Salary Deductions for Uniforms & Equipment in Philippine Labor Law (updated 18 July 2025 — Philippine legal context)

1. Framing the Issue

Employers often want to recoup the cost of uniforms, personal protective equipment (PPE), tools, and similar items by deducting amounts from workers’ pay. Whether that is lawful in the Philippines depends on a tight mesh of rules in the Labor Code, its Implementing Rules, the Occupational Safety and Health (OSH) framework, special statutes for certain sectors, and decided cases. The default rule is “deductions are prohibited unless clearly allowed.” Below is a comprehensive map of everything a practitioner or HR manager needs to know.

2. Core Labor-Code Provisions

Topic	Pre-2013 Article	2013 Renumbered	Key Points
General ban on deductions	Art. 113	Art. 116	No employer may make any deduction from the wages of employees, except in the limited cases expressly authorized.*
Permitted deductions	Art. 113 (a)-(c)	Art. 116 (a)-(c)	• Government taxes, SSS/PhilHealth/HDMF, etc. • Insurance premiums or union dues with written authorization. • “Other deductions with the worker’s written authorization and as allowed in regulations.”
Deposits for loss/damage	Art. 114	Art. 117	An employer may require a deposit for tools/materials only if (1) there is DOLE authority, (2) the deposit is a true security (not a de facto deduction), and (3) due-process hearings precede forfeiture.
Prohibition on kickbacks & false wage reductions	Art. 116	Art. 119	Criminalizes taking back wages “in whole or in part.” This sweeps in disguised deductions for uniforms or equipment.

* Implementing Rules, Book III, Rule VIII §10 bars deductions “whether direct or indirect,” unless within the above exceptions.

3. Uniforms, PPE, Tools: Facilities vs Supplements

The Supreme Court draws a sharp line:

Classification	Who benefits primarily?	Treatment
“Facilities” (e.g., meals, lodging, medicine)	Primarily the employee	Employer may deduct fair & reasonable value but only after DOLE approval and a separate written agreement (Art. 97 (f); IR Book III Rule VII).
“Supplements” (e.g., corporate uniforms, PPE, company logo jackets, handheld scanners)	Primarily the employer	Cost is the employer’s burden; any deduction is unlawful. Supplements are not part of wages, cannot be credited or deducted.

Uniforms and most equipment are deemed supplements because they promote brand identity, security, or productivity—interests of the employer, not the worker. Jurisprudence: Intercontinental Broadcasting Corp. v. IAC (G.R. 70074, 26 Jan 1989), Divine Word High School v. NLRC (G.R. 91915, 13 Jun 1990), Ching v. Suguitan (G.R. 54039, 30 Jan 1986). These cases uniformly reject charging employees for compulsory uniforms.

4. PPE and OSH Law Obligations

Instrument	Core rule
R.A. 11058 (OSH Law 2018) §3 (c)	Employers shall provide PPE at their own expense.
DOLE Department Order 198-18 (OSH IRR) §§8–9	PPE “shall be free of charge to workers”; repair/replacement likewise employer-borne. Workers may be disciplined for loss due to proven negligence, but monetary liability follows Art. 117 procedures.

Thus, charging PHP X per payslip for safety shoes, helmets, goggles, etc. is per se illegal.

5. Special-Sector Rules

Sector	Statute / Issuance	Treatment
Security guards	R.A. 5487 & DOLE D.O. 150-16 §10	Agency must supply complete uniform without salary deduction. A guard may buy a second set voluntarily; installment may not exceed 20 % of net wage and requires written consent.
Kasambahay (domestic workers)	R.A. 10361 §19	Employer must provide “appropriate working clothes.” Any loss/damage deposits must follow Art. 117 rules and never reduce the statutory minimum wage of kasambahay.
Maritime	POEA Standard Employment Contract §31	Shipowner provides uniforms and protective gear at no cost; loss/damage recovery requires showing of fault and is capped at actual cost.

