In Moldova, starting from 2024, salaries in the public sector will be distributed through the MPay system.
This is provided for by the relevant amendments to the Law on Remuneration of Labor and the Law on a Unified System of Remuneration in the Budgetary Sphere, which the Parliament adopted in the second reading. Under the changes, financial autonomy units and budget units will distribute salaries to employees' accounts through the government's MPay electronic payment service. The same method is currently used for the distribution of state social benefits. The adoption of the mentioned amendments will make it possible to intensify the technologization of the processes of distribution of wages and social payments, helping to reduce the operational efforts of public institutions, and will also reduce the costs associated with transfer operations. The distribution of salaries to the settlement accounts of employees by budgetary units through the MPay system will be mandatory and will be carried out through the Electronic Governance Agency. Currently, 26 types of social benefits are distributed through MPay, and salaries, including those in the public sector, are distributed through 11 commercial banks and 1 non-banking service provider, Paymaster. The new salary payment model in the public sector will be implemented from 2024. The law adopted by the Parliament will come into force on January 1, 2024. It is expected that 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 model distribution of social benefits. Thus, government agencies and self-supporting enterprises will not need to enter into annual contracts with payment service providers for the distribution of salaries, since such contractual relationships will be established by tripartite agreements concluded between the Electronic Governance Agency, which is the owner of MPay, the Ministry of Finance, which is an authorized participant, and suppliers of payment services. The MPay service is integrated with payment systems, and data exchange is carried out in an automated mode. Due to this, the need for interaction between the financial departments of government agencies and institutions with payment service providers is eliminated, and this will significantly reduce the efforts of both parties.// 13.10.2022 — InfoMarket
