In the Philippines, payroll administration is strictly governed by the Labor Code (Presidential Decree No. 442) and various issuances from the Department of Labor and Employment (DOLE). For employers and HR practitioners, compliance is not merely a matter of company policy but a statutory obligation. Failure to adhere to these timelines can result in labor disputes, penalties, and claims for interest on unpaid wages.

1. Mandatory Frequency of Payment

Under Article 103 of the Labor Code, wages must be paid at least once every two weeks or twice a month at intervals not exceeding sixteen (16) days.

The "Semi-Monthly" Standard: Most Philippine corporations adopt a 15/30 or 10/25 cycle.
Monthly Exceptions: An employer can pay once a month only if the nature of the work makes a bi-monthly cycle impossible, or in specific industries where such a practice is established by collective bargaining agreements (CBA) or customary practice—provided the employees' welfare is not compromised.
Force Majeure: In cases of "force majeure" (natural disasters, strikes, or unforeseen events), payment may be delayed, but must be settled immediately after the cessation of the cause.

2. Time and Place of Payment

The law is specific about when and where an employee should receive their compensation to prevent "fly-by-night" operations or predatory lending practices.

During Working Hours: Payment must be made during working hours or immediately thereafter.
At the Workplace: Generally, wages must be paid at or near the place of undertaking.
ATM/Digital Payment: With the modernization of the banking system, DOLE (through Labor Advisory No. 05, Series of 2018) allows payment through Automated Teller Machines (ATM) or electronic wallets, provided:

The bank/entity is within reasonable distance from the workplace.
The employee is given a pay slip (physical or digital).
The employee has free access to their funds (no hidden bank fees for withdrawal).

3. Payment of Wages for Resigned or Terminated Employees

One of the most litigated aspects of Philippine payroll is the "Final Pay." According to Labor Advisory No. 06, Series of 2020, the release of final pay and Certificate of Employment must occur within thirty (30) days from the date of separation.

Final pay typically includes:

Unpaid salary for the last period worked.
Pro-rated 13th-month pay.
Cash conversion of unused Service Incentive Leaves (SIL).
Tax refunds (if applicable).
Other benefits stipulated in the employment contract.

4. Statutory Deductions and the "No-Deduction" Rule

Under Article 113, employers are prohibited from making any deductions from an employee's wages except in specific scenarios:

Statutory Contributions: SSS, PhilHealth, Pag-IBIG, and withholding tax (TRAIN Law).
Labor Union Dues: Provided there is written authorization.
Debts to the Employer: If the employee has authorized the deduction in writing for loans or specific company liabilities.
Loss/Damage: For tools or equipment, provided the employer follows "due process" (notice and hearing) to prove the employee’s liability.

5. Specialized Pay Rules

Beyond the standard cycle, Philippine law mandates specific pay dates for additional compensation:

Compensation Type	Mandatory Deadline / Rule
13th Month Pay	Must be paid on or before December 24 of every year (P.D. 851).
Overtime/Night Shift	Usually processed in the succeeding payroll cycle following the date the work was performed.
Holiday Pay	Employees are entitled to 100% of their daily wage even if they do not work on a Regular Holiday, provided they worked or were on leave with pay on the day prior.

6. Records and Compliance

Employers are required to maintain payroll records (payrolls, time records, etc.) for at least three (3) years at the place of work. These records serve as the primary evidence in the event of a DOLE inspection or a labor complaint for underpayment of wages.

Non-interference in Disposal of Wages: Article 112 of the Labor Code prohibits employers from limiting the freedom of the employee to dispose of their wages. An employer cannot force an employee to buy merchandise from the company store or use specific services as a condition for receiving their pay.