Here’s a practical, everything-you-need-to-know legal guide to filing an Unpaid Wage Complaint in the Philippines—what counts as “wages,” the laws in play, timelines, where to file, how to compute, how enforcement works, and what to do if you’re pressured to sign a quitclaim. No web browsing used; this is black-letter and standard practice.
What counts as “unpaid wages”
“Wages” are all amounts due for work performed—hourly/daily/monthly pay—including mandatory wage-related benefits that are earned and measurable, such as:
- Basic pay for hours/days actually worked
- Overtime (OT) (generally +25% of hourly rate; higher on rest days/holidays)
- Night shift differential (NSD) (at least +10% of hourly rate for work between 10:00 p.m.–6:00 a.m.)
- Holiday pay (regular holiday pay; premium pay rules for special days)
- Premium pay for work on rest days/special days
- 13th month pay (pro-rated from Jan 1 to separation date if applicable)
- Service Incentive Leave (SIL) conversion (5 days/year minimum after 1 year of service)
- Other earned, contract/CBA-based payments (commissions, incentives) once determinable and earned
Not wages: purely discretionary bonuses, future or unearned incentives, or benefits conditioned on events that did not occur (unless contract/CBA says otherwise).
Key legal anchors (at a glance)
- Labor Code (renumbered): wage payment, deductions, facilities, records, enforcement, prescription; visitorial/inspection powers; small money claims; premium/OT/NSD/holiday frameworks.
- PD 851: 13th month pay (including pro-ration upon separation).
- Wage Rationalization statute & wage orders: regional minimum wages and adjustments (issued by the RTWPB/NWPC).
- Kasambahay Law (RA 10361): specific wage/benefit rules for domestic workers.
- Penal/administrative provisions: sanctions for unlawful deductions, non-payment, and non-compliance with wage orders.
- Civil Code principles: damages/interest; validity of quitclaims; abuse-of-rights.
Deadlines (prescriptive periods)
- Money claims for unpaid wages/benefits: 3 years from when each claim accrues (usually from due date/payday or separation date).
- Illegal dismissal (if you were fired/constructively dismissed while wages were withheld): generally 4 years (injury to rights).
- Legal interest on adjudged amounts: typically 6% per annum from the date of finality of the decision until full payment.
Practical tip: If underpayment is continuous, don’t wait—file for the earliest periods so you don’t lose them to prescription.
Where to file (and why it matters)
Step 1: SEnA (mandatory conciliation–mediation)
- File a Request for Assistance (RFA) under the Single Entry Approach (SEnA) at the DOLE Regional/Field Office that covers your workplace or residence.
- Target: settlement within ~30 days via conciliation. If unresolved, you’ll get a Referral/Endorsement to the proper forum.
Step 2: Choose your forum after SEnA
A) DOLE Regional/Field Office (enforcement/inspection & small money claims)
- Inspection/visitorial route (Art. 128): If your claim arises from labor standards violations that can be verified from records (e.g., minimum wage, OT, 13th month), DOLE can conduct inspection, issue a Compliance Order, and assess underpayments (no strict amount cap).
- Summary small money claims (Art. 129): For pure money claims (no reinstatement issues), simple, document-based disputes—especially lower amounts—the Regional Director may summarily hear and decide.
- If employer appeals a Compliance Order, they may need to post a bond (to cover assessed liabilities).
B) NLRC / Labor Arbiter (judicial labor forum)
File a Complaint with the NLRC Regional Arbitration Branch when:
- claims are hotly disputed, complex, or tied to illegal dismissal or damages; or
- you also seek reinstatement, separation pay, backwages, attorney’s fees, etc.
After position papers and (if needed) hearings, the Labor Arbiter issues a Decision. Execution follows if the employer doesn’t comply.
C) Special situations
- Kasambahay (RA 10361): You can go to DOLE’s Kasambahay Desk, the barangay (conciliation), or DOLE/NLRC depending on issues.
- Seafarers/OFWs: file with the appropriate DMW/NLRC forums under special rules (outside this domestic wage guide).
What you need to bring (evidence)
- Identity & employment: government ID; company ID; contract/appointment letter; job description; HR emails; SSS/PhilHealth/Pag-IBIG enrollment proof.
- Pay & time records: payslips; payroll summaries; bank credits/GCash receipts; timecards/biometrics/shift schedules; OT approvals; HRIS screenshots.
- Company policies: handbook pay rules; leave/OT/holiday policies; CBA provisions (if unionized).
- Computation sheet: your detailed calculation (see below) with dates, rates, hours, and legal bases.
- Witnesses (co-workers), if available.
Burden & adverse inference: Employers must keep payroll/timekeeping records. If they fail to produce them, tribunals can rely on the employee’s credible evidence and may draw adverse inferences against the employer.
Deductions: what’s allowed vs. not
Allowed (lawful and documented):
- Withholding tax; employee share of SSS/PhilHealth/Pag-IBIG;
- Authorized deductions (written consent)—e.g., salary loan repayments;
- Deductions for facilities only if authorized and beneficial (strict standard).
