The era of delays in the payment of salaries due to banking processes should be a thing of the past, the General Manager of Ghana Interbank Payment and Settlement Systems (GhIPSS), Archie Hesse has said.
According to him, Ghana has the necessary electronic platform to improve the disbursement of salaries.
Mr. Hesse was reacting to recent complaints that it took some employees close to one week or more to pay the salaries of their employees.
While admitting that such delay exists, Mr. Hesse said there is no excuse for it because the right banking solutions exist.
He mentioned that with the Direct Credit under the Automated Clearing House (ACH), anytime the employer directs its bank to pay salaries, the monies will be sent instantly to the various bank accounts of employees through the electronic platform provided by GhIPSS.
According to him, every employee should have his or her account credited by the next day after the payment of salaries.
“The issue of employees waiting for days while others have long received their pay is unacceptable today.”
He explained that the delay occurs because under the old system, salaries were paid through cheques which go through a lot of processes. But the ACH enables the monies to be paid straight from the paying bank to the accounts of workers electronically.
The GhIPSS General Manager urged employers to talk to their bankers in order to switch to the ACH since it makes life a lot more comfortable.
He said previously this service was not functional because there were no interbank payment platforms. However, with the establishment of GhIPSS the specific service is now available.
He added that regardless of the number of employees, the ACH remains the fastest salary payment system.
Another service that can ensure quick payment of salaries is the e-zwich Payment Distribution System (PDS).
This allows salaries or any other remuneration to be paid directly onto the e-zwich card of the recipient. This form of payment, according to Mr. Hess, allows the recipient to get paid instantly.
Mr. Hesse noted that it was such an unpleasant experience to have salaries delayed, particularly when other colleagues have received their salaries.
He therefore encouraged employees to inform their management about the ACH and PDS so as to address the problems.
“That has nothing to do with the banking system but when the money is available, salaries should not delay beyond one day.
He also urged banks to inform their clients about these two products.
By Charles Nixon Yeboah