How to Claim Unpaid Wages in the Philippines: Money Claims, NLRC, and Prescriptive Periods

Updated for Philippine law and practice as commonly applied by DOLE regional offices, the National Labor Relations Commission (NLRC), and recent Supreme Court guidance.

At a Glance

Two main forums: the Department of Labor and Employment (DOLE) and the National Labor Relations Commission (NLRC).
Quick rule of thumb:
- DOLE (inspection/visitorial cases): Any amount, when a labor inspector verifies a violation.
- DOLE (simple money claims under Art. 129): Small, straightforward claims without reinstatement; historically subject to a ₱5,000 per employee cap.
- NLRC (Labor Arbiter): Claims with reinstatement/illegal dismissal, claims exceeding ₱5,000, claims with damages/attorney’s fees, or complex disputes.
Deadlines to file:
- Money claims: 3 years from when each claim accrues.
- Illegal dismissal (reinstatement): 4 years.
- Unfair labor practice (ULP): 1 year.
Before filing: Most labor cases go through SEnA (Single-Entry Approach) – a mandatory 30-day conciliation step.
Proof: Bring payslips, time records, contracts, messages, and any company policies showing the wage/benefit promised.
Interest: Monetary awards generally earn 6% legal interest per annum until fully paid.
Minimum wage underpayment: Employers may face double indemnity on unpaid minimum wages plus possible administrative/criminal penalties.

What Counts as “Unpaid Wages” (and Related Money Claims)?

You can recover any statutory or contractual pay or benefits that are due but weren’t paid in full or on time, including:

Basic pay (including minimum wage differentials)
Overtime pay (OT): Work beyond 8 hours/day
Night shift differential (NSD): At least 10% of hourly rate for work 10:00 p.m.–6:00 a.m.
Premium pay: For rest days and special non-working days
Holiday pay: For regular holidays (and special days, as applicable)
Service Incentive Leave (SIL): 5 days/year (convertible to cash if unused), if covered
13th month pay (generally 1/12 of basic salary earned in a calendar year)
Service charges (distribution rules apply, if charged to customers)
Wage deductions illegally taken (beyond lawful deductions like SSS, PhilHealth, Pag-IBIG, and withholding tax)
Final pay on separation (e.g., last salary, pro-rated 13th month, SIL conversion)
Separation pay (if legally due, e.g., authorized causes; note: typically claimed with dismissal issues before the NLRC)

Tip: Claims tied to termination (e.g., backwages, reinstatement, separation pay in lieu of reinstatement) belong with the NLRC Labor Arbiter, not a DOLE simple money-claims desk.

Where to File: Choosing the Proper Forum

1) DOLE – Visitorial & Enforcement (Inspection) Cases

Triggered by DOLE labor inspection (routine, complaint, or special).
No amount limit. If inspectors verify violations (e.g., underpayment), the Regional Director may order compliance and payment of deficiencies.
Useful when your issue is a labor standards violation affecting many employees (e.g., nonpayment of overtime across a department).

2) DOLE – Simple Money Claims (Labor Code, Art. 129 – “Recovery of wages, simple money claims and other benefits”)

Straightforward individual claims where there is no claim for reinstatement and no complex factual issues.
Historically limited to ₱5,000 per employee; anything more complex or above that threshold goes to the NLRC.
A fast, summary process; orders are appealable within 10 calendar days to the DOLE Secretary.

Which DOLE track applies? If your complaint starts at a DOLE money claims desk, the ₱5,000 cap historically matters; if your issue is picked up through DOLE inspection, the Regional Director can enforce payment regardless of amount.

3) NLRC – Labor Arbiters

File here if any of the following apply:

Illegal dismissal or you seek reinstatement
Aggregate claim exceeds ₱5,000 (per employee) or is factually/legal complex
You claim damages, attorney’s fees, or there are contracting/outsourcing issues
There’s a need for fuller trial-type proceedings (witnesses, cross-examination)

Appeals:

Labor Arbiter decisions: appeal to the NLRC Commission within 10 calendar days (employer must post a bond equal to the monetary award to perfect appeal).
Further recourse is via Rule 65 (certiorari) to the Court of Appeals on jurisdictional errors or grave abuse of discretion.

