The payment of salary in scriptural money is mandatory as from 1 October 2016

Following a modification of the law of 12 April 1965 on the protection of workers’ salary, the payment of salary in scriptural money will become mandatory as from 1 October 2016.

Currently, the law of 12 April 1965 provides that the payment of salary must be made from hand to hand (subject to the signing of a receipt by the employee) or in scriptural money.

The choice of one or the other method of payment depends on the rules prescribed by the law.

Following a recent amendment, the law of 12 April 1965 now provides that as from 1 October 2016 the payment of salary must be made in scriptural money. The aim of the legislator is to avoid undeclared work, social fraud and to ensure financial transparency.

Payments from hand to hand will thus become the exception. It will be allowed only if that method of payment is provided by a collective labour agreement established by a joint committee or an implied agreement/a sectoral practice. In that latter case, a Royal Decree will have to prescribe the procedure and the conditions of formalisation and publicity of such agreement or practice.

The entry into force on 1 October 2016 gives employers the time to add if necessary to their work rules the method of payment of salary as this is a mandatory reference.

> Action point

As from 1 October 2016, payment of salary in scriptural money will in principle be mandatory. If necessary, do not forget to adapt your work rules.