Urgent warning issued as 'European holiday' could delay payment of wages in Ireland
Irish businesses are being urged to submit wages and salaries earlier to avoid delays
Banking & Payments Federation Ireland (BPFI) has issued a warning about payments between banks on the upcoming European May Day holiday on Thursday May 1st.
Electronic euro payments between banks on that day may be subject to delays, the BPFI has warned.
"Businesses in particular are urged to ensure that payment requests for wages and salaries due on the 1st of May should be submitted earlier to ensure employees receive their pay on time," the BPFI said.
Leah Donnelly, Manager of Payment Schemes, BPFI said: “This year the annual European May Day holiday falls on Thursday May 1st and European institutions including the European Central Bank, which operates the banking settlement system across Europe, will be closed.
"While banks are open in Ireland on that day, the European holiday means that electronic payments in Euro cannot be made to bank accounts in Ireland or anywhere else across Europe. Essentially this means that anyone expecting a Euro payment into their bank account on this date may not receive the payment until Friday 2nd May.”
READ NEXT: 'Where clothes go to die' - Plans unveiled for new Penneys store dubbed 'the worst' in Ireland
“We are now advising consumers, and particularly businesses paying employees or suppliers, to allow additional time for payments to reach the beneficiary. Employers who normally pay weekly wages into employees’ accounts on a Thursday, or monthly salaries on the 1st of the month, will need to submit their payment requests to their bank by Tuesday 29th April with employees receiving their funds on Wednesday 30th April. Standard payment processing cycles will apply from Friday 2nd May.”
BPFI member banks are engaging directly with their customers and government departments to ensure that, where necessary, payments impacted by this are paid early and are processed on time, a press release said.
As such, customers should raise any queries they may have directly with their bank, credit union or post office, the BPFI said.