EN ECB -PUBLIC 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 8 Febru ary 2013  
on limitations on cash payments  in the context of payment of wages  
(CON/20 13/11) 
 
Introduction and legal basis  
On 11 January 2013, the European Central Bank (ECB) received a request from the Finnish Ministry of 
Employment and the Economy  for an opinion on a draft l aw amending Chapter 2 Section 16 of the Law 
on employment contracts1 and Chapter  2 and Chapter  8 Section 4 of the Law on  account ing2 (hereinafter 
the ‘draft law ’). 
The ECB’s competence to del iver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the second indent of Article  2(1) of Council Decision 98/415/EC 
of 29 June 1998 on the consultation of the European Central Bank by national a uthorities regarding draft 
legislative provisions3, as the draft law relates to means of payment . In accordance with the first sentence 
of Article  17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has 
adopted this opinion.  
 
1.  Purpose of the draft law  
The draft law is  part of a Government action programme for 2012- 20154, which aims , inter alia, to 
combat tax evasion. The draf t law provides that wages should, as a general rule, be  paid into a bank 
account designated  by the e mployee . The aim is to reduce the use of cash, and thereby to make it more 
difficult for employers to make undocumented payment of  wages.  
 
2. General observations  
2.1 The ECB notes that the draft law is in compliance with Union law5, and in particular wit h recital 19 
of Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro6, which 
states that ‘limitations on payments in notes and coins, established by Member States for public 
                                                 
1  Työsopimuslaki  26.1.2001/55.  
2  Kirjan pitolaki 30.12.1997/1336 . 
3  OJ L 189, 3.7.1998, p. 42.  
4  Tehostettu harmaan talouden ja talousrikollisuuden torjunnan toimintaohjelma vuosille  2012 –2015, valtioneuvoston 
periaatepäätös 19.1.2012.  
5  See paragraph 2.3.2 of Opinion CON/2010/36 and paragraph 2. 1 of opinion CON/2012/33. All ECB opinions are 
published on the ECB’s website at www.ecb.europa.eu.  
6  OJ L 139, 11.5.1998, p. 1.  
ECB -PUBLIC  
2 reasons, are not incompatible with the status of legal tender of euro banknotes and coins, provided 
that other lawful means for the settlement of monetary debts are available’. The ECB 
acknowledges that: (i)  such other lawful means for the settlement of monetary debts, other than 
cash, are available in Finland; and (ii) the draft law’s objective of comba ting tax evasion qualif ies 
as a public reason outweighing the impact of the limitations  on cash payments . 
2.2 However,  limitations on payments in cash should be proportionate to the objectives pursued and 
should not go beyond what is necessary to achieve such objectives, especially  in view of the fact 
that the  restrictive  measures of the draft law  may also affect relatively low value payments. Any 
negative impact of the proposed limitations should be carefully we ighed against the public benefits 
expected to be derived from them . 
 
3. Specific observations  
3.1 The ECB understands that the proposed limitation s on payments in cash would only affect the 
payment of wages, while payments in cash in relation to other transactions (such as between 
businesses, and between businesses and customers)  would not be affected.  
3.2 The ECB notes that payment of wages in cash  would  still be allowed under the draft  law for 
‘compelling reasons’. While the draft law does not define the meaning of ‘compelling  reasons’, the 
explanatory memorandum refer s to situations  where, for reasons beyond the control of the 
employer, an employee would not otherwise have access to t heir wages within the time period 
agreed or stipulated by law (e.g. whe re the employ ment  contract is terminated with immediate 
effect) and to situations where an employ ee does not have a bank account.  
3.3 In addition, the ECB notes  that the draft law does not require employees who do not already have a 
bank account to open one  for the payment of their wages ; such employees would still be entitled to 
have their wages paid in cash . In this context , the ECB also notes that while the failure to include in 
the accounting documents a receipt (or other form of documentation of cash pa yment of wages) 
signed by the employee would constitute an accounting violation punishable by a fine under the 
draft law , the payment  of wages in cash would  not of  itself constitute  a punishable violation or 
crime . 
3.4 The ECB further notes  that, according  to the explanatory memorandum , cash payments and the 
holding of large amounts of cash are not typical business practices  in Finland.  
3.5 In addition, the ECB acknowledges that the Finnish  Ministry of Employment and the Economy  has 
conducted a thorough analysis of  the expected economic effects of the restrictive measures on cash 
payments of wages laid down in the draft law7. According to this analysis, the draft law  would 
result in a very small increase of costs for a minority of employers, whereas there wo uld be no 
increase in costs for the majority of employers, as payment of wages in to a bank account is already 
standard  practice in Finland . 
                                                 
7  See a special section in the explanatory memorandum dedicated to the expected economic effects of the limitation of 
payments of wages in cash.  
ECB -PUBLIC  
3 3.6 Against th is background, the ECB is of the view that the proposed restriction s on cash payments as 
described abo ve appear  to be  proportion ate to the  objectives purs ued by the draft law . 
 
This opinion will be published on the ECB’s website.  
  
Done at Frankfurt am Main, 8 Febr uary 2013.  
 
[signed] 
 
The President of the ECB  
Mario DRAGHI