Digital wage payment: the labor-management agreement and consent required, and the 4 designated providersYou can now get your pay through a phone payment app
With the worker's consent, wages can be paid into an account at a fund transfer service provider designated by the Minister of Health, Labour and Welfare. The MHLW page lists 4 designated providers (as of July 1, 2026 (Reiwa 8); 0 under review). It is one of the ways to receive pay, and an employer cannot force it.
- 1. AgreementConclude with the majority union or majority representative
- 2. ExplanationExplain the points to note to workers
- 3. Offer optionsAlso offer a bank account and securities comprehensive account
- 4. Consent formThe worker fills in the amount and account details and submits it
- 5. PaymentPay into the designated provider's account within the scope consented to
Key points
- Conclude a labor-management agreement with the labor union organized by a majority of workers (or, if none, a majority representative). The agreement states matters such as the scope of covered workers and the scope of designated fund transfer service providers
- The worker submits a consent form after receiving an explanation of the points to note. The form states the amount to be received, the fund transfer service provider account number, and information on the designated substitute account
- When offering digital payment, a bank account or a securities comprehensive account must also be offered as options
- Designated providers and receiving limits: PayPay Salary Receipt JPY 200,000; COIN+ (Standard) JPY 300,000; Rakuten Pay Salary Receipt JPY 100,000; au PAY Salary Receipt JPY 100,000
- Paying wages in points that cannot be cashed out, or in crypto-assets, is not allowed
What to do in practice
- If introducing it, conclude the labor-management agreement and obtain a consent form from each worker who wants it
- Always offer options such as a bank account to workers who do not want digital payment
Until now, pay was basically given in cash or by bank transfer. Now, if the person says OK, part or all of the pay can also be received in an account like a phone payment app run by a company approved by the government. A company cannot force this.
- ○Applies: The person hands in a consent form and chooses it
- ○Applies: Other ways to receive pay, such as a bank account, are also offered as options
- ×Does not apply: The company forces you to "take it by digital payment"
- ×Does not apply: Paying with points that cannot be turned into cash
Points
- You can use only the services of 4 companies approved by the government (as of July 1, 2026)
- It can be used only after you hand in a consent form. The choice is yours
- Each service has a "limit it can accept" (JPY 100,000 to JPY 300,000)
What the words mean
- Fund transfer service provider
- A company that runs a service for sending and receiving money
- Consent form
- A paper where the person writes "that way is fine" and hands it to the company
- Ministry of Health, Labour and Welfare (MHLW): MHLW: Payment of wages into accounts of fund transfer service providers (digital wage payment)
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.