1) Legal framework and why the rules matter

Philippine “salary rules” come mainly from the Labor Code of the Philippines (P.D. 442, as amended), its implementing rules (the Omnibus Rules), DOLE issuances, and Supreme Court labor rulings. Two clusters of rules are central to everyday payroll compliance:

Payment of wages (how, when, where, and with what limits), and
Working conditions and hours of work (what time is compensable and how it triggers premiums like overtime and night differential).

Even if a worker is called “salary-based,” many protections still apply, because in labor law, “wage” is a broad term that generally covers remuneration for work, including “salary,” unless a specific exception applies.

2) Key definitions (Philippine labor-law meaning)

2.1 “Wage” vs “salary”

Under the Labor Code’s definitions (commonly cited from Art. 97 in older numbering), wage generally means the remuneration or earnings paid by an employer to an employee for work done, whether fixed or ascertained on a time, task, piece, or commission basis. In ordinary conversation:

Salary often means a fixed monthly amount, while
Wage often means a daily or hourly amount.

Legally, however, both are typically treated as “wages” for purposes of rules on payment timing, lawful deductions, and protection against non-payment.

2.2 “Hours worked”

In Philippine labor standards, hours worked generally include:

All time an employee is required to be on duty or at a prescribed workplace, and
All time the employee is suffered or permitted to work (even if not expressly ordered), with important, rule-based inclusions/exclusions (waiting time, meal periods, on-call, etc.).

2.3 Coverage matters: not everyone is covered the same way

The Labor Code’s hours-of-work protections (normal hours, overtime, night differential, etc.) generally apply to employees—but exclude categories commonly listed under the Code and its rules, such as:

Managerial employees and certain members of the managerial staff (as defined by the rules),
Field personnel whose actual hours cannot be determined with reasonable certainty,
Domestic workers (who are primarily covered by the Batas Kasambahay, R.A. 10361),
Some workers paid by results (piece-rate/task), subject to specific standards and DOLE rules.

These exclusions are frequently misunderstood: being called “supervisor” or being paid “monthly” does not automatically remove labor standards coverage. The actual job duties and control over time matter.

3) When must wages be paid?

3.1 General rule: frequency and maximum gap

A core Labor Code rule on wage payment timing (commonly cited as Art. 103) is:

Wages must be paid at least once every two (2) weeks or twice a month,
With intervals not exceeding sixteen (16) days.

Practical effect: Common Philippine payroll schedules like 15th and 30th/31st are designed to comply with the “≤ 16 days” maximum interval.

3.2 Special situations where computation is not ready

For work where wages cannot be computed precisely within the regular period (for example, some piece/task arrangements, or where results must be validated), labor standards practice is to require regular partial payments within the legal period, with final settlement at least monthly (subject to DOLE rules and the specifics of the compensation scheme). Employers should not use “we’re still computing” as a reason to delay beyond the statutory limits without a legally recognized basis.

3.3 Wage payment must be timely and complete

The rules are not only about how often you pay, but also about paying wages when due and without illegal withholding. The Labor Code prohibits:

Withholding wages or inducing employees to “kick back” any portion (commonly cited as Art. 116),
Requiring deposits for loss/damage except under strict conditions (commonly Art. 114 and rules),
Retaliation for asserting labor standards claims (commonly Art. 118).

3.4 Final pay upon resignation/termination

While the Labor Code does not fix a single universal statutory deadline for “final pay” in the same way it fixes the 16-day rule for ongoing payroll, DOLE guidelines have long pushed employers toward releasing final pay within a reasonable period—commonly treated in practice as around 30 days from separation, subject to lawful clearance processes and any controlling contract/CBA/company policy (so long as it does not defeat wage protections). Final pay typically includes:

Unpaid salary up to last day,
Pro-rated 13th month (if applicable),
Unused convertible leave (if company policy/CBA allows conversion or mandates it),
Separation pay, if due (authorized causes or applicable agreements),
Deductions that are lawful and properly documented.

Important: Employers should distinguish lawful clearance/accountability checks from impermissible wage withholding. If deductions are claimed (e.g., unreturned property), they must still comply with rules on deductions and due process.

3.5 Special rule snapshot: domestic workers (Kasambahay)

Domestic workers are primarily governed by R.A. 10361 (Batas Kasambahay), which generally requires:

Wages paid in cash, directly to the kasambahay,
Payment at least once a month (and often more frequently by agreement),
Strong limits on deductions and wage interference, with documentation and minimum standards tailored to household employment.

4) How must wages be paid? (form, place, and direct payment)

4.1 Form of payment: legal tender as the rule

The Labor Code’s wage-payment provisions (commonly cited around Arts. 102–105) establish that wages should be paid in legal tender. Payment via:

Check or money order is allowed in recognized situations (e.g., customary practice, special circumstances, or stipulation in a CBA), and
Modern bank payroll/ATM transfer has become widely accepted in practice under DOLE guidance—especially where it is safe, accessible, and does not effectively shift bank costs and burdens onto employees.

