Japan Permits Digital Salary Payments
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- Publication
- FINANCIAL REGULATION BULLETIN March 2023
- Language
- English
- Author
- Takane Hori Robyn Gae Nadler Yukimasa Hayashi
- Related Practice Areas
- Regulatory/Regulated Transactions Fintech
- Download
- FINANCIALREGULATIONBULLETIN March 2023
The theme of this newsletter is "Japan Permits Digital Salary Payments". From April 1, 2023, the payment of salaries in digital form will be permitted pursuant to an amendment of the Regulations for Enforcement of the Labor Standards Act. The amendment will allow digital salary payments to be made into an employee`s account held with a Type 2 Funds Transfer Service Provider that is designated by the Ministry of Health, Labor and Welfare for the purpose. This newsletter discusses key aspects of the amendment and the requirements applicable to employers and Type 2 Funds Transfer Service Providers who wish to participate in the new system.