Ireland’s banks have contacted employers in recent weeks to prevent a repetition of problems at the start of May 2014, when the May Day bank holiday resulted in many workers not receiving their wages.
The holiday will be observed on Monday May 4 in Ireland but on Friday May 1 in continental Europe, meaning that inter-bank transactions won’t be processed on either day. Last year many company employees did not receive their salary on May 1 as European banks were closed
A pan-European system of payments, of which Ireland is a member, began operations in 2014. It allows for similar systems to make payments across countries but no payment can be made when there is a bank holiday in Europe.
Companies and government agencies with large payrolls have been encouraged to arrange payments a day early to ensure that workers expecting to get their monthly payment this Friday do not have to wait until Tuesday May 5.
Industry body the Banking and Payments Federation, Ireland (BPFI) has advertised in national papers this month, advising companies of the deadline.
“Employers, for example, who normally pay weekly wages on Friday or monthly salaries on the 1st of the month (including standing orders) will need to submit their payments to their bank by Wednesday 29th April to ensure that beneficiary accounts are updated (credited) on Thursday 30th April,” the BPFI advertisement stated.
“If employers do not pay early, some employees may not receive their wage/salary payments until Tuesday 5th May, as Monday 4th May is a local bank holiday in Ireland.”
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