I. Introduction

Salary computation for contractual household help in the Philippines is governed primarily by Republic Act No. 10361, known as the Domestic Workers Act or Batas Kasambahay, together with relevant provisions of the Labor Code, Social Security System law, PhilHealth law, Pag-IBIG law, and related regulations.

The law protects household workers, commonly called kasambahay, regardless of whether they are hired on a written contract, verbal agreement, full-time basis, stay-in arrangement, stay-out arrangement, fixed-term engagement, or other contractual setup. The label “contractual” does not remove the worker from statutory protection if the actual work performed falls within domestic or household service.

Salary computation must therefore consider not only the agreed wage, but also minimum wage rules, rest days, wage deductions, social benefits, leave, termination pay where applicable, and the prohibition against unlawful salary withholding.

II. Who Is Covered as Household Help?

A kasambahay is a person engaged in domestic work within an employer’s household. This includes, among others:

General househelpers;
Cooks;
Gardeners;
Laundry persons;
Drivers hired primarily for household or family use;
Yayas or child caregivers;
Elderly caregivers rendering household-based care;
Other persons who regularly perform domestic services for a household.

The law applies whether the household worker is:

Stay-in or live-in;
Stay-out;
Full-time;
Part-time, if the arrangement is still household service;
Paid monthly, weekly, daily, or on another agreed basis;
Hired directly or through a private employment agency;
Hired under a fixed-term or “contractual” arrangement.

The decisive factor is the nature of the work, not the title used by the parties.

III. Persons Not Treated as Kasambahay

The following are generally not considered kasambahay under the Domestic Workers Act:

Children under foster family arrangements;
Persons performing work only occasionally or sporadically and not on an occupational basis;
Service providers or workers governed by separate employment arrangements, such as company-employed janitors or agency staff assigned to a residence under a service contract;
Family members who help in the household without an employment relationship;
Persons rendering work for a business operated from the home, if the work is primarily commercial or business-related rather than domestic.

A person hired to clean a household once in a while may not necessarily be a kasambahay. But a person who regularly reports to clean, cook, wash clothes, care for children, or perform household duties may be covered even if called “part-time” or “contractual.”

IV. Legal Basis for Salary Computation

The principal law is Republic Act No. 10361, which sets minimum standards for domestic workers. It requires:

A written employment contract;
Payment of at least the statutory minimum wage;
Social security coverage;
Weekly rest periods;
Service incentive leave;
Protection from abuse, debt bondage, and unlawful deductions;
Proper settlement of wages upon termination.

The employer and worker may agree on better terms, but they cannot validly agree on terms below the minimum standards required by law.

V. Minimum Monthly Wage of Kasambahay

The minimum wage for kasambahay is not the same as the minimum wage for ordinary private-sector employees. It is set separately for domestic workers and may vary by region depending on wage orders issued by the proper Regional Tripartite Wages and Productivity Board.

Under the Domestic Workers Act, the original statutory minimums were:

Area	Original statutory minimum monthly wage
National Capital Region	₱2,500
Chartered cities and first-class municipalities	₱2,000
Other municipalities	₱1,500

These original amounts may have been superseded by later regional wage orders. In actual salary computation, the employer must apply the current applicable kasambahay minimum wage in the location where the household service is rendered.

A contractual household worker cannot be paid below the applicable minimum merely because the contract is short-term or fixed-term.

VI. Basic Formula for Monthly Salary

For a regular monthly kasambahay, the simplest computation is:

Monthly salary due = agreed monthly wage, provided it is not below the applicable kasambahay minimum wage

Example:

Agreed monthly salary: ₱6,000
Applicable minimum: ₱5,000
Salary due: ₱6,000

If the agreed salary is below the applicable minimum, the legal salary is raised to the minimum.

Example:

Agreed monthly salary: ₱4,000
Applicable minimum: ₱5,000
Salary legally due: ₱5,000

Any contract stating a lower amount is ineffective to the extent that it violates the minimum wage requirement.

VII. Daily Rate Equivalent for Salary Computation

Although kasambahay are commonly paid monthly, employers often need a daily rate for computation of partial months, absences, final pay, or start/end dates.

A practical formula is:

Daily rate = monthly salary ÷ number of calendar days in the month

This method is commonly used for household service because kasambahay wages are monthly and rest days are part of the overall monthly arrangement.

