Philippine Laws -Simplified | Free Legal Advice

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Wage Deductions

Sunday, January 15, 2012

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.

15 comments:

Unknown said...

Hi sir. Is salary deduction allowed for the company uniform?

Unknown said...

Hi sir. Is salary deduction allowed for the company uniform?

rach said...

How about for overpayment? They deducted an amount without asking if it is ok with me.

Unknown said...

Hi Sir. Is it stated in the law that contractual workers should NOT be exempted in salary deduction? We will have our debate in class po kasi and our stand is to not exempt the contractual workers for salary deduction.

Tong said...

Hi sir, Good day..
This is unusual and funny but it really happens to me;
My company promoted last May 2 and on our pay day, i checked my bank account I was surprise because instead of salary increase it was then decrease for about 50 %. I ask the HR he said there are some deduction for additional benefits.. And I not stupid to belief...
can I ask what to do.. especially if I want to file a case against the company?

Unknown said...

Good Morning!
Our company provides a mobile plan for each employee. Is it legit to add a 10% additional charges on top of the excess amount on each plan? Though the memo issued relating to wit has been signed by the employee, it was never clearly explained to them. What can we do about it?

Thanks in advance.

Unknown said...

My company charges me big amount of money because of damage product is it legal?2nd they tampering my documents for charges

Ase_N_Oel said...

how about uniforms? is it allowed to deduct on their salaries?

Unknown said...

My employer didnt pay my overtimes, per diem and my basic salary became lower than my basic salary before?

Unknown said...

"Food and transportation are included. In the absence of the partner during the conference, the full fee amount at cost will be charged against the partner’s account." Is this legal or appropriate?

jesus lagarto said...

Hi po panu po kung nag maroon ng increase.at nailagay sa basic salary.for 6 month.at pagtapos binawasan ang basic salary my.kc nag kamali cila.is that legal.

Unknown said...

What about undertime sa government employee sir?

Unknown said...

What about clerical mistakes?
is that allowed to be a salary deduction?

Unknown said...

Sa retrenschment pay po ung pinabale ng compania sa empleyado .noon kasalukuyan ecq kakaltas po sa bayad sa amen sa re treshment pay po ng empleyado...

Unknown said...

Sa retrenschemt pay po ung pinabale na compania sa empleyado noon kasalukuyang ecq kkaltasin po sa bayad sa retreschment pay?

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