PAYROLL ALERT
Wages: Accepted methods for payment
The Protection of Wages Law of 2007 (the “Law”), as amended in 2022, specifies the permissible methods for
payment of wages, which according to the Law are the following:
1. Payment to a bank account or payment account of the employee’s choice
2. Payment by bank cheque in the employee’s name
Provided that the employee is in the process of opening a bank account, the employer may pay the wages in cash
for a period not exceeding four (4) months from the date of employment.
The employer may continue to pay wages in cash only in case the request for opening of a bank account is rejected.
In this case the employer must provide evidence of the rejection to the Director of Director of the Department of
Labour Relations of the Ministry of Labour and Social Insurance.
Compulsory issue of monthly / weekly payslips
Following the amendment of the Law in 2022, all employers have an obligation to issue payslips on a
monthly/weekly basis. The employer is personally liable in case of failure to comply with this requirement of the
Law. Moreover, the Law requires that payslips are issued and circulated to employees within five (5) working days
from the date of the payment of wages.
Payslips should contain at least the following information for the employee and employer:
1.
– Full name
– Address
– Identity
– Employee’s social insurance number and employer’s registration number
2. Payment date
3. Period of payment
4. Wages payment details (basic salary, overtime, etc.)
5. Employer’s contribution to Social Insurance Funds and other funds
6. Employee’s contribution to Social Insurance Funds and other funds
7. Other information (e.g., commissions, goals, bonus, cost of living allowance etc.)
VIEW ORIGINAL PDF HERE
