Can Employers Withhold Salary During the Probationary Period in the Philippines?

Executive summary

No. Philippine law requires employers to pay wages on the regular payday for all hours actually worked, regardless of probationary status. Holding back a probationary employee’s pay (e.g., “first salary after 3 months,” “no pay until regularization,” “on hold pending clearances/documents”) is generally unlawful. Only specific, narrowly allowed deductions (taxes, SSS/PhilHealth/Pag-IBIG, court-ordered garnishments, and deductions the worker freely authorizes in writing or those expressly allowed by law) may reduce take-home pay—and even then, never an indefinite hold of the whole paycheck.

The legal foundations (in plain English)

Wages must be paid on time. The Labor Code and its rules require payment at least twice a month at intervals not exceeding 16 days. “Probationary” is merely an employment status, not a license to delay or condition payment.
Withholding/kickbacks are prohibited. The Code prohibits an employer (or anyone) from withholding any part of the worker’s wages through force, threat, or any unlawful scheme.
Only lawful deductions. Deductions are allowed only if:
1. Required by law (withholding tax, SSS, PhilHealth, Pag-IBIG),
2. Authorized in writing by the employee for a lawful purpose (e.g., salary loan, cooperative dues), or
3. Specifically permitted under rules (e.g., loss or damage caused by the employee after due process and within reasonable limits, commonly applied with a practical cap such as not exceeding 20% of wages for a pay period). Employers cannot impose fines or “bonds” that effectively claw back wages unless allowed by law and freely agreed to in writing for a lawful purpose.
“No work, no pay” applies, but only for hours/days not worked. It does not allow an employer to hold pay for work already performed.
Form of payment. Wages must be in legal tender (cash/check). Bank payroll is fine only if the employee consents and still must be available on payday. An employer’s internal banking delays are not a legal excuse to miss payday.

Probationary employment: what it is—and what it isn’t

Maximum period: Up to 6 months from the start of work (absences/suspensions may extend the reckoning in some cases).
Standards must be disclosed: The employer must inform the probationary employee at engagement of the reasonable standards for regularization.
All core labor standards apply: Minimum wage, overtime, night shift differential, holiday/rest-day premium, 13th-month pay (if rank-and-file and worked at least one month within the calendar year), SSS/PhilHealth/Pag-IBIG coverage and contributions—all apply during probation.
Some benefits are tenure-based: Statutory Service Incentive Leave (5 days) attaches after one (1) year of service, so many probationary employees won’t be eligible yet unless company policy is more generous.

What employers may not do during probation

Unlawful/defective practices

“We’ll release your first/second salary after regularization.” ❌
“Pay is on hold until you submit your SSS/TIN/PhilHealth numbers.” ❌ (They can and must still pay; they should withhold taxes and remit statutory contributions once IDs are available.)
“We’re keeping your pay pending clearance or background checks.” ❌ (Clearances relate to final pay upon separation, not ordinary periodic wages.)
“We’ll offset training costs from your salary now.” ❌ (Any training bond/liquidated damages must be lawful, reasonable, agreed in writing, and even then should not result in total non-payment of earned wages; collection is typically through final pay setoff or separate civil recovery, not by freezing periodic pay.)
“No ATM yet, so no payout.” ❌ (Employer must pay in legal tender/check on payday.)

Lawful, but often misunderstood

Payroll cut-offs: If you start close to a cut-off, your first paycheck may be smaller or move to the next pay cycle—that’s not “withholding”; it’s the normal cut-off calendar.
Deductions for absences/undertime: Permissible because they reflect no work, no pay, not a penalty.
Loss/damage deductions: Allowed only after due process, clear proof of responsibility, reasonable valuation, and installment deductions within safe limits (commonly applied at ≤20% of wages per pay period).

Special pay setups during probation

Commission/bonus plans: A probationer earns commissions/bonuses pursuant to the same written plan as regular staff. Employers can pay on the plan’s stated schedule, but may not freeze earned commissions merely because the worker is on probation.
Piece-rate/field work: Minimum wage compliance is assessed per output/time rules; premiums (OT, night diff, holiday) still apply when conditions are met.
Training/onboarding time: If the training is required by the employer, controlled by it, or productive for it, those hours typically count as hours worked and must be paid—even during probation.

Frequently asked questions

1) Can my employer hold my entire paycheck because I haven’t given my SSS/PhilHealth/TIN yet? No. They must still pay you for work done. They can withhold and later remit the statutory contributions/taxes, but not your entire salary.

2) Are probationary employees entitled to minimum wage and 13th-month pay? Yes. Minimum wage applies from day one; 13th-month pay applies to all rank-and-file employees who have worked at least one month in the calendar year, including probationers.

3) Can the company deduct the cost of unreturned property from my pay? Only after due process, clear proof of responsibility, and reasonable valuation, typically with installment deductions rather than wiping out a paycheck.

4) Is it legal to impose a “salary bond” during probation? As a rule, no. Requiring a deposit or bond that effectively forfeits wages is generally prohibited. Separate, reasonable training agreements may be enforceable, but they don’t justify withholding periodic wages.

5) My first paycheck arrived later than I expected—is that illegal? Not necessarily. Check your employer’s published payroll cut-off and payday. If you started near the cut-off, your first complete pay may fall in the next cycle. What’s illegal is missing the published payday or conditioning payout on regularization or paperwork.

Practical playbook if your pay is being withheld

Check the basics: Start date, payroll cut-off, payday, and any written pay policy you received.
Ask in writing: Politely request the release date of wages already earned and point out that probation does not justify withholding.
Gather proof: Offers/contract, time records, schedules, emails, and screenshots of messaging about pay.
Escalate internally: HR/Payroll/Finance; ask for the specific legal basis for any hold.
Seek help: If unresolved, you may file a request for assistance with the DOLE Regional/Field Office (via SEnA conciliation). Bring your documents.
Keep working (if safe/legal): Don’t abandon work without advice; explore legal options if non-payment persists.

Sample one-page notice to HR/Payroll

Subject: Request for immediate release of wages during probation Dear HR/Payroll, I am a probationary employee who rendered work on [dates]. Under Philippine labor law, wages for work performed must be paid on the regular payday, and probationary status does not permit withholding of salary. As of today, my wages for [cut-off dates] have not been released. I respectfully request payment on or before [next published payday] and a written explanation if there is any lawful, specific deduction. Thank you. [Name] [Position/Employee No.]

Key takeaways

Probation ≠ pay on hold. If you worked, you must be paid on time.
Only lawful, limited deductions may reduce take-home pay; never an open-ended freeze.
Commissions, OT, premiums, and statutory benefits apply to probationers on the same legal footing as to regular staff.
When in doubt, document and escalate—first internally, then to DOLE if needed.

This article is general information for the Philippine setting and not legal advice. For specific situations, consult a Philippine labor law practitioner or DOLE.