Payroll & HR Β· Philippines

Wage deductions: only three allowed cases

Labor Code, Art. 113: no employer shall make any deduction from wages, except:

  • Insurance: you are insured with your consent and the deduction pays back the premium
  • Union dues: check-off is recognized by the employer or authorized in writing by you
  • Authorized by law or by regulations of the Secretary of Labor

Example

Illustrative example only. Payslip: β‚±18,000 gross. One line says β‚±1,000 β€œshortage”, and you signed nothing. Ask HR which of the three cases it falls under, and for the paper behind it.

⚠️ Tandaan

Art. 116: it is unlawful to withhold any amount from wages, or make a worker give up part of them, by force, stealth, intimidation, threat or any other means without the worker's consent.

I-check ang payslip

  • ☐ List every deduction line
  • ☐ Match each to one of the three cases
  • ☐ Ask HR in writing about the rest
  • ☐ Keep your payslips

Demand letter, handa na, kung hindi ibinabalik ang bawas πŸ‘‡

Basis: P.D. 442 (Labor Code), Arts. 113 and 116.

Source