Example for a ₱6,000 monthly salary in a 30-day month:

₱6,000 ÷ 30 = ₱200 daily equivalent

For a 31-day month:

₱6,000 ÷ 31 = ₱193.55 daily equivalent

For February with 28 days:

₱6,000 ÷ 28 = ₱214.29 daily equivalent

Another method sometimes used is to divide by 26 working days, especially for stay-out workers whose pay is expressly based only on workdays. However, the employment contract should be clear. In the absence of a specific legal formula for every situation, the safest approach is to use a fair, consistent, and documented computation that does not reduce the worker below the legal minimum.

VIII. Computation for Partial Month of Work

When a kasambahay starts or ends employment in the middle of a month, salary may be prorated.

Formula:

Salary for partial month = daily rate × number of days employed or worked, depending on the pay arrangement

Example:

Monthly salary: ₱6,000
Month: 30 days
Start date: 11th day of the month
Days covered from 11th to 30th: 20 days

Daily rate:

₱6,000 ÷ 30 = ₱200

Salary due:

₱200 × 20 = ₱4,000

If the contract provides payment only for actual workdays for a stay-out helper, the computation may be based on agreed daily rate, provided the result does not fall below the legal minimum when converted to the applicable household employment standard.

IX. Computation for Daily, Weekly, or Part-Time Household Help

Some household help are engaged by the day, by the week, or on limited days per week. The law does not allow the employer to evade minimum standards by calling the worker “contractual” or “part-time.”

For part-time or intermittent household help, computation should be based on:

The agreed rate;
The number of days or hours worked;
The applicable minimum wage standard;
Any benefits triggered by the nature and duration of engagement.

Example:

Agreed rate: ₱700 per cleaning day
Work: 2 days per week
Month: 8 workdays
Salary due: ₱700 × 8 = ₱5,600

If the worker is truly occasional, such as a one-time cleaner, full kasambahay benefits may not apply. But if there is regularity, control, and continuing household service, the worker may be treated as a kasambahay.

X. Stay-In Household Help: Board and Lodging

A stay-in kasambahay is entitled to:

Humane sleeping arrangements;
Adequate food;
Basic medical assistance;
Privacy;
Respectful treatment;
Rest periods.

The employer may not treat food and lodging as automatic substitutes for legally required wages.

The kasambahay’s salary must be paid in cash. Board, lodging, food, and other household provisions should not be used to reduce the wage below the legal minimum unless a deduction is legally permitted, clearly agreed upon, and not contrary to law.

As a rule, a household employer should not say:

“Your salary is ₱5,000, but because you live here and eat here, I will deduct ₱2,000.”

Such deduction may be unlawful, especially if it reduces the worker’s take-home pay below the required wage or is not voluntarily and validly agreed upon.

XI. Salary Payment Period

The employer must pay wages directly to the kasambahay:

At least once a month;
In cash, unless another lawful payment method is agreed upon;
Without delay;
Without requiring the worker to buy goods or services from the employer;
Without payment through promissory notes, vouchers, tokens, or substitutes for legal tender.

Payment should be made directly to the worker, not to another person, except where the worker expressly authorizes lawful remittance.

XII. Payslip or Proof of Payment

The employer should keep a written record of payment. The kasambahay should also receive proof of salary received.

A good salary record should include:

Item	Details
Name of kasambahay	Full name
Period covered	Example: May 1–31
Basic salary	Monthly or daily amount
Deductions	SSS, PhilHealth, Pag-IBIG, cash advances, if valid
Net pay	Amount actually paid
Date paid	Date of salary release
Signature	Employer and kasambahay acknowledgment

A written record helps avoid disputes, especially in contractual or short-term arrangements.

XIII. Thirteenth Month Pay

Kasambahay are entitled to 13th month pay.

The usual formula is:

13th month pay = total basic salary earned during the calendar year ÷ 12

Example:

Monthly salary: ₱6,000
Service during the year: January to December
Total basic salary: ₱72,000

13th month pay:

₱72,000 ÷ 12 = ₱6,000

If the kasambahay worked for only part of the year:

Monthly salary: ₱6,000
Service: 5 months
Total basic salary earned: ₱30,000

13th month pay:

₱30,000 ÷ 12 = ₱2,500

For daily or intermittent workers, use total basic wages actually earned during the calendar year and divide by 12.