Mandatory SEnA (Single-Entry Approach) – Your First Stop

Before filing with DOLE or the NLRC, most employment disputes go through SEnA at a DOLE office.
A conciliation-mediation conference aims to settle the case within 30 days.
Outcomes: (a) settlement (documented in an enforceable agreement) or (b) referral to the proper forum (DOLE money claims or NLRC).
Bring your documents and a specific computation of what you are owed.

Prescriptive Periods (Deadlines to File)

Filing on time is crucial. Key periods generally applied are:

Money claims (wages, overtime, premium pay, 13th month, SIL, etc.): 3 years from the date each item accrues (each payday/violation is its own accrual).
Illegal dismissal / reinstatement claims: 4 years (often anchored on the Civil Code rule for injury to rights).
Unfair Labor Practice (ULP): 1 year from occurrence.
Criminal offenses under the Labor Code: typically 3 years.

Practical rule: File as soon as possible. Don’t let rolling accruals expire month by month.

What to Prepare: Evidence & Computations

1) Identity & employment relation

Government ID; company ID (if any)
Employment contract/offer/acceptance, job order, emails/letters confirming hiring
SSS/PhilHealth/Pag-IBIG enrollment or contributions showing employer name

2) Proof of hours/entitlement

Payslips, Daily Time Records (DTR), bundy cards, biometrics logs
Duty schedules, team chats, emails or memos assigning overtime/holidays/rest-day work
Company handbook/policies promising certain benefits

3) Computation sheet (bring a clear spreadsheet)

Basic formulae you can use:
- Hourly rate = Daily rate ÷ 8
- OT rate (ordinary day) = Hourly rate × 1.25 × OT hours
- OT on rest day/special day = Hourly rate × 1.30 × 1.25 × OT hours (check your exact scenario)
- NSD = Hourly rate × 10% × hours worked 10:00 p.m.–6:00 a.m.
- Regular holiday pay (no work) = 100% of daily wage (if present/paid on the workday immediately preceding)
- Regular holiday worked = Daily wage × 200% (first 8 hrs), plus OT rates beyond 8
- Special non-working day worked = Daily wage × 130% (first 8 hrs), plus OT rates beyond 8
- 13th month = Total basic salary earned in the calendar year ÷ 12
- SIL monetization = (Daily rate) × (unused SIL days, up to 5)

Legal interest: Courts/tribunals generally impose 6% per annum on money awards from finality of decision until full satisfaction (sometimes from the date of demand/filing for purely monetary obligations).

Step-by-Step: DOLE Money Claims (Art. 129) or DOLE Inspection

SEnA filing at a DOLE field/Regional Office; attend the conciliation.
If unresolved and your claim is simple (no reinstatement; within DOLE’s simple claims ambit), file at the Regional Office.
Conference & submission of proofs and computation; DOLE may ask for employer records.
Order of payment (if warranted).
- Appeal: Any party may appeal within 10 days to the DOLE Secretary (for Art. 129 orders).
For inspection cases, DOLE may issue a Compliance Order (no amount cap) after verification; appeal lies to the Secretary.

Enforcement: DOLE can issue writs of execution and coordinate with sheriffs for garnishment/levy.

Step-by-Step: NLRC Money Claims / Illegal Dismissal

SEnA at DOLE; if unresolved, you’ll get a Referral to the NLRC.
File a Complaint (complaint form lists causes of action: illegal dismissal, underpayment, 13th month, etc.).
Mandatory Conciliation-Mediation (NCMB at the NLRC level) and preliminary conferences.
Position papers with evidence; the process is primarily documentary (no full-blown courtroom trial), but hearings may be set as needed.
Decision by Labor Arbiter.
- Appeal within 10 days to the NLRC Commission (employer appeals require a cash or surety bond equal to the monetary award).
Finality & Execution: A writ of execution issues; the NLRC sheriff implements garnishments/levies until paid.

Special Topics You Should Know

Minimum Wage Underpayment & Penalties

Employers who pay below minimum wage can be liable for double indemnity (pay double the unpaid amount) and other penalties, on top of the deficiency itself.
Regional Wage Orders set different minimums per region/sector; bring the wage order applicable to your workplace location and period.

