In the Philippine labor landscape, the Protection of Wages is a fundamental right enshrined in the Labor Code of the Philippines (Presidential Decree No. 442). Employers are generally prohibited from interfering with the disposal of wages or making unauthorized deductions. When an employer violates these standards, workers have a clear legal path to seek redress.

1. What Constitutes Illegal Salary Deductions?

Under Article 113 of the Labor Code, an employer cannot make deductions from the wages of employees except in the following specific cases:

Insurance Premiums: When the employer is authorized by the employee in writing to pay premiums for insurance on the employee's life.
Union Dues: Where the right to check-off has been recognized by the employer or authorized in writing by the individual employee.
Mandatory Statutory Contributions: Deductions for SSS, PhilHealth, Pag-IBIG, and withholding taxes as required by law.
Court Orders: When the deduction is ordered by a court for support or other legal obligations.
Loss or Damage: In specific industries (e.g., retail or hospitality), deductions for loss or damage to tools/equipment are allowed only if it is shown that the employee is clearly responsible, and the deduction does not exceed 20% of the employee's weekly wages.

Note: "Bond" deposits or "training bonds" that result in deductions from salary are generally illegal unless specifically allowed by Department of Labor and Employment (DOLE) regulations.

2. Common Labor Standard Violations

Beyond salary deductions, common violations that warrant a complaint include:

Non-payment of Minimum Wage: Paying below the rate set by the Regional Tripartite Wages and Productivity Board (RTWPB).
Unpaid Overtime: Failure to pay the additional 25% (regular day) or 30% (rest day/holiday) for work exceeding eight hours.
Non-payment of 13th Month Pay: Failure to provide this mandatory benefit on or before December 24.
Non-payment of Service Incentive Leave (SIL): Five days of paid leave for employees with at least one year of service.
Night Shift Differential: Failure to pay the extra 10% for work performed between 10:00 PM and 6:00 AM.

3. The Legal Process: SENA to NLRC

The Philippines utilizes a mandatory conciliation-mediation process to resolve labor disputes before they escalate to formal litigation.

Step 1: Single Entry Approach (SEnA)

Most labor complaints must first pass through the Single Entry Approach (SEnA). This is a 30-day mandatory conciliation-mediation process handled by a Single Entry Assistance Officer (SEAO).

Goal: To reach an amicable settlement or a "compromise agreement."
Venue: The DOLE Regional or Provincial Office having jurisdiction over the workplace.

Step 2: Filing a Formal Complaint (NLRC)

If SEnA fails and no settlement is reached within 30 days, the SEAO will issue a referral to the National Labor Relations Commission (NLRC).

The complainant files a formal position paper detailing the claims.
The case is assigned to a Labor Arbiter (LA).
The LA will issue a decision based on the position papers and evidence submitted.

4. Documentary Evidence Needed

To build a strong case for illegal deductions or money claims, the employee should gather:

Payslips: The primary evidence showing the gross pay and the specific items deducted.
Employment Contract: To prove the existence of an employer-employee relationship and the agreed-upon wage.
Daily Time Records (DTR): To prove overtime, holiday work, or night shift hours.
Company Handbook/Policies: To show if the deduction was contrary to the company’s own stated rules.
Notices/Communication: Emails or memos where the employer explains the reason for the deduction.

5. Remedies and Penalties

If the Labor Arbiter finds that the deductions were illegal or labor standards were violated, the employer may be ordered to:

Restitution: Refund the full amount of the illegal deductions.
Payment of Unpaid Benefits: Pay the full amount of the minimum wage differentials, overtime pay, or 13th-month pay.
Legal Interest: Pay 6% interest per annum on the total amount due.
Attorney’s Fees: In cases of unlawful withholding of wages, the employee may be entitled to attorney’s fees equivalent to 10% of the total amount recovered.

6. Protection Against Retaliation

Article 118 of the Labor Code protects employees from "retaliatory measures." It is unlawful for an employer to refuse to pay, reduce the wages of, or discharge/discriminate against any employee who has filed a complaint or testified in a proceeding under the Labor Code. Such actions can lead to a separate claim for Illegal Dismissal.