here’s a practical, everything-you-need legal guide (Philippine context) on salary disclosure before employee regularization—how pay should be communicated from hiring through probation, what must (and need not) be disclosed, what changes are lawful at regularization, and how to avoid illegal practices. This is geared to both HR and employees.
1) Big picture
- There’s no statute that requires a mandatory salary increase at regularization—and no law that forces employers to announce a “regularization salary” months in advance.
- What the law does require: (a) pay at least the current regional minimum wage at all times unless a lawful exemption applies; (b) pay lawful wage-related benefits (13th month pay, OT/holiday/rest-day premiums when applicable, SSS/PhilHealth/HDMF coverage, etc.); (c) no diminution of benefits already granted by policy or long practice; (d) probationary standards must be communicated at the time of engagement.
- Regularization converts the relationship to one with security of tenure; it does not automatically change pay. If an employer promises a higher rate upon regularization, that promise becomes contractual and must be honored.
2) Hiring → probation → regularization: where salary disclosure fits
A. At job offer / pre-employment
Best practice (and usually enforceable as contract):
- Base rate: state the peso amount (monthly/daily/hourly), pay frequency, and whether the amount is gross or net.
- Probationary term: typically up to 6 months; include the exact start date and the performance standards required for regularization (must be communicated at hiring; if not, the employee may be deemed regular).
- Conditional adjustments: if the company intends to adjust salary upon regularization, say so in writing (e.g., “₱X during probation; upon regularization on or about [date], salary will be adjusted to ₱Y, subject to meeting standards and the absence of pending administrative cases”).
- Variable pay/allowances: specify if allowances are fixed (and thus part of regular pay) or contingent (e.g., performance bonus), and whether they are wage-earning (affecting OT/holiday pay computations) or facultative (purely discretionary).
- Statutory benefits & deductions: note that the offer is subject to minimum wage orders, tax, and mandatory contributions.
If the employer stays silent about any change at regularization, the probationary rate carries over unless policy or a separate agreement says otherwise.
B. During probation
- Pay may not fall below the current minimum wage (probationary status does not justify a lower wage).
- If the company runs a “training rate” or “trainee stipend,” it must either (1) still meet minimum wage, or (2) be a lawful apprenticeship/learnership program registered under the proper rules; otherwise it’s an illegal wage cut by another name.
- Disclose deductions (tax, SSS/PhilHealth/HDMF, company-authorized deductions) in the payslip; employees are entitled to a breakdown.
C. At regularization
- What can change? Any pre-agreed salary step-up, eligibility for company benefits (e.g., HMO, leave accrual increases, bonuses) per policy/CBA.
- What cannot change? Employers cannot reduce the base pay or withdraw long-practiced benefits (non-diminution rule), and cannot retroactively alter agreed salary for time already worked.
- Timing: changes take effect prospectively from the effective date stated in the regularization notice.
3) What must be disclosed—and what is optional
Must disclose (or provide on request)
- The offered wage rate and basis (monthly/daily/hourly) and how overtime/holiday/rest-day premiums are computed.
- Pay period and payout dates, and mode (bank/e-wallet/cash).
- Statutory deductions and benefits; payslip details every payout.
- Performance standards and evaluation schedule for regularization (at hiring).
- Company policy/CBA provisions that materially affect pay (e.g., eligibility windows, proration rules).
Optional (but strongly recommended)
- Specific “regularization rate” if the company intends to change pay at confirmation.
- Matrices (salary bands/grades) and merit increase cycles. These are not legally mandated, but transparency reduces disputes.
Disclosing other employees’ salaries is not required and can raise privacy issues. Share ranges/bands instead.
4) Minimum wage, wage orders, and “moving targets”
- Regional wage boards periodically issue wage orders. Employers must adjust as soon as an order takes effect, regardless of probation/regular status or any offer letter that quotes an older figure.
- If an offer promises “₱X upon regularization” that later falls below a new minimum wage, the employer must at least meet the new minimum on the effective date (and should clarify if the promised adjustment is on top of or absorbed by the mandated increase).
5) Non-diminution of benefits & pay stability
- Once granted (by written policy, CBA, or long and consistent practice), salary increases at regularization or fixed allowances cannot be unilaterally withdrawn to the employee’s prejudice.
- A promised “regularization bump” that the employee relied upon is enforceable; failure to honor it risks claims for money claims/illegal diminution.
- Variable/bonus pay expressly labeled discretionary may be withheld—but if the employer has a consistent, unconditional practice of granting it, it can evolve into a demandable benefit.
6) Probationary limits, extensions, and pay
- The default probation cap is 6 months from start of work (not offer date), excluding certain authorized suspensions/absences that may toll the period if your policy says so and you notify the employee.
