Wage Deductions

There are 2 groups of wage deductions: those under Art. 113 of the Labor Code and those under other laws. The allowable wage deductions under Art. 113 of the Labor Code are the following:

1.) In cases where the worker is insured with his consent by the employer and the deduction is to compensate the employer for the amount he paid as a premium on the insurance

2.) For union dues if the employer recognizes the worker's or union's right to check-off (deduct from wages) or is authorized by the worker himself

3.) In cases where the law or regulations issued by the DOLE Secretary authorizes the employer to make deductions

The following are deductions allowed by other laws

1.) If the employee has a debt to the employer and it's now due and demandable (Civil Code, Art. 1706)

2.) In court awards, wages can be subject to execution or attachment only if they cover debts for food, shelter, clothing or medical attendance (Civil Code, Art. 1703)

3.) Withholding taxes (NIRC)

4.) Salary deductions of a member of a legally established cooperative (RA 9520, Art. 58, which amended RA 6938/Philippine Cooperative Code of 2008)

5.) Deductions for payment to third persons, with the employee's written authorization (Labor Code Implementing Rules, Book 3, Rule 8, Sec. 13)

6.) Union dues (Labor Code, Art. 241 and 277)

7.) Agency fee (Labor Code, Art. 248, par. e)

8.) Deductions for meals and other facilities (Labor Code Implementing Rules, Book 3, Rule 7-A, Sec. 7)

9.) Deductions for loss or damage (Art. 114, Labor Code)

10.) SSS, Medicare, Pag-IBIG, premiums

Note, however, that under Art. 114 of the Labor Code the employer can't make the employee make a deposit to cover damages to company property. Whatever damage the employee commits must be charged  to his salary.