Compliance best practice: If paying via bank/ATM, employers should ensure employees can withdraw without unreasonable cost or difficulty and that pay is credited on time.

4.2 Place and time of payment

Wages must generally be paid at or near the workplace and during working hours, with protective rules designed to prevent coercion or wage “recycling.” The Code also prohibits paying wages in certain venues like bars or places of amusement, except in limited lawful circumstances.

4.3 Direct payment to the employee

As a rule, wages must be paid directly to the employee. Limited exceptions exist (e.g., where payment to another person is authorized under the rules due to the employee’s circumstances, or in cases like death of the employee, subject to legal requirements).

5) What deductions from wages are allowed (and which are not)?

5.1 The baseline rule: no deduction without legal basis

The Labor Code (commonly Art. 113 and related provisions) restricts wage deductions. Deductions are generally lawful when they are:

Required by law (e.g., withholding tax; SSS, PhilHealth, Pag-IBIG contributions),
Authorized by the employee in writing for a legitimate purpose (subject to limits),
Authorized by a CBA in appropriate cases (e.g., union dues/agency fees under labor relations rules),
Or otherwise permitted by specific labor standards regulations.

5.2 “Facilities” vs “supplements” (a crucial Philippine distinction)

A recurring labor-law issue is whether an employer can deduct the value of items provided to employees:

Facilities (for the employee’s benefit and accepted voluntarily) may be deductible in limited circumstances and at fair value, subject to DOLE standards.
Supplements (primarily for the employer’s benefit or to enable the work) are not deductible.

This distinction often arises for meals, lodging, uniforms, tools, and similar items.

5.3 Prohibited practices

Even where an employer believes money is “owed,” labor standards typically prohibit:

“Kickbacks,” forced return of wages, or disguised deductions,
Deductions that reduce pay below minimum wage or defeat statutory benefits,
Deductions imposed without due process and proper documentation.

6) What counts as “work hours” in the Philippines?

6.1 Normal hours of work and the 8-hour day

The Labor Code’s general standard is 8 hours a day for normal hours of work (commonly Art. 83), with sector-specific rules (notably for certain health personnel) and lawful flexibility mechanisms (compressed workweeks, etc.).

A common private-sector schedule is 6 days × 8 hours = 48 hours/week, though 5-day schedules are also common.

6.2 The controlling principle: required, suffered, or permitted

Time counts as compensable work hours when:

The employee is required to be on duty, or
The employee is required to be at a prescribed place, or
The employee is allowed to work (even if not expressly ordered), and the employer knows or should know the work is being performed.

This principle is the foundation for many “hidden time” disputes (pre-shift logins, post-shift wrap-up, mandatory chats, etc.).

7) Common categories of time: compensable vs not

7.1 Waiting time

Compensable (“engaged to wait”): The employee is waiting but remains under the employer’s control (e.g., required to stay at the workplace, ready for immediate assignment).
Not compensable (“waiting to be engaged”): The employee is completely relieved, can use time effectively for personal purposes, and is told the waiting period is off-duty.

7.2 Rest breaks

Short rest breaks are generally treated as hours worked when they are of brief duration and are meant to promote efficiency/health (typical “coffee breaks”). Employers generally should not deduct short breaks from hours worked.

7.3 Meal periods

As a general rule, the Labor Code requires a meal period (commonly Art. 85) and treats a bona fide meal break as not hours worked—if the employee is completely relieved from duty.

Meal periods may become compensable when:

The employee is required to work during the meal period,
The employee is not actually relieved (e.g., on-duty meal),
Or the meal period is shortened in a way that effectively keeps the employee working (subject to the rules allowing reduced meal periods in specific operational situations).

7.4 On-call / standby time

On-call time is more likely compensable when:

The employee must remain at a specific place (or within a tight radius),
Must respond immediately,
And cannot use the time effectively for personal purposes.

If an employee is merely required to be reachable and can otherwise freely use the time, it is less likely to be counted as hours worked—though actual facts (response time demands, restrictions, frequency of calls) matter.

7.5 Travel time

Travel time commonly falls into these practical buckets:

Home-to-work commute: ordinarily not compensable.
Travel during the workday (between job sites, to clients, to required meetings): generally compensable.
Out-of-town travel: often depends on whether the travel occurs during normal working hours and whether the employee is performing work (driving as required, handling employer tasks) versus being a passenger free to rest. The degree of employer control and whether the travel is integral to the job are key.

7.6 Trainings, meetings, and work-related events

Time spent in trainings/meetings is generally hours worked if it is:

Required by the employer, or
Directly related to the job and held during working hours, or
Not truly voluntary, or
The employee performs productive work during it.

