Philippine Labor Laws on the Timely Payment of Wages and Salaries

In the Philippine legal landscape, the prompt payment of wages is not merely a matter of employer policy; it is a fundamental statutory obligation protected by the Labor Code of the Philippines (Presidential Decree No. 442) and various issuances from the Department of Labor and Employment (DOLE). The law recognizes that for the Filipino worker, wages are the primary means of subsistence, making any delay a direct threat to their welfare.


1. The Frequency of Payment (Article 103)

The Labor Code is explicit regarding how often an employee must be paid. Under Article 103, wages must be paid at least once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days.

  • Fixed Schedule: Employers are required to establish a regular payday.
  • Exceptions: If payment cannot be made on time due to force majeure (acts of God, natural disasters, or unforeseen events beyond control), the employer must pay the wages immediately after such circumstances have ceased.
  • Task-Based Work: For work that cannot be completed in two weeks (e.g., specific projects), payments must be made at intervals not exceeding two weeks, based on the proportion of work completed, with the final settlement upon completion.

2. Time and Place of Payment

To protect workers from inconvenient or predatory practices, the law regulates where and when money changes hands.

  • Location: As a general rule, payment must be made at or near the place of undertaking.
  • Prohibited Places: Payment in bars, night clubs, dance halls, or similar establishments is strictly prohibited, except for employees who are actually employed in such places.
  • Direct Payment: Wages must be paid directly to the employee. Payment to another person is only allowed through a written "Special Power of Attorney" (SPA) or in cases of the employee's death (where it is paid to heirs).

3. Authorized Deductions (Article 113)

One common cause of "delayed" or "diminished" wages is unauthorized deductions. An employer cannot unilaterally deduct amounts from a salary except in the following cases:

  1. Statutory Requirements: SSS, PhilHealth, Pag-IBIG contributions, and withholding taxes.
  2. Union Dues: Where the right to check-off has been recognized by the employer.
  3. Employee Authorization: When the employee has given written authorization for payment to a third person (e.g., loan repayments).
  4. Loss or Damage: In specific industries where "mancol" or "tools of the trade" are involved, deductions for loss/damage are allowed ONLY if the employee is clearly responsible and due process is followed.

4. Prohibitions Regarding Wages

The Labor Code provides "Wage Protection Provisions" to ensure the integrity of the salary:

  • Non-Interference in Disposal of Wages: Employers cannot limit where or how an employee spends their money.
  • Prohibition Against "Kickbacks": It is illegal to compel an employee to give back any part of their wages as a condition of employment.
  • Laborer’s Wages as Preferred Claim: In case of employer bankruptcy, unpaid wages enjoy first priority over other debts (Article 110).

5. Non-Diminution of Benefits

A cornerstone of Philippine labor jurisprudence is the Principle of Non-Diminution of Benefits. This means that if an employer has a long-standing practice or a written policy of paying wages on a certain date or providing certain supplements, they cannot unilaterally withdraw or reduce these benefits if it would disadvantage the employee.


6. Legal Remedies for Delayed Payment

When an employer fails to pay on time, the employee has several avenues for recourse:

  • Single Entry Approach (SEnA): The first step is usually a request for assistance through SEnA, a 30-day mandatory conciliation-mediation process handled by DOLE.
  • Money Claims: If SEnA fails, the employee can file a formal "Money Claim" before a Labor Arbiter of the National Labor Relations Commission (NLRC).
  • Interest and Penalties: In cases of bad faith or extreme delay, the employer may be ordered to pay legal interest (usually 6% per annum) on the unpaid amount.
  • Attorney’s Fees: Under Article 111, in cases of unlawful withholding of wages, the culpable party may be assessed attorney’s fees equivalent to 10% of the amount of wages recovered.

7. Criminal Liability

Under Article 288 of the Labor Code, any person or entity found violating the wage provisions may be subject to a fine, imprisonment (ranging from 3 months to 3 years), or both, at the discretion of the court. While criminal prosecution is rare compared to civil money claims, the threat remains a powerful deterrent for non-compliance.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.