Contracting/Outsourcing

If you were hired through a contractor, the principal and contractor are generally solidarily liable for labor standards (wage/benefit) violations.
Labor-only contracting is prohibited; if proven, the principal may be deemed the employer.

Corporate Officers’ Liability

As a rule, corporations have a separate juridical personality.
Corporate officers may be held solidarily liable only in specific circumstances (e.g., when they act with malice or bad faith, or in cases of labor-only contracting or where statutes explicitly impose it).

Deductions from Wages

Only lawful deductions are allowed (e.g., SSS/PhilHealth/Pag-IBIG, withholding tax, and authorized deductions with employee consent that benefit the employee).
Cash bonds, losses, uniforms/tools: strict rules apply; unlawful deductions can be recovered.

Resignation vs. Dismissal

Forced resignation can be constructive dismissal, which is an NLRC matter (reinstatement/backwages/separation pay).
If you simply need unpaid final pay, DOLE money claims or inspection can be appropriate.

Attorney’s Fees

Tribunals often award attorney’s fees of 10% of the total monetary recovery when the employee is compelled to litigate or is represented by counsel.

Practical Checklist (Use This When You’re Ready)

List your claims (e.g., minimum wage diff, OT, NSD, holiday pay, 13th month, SIL, final pay).
Compute each item by pay period; attach a clear spreadsheet.
Gather evidence: payslips, DTRs, schedules, chats/emails, contract/policies.
Identify the forum:
- No reinstatement + small/simple → DOLE money claims (watch the ₱5,000 context).
- Inspection or widespread violations → DOLE inspection (no amount cap).
- Reinstatement/illegal dismissal or > ₱5,000/complex → NLRC.
File SEnA and attend the mediation.
File the case in the proper forum if no settlement.
Track deadlines: 10 days to appeal adverse orders/decisions; 3/4/1 years for prescriptive periods as noted.
Execution: If you win and the employer doesn’t pay, move for execution (garnish bank accounts/receivables).

Sample Computation Pattern (Illustrative)

Suppose:

Daily rate: ₱600 (8 hours).
You worked 2 hours OT for 10 ordinary days in a month, and 40 night hours in the same month, plus 1 worked regular holiday.

Hourly rate: ₱600 ÷ 8 = ₱75

OT (ordinary day): ₱75 × 1.25 × (2 hrs × 10 days) = ₱75 × 1.25 × 20 = ₱1,875
NSD: ₱75 × 0.10 × 40 = ₱300
Regular holiday worked (first 8 hrs): ₱600 × 2.0 = ₱1,200 Total for the month (illustrative): ₱3,375 (exclude other items like premium pay or OT on the holiday unless they apply).

Add any minimum wage differentials, 13th month proportion, and SIL cash conversion if due, then apply 6% legal interest from the proper reckoning date until full payment (as the tribunal may specify).

Frequently Asked Questions

Q: Can I still claim if I was a “probationary,” “project-based,” or “casual” worker? Yes. Labor standards on wages/benefits generally apply regardless of employment status, unless a specific exemption exists.

Q: What if I was paid in cash without payslips? You can use witness affidavits, work schedules, chat/email directives, ID logs, and any records that show your actual work. Employers are legally required to keep and produce employment records; non-production can be taken against them.

Q: Will filing a complaint affect my employment? Retaliation (e.g., dismissal because you asserted wage rights) can support a claim of illegal or constructive dismissal at the NLRC.

Q: Do I need a lawyer? Not strictly. DOLE and NLRC processes are worker-friendly. However, counsel can help with computations, strategy, and appeals.

Final Notes

Act early. Money claims expire after 3 years from accrual; illegal dismissal after 4 years.
Pick the right venue. This avoids dismissal for lack of jurisdiction and saves time.
Document everything. Clear computations and organized proofs dramatically increase your chances of full recovery.

If you want, I can draft a ready-to-file SEnA request, a DOLE money-claim letter, or an NLRC complaint template tailored to your situation—just share the basics (where you worked, job title, dates, pay scheme, and your best estimate of the amounts due).