- “Extensions” beyond 6 months are high-risk: absent a lawful basis and clear consent aligned with policy, the employee may already be regular—and pay/benefits should reflect regular status.
- Silence or failure to evaluate by the end of probation typically results in regularization by operation of law at the same base pay unless a higher rate was promised.
7) Salary adjustments at regularization—what’s lawful
Lawful and common
- Fixed step-up (e.g., +₱2,000/month) expressly promised at hiring or in policy.
- Band movement based on evaluation results, following a published salary structure.
- Benefit unlocks (HMO, higher leave accrual, bonus eligibility) from effective date forward.
Unlawful or risky
- Reducing the probationary base rate at regularization.
- Backdating a lower rate to “offset” errors.
- Conditioning the promised increase on extraneous requirements not stated at hiring (e.g., surprise certifications) unless mutually agreed in writing and not discriminatory.
- Different increases for protected traits (sex, age, religion, etc.)—watch for discrimination risks. Equal pay principles apply, including “equal pay for work of equal value” for women.
8) Pay transparency, discussions, and privacy
- Philippine law does not impose a general wage-transparency mandate on private employers, but employees’ right to self-organization/collective bargaining protects good-faith discussions about wages/benefits among workers.
- Employers may maintain confidentiality of pay records and personal data under the Data Privacy regime, but disciplining employees merely for discussing their own pay—especially in relation to collective concerns—can chill labor rights.
- Safe path: publish salary ranges/grades, not specific co-worker salaries.
9) Documentation you should have (checklists)
For HR/Employers
- Offer letter with base pay, status (probationary), standards for regularization, and any pre-agreed regularization increase (amount or formula).
- Employee handbook/CBA: evaluation timing, salary structure, benefit unlocks, and non-diminution clause.
- Evaluation forms and notice of regularization served on time.
- Payslip formats that itemize earnings and deductions; payroll audit trail.
For Employees
- Signed offer/contract stating base pay and any “upon-regularization” adjustment.
- Copies of policies/CBA affecting pay.
- Evaluation schedule and feedback.
- Notice of regularization and any salary adjustment memo.
10) Disputes & remedies
- Promised raise not given: Send a written demand attaching the offer/policy. If unresolved, file a money claim (and, where appropriate, an unfair labor practice complaint) with the proper labor forum.
- Under-minimum pay: Demand correction; employers must true-up from the effective date of the wage order; differences are collectible.
- Diminution of benefits: If a regularization bump was an established policy/practice, a unilateral withdrawal can be challenged.
- Discrimination in pay: Preserve comparators (job descriptions, performance records) and raise via HR/DOLE/Commission on Human Rights pathways as applicable.
11) Templates you can adapt
A. Offer-letter clause (probationary + regularization salary)
Compensation. Your basic salary is ₱[amount] per [month], payable [frequency], less lawful deductions. You will be engaged on a probationary basis from [start date] to [end date], subject to the performance standards in Annex A. Upon regularization, effective [target date] or the date we issue your confirmation, your basic salary will be adjusted to ₱[amount], provided you meet the standards and are free from pending administrative cases as of the effectivity date.
B. Regularization notice with salary step-up
Congratulations on meeting the standards for regularization effective [date]. Your basic salary is adjusted from ₱[old] to ₱[new] starting [cutoff/pay period]. You are now eligible for [benefits] per policy. All other terms remain the same.
C. Employee demand for promised regularization increase
I refer to my offer letter dated [date] stating that my salary would be adjusted to ₱[amount] upon regularization. I was confirmed on [date], but my payroll remains at ₱[old]. Kindly implement the adjustment effective [date] and pay any differential in the next payout. Attached are my offer letter and regularization notice.
12) Special situations
- Fixed-term contractors converted to regulars: If conversion is lawful, pay should be no less than the last lawful rate; avoid “resetting” pay downward.
- Merger/transfer of business: Successor employers inherit obligations on promised conversions if employees transfer without break in service.
- Project/seasonal employees: If they meet tests for regular/project regular, pay adjustments still follow policy/contract; minimum wage rules continue to apply.
- Apprentices/learners: Sub-minimum rates are lawful only if the program is properly registered/approved; otherwise pay must meet minimum wage.
Bottom line
- Disclose clearly at hiring: base pay, probationary standards, and any regularization adjustment (amount or formula).
- Honor what you promise; apply wage orders when they take effect; never reduce pay at regularization.
- Use payslips and notices to keep pay transparent and auditable.
- Employees: keep your paperwork and follow up in writing; employers: build policies that are humane, compliant, and consistent.
This is general information, not legal advice for a specific case. For edge cases (e.g., tolling of probation, registered apprenticeship rates, or contested diminution), consult counsel.