Prohibited/abusive:
- Kickbacks/“rebates”; charging for tools/uniforms as penalties;
- Unauthorized cash bonds; company fines without a clear legal/contract/CBA basis;
- Deductions for losses/damages without due process and proof.
How to compute your claim (plug-and-play logic)
Establish the correct daily/hourly rates
- Monthly-paid 6-day schedule (common):
Equivalent Daily Rate (EDR) ≈ Monthly Rate × 12 ÷ 313
- Monthly-paid 5-day schedule:
EDR ≈ Monthly Rate × 12 ÷ 261
- Hourly rate =
EDR ÷ 8
.
- Monthly-paid 6-day schedule (common):
Minimum wage compliance
- Compare your EDR to the Regional Minimum Wage applicable during each period. Underpayment per day =
Minimum – Actual
. Sum over days.
- Compare your EDR to the Regional Minimum Wage applicable during each period. Underpayment per day =
Overtime (OT)
- Ordinary OT: hourly rate × 1.25 × OT hours.
- Rest day/Special day OT: hourly rate × 1.30 × 1.25 × hours (stacking premium + OT).
- Regular holiday OT: hourly rate × 2.00 × 1.30 (for excess over 8 hours). (Numbers above reflect standard statutory floors; check company/CBA if higher.)
Night Shift Differential (NSD)
- Hours worked between 10:00 p.m.–6:00 a.m. ×
hourly rate × 0.10
.
- Hours worked between 10:00 p.m.–6:00 a.m. ×
Holiday/Rest day work
- Regular holiday (worked):
Daily rate × 2.00
for 8 hours. - Regular holiday (unworked):
Daily rate × 1.00
if eligible. - Special non-working day (worked):
Daily rate × 1.30
. - Rest day (worked):
Daily rate × 1.30
(if it’s also a special day/holiday, rules stack).
- Regular holiday (worked):
13th month pay
Total basic salary actually earned in the calendar year ÷ 12
minus any amount already paid.
SIL conversion
Unused SIL days × EDR
(after completing 1 year of service).
Less only lawful deductions.
Pro tip: Build a table by pay period (date, hours, OT, NSD, holiday/rest work) and multiply by the applicable multipliers. Keep a running total.
The complaint process, end-to-end
File SEnA RFA (free form at DOLE); attach a short narrative and your computation.
Conciliation conferences: Be on time. Bring documents. Settlement is common; you can insist on gross amounts with clear tax treatment and payment schedules.
If unsettled: DOLE will endorse you to the proper forum—DOLE (enforcement/small claims) or NLRC.
Proceed in chosen forum:
- DOLE inspection → Compliance Order (employer may appeal with bond).
- NLRC → pleadings (complaint, position papers), then Decision; execution by Labor Sheriff if needed (garnish bank accounts/levy assets).
Appeals:
- DOLE decisions: to the Secretary of Labor (rules vary).
- NLRC decisions: appeal to NLRC Commission; then Rule 65 Petition for Certiorari to the Court of Appeals on jurisdictional errors (not ordinary appeal on facts).
Execution: Writ of execution; bank garnishment, levy, auction if employer refuses to pay.
Quitclaims & settlements: are they valid?
Quitclaims are not per se void. They’re respected when:
- executed voluntarily, with full understanding;
- for a reasonable consideration; and
- not meant to circumvent the law (e.g., waiving the minimum wage going forward).
If coerced or unconscionable, you can attack a quitclaim and recover deficiencies.
Retaliation & constructive dismissal
- Cutting hours, demoting, relocating without basis, or creating intolerable conditions after you asserted wage rights can amount to constructive dismissal.
- You may add claims for backwages, separation pay (in lieu of reinstatement), 13th month, attorney’s fees (often 10%), and damages if bad faith is proven.
Employer defenses (and how they’re tested)
- No employer–employee relationship (EER): tribunals examine control test (who controls how/when work is done), tools, place of work, payment scheme.
- Independent contractor claims: sham arrangements can be pierced; labor-only contracting is prohibited.
- No records / lack of proof: cuts against the employer—record-keeping is their duty.
- Authorized deductions: must be documented and specific.
Special notes
- Probationary, fixed-term, project, part-time workers all have wage rights; pay rules apply regardless of status.
- Kasambahay minimum wages and benefits (SIL/13th month/SSS/PhilHealth/Pag-IBIG) are mandatory; barangay conciliation may precede formal action, but DOLE/NLRC remains available.
- Unionized workplaces: check the CBA—it can enhance (not reduce) statutory benefits.
- Prescription & partial payments: accepting partial pay or signing a receipt does not waive the remainder unless the quitclaim meets the validity test above.
Quick checklists
Employee filing an unpaid wage complaint
- Timeline of work and non-payment periods
- Rate basis (daily/monthly), schedule (5-day/6-day), actual hours
- Payslips/bank proofs/time logs/OT approvals