Example:

Total basic pay earned from January to December: ₱48,000
13th month pay: ₱48,000 ÷ 12 = ₱4,000

The 13th month pay should generally be paid not later than December 24, or proportionately upon separation if employment ends before year-end.

XIV. Service Incentive Leave

A kasambahay who has rendered at least one year of service is entitled to five days of service incentive leave with pay.

This means the worker may take five paid leave days per year after qualifying service.

Key points:

The leave is paid.
The worker must have at least one year of service.
The leave may be used for personal reasons, rest, or other lawful purposes.
Whether unused leave is convertible to cash depends on applicable rules and the employment arrangement; the safer practice is to provide the leave or agree clearly on treatment of unused leave.

For salary computation, if the worker takes qualified service incentive leave, the employer should not deduct the day from salary.

XV. Weekly Rest Period

A kasambahay is entitled to at least 24 consecutive hours of rest per week.

The rest day should be agreed upon by the parties, considering the worker’s preference and the household’s needs. The employer may not deprive the kasambahay of weekly rest.

If the kasambahay voluntarily agrees to work on the rest day, the agreement should be documented. Unlike regular private-sector employees under many Labor Code arrangements, the kasambahay law does not follow the same detailed premium-pay structure for ordinary employees. The safer and fairer practice is to compensate work on a rest day separately or grant a substitute rest day.

Example of substitute rest day arrangement:

Regular rest day: Sunday
Worker agrees to work Sunday
Employer grants Monday as substitute rest day

Example of additional pay arrangement:

Daily equivalent: ₱200
Worker works on rest day
Employer pays additional agreed compensation of at least the daily equivalent, or another fair amount agreed upon

The arrangement should not result in forced labor, unpaid labor, or waiver of statutory rest.

XVI. Overtime Pay

The Domestic Workers Act does not adopt the ordinary Labor Code overtime formula for kasambahay in the same way it applies to commercial or industrial employees.

However, kasambahay are entitled to humane working conditions, rest, and respect for personal time. Excessively long hours may violate the law even if the worker is stay-in.

For salary computation, if the contract sets specific working hours and the worker is required to work substantially beyond them, the parties should provide additional compensation or corresponding rest. The best practice is to include a written agreement on:

Normal working hours;
Meal breaks;
Rest periods;
Night rest;
Extra compensation for work beyond agreed hours;
Handling of emergencies.

A household employer should not assume that a stay-in worker is “on call” 24 hours a day without additional consideration or rest.

XVII. Holiday Pay

Kasambahay are not treated in the same way as rank-and-file private-sector employees for purposes of the ordinary holiday pay rules under the Labor Code. The Domestic Workers Act has its own framework.

However, a household employer may provide paid holidays or additional compensation by contract. If the employment contract promises holiday pay, the employer must honor it.

Example:

Contract states: “The kasambahay shall receive an additional daily rate for work on Christmas Day and New Year’s Day.”
Employer must pay according to the contract.

Even if not strictly required under the same Labor Code formula, granting additional pay or rest for work during major holidays is consistent with fair labor standards.

XVIII. Night Shift Differential

The statutory night shift differential rules applicable to ordinary private-sector employees do not generally apply in the same manner to kasambahay.

However, if a household worker is specifically hired for night care, such as caring for an elderly person overnight or watching a child at night, the compensation should reflect the nature of the work. The contract should state:

Expected night hours;
Sleeping arrangements;
Whether the worker may sleep during duty;
Whether interruptions are compensable;
Rest days and substitute rest;
Agreed monthly or daily compensation.

A worker hired for continuous overnight caregiving should not be paid as if rendering ordinary daytime domestic service if the actual arrangement is more demanding.

XIX. Social Security Benefits

Kasambahay are entitled to coverage under:

Social Security System;
PhilHealth;
Pag-IBIG Fund, where applicable under the rules.

The employer has obligations to register, deduct, remit, and pay contributions.

A major salary computation issue is determining whether contributions are employer-paid, employee-paid, or shared.

Under the kasambahay framework, if the kasambahay’s monthly wage is below the statutory threshold stated in the applicable law or regulations, the employer may be required to shoulder the full contribution. If the wage reaches or exceeds the threshold, contribution sharing may apply according to the rules of SSS, PhilHealth, and Pag-IBIG.