If it is outside normal hours, truly voluntary, not directly job-related, and no productive work is done, it is less likely to be compensable—again depending on the actual circumstances.

7.7 Pre-shift and post-shift activities

Time spent on tasks that are integral and necessary to perform the job—such as:

Mandatory pre-shift briefings,
Required system log-ins where work begins,
Required donning/doffing of essential protective gear,
End-of-shift turnover, reports, or required “wrap-up,” can count as work hours when they are required or effectively required and benefit the employer.

8) How work hours connect to pay: premiums triggered by compensable time

Once time is counted as hours worked, it may trigger statutory premiums:

8.1 Overtime pay

Overtime is work beyond 8 hours in a day for covered employees.

On an ordinary workday, overtime pay is at least 25% more than the regular hourly rate (Labor Code, commonly Art. 87).
On rest days and holidays, overtime premium is generally higher because the base pay for those days is already premium-rated.

8.2 Night shift differential (NSD)

Covered employees who work between 10:00 p.m. and 6:00 a.m. are generally entitled to an additional at least 10% of the regular wage for each hour of night work (commonly Art. 86), unless excluded by coverage rules.

8.3 Rest day and holiday pay (high level)

Weekly rest day: employees generally must have a 24-hour rest period after 6 days of work (commonly Art. 91), with premium pay rules when required to work on rest days (commonly Arts. 92–93).
Regular holidays: rules typically provide holiday pay even if unworked (for covered employees), and premium pay if worked (commonly Art. 94, plus special holiday laws and proclamations).
Special non-working days: treatment is largely governed by special laws/proclamations and DOLE guidance (commonly “no work, no pay,” unless worked, in which case premium pay applies).

Because holiday frameworks and proclamations can change from year to year, employers typically follow DOLE’s current holiday pay guidance and the applicable proclamations for that calendar year.

9) Alternative work arrangements and their effect on “hours worked”

9.1 Compressed workweek (CWW)

Philippine practice recognizes compressed workweek schemes (e.g., longer workdays for fewer workdays per week) when implemented with proper agreements and consistent with DOLE guidance. The key compliance idea is:

Total hours may be redistributed without reducing statutory benefits,
Overtime rules can still apply depending on the agreed “normal” hours for the compressed schedule and governing DOLE conditions.

9.2 Flexible work arrangements and telecommuting

Under the Telecommuting Act (R.A. 11165) and related guidance, telecommuting employees should generally enjoy the same labor standards protections, including fair pay and lawful hours. The practical challenge is accurate:

Timekeeping,
Definition of “required” work time,
Control and expectations around off-hours messages and tasks.

10) Record-keeping and enforcement (why disputes happen)

Employers are expected to keep accurate records of:

Time worked (where applicable),
Wages paid, pay periods, and deductions,
Statutory contributions and payroll registers, and to make these available in labor standards enforcement contexts.

10.1 Where employees commonly file claims

Wage and hours disputes can be pursued through:

DOLE labor standards enforcement and complaint mechanisms (especially for straightforward underpayment/nonpayment),
NLRC for money claims connected to employment disputes and other labor cases, depending on the nature of the claim and jurisdictional rules.

10.2 Prescription period

A commonly applied rule is that money claims arising from employer-employee relations (including unpaid wages and many wage-related benefits) are generally subject to a three (3) year prescriptive period counted from accrual (older Labor Code numbering commonly cited as Art. 291, later renumbered in some compilations).

11) Practical issue-spotting: quick scenarios

“We log in 15 minutes early, unpaid.” If early log-in is required or necessary for work and controlled by the employer, that time may be compensable.
“Lunch break but we must stay on duty.” An on-duty meal is often treated as compensable time.
“Waiting for assignments at the office.” Likely compensable if required to remain ready.
“On-call weekends with strict response time.” May be compensable if freedom is significantly restricted.
“We’re paid monthly, so overtime doesn’t apply.” Not necessarily; “monthly-paid” does not automatically exempt overtime—coverage depends on job category and control over time.
“Payroll delayed because client hasn’t paid.” Client delay is generally not a lawful reason to delay wages beyond statutory limits.

12) Core takeaways

Wages must be paid at least every two weeks or twice a month, with no more than 16 days between payments, as a baseline labor standard.
Hours worked are not limited to “time at the desk”—they include required, controlled, or permitted work time, including many pre/post shift tasks, certain waiting, and short breaks.
Once time is counted as hours worked, it can trigger overtime, night shift differential, and premium pay rules—unless the employee is in a legally excluded category.
Deductions and withholding are tightly regulated; employers need a clear legal basis and proper documentation.
Domestic workers (kasambahay) and certain categories of workers have special rules that differ from general Labor Code standards.