Japan’s Labor Ministry is not hiding its confusion as the Tokyo Metropolitan Government and venture companies requested a deregulation of the Labor Standard Act. Japan has respected the “salaries in cash” principle for 70 years under the Labor Standard Act, however with the proliferation of digital money and salaries paid in cryptocurrencies, withdrawing money from a bank could increasingly be unnecessary, Nikkei reported.
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Increasing Conversion to “Cashless” Trends Also Seems to Bring Controversy
The NSSZ (National Strategic Special Zone), which is designated by the national government based on the perspectives of boosting the international competitiveness of industry and promoting the creation of centers of international economic activities by giving priority to advancing structural reform of the economic system, together with Tokyo-based venture companies, reportedly requested a change in regulations.
On February 14, the government announced a plan to hold a national strategic advisory council to discuss making salary payments onto smartphones equipped with a prepaid card function, in specific zones. The government was aiming to improve convenience by remitting salaries onto a smartphone that can be used as a wallet. The whole idea was also intended to make it easier for foreign workers who have difficulty opening a bank account in Japan.
Wages have always been paid by cash payment under the Labor Standards Law. However, the Ministry of Health, Labor and Welfare, which is under the jurisdiction of this law, said it would consider concrete measures to protect the transfer of salary when the operator of the electronic money goes bankrupt.
Regional revitalization minister Hiroshi Kajiyama said at a press conference held on June 14, that during the Advisory Council of the NSSZ he
