Is Salary Deduction Legal in the Philippines

Finally, Labour Notice No. 11 provides that deductions from workers` wages for company uniforms, cash deposits for loss or damage, personal protective equipment (PPE), equity participation or capital accumulation in service cooperatives, training costs and other deductions not included in the above list are not allowed. Payroll deductions based on Section 59 of Republic Act No. 6938 or the Philippine Code of Cooperatives on Cooperative Membership or Contributory Contributions are permitted. “There were valid reasons why the defendants withheld the applicant`s salary for the month of February 2000. The applicant does not deny that he owes his employer approximately 95,000.00. The respondents stated that the complainant`s salary for the period from 1 February to 15 February was to be paid on 15 February. The month of February 2000 was used as partial payment of his debts and withholding tax on his income; while the complainant was already absent without authorization during the period from 15 February to 28 February 2000 and was therefore not entitled to remuneration. In addition to the general rule, DOLE Notice No. 11, 2014 series, states that “no employer may deduct from employees` wages except as provided by law.” The recommendation provides that with respect to “cash deposit in the event of loss of or damage to tools, materials or equipment provided by employers. It is only in private security agencies that the practice is recognized and authorized.

However, when requesting such a cash bond, a private security agency must first strictly adhere to the rules and standards to ensure its validity and take due account of the social protection and well-being of a worker. According to articles 1706 and 1708 of the new Civil Code, deduction from wages due to the employee`s unpaid debts to the employer and deductions made on the basis of a court decision against the employee for the payment of debts for food, clothing, housing and medical care are permissible deductions. Art. 102. Zahlungsarten. No employer may pay an employee`s wages by means of promissory notes, vouchers, vouchers, tokens, notes, chits or articles other than legal tender, even if the employee expressly requests it. Payment of wages by cheque or money order is authorized if such method of payment is customary at the time this Act comes into force or is necessary because of special circumstances provided for in the relevant regulations of the Minister of Labour and Employment or in a collective agreement. i.To exercise such powers and perform such duties as may be necessary for the administration of this Act.

The Commission shall be composed of the Minister of Labour and Employment, Acting President by Right, the Director General of the National Economic and Development Authority (NEDA) as ex officio Vice-President and two (2) members from the Workers and Employers sectors, appointed by the President of the Philippines on the recommendation of the Minister of Labour and Employment from the list of candidates shall be appointed. and is in office for a term of five (5) years. The Executive Director of the Commission shall also be a member of the Commission. The Commission shall be assisted by a Secretariat headed by an Executive Director and two (2) Deputy Directors appointed by the President of the Philippines on the recommendation of the Minister of Labour and Employment. The Executive Director shall have the same rank, salary, performance and emoluments as Deputy Secretary of the Department, while Deputy Directors shall have the same grade, salary, performance and other emoluments as the Executive Director. Board members representing employees and management have the same rank, compensation, benefits and benefits as are prescribed by law for employee and management representatives on the Workers` Compensation Board. (As amended by Republic Act No. 6727 of June 9, 1989) Example. P10 Pesos ang ibabawas ng employ its salaried employee? Allowed or legal po ba yun? This is interesting because other forms of deduction allowed are limited by certain information.

For example, we have advances for insurance premiums and union dues – which clearly indicate the reason for payment. In addition, the Labor Consulting Series No. 11 of 2014 also clarifies deductions for loss or damage, which apply exclusively to private security agencies and continue to require compliance with conditions. In the latter case, deductions are even intended to protect workers` wages by ensuring that the deduction does not exceed 20% of an employee`s salary in a week. In addition, deductions where meals are provided to an employee are appropriately mitigated by the rule that these deductions cannot exceed 70% of the value of meals and snacks. Section 259 (e) of the Labour Code also allows deductions from workers` wages in respect of the payment of recruitment fees for non-union members who accept the benefits of the collective agreement negotiated by the collective bargaining union. In the Philippines, regular employees are required to make monthly contributions to four government agencies. Some monthly contribution costs are shared with the employer. The employee`s share of these monthly contributions is usually automatically deducted from salary. Nevertheless, it must be refunded to employees within 30 days of its issuance, or as agreed by the employer or employees under the Single Entry Approach (SEnA), otherwise non-refund will result in the deduction being illegal.

To this end, the employer should first ensure that some or all of the following accompanying conditions have been met: (a) the worker concerned is clearly liable for the loss or damage; (b) the employee is given a reasonable opportunity to explain why the deductions should not be made; (c) the amount of such deduction is just and reasonable and does not exceed the actual loss of the damage; and (d) the deduction from the employee`s wages does not exceed 20 per cent of the employee`s wages in any one week. “A. In cases where the employee is insured with the consent of his employer and the deduction reimburses the employer for the amount paid as an insurance premium; Art. 115 Limitations. The actual amount of loss or damage will not be deducted from an employee`s deposits unless the employee has been heard and his or her responsibility has been clearly stated. In addition, under the implementing rules of the Labour Code (TRI of the Labour Code), in particular Book 3 on Conditions of Employment, deductions from wages are allowed if the employer has received written permission from the employee to pay to a third (3rd) person. This only applies if the employer has not benefited directly or indirectly from the transaction (Rule VIII, Book 3, Article 10(b) TRI). In addition to the Labour Code, other laws prohibit the deduction and withholding of workers` wages. In particular, Section 1708 of the Civil Code of the Philippines provides that the employee`s wages may not be applied or garnished. Unless the execution or seizure involves debts for food, shelter, clothing and medical care. a. “Person” means an individual, partnership, association, corporation, business trust, legal representative or organized group of persons.

“No employer, in his own name or on behalf of a person, can make a deduction from the wages of his employees, except: I recently quit my job and I have not yet been paid on my last month`s salary. When I inquired about the release of my unpaid wages by the company, I was told that the same thing had been withheld in the meantime until I handed over the barracks I occupied when I worked for the company. Is my former employer entitled to withhold my salary? However, the most recent amendment amended the latter reason by including as one of the exceptions “deductions with the written consent of the employee for payment to the EMPLOYER or to a third party, and the employer agrees to do so, provided that the third party receives no direct or indirect financial benefit from the transaction.” However, the addition stops there. A review of the legislation would show that there does not appear to be any reservation as to the type of “payment” owed to the employer. One. the payment of lower remuneration, including wages, wages or other forms of remuneration and benefits, to a female worker compared to a female worker for work of equal value; and the Ang po ba dahil na late ang deductions used. Pwedeng Gawin ng employer.