6. When May a Deduction Stick? — The Three-Prong Test

Statutory Basis: The deduction fits one of the Art. 116 exceptions or a specific law (e.g., SSS loan amortization).
Voluntary & Informed Consent: A separate, uncoerced written authorization—blanket clauses in employment contracts are not enough.
DOLE or CBA Sanction: Either the Secretary of Labor (through a department order/ exemption) or a registered collective bargaining agreement expressly allows it.

Fail any prong and the deduction is struck down, with restitution plus legal interest.

7. Due Process for Loss/Damage Claims

If a hard hat, scanner, or uniform is lost:

Notice & Hearing: Employer must give written notice specifying the act or omission and hold an investigation.
Burden of Proof: Employer must prove negligence or fault. Mere loss ≠ liability (Citibank v. Gatchalian, G.R. 105371, 10 Feb 1994).
Proportionality: Deduction (or forfeiture of deposit) equals proven loss only—no “penalty” premium.
Installment Cap: May not exceed 20 % of the employee’s disposable pay per payroll period (IR, Book III, Rule VIII §11).
Report to DOLE: The employer must record the deduction in the payroll and report it in the annual compliance checklist.

Failure in procedure makes the deduction illegal even if the employee was at fault.

8. Enforcement & Penalties

Violation	Civil Consequence	Criminal / Administrative
Illegal deduction	Money claim before DOLE or NLRC; restitution + 10 % simple interest per annum (Art. 306).	Art. 303 imposes fine + imprisonment (1–2 years) for willful violations, though usually settled administratively via Compliance Orders.
OSH breach (charging for PPE)	Stop-work order; cost restitution.	Admin fine up to PHP 100,000 per day of violation (§28, R.A. 11058).
Repeat offender	DOLE may endorse criminal prosecution or suspend business permit (Sec. 19, D.O. 198-18).	—

9. Practical Compliance Checklist for Employers

Classify each item (facility vs supplement).
Policy document: Spell out company-provided uniforms/equipment, return obligations, and disciplinary—not monetary—sanctions for misuse.
Separate written consent if truly voluntary purchase (e.g., extra deluxe jacket).
Cap & track any authorized installment to ≤20 % of net pay.
Deposit-forfeiture scheme? Secure prior DOLE Regional Office approval; keep deposit in trust.
Payroll disclosure: Show gross wage, every deduction, and legal basis on each payslip.
Train supervisors—illegal deductions are personal crimes under Art. 119.

10. Employee Remedies

Single-Entry Approach (SEnA): File request for assistance at any DOLE field office; 30-day mediation window.
Money-Claim Case (NLRC): Six-year prescriptive period (Art. 306). Reinstatement not required; docket free for wage claims < PHP 5,000.
OSH Complaint: May be lodged anonymously; DOLE issues Notice of Results with compliance deadline.
Class/Representative Action: Allowed if deduction was across the workforce; attorney’s fees up to 10 %.

11. Recent DOLE Advisories & Trends

Issuance	Effect
Labor Advisory No. 11-2024	Reiterates that “uniforms, identification sets, and store-brand grooming items” are supplements; any deduction is a wage violation.
BWC Handbook on Statutory Monetary Benefits 2025	Adds explicit examples (e.g., barista aprons, theme-park costumes) as non-deductible items.
Regional Wage Orders 2023-2025	Some Boards now require posting of “No Deduction for Uniforms & PPE” notices alongside wage schedules.

12. Key Take-Aways

No deduction is the rule; consent plus legal authority is the rare exception.
Uniforms and PPE mainly serve the employer’s business image or safety compliance — they are supplements supplied gratis.
Deposits for tools/uniforms are tightly regulated—don’t conflate them with outright deductions.
Violations expose both the company and the responsible manager to penalties.

This article is for informational purposes only and is not a substitute for formal legal advice. For specific cases, consult a Philippine labor-law practitioner or the nearest DOLE office.