Because contribution tables change, the exact contribution amounts should be computed using the applicable current contribution schedule. The legal principle remains: the employer must not simply ignore mandatory coverage.

XX. SSS Contributions

For SSS, the employer must:

Register as household employer;
Register the kasambahay if not yet registered;
Deduct the employee share where allowed;
Pay the employer share;
Remit contributions on time.

Salary computation should show:

Gross salary − lawful employee contributions = net salary

Example:

Gross monthly salary: ₱8,000
Employee SSS share: ₱X
PhilHealth share: ₱Y
Pag-IBIG share: ₱Z
Net pay: ₱8,000 − ₱X − ₱Y − ₱Z

The exact amounts depend on current contribution tables.

Unremitted contributions may expose the employer to penalties and claims, especially if the worker later needs sickness, maternity, disability, retirement, or other benefits.

XXI. PhilHealth Contributions

Kasambahay are covered by PhilHealth. The employer should ensure registration and remittance.

The computation depends on the current PhilHealth premium rate and income floor/ceiling. In practice, the employer should determine:

Monthly salary base;
Applicable PhilHealth rate;
Employer share;
Employee share, if chargeable to the worker under current rules;
Net salary after lawful deduction.

The deduction must be transparent and supported by records.

XXII. Pag-IBIG Contributions

Kasambahay are also generally covered by Pag-IBIG Fund rules.

Common computation points include:

Monthly compensation;
Employee contribution share;
Employer counterpart;
Whether the employer shoulders all contributions due to the worker’s wage level;
Proper remittance and recordkeeping.

The standard employee contribution is often modest compared with SSS and PhilHealth, but it must still be handled properly.

XXIII. Prohibition Against Unlawful Deductions

Employers may not make arbitrary deductions from a kasambahay’s salary.

Deductions should be limited to lawful items, such as:

Statutory contributions where employee share is legally deductible;
Cash advances voluntarily obtained by the worker;
Deductions authorized by law;
Deductions clearly agreed upon in writing and not contrary to law.

Unlawful deductions may include:

Deduction for broken plates or household items without due process or agreement;
Deduction for food and lodging that should be provided as part of humane working conditions;
Deduction for recruitment fees charged to the worker;
Deduction as punishment;
Deduction to force the worker to stay;
Deduction that brings pay below the legal minimum;
Deduction without explanation or record.

XXIV. Cash Advances and Salary Loans

A kasambahay may request a salary advance. The employer may grant it, but documentation is important.

A proper cash advance record should state:

Date of advance;
Amount;
Reason, if the worker wants to state it;
Repayment terms;
Signature or acknowledgment of the worker;
Balance after each deduction.

Example:

Monthly salary: ₱7,000
Cash advance: ₱2,000
Agreed deduction: ₱1,000 per month for two months

Salary computation for the month:

Item	Amount
Gross salary	₱7,000
Cash advance deduction	₱1,000
Net before statutory contributions	₱6,000

The deduction should not be oppressive. It should not create debt bondage or effectively force the worker to continue employment against their will.

XXV. Recruitment or Agency Fees

A kasambahay should not be made to shoulder unlawful recruitment or placement fees. If a private employment agency is involved, the agency and employer must comply with applicable licensing and labor rules.

The employer should not deduct from the worker’s salary amounts paid to an agency unless clearly allowed by law. Charging the worker hidden placement costs may violate labor standards.

XXVI. Salary Withholding Is Prohibited

The employer may not withhold the kasambahay’s salary as a means of discipline, punishment, coercion, or prevention from leaving.

Examples of unlawful withholding:

Refusing to pay final salary because the worker resigned;
Holding salary until the worker returns a uniform;
Refusing to release pay because the worker wants to transfer employer;
Retaining wages to secure repayment of alleged damages without proof;
Keeping the worker’s money or ATM card.

Upon separation, the employer should settle unpaid wages, proportionate 13th month pay, unused benefits if convertible or agreed, and other lawful amounts due.

XXVII. Final Pay Computation

When employment ends, the kasambahay may be entitled to final pay consisting of:

Unpaid salary;
Salary for days worked in the final month;
Proportionate 13th month pay;
Unpaid agreed benefits;
Refund of unauthorized deductions;
Other amounts due under contract or law.

Basic final pay formula:

Final pay = unpaid salary + prorated salary + proportionate 13th month pay + other due benefits − lawful deductions

Example:

Monthly salary: ₱6,000
Month has 30 days
Last working day: 15th day
No unpaid prior salary
Total salary earned during year before separation: ₱18,000
Salary for final month: ₱6,000 ÷ 30 × 15 = ₱3,000
13th month pay: ₱18,000 ÷ 12 = ₱1,500

Final pay before deductions:

₱3,000 + ₱1,500 = ₱4,500

If there are lawful deductions, they may be subtracted, but they should be documented.

XXVIII. Resignation by Kasambahay

A kasambahay may terminate the employment relationship. The contract may require notice, commonly five days or another reasonable period, depending on the written agreement and circumstances.

If the worker resigns, the employer must still pay salary already earned.

A resignation does not cause forfeiture of wages.

Example:

Worker resigns after working 20 days of the month.
Employer must pay salary for those 20 days.
Employer must also pay proportionate 13th month pay.

The employer may not impose a penalty unless it is lawful, reasonable, agreed upon, and not contrary to labor standards.

XXIX. Termination by Employer

An employer may terminate the kasambahay for just causes recognized by law or contract, such as serious misconduct, willful disobedience, gross negligence, fraud, commission of a crime against the employer or household member, or similar grounds.

Even when termination is justified, the employer must still pay earned wages.

If termination is without lawful cause or contrary to the contract, the kasambahay may have a claim for unpaid wages, damages, or other relief depending on the circumstances.

XXX. Fixed-Term or Contractual Household Help

A fixed-term household employment contract may specify:

Start date;
End date;
Monthly or daily salary;
Duties;
Rest day;
Benefits;
Lodging, if stay-in;
Termination provisions;
Social benefit coverage;
Renewal rules.

However, fixed-term status cannot be used to defeat minimum labor protections.

A “three-month contract” or “six-month trial” must still comply with:

Minimum wage;
13th month pay proportionate to service;
Weekly rest;
Lawful deductions only;
Social security rules where applicable;
Safe and humane working conditions.

Example:

Contract period: March 1 to May 31
Monthly salary: ₱7,000
Total salary: ₱21,000
13th month pay: ₱21,000 ÷ 12 = ₱1,750

Total compensation before deductions:

₱21,000 + ₱1,750 = ₱22,750

XXXI. Probationary or Trial Periods

Household employers sometimes hire a helper “on trial.” A trial period does not mean free labor.

If the person performs household work, the worker must be paid for the work done. The parties may agree on a trial period, but the wage must still comply with the applicable minimum and the worker must be treated lawfully.

Unpaid trial work for household help is risky and may violate labor standards.

XXXII. Salary Computation for Stay-Out Household Help

Stay-out household workers usually do not receive lodging. Their salary may be monthly, weekly, daily, or per visit.

Example 1: Monthly stay-out helper

Monthly salary: ₱8,000
Works Monday to Saturday
Rest day: Sunday
Salary due: ₱8,000 per month

Example 2: Daily stay-out helper

Daily rate: ₱600
Works 12 days in the month
Salary due: ₱600 × 12 = ₱7,200

Example 3: Weekly stay-out helper

Weekly rate: ₱2,500
Works 4 weeks
Salary due: ₱10,000

A regular stay-out helper may still be covered as kasambahay if the relationship is continuous and domestic in nature.

XXXIII. Computation for Yaya or Childcare Helper

A yaya is covered if hired by the household to care for a child. Salary computation follows kasambahay rules.

Important considerations:

Childcare may involve longer hours than ordinary housekeeping.
Night duty should be addressed clearly.
Rest periods must be respected.
If the yaya travels with the family, travel-related arrangements should be specified.
The employer should provide food, safe sleeping arrangements for stay-in yayas, and basic needs.

Example:

Monthly salary: ₱9,000
Service: 10 months
13th month pay: ₱90,000 ÷ 12 = ₱7,500

Total annual compensation before statutory deductions:

₱90,000 + ₱7,500 = ₱97,500

XXXIV. Computation for Household Driver

A driver may be treated as kasambahay if hired primarily for the personal needs of the family or household.

If the driver is hired by a business, company, or commercial operation, ordinary labor standards may apply instead.

For a household driver:

Monthly salary must meet kasambahay minimum wage;
Rest day must be provided;
13th month pay applies;
Social security benefits apply;
Deductions must be lawful.

If the driver performs mixed household and business functions, classification should be examined carefully. A driver who regularly delivers goods for a business may not be merely a household driver.

XXXV. Computation for Elderly Caregiver in a Household

An elderly caregiver may be a kasambahay if hired directly by the household to provide domestic care in the residence.

However, if the caregiver is a licensed health professional, deployed by an agency, or rendering specialized medical services, other rules may also be relevant.

Salary computation should consider:

Basic monthly salary;
Night care or shifting arrangement;
Rest day;
Substitute reliever;
Social benefits;
13th month pay;
Final pay;
Written scope of duties.

Because caregiving may involve physically and emotionally demanding work, a clear written agreement is especially important.

XXXVI. Written Employment Contract

The Domestic Workers Act requires a written contract in a language or dialect understood by both parties.

The contract should include:

Duties and responsibilities;
Period of employment;
Compensation;
Authorized deductions;
Hours of work and rest periods;
Weekly rest day;
Board, lodging, and medical attention;
Agreements on deployment expenses, if any;
Termination provisions;
Other lawful conditions.

The contract is important in salary computation because it determines whether pay is monthly, daily, weekly, per visit, stay-in, stay-out, fixed-term, or renewable.

However, if the contract provides terms below the law, the law prevails.

XXXVII. Sample Monthly Salary Computation

Assume:

Monthly salary: ₱8,000
No absences
Employee SSS/PhilHealth/Pag-IBIG deductions: assume ₱X total depending on current tables
No cash advance

Computation:

Item	Amount
Gross monthly salary	₱8,000
Less: lawful statutory deductions	₱X
Net salary	₱8,000 − ₱X

At year-end:

Item	Amount
Total salary earned	₱96,000
13th month pay	₱96,000 ÷ 12 = ₱8,000

XXXVIII. Sample Partial Month Computation

Assume:

Monthly salary: ₱7,500
Month has 30 days
Worker served from 1st to 18th
No deductions

Daily equivalent:

₱7,500 ÷ 30 = ₱250

Salary due:

₱250 × 18 = ₱4,500

If total salary earned during the year is ₱22,500:

13th month pay:

₱22,500 ÷ 12 = ₱1,875

Final pay:

₱4,500 + ₱1,875 = ₱6,375

XXXIX. Sample Fixed-Term Contract Computation

Assume:

Contract: 4 months
Monthly salary: ₱9,000
No absences
No deductions

Total salary:

₱9,000 × 4 = ₱36,000

13th month pay:

₱36,000 ÷ 12 = ₱3,000

Total gross compensation:

₱36,000 + ₱3,000 = ₱39,000

Statutory contributions should then be computed and deducted or shouldered according to current rules.

XL. Sample Part-Time Regular Helper Computation

Assume:

Helper comes every Monday, Wednesday, and Friday
Rate: ₱700 per day
Month has 13 work visits
No other deductions

Monthly pay:

₱700 × 13 = ₱9,100

If total pay for the year is ₱109,200:

13th month pay:

₱109,200 ÷ 12 = ₱9,100

If the worker is truly a regular household worker, statutory benefits may apply even if the worker is not stay-in.

XLI. Absences

Salary deduction for absence depends on whether the absence is unpaid, authorized, covered by leave, or otherwise excused.

General principles:

If the worker is on paid service incentive leave, no deduction should be made.
If the worker is absent without pay and no paid leave applies, deduction may be made.
If the worker is prevented from working by the employer despite availability, deduction may be improper.
Absence deductions should be based on a fair daily equivalent.

Example:

Monthly salary: ₱6,000
Month: 30 days
Daily equivalent: ₱200
Unpaid absence: 2 days
Deduction: ₱400
Gross salary for month: ₱5,600

The deduction should not be arbitrary or punitive.

XLII. Damages to Household Property

A common dispute involves broken appliances, lost items, damaged clothing, or household accidents.

The employer should not automatically deduct the cost from wages.

Before any deduction, there should be:

Proof of loss or damage;
Proof that the worker was responsible;
Consideration of whether the damage was accidental or due to negligence;
Written acknowledgment or lawful basis for deduction;
A reasonable amount;
Compliance with minimum wage protections.

Normal accidents or ordinary wear and tear should not become automatic salary deductions.

XLIII. Medical Expenses

The employer must provide basic medical assistance and ensure humane treatment. Ordinary medical assistance should not be treated as a debt automatically deductible from salary.

If the employer voluntarily advances substantial medical expenses beyond basic assistance, any repayment arrangement should be clear, voluntary, reasonable, and documented.

The employer should avoid arrangements that trap the worker in debt or prevent resignation.

XLIV. Transportation Expenses

Transportation may arise in hiring, termination, vacation, emergency leave, or return to the worker’s home province.

Depending on the agreement and circumstances, the employer may shoulder transportation costs, especially where recruitment or relocation was arranged by the employer.

The employer should not deduct transportation expenses from salary unless the deduction is lawful, agreed, and not oppressive.

If the worker was recruited from another place, the contract should state who bears deployment and return transportation costs.

XLV. Uniforms, Supplies, and Tools

If the employer requires uniforms, cleaning supplies, household tools, or equipment, the employer should generally provide them.

The employer should not make the worker pay for necessary tools of work if doing so effectively reduces compensation below legal standards.

Examples:

Gloves for cleaning;
Aprons or uniforms;
Cleaning materials;
Laundry supplies;
Childcare supplies;
Household equipment.

These should normally be employer expenses, not salary deductions.

XLVI. Food and Sleeping Arrangements

For stay-in workers, the employer must provide decent food and sleeping arrangements.

The sleeping area must be humane and safe. It should provide privacy, ventilation, and reasonable comfort.

Salary computation should not treat lawful living conditions as a privilege that cancels wages.

A stay-in arrangement is not a license for unlimited work hours, salary deductions, or loss of privacy.

XLVII. Rest, Personal Time, and Communication

A kasambahay has the right to rest, communicate with family, and have personal time. The employer cannot confiscate the worker’s phone or prohibit reasonable communication.

While this does not directly change salary computation, it affects the legality of the working arrangement. Salary alone does not cure abusive or unlawful conditions.

XLVIII. Records Required of Household Employers

Household employers should maintain:

Employment contract;
Copy of worker’s identification documents, voluntarily provided;
Salary payment records;
Contribution records;
Cash advance records;
Leave records;
Rest day agreements;
Final pay computation;
Receipts for benefits and remittances;
Termination or resignation documents.

Good records protect both the employer and the kasambahay.

XLIX. Tax Treatment

Kasambahay earning ordinary household wages will often fall below taxable income thresholds, but tax rules depend on actual compensation and current regulations.

Household employers are generally more concerned with labor and social security compliance than income tax withholding. However, if compensation reaches taxable levels or if special arrangements exist, tax advice may be necessary.

The employer should not deduct “tax” from salary unless there is a lawful basis.

L. Distinction from Ordinary Employees

Kasambahay are employees, but they are governed by a special law. Not all benefits of ordinary private employees apply in exactly the same way.

For example, ordinary private employees may have statutory rules on:

Overtime pay;
Premium pay;
Holiday pay;
Night shift differential;
Service charges in certain industries.

Kasambahay law has a separate structure focused on:

Minimum monthly wage;
13th month pay;
Weekly rest;
Service incentive leave;
Social security;
Humane treatment;
Written contract;
Protection from abuse and unlawful deductions.

The employer should not mix rules carelessly. Where the contract grants additional benefits, those contractual benefits become enforceable.

LI. Common Salary Computation Mistakes

Common errors include:

Paying below the current applicable kasambahay minimum wage;
Treating food and lodging as salary;
Failing to pay proportionate 13th month pay;
Not paying final wages after resignation;
Deducting for damages without proof or consent;
Ignoring SSS, PhilHealth, and Pag-IBIG duties;
Assuming part-time workers have no rights;
Treating stay-in workers as available 24 hours daily;
Failing to document cash advances;
Withholding salary to prevent the worker from leaving;
Not giving weekly rest days;
Using a “contractual” label to avoid labor standards.

