Wage deduction

Employers, whether in their own behalf or in behalf of any person, are prohibited from making deductions on the wages of their employees. Any deduction made would be deemed illegal.

But there are also cases where employers are allowed to make deductions on their employees’ wages, namely:

1. In cases where the worker is insured with his consent by the employer, and the deduction is to recompense the employer for the amount paid by him as premium on the insurance;

2. For union dues, in cases where the right of the worker or his union to check-off has been recognized by the employer or authorized in writing by the individual worker concerned; and,

3. In cases where the employer is authorized by law or regulations issued by the Secretary of Labor and Employment.

In those cases, any deduction made by the employers on the wages of their employees would be deemed legal.

[Reference: Article 113 of the Labor Code of the Philippines]

 

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