About the Project
BSR HERproject and Mastercard Center for Inclusive Growth have developed a technology tool to support managers to transition from cash to digital wages. Based on HERfinance Digital Wages program developed in partnership with the Bill & Melinda Gates Foundation, this toolkit helps employers and managers to transition from cash to digital payroll in a responsible way that considers the needs of all workers, particularly women workers.
The majority of wage payments in the garment sector are made in cash. This is very risky for employers who face theft or fraud in the transportation and distribution of cash wages; it’s inefficient, as workers must often stand in line to receive cash wages, which cuts into their productive or personal time; and it’s disempowering for women, who have less control over their wages when paid in cash.
Converting wage payments from cash to digital can benefit both employers and workers, especially women. In Bangladesh, HERfinance Digital Wages, supported by the Bill & Melinda Gates Foundation has shown that switching from cash to digital wages has led to a 59% reduction in the admin time and effort on payroll. After completing HERfinance Digital Wages program, there was a 21 percentage point increase in workers reporting they save regularly (male and female) and 19 percentage point increase in the share of women reporting that they discuss with others and make a joint decision on how to use her salary.
To ensure that the transition to digital wages is smooth and efficient, it is important that managers and workers are provided with information, guidance, and advice throughout the process. HERfinance Digital Wages Management Toolkit has been developed to provide managers with information, guidance and advice throughout the process.
HERfinance Digital Wages Workers Learning Tool is also available. It includes videos, quizzes and animations to enhance workers' understanding of financial services and provide guidance on financial planning, budgeting, and savings to improve resilience to economic shocks.