAY FOR PEOPLE WITH DISABILITIES
As of July 1 this year, the National Health Insurance Fund (NHIF) will be responsible for granting, reporting, controlling, paying for and repairing aids for people with disabilities. This was said by the manager of the National Health Insurance Fund Petko Salchev during his hearing in the National Assembly, BTA reports.
The funds for the payment of the aids will be provided through a transfer from the Ministry of Health.
The transfer of benefits from the Social Assistance Agency to the NHIF and the preparation of the Mechanism for payment of benefits from the Health Fund is a process that began 12 years ago. According to the Ministry of Social Affairs, the aids are medical devices and the therapy prescribed with them is a type of medical activity that must be paid for by the health system.
The Health Insurance Fund has started a procedure for negotiating the value of the aids. An application has been assigned and currently Information Services AD is working on it to create a software product for electronic prescribing, granting, payment and repair of aids.
Testing of the software product is forthcoming on May 1, and testing with the dealers of aids is expected to be carried out throughout June, and to be put into operation on July 1.
It is planned that the procedure for negotiating the values of the aids will be completed in mid-May and all deadlines will be completed by the end of June, so that the NHIF can administer this process from July 1.
17.03.2022
BECOME PART OF THE EUROPEAN WEEK OF PROFESSIONAL SKILLS - 2022
In May 2022, the sixth edition of the European Week of Vocational Skills will take place - the week in which events are organized at local, regional, national and EU level related to the promotion of vocational education and training and enabling presentation of good practices.
Launched in 2016, the European Commission's initiative brings together all stakeholders - teachers, organizations, trainees and teachers - to show the many benefits that VET offers to both young people and older learners. Looking at the skills that will be sought in the coming years, as well as the realities of the current labor market, VET aims to offer everyone the necessary adequate skills to reach their true potential.
This year, the Week will take place from 16 to 20 May across Europe, with a focus on the "green transition". The theme is in line with the European Commission's commitment to taking all necessary steps to make Europe carbon neutral by 2050, a large-scale initiative known as the European Green Deal, which includes providing European citizens with the skills needed for this transition.
The events organized by the European Commission will take place on 18 and 19 May 2022 - including the VET Excellence Awards.
You can take part in the program or dedicate an event organized by you to the European Week of Professional Skills.
Detailed information on the various initiatives and ways of involvement can be found at the following link: https://ec.europa.eu/social/vocational-skills-week/index_en
17.03.2022
MONTANA COMPANIES ARE LOOKING FOR TAILORS, IRONERS, SELLERS
Ten people lost their jobs in the Montana area every day. The number of people without earnings increased by 4 percent per month. This is shown by the data in early February of the Regional Employment Service - Montana.
There are already 6,050 active-age residents in the labor market. For a month, 232 people joined the army of people without a livelihood. The number of unemployed is most seriously increasing in Georgi Damyanovo - by more than 16 percent. Between 9.2 per cent in Chiprovtsi and 4.5 per cent in Varshets, it is increasing in six municipalities. It is lowest in Boychinovtsi (0.6%), Vulchedrum (2.7%) and Berkovitsa (3.9%), according to DRSZ statistics. Yakimovo continues to have a high unemployment rate. There it again exceeded 41 percent. Valchedrum, Chiprovtsi, Boychinovtsi, Medkovets, Brusartsi can also be included in this group, where the indicator varies from 31.1 to 20.1 percent. Traditionally, the figure is low in Montana - 4.1 percent. Below 10 percent is the level only in Berkovitsa and Lom.
For the period every third is released from private companies. They sent 270 people to the stock exchange. More than half of the rest are women. 59 percent of people have been laid off in the service sector. Of the industrial companies, 15.8 percent of the citizens left without a livelihood have been fired.
The share of the long-term unemployed of 45.6 percent remains very high in the region. These are people who have been without income for more than a year. More than half of them are over 50 years old. Almost 59 percent have primary and lower education, and two out of three have no major.
For a month, 244 vacancies have been announced in the labor offices in the district of Montana. An average of 16 people competed for each of them. In Lom, one position was contested by 31 people. In Berkovitsa, 16 candidates applied for each job position. In Montana, 10 citizens wanted a position. The largest share of the declared places on the primary labor market are in the manufacturing industry (33.4%), followed by government (22.8%), education (10.1%), trade, repair of motor vehicles and motorcycles (6.7%), transport, hotels and restaurants.
17.03.2022
BULGARIA HAS A RESERVE ON THE LABOR MARKET OF OVER 1 MILLION ADULTS OF WORKING AGE, URGENT POLICIES ARE NEEDED TO INCREASE EMPLOYMENT
Bulgaria has a reserve on the labor market of over 1 million adults of working age, urgent policies are needed to increase employment. A total of 170,000 are young people who neither work nor study, 360,000 are unemployed from ethnic minorities, 290,000 are people, mostly women, who cannot work because they are caring for children or adults in the family. Another 190,000 are unemployed due to illness or disability, and the older unemployed of working age (55-64) are about 340,000.
These are data for 2019, reflected in the final report on a partnership project of the Bulgarian Employment Agency, implemented jointly with the European Commission (EC) and the Organization for Economic Cooperation and Development (OECD).
The report is published on the OECD website. The document is a result of the assessment of the institutional framework and current policies for activating inactive people in Bulgaria under the project "Reforming existing and designing new measures for activating inactive people and their inclusion in the labor market in Bulgaria."
By 2050 Bulgaria will lose nearly a third of its working age population, our country is the fastest declining in the world
Bulgaria faces structural challenges affecting the long-term prospects of its labor market. The unfavorable demographic dynamics, combining rapid population aging and severe depopulation due to low birth rates and emigration, are among the most serious challenges facing the country, the report said.
It recalls that, according to recent forecasts, Bulgaria will lose nearly a third of its working age population by 2050, making it the fastest shrinking country in the world. Until then, one third of adults in Bulgaria will be aged 65 or over, which is likely to lead to labor market shortages and stress on Bulgaria's social security system. Therefore, efforts to create a set of policies designed to maximize employment will be vital to alleviate the effects of a rapidly shrinking workforce, the document said. According to experts, sound and effective labor market policies are needed, which should be evidence-based and take into account the experience of other countries in order to be effective.
In Bulgaria, employment among the highly educated is among the highest in the EU - 89 percent
The second structural challenge facing the Bulgarian labor market is the high degree of its unevenness, the report said. Employment of the highly educated is among the highest in the EU - 89 percent in the group of 15-64-year-olds in 2019, while employment among the low-educated is significantly lower - only 38 percent. Similarly, both employment and wage levels are significantly higher in the economically richer areas than in the poorer and more remote parts of the country, and employment data vary significantly across ethnic groups. For example, the employment of men of Roma origin of working age is 51 percent, compared to 65 percent for men of Turkish origin and 76 percent for ethnic Bulgarians. For women, the differences are even greater: in employment, respectively, 31 percent, 48 percent and 71 percent for women of ethnic Roma, Turkish and Bulgarian origin.
About 900,000 adults of working age are unemployed or inactive, many of them from vulnerable groups furthest from the labor market
Despite the improvements in the labor market achieved by Bulgaria in recent years, there are about 900,000 adults of working age who are unemployed or inactive (excluding students). Among this unemployed population, 15 percent are unemployed (i.e. available for employment and effective job search), and the remaining 85 percent are inactive (i.e. out of the workforce). Although inactivity and unemployment are widespread among many different groups, some sections of the population are particularly affected and are at high risk of becoming or remaining inactive or unemployed, the report said.
Bulgaria is a leader in young people who neither study nor work
These groups include the unemployed, uneducated and untrained young people - NEETs - about 170,000 people in 2019.
Bulgaria has one of the highest percentages of such young people in the EU - 17 percent, compared to 13 percent in the EU, which highlights the need for additional efforts in this area. Young people have been hardest hit by the effects of the COVID-19 pandemic on the labor market. In the second quarter of 2020, the number of 15-24 year olds decreased sharply by 17 percent compared to a year earlier, while the effect on workers aged 25 and over was much smaller and the decrease was only 5 percent. This has again led to an increase in the percentage of NEETs - 18 percent in 2020, compared to the European average of 14 percent.
The analysis of income and living conditions statistics (SILC) shows that about 42 percent of young NEETs are Roma. Activation of NEETs is particularly important because the inability to increase human capital or skills can lead to long-term negative effects, reaching alarming proportions, the report said.
Another high-risk group is the unemployed from ethnic minorities (360,000 in 2019): Roma are affected by much higher unemployment than other ethnic groups and they face many barriers and challenges in terms of their participation in the market of labor. The Turkish community also faces relatively high levels of inactivity, especially among women, albeit to a lesser extent than the Roma community. In total, there are about 240,000 Roma of working age who neither work nor study, and less than a fifth of them are in contact with the Employment Agency. For the Turkish minority, estimates put the number of 123,000 adults of working age who neither work nor study.
Caring for family and family responsibilities is one of the most common reasons for inactivity in the labor market
Unemployed due to caring for close and family commitments are 290,000 in 2019. Caring for close and family responsibilities is the most common reason for inactivity in Bulgaria, in addition to training, the report said. This barrier affects women in particular, who make up the majority of people caring for loved ones and family commitments as their main barrier to not looking for work.
We have the longest leave for mothers, measures are needed to include fathers, as well as more opportunities for a reduced working day
Bulgaria provides one of the longest maternity leave in the EU (more than two years in total, including both maternity leave and less generously paid parental leave). Like most other EU countries, Bulgaria provides much shorter paternity leave (about two weeks), the report said. To encourage fathers to play a greater role in childcare, some countries, e.g. Sweden and Iceland have increased paternity leave, sometimes on a "use it or lose it" basis.
Other policies that can bring about cultural change can also help parents. For example, greater access to affordable care and the ability to work part-time can help parents balance their responsibilities for raising children and their work. However, the number of day care centers is limited, especially in rural areas, and Bulgaria has a culture of full-time work, with less than 2 per cent of workers working part-time, the lowest in the EU. In addition, wages for reduced working hours in Bulgaria are often too low to ensure a decent living, experts say.
Many unemployed women, for family reasons, often face other barriers to participation in the labor market - especially barriers related to skills and experience, including lack of up-to-date professional experience (while raising children), low level of education or previous low-skilled activities, the report said.
Bulgaria has the lowest employment rates among people with health problems
The third group at particular risk is the unemployed due to illness and disability - 190,000 in 2019. Disabilities are a common cause of inactivity, and employment rates for people with health problems are among the lowest in the EU.
Older unemployed people of working age (55-64 years) - about 340,000 in 2019 are the other problem group. Although employment rates for older people are higher than the EU average and have risen sharply in recent years, they remain well below the level for the main adult group. Given the large number of people aged 55-64 who do not work and due to the growing share of older people in the Bulgarian population, the activation of older people would have the potential to contribute to reducing the effects of declining and aging populations and will decide labor shortage problems.
The employment rates of older people (aged 55-64) have increased very significantly over the last decade, from 45% in 2011 to 64% in 2020. This increase is closely linked to the gradual increase in the official retirement age. However, a rapid decline in the labor force in Bulgaria and the need to further increase the work experience of older workers to alleviate labor shortages is projected. Although the employment of 55-64-year-olds is now higher than the EU average, it is still at least 10 percentage points lower than in leading EU countries, experts say.
Among men aged 60-64 who do not work, less than one in six is registered with the Employment Agency, although they have not yet reached the official retirement age. This practice is partly related to financial demotivating factors for working in the pension system, which reduces the desire of older people to work.
The most common barriers to labor market inclusion are related to skills, family care, health barriers and living in remote areas.
The most common barriers related to labor market participation for the inactive and unemployed in Bulgaria are related to skills (limited education or professional experience), barriers related to family (care for relatives), health barriers and geographical barriers (living in remote settlements without a vehicle), the report states.
Certain barriers to the labor market affect some inactive and unemployed groups much more than other groups. A total of 42 percent of the unemployed Roma face a geographical barrier - compared to 21 percent of the total inactive population. Nearly half of the inactive or unemployed aged 55-64 have a significant or long-term health barrier - compared to one third of all inactive and one tenth of all unemployed. In many cases, the inactive and the unemployed face several barriers to employment at the same time.
A total of 75 percent of the inactive and 61 percent of the unemployed face at least two significant barriers to employment - compared to 18 percent of those working.
Different activation solutions are needed to meet the needs of different groups
To help different unemployed groups overcome their barriers, activation solutions should be combined to address multiple barriers and meet individual needs. In particular, in some cases, support from the Employment Agency should be combined with additional services provided by other institutions and aimed at e.g. to barriers of a health nature or social difficulties in order to be effective, the report said.
Bulgaria spends only 0.16 percent of GDP on active labor market policies, less than half of the EU average
Despite significant progress in the Bulgarian labor market over the past decade and despite the COVID-19 pandemic, employment levels in Bulgaria rose from below 60 percent among 15-64 year olds 10 years ago to 68.5 percent at the end of 2021, according to data presented in the report. However, in order to activate as many inactive people as possible, Bulgaria needs to redirect resources to policies that work best and increase support for those most in need, according to the OECD report. Bulgaria spends only 0.16 percent of GDP on active labor market policies (ALMPs), less than half of the EU average (0.39 percent). In addition, two thirds of Bulgaria's spending on ALMPs goes to direct job creation programs, while other types of programs are less common. The OECD recommends a reorientation towards retraining and retraining of workers, as well as targeted programs to support employment in the primary labor market.
The proposals of Bulgarian experts
The Balkan Institute of Labor and Social Policy has been working on the topic of the huge reserve on the labor market for a long time. Our educational system is aimed entirely at young people, and the demographic situation requires it to appeal to the elderly population - schools and universities to offer educational services for adults, said the chairman of the Balkan Institute of Labor and Social Policy Ivan Neykov and Yordan Dimitrov from the institute. Last week, the topic was touched upon again at a forum on the subject.
They report that in the next 20-30 years Bulgarian employers will work with more and more elderly people. If in 2000 100 people leaving the labor market were replaced by about 130 entering, now 100 adults are leaving the active labor force, but only 70 are being replaced.
According to experts from the Balkan Institute for Labor and Social Policy, the over-the-counter workforce faces greater difficulties in adapting to the green transition and digitalisation, and these are the changes we expect to lead to a better standard of living and a competitive economy. It is necessary to invest in human capital, including the elderly population. People need to renew their knowledge and skills at certain periods of their working lives.
The social activity of the elderly population can be maintained through a new insurance risk - long-term care
The Balkan Institute for Labor and Social Policy also proposes to create a new insurance risk - long-term care. This can be done through public or private insurance. According to the experts, a resource should be set aside to finance home help, various integrated social and health services, services for maintaining the social activity of the elderly population. New jobs will be created and providers will be encouraged to provide the services that adults need.
The aging of the population also implies adaptation of the workplace, labor processes and labor legislation, according to the Balkan Institute for Labor and Social Policy. Working hours, the combination of personal and professional life should be different for young and old workers, experts said. They believe that the debate is primarily about raising the retirement age, and may be in the direction of voluntarily staying longer in the labor market and creating conditions for adults to request it themselves.
Another labor reserve is people with disabilities. There are about 100-120 thousand people with disabilities in Bulgaria who have never entered the labor market - neither as unemployed nor as economically active because of their policies, according to the Balkan Institute for Labor and Social Policy. At least 60-80 thousand of them can be activated, so not only will they feel fuller, but they will also contribute to the economy. Experts believe that mothers of children up to the age of three should also be involved, as they lose their work habits and often fall out of the labor market through long motherhood. At the same time, according to Ivan Neykov, long motherhood over the years has not proved to be a working measure to increase the birth rate.
The Balkan Institute for Labor and Social Policy believes that telework should be encouraged because it can solve some of the demographic problems - young people return to their native places and, living in a more favorable atmosphere, have access to larger labor markets - Sofia, Plovdiv or abroad. Our companies can also look for a workforce that lives outside the country, and this will contribute to meeting the stated need of employers of about 200 thousand workers.
According to Ivan Neykov, we have been offering the same tools for 30 years to overcome the deteriorating demographic situation, and in 30 years three generations have changed and each of them comes with a new idea of themselves and the world. He believes that so far the focus has been only on income - child benefits, allowances, etc., which has not changed the demographic picture. The institute proposes to think in the direction of improving social services by financing the care of children at home by outsiders, measures in enterprises to combine work and family commitments, assistance to young parents in the time zones for guiding and collecting children from nurseries and kindergartens.
Government requests
There are already requests from the government for measures to help people with disabilities return to the labor market. The Minister of Social Affairs Georgi Gyokov has repeatedly called for a reform of the TEMP system, and the coalition agreement includes the abolition of the TEMC system and the transition to the International Classification of Human Function, Disability and Health, also known as the ICF. System for retraining and returning people with disabilities to the labor market; encouraging employers to hire people with disabilities by covering part of the insurance; introduction of a system to encourage employers to retrain people with disabilities are among the measures set out in the agreement.
Work will also be done on the connection between education and the labor market. Arranging a facilitated regime of voluntary internships during the summer vacation of students, encouraging the active participation of employers in the programs for additional qualification and retraining, revision of the long-term care strategy.
The Minister of Labor and Social Policy Georgi Gyokov announced that changes in the Employment Promotion Act are forthcoming.
17.03.2022
REDUCES UNEMPLOYMENT IN THE THREE NORTHWESTERN DISTRICTS
Unemployment in the three northwestern districts of Montana, Vidin and Vratsa at the end of February decreased slightly compared to the previous month and significantly compared to February 2021, according to the Regional Employment Service in Montana.
The average unemployment in the three regions at the end of February was 10.1 percent and compared to the same period last year there was a decline of 2.2 percent. The total number of registered unemployed in the three districts is 17,489 people, a decrease of 164 people compared to the end of January this year, and a decrease of 3,717 people compared to the end of February 2021 - 17.5 percent.
The municipalities with the highest unemployment rate last month were Ruzhintsi - 46.2 per cent and Yakimovo - 41.8 per cent, and the lowest with the municipalities of Vratsa - 3.6 per cent and Montana - 4.1 per cent.
In February, 971 unemployed people started new jobs in the three regions, 80.2 percent of whom were employed in the real economy, and the rest under subsidized employment programs.
The most sought-after professions during the month are tailors, ironers, fitters, salesmen, waiters, cooks, maids, machine operators, locomotive drivers, welders, personal assistants, general workers, etc.
In February, 81 applications from employers for the retention of 1,359 jobs were approved in the three areas under the 60/40 anti-crisis measure, the Montana Regional Employment Service said.
15.03.2022
REGISTERED UNEMPLOYMENT REMAINED LOW IN FEBRUARY
Registered unemployment in the country remained low at 4.9% in February, according to administrative statistics from the Employment Agency. Compared to the same month last year there was a decrease of 2.0 percentage points.
The number of unemployed in the labor offices in February was 159,906, which is 2,416 less than in the previous month and 65,375 or 29.0% less than a year earlier. In February, 19,407 new unemployed people registered, the number of which was 6,185 lower than in the previous month, and on an annual basis there was a decrease of 5,490 people. Another 445 people from the groups of jobseekers, students and retirees also registered with the Employment Agency during the month.
12,714 unemployed people found their new jobs in February. An increase of 829 persons is reported compared to January, and compared to the same month of the previous year they are 5 516 less. 164 people from the groups of pensioners, students and employees also found work through the labor offices.
The distribution of the unemployed who started working by sectors of the economy is as follows: 56.7% of those who started working in February were employed in the real economy, most of them employed in the manufacturing sector - 20.0%, followed by trade - 17.0%, hotels and restaurants - 8.3%, agriculture, forestry and fisheries - 5.7%, construction - 5.5%, government - 5.1% and others.
2,172 unemployed from the risk groups were employed in subsidized jobs during the month - 58 under employment programs and measures and 2,114 - under schemes of the Operational Program "Human Resources Development" (OP HRD). The HRD OP, which started in July 2020 as an anti-crisis measure, has provided employment to almost 52,000 unemployed people, and only in February employment contracts were concluded with 1,230 new unemployed.
Funding for the already well-known 60/40 anti-crisis measure continues. Thus, for the month of February alone, the applications of 1,776 employers for maintaining the employment of 37,200 employees were approved under this procedure.
The number of jobs advertised on the primary labor market in February was 13,076, or 1,288 more than in the previous month and 393 less than in the same month of 2021. The largest share of job vacancies in the real economy was in the manufacturing industry (24.1%), followed by hotels and restaurants (20.3%), trade, repair of motor vehicles and motorcycles (10.9%), administrative and support service activities (8.5%), agriculture, forestry and fishing (6.3%) and general government (6.1%).
The most sought-after professions during the month are: staff employed in the field of personal services; machine operators of stationary machines and equipment; sellers; drivers of motor vehicles and mobile equipment; workers in the mining and processing industry, construction and transport; staff caring for people; skilled workers in the production of food, clothing, wood products and related; waste collection and related workers; metallurgists, machine builders and related craftsmen; cleaners and helpers, etc.
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