LII. Legal Consequences of Non-Compliance

Failure to comply with kasambahay wage and benefit rules may result in:

Money claims;
Administrative complaints;
Orders to pay unpaid wages or benefits;
Penalties for failure to register or remit contributions;
Liability for unlawful deductions;
Possible civil or criminal liability in cases of abuse, trafficking, forced labor, illegal recruitment, or serious misconduct.

The employer’s good faith may be considered in some cases, but it does not erase statutory obligations.

LIII. Where Claims May Be Filed

Disputes involving kasambahay wages and benefits may be brought before the appropriate labor authorities. Barangay conciliation may also arise depending on the parties and the nature of the dispute, but labor standards claims are generally within the concern of labor agencies.

Claims may involve:

Unpaid salaries;
Underpayment;
Unpaid 13th month pay;
Illegal deductions;
Non-remittance of contributions;
Abuse or maltreatment;
Non-payment of final pay.

LIV. Practical Salary Computation Checklist

Before paying a contractual household helper, the employer should ask:

Is the worker a kasambahay under the law?
What is the current applicable minimum wage in the area?
Is the agreed salary at least equal to the legal minimum?
Is the arrangement monthly, daily, weekly, or per visit?
Is the worker stay-in or stay-out?
What rest day is agreed?
Has the worker earned 13th month pay?
Has the worker completed one year for service incentive leave?
Are SSS, PhilHealth, and Pag-IBIG obligations being handled?
Are deductions lawful, documented, and reasonable?
Is final pay due?
Are salary records signed and kept?

LV. Recommended Format for Salary Computation

A clean computation may look like this:

Item	Amount
Basic salary for period	₱____
Additional agreed compensation	₱____
Proportionate 13th month pay	₱____
Other benefits due	₱____
Gross amount due	₱____
Less: SSS employee share	₱____
Less: PhilHealth employee share	₱____
Less: Pag-IBIG employee share	₱____
Less: documented cash advance	₱____
Net amount payable	₱____

The worker should sign only after receiving the amount stated.

LVI. Model Clauses for Household Employment Contract

Compensation Clause

“The Kasambahay shall receive a monthly salary of ₱____, payable every ____ day of the month. The salary shall not be lower than the applicable minimum wage for kasambahay in the place of employment.”

Rest Day Clause

“The Kasambahay shall be entitled to at least twenty-four consecutive hours of rest per week, preferably every ________, unless otherwise mutually agreed in writing.”

13th Month Pay Clause

“The Kasambahay shall be entitled to 13th month pay computed as one-twelfth of the total basic salary earned within the calendar year, payable in accordance with law or upon separation on a proportionate basis.”

Deductions Clause

“No deduction shall be made from the Kasambahay’s salary except those authorized by law, statutory contributions where applicable, or written and voluntary obligations such as documented cash advances.”

Final Pay Clause

“Upon termination or expiration of this contract, the Employer shall pay all earned wages, proportionate 13th month pay, and other amounts due, less only lawful and documented deductions.”

LVII. Illustrative Full Computation

Assume:

Contract period: January 1 to June 30
Monthly salary: ₱8,000
Cash advance balance: ₱2,000
Statutory employee contributions: ₱X according to current tables
No unpaid absences

Salary earned:

₱8,000 × 6 = ₱48,000

13th month pay:

₱48,000 ÷ 12 = ₱4,000

Gross amount due for entire contract:

₱48,000 + ₱4,000 = ₱52,000

Less cash advance:

₱52,000 − ₱2,000 = ₱50,000

Less lawful statutory employee contributions:

₱50,000 − ₱X = net amount payable

Employer counterpart contributions are separate employer obligations and should not be deducted from the worker unless the law allows a specific employee share.

LVIII. Conclusion

Salary computation for contractual household help in the Philippines is not merely a matter of private agreement. It is governed by mandatory labor standards under the Domestic Workers Act and related social legislation.

The central rules are straightforward: pay at least the applicable kasambahay minimum wage, pay wages on time, provide weekly rest, compute and pay 13th month pay, observe service incentive leave after one year of service, remit required social contributions, avoid unlawful deductions, and settle final pay upon separation.

A household employment contract may define the details, but it cannot reduce the worker’s statutory rights. The safest and most legally sound approach is to document the arrangement, compute wages transparently, keep payment records, and treat the kasambahay as a protected household employee rather than an informal or disposable worker.