The Federation Council has allowed employees to choose a bank for transfer of salary

On the 29th of October of the current year the Federation Council has passed the bill, which allows employees to choose a bank for transfer of salary by themselves. For which cause the experts expect «overflow» of natural persons in the banking sector.

As a reminder, earlier according to the article 136 of the Labor code of the RF, salary was paid to an employee on site or transferred to banking account mentioned by him/her on terms defined by collective or labor contract. Now earnings will be transferred to employee’s account in the bank chosen in his/her discretion. Employee can change credit organization in any month, this requires to file an petition in the name of the executive five days prior to next payment of salary with specification of the name of credit organization and requisites of his/her banking account.

The passed law gives the freedom of choice to clients of banks. Existing system hasn’t involved a possibility of individual choice for each employee. However today, with the development of the market of banking services, many people can have reasons to get salary namely via the bank, which is convenient for them. It’s not a secret that banks offer, as a rule, more attractive rates on credits to their payroll customers. Besides that, state and municipal enterprises choose often for payroll card programs the government banks, which differ by more conservative approach to loan issue or setting of interest rates on savings, what satisfies not many owners of salary cards.

According to experts, this bill will encourage competition between banks. Those banks will win, which develop retail programs, offer wide network of ATMs, user-friendly online bank, as well as rewards programs and savings schemes.

Along with that this bill will complicate essentially the current activity of accounting department, because now in spite of single transfer order and register for all employees, it will be necessary to form as many payment documents and registers, as banks have been chosen by company’s employees, by that this list can change each month.

The law must come into force since the day of its publication.