
It is proposed to distribute salaries to employees of budgetary organizations and self-supporting enterprises through MPay.
The corresponding draft amendments to the Law on Remuneration of Labor and the Law on a Unified System of Remuneration in the Public Sphere have been registered in Parliament. In particular, it is proposed that from January 1, 2023, salaries will be distributed to the settlement accounts of employees of budgetary units and self-supporting enterprises through the state electronic payment service (MPay). Salaries are currently distributed through 11 commercial banks and one non-bank service provider (PayMaster). The use of MPay for salary distribution will allow beneficiaries to independently choose a payment service provider, without being tied to employers' salary projects, according to the social benefits distribution model. Thus, government agencies and self-supporting enterprises will not need to enter into annual contracts with payment service providers for the distribution of wages, since such contractual relationships will be established by tripartite agreements concluded between the E-Government Agency, which is the owner of MPay, the Ministry of Finance, which is an authorized participant, and payment service providers. As the authors of the bill note, MPay is integrated with information systems of payment systems, and data exchange is carried out in an automated mode. Due to this, the need for interaction between financial departments of government agencies and institutions with payment service providers is eliminated, and this will significantly reduce the efforts of both parties. The proposed mechanism is expected to increase competitiveness in the area of payment services by encouraging payment service providers to develop new offerings and services. It is worth noting that since January 2021, the Public Services Agency has taken over from the National Social Insurance Fund the functions of the technical distribution of social benefits (today it is 23 benefits). For 10 months of 2021, more than 13.7 million social benefits were paid through MPay for a total amount of more than 23.3 billion lei.// 09.03.2022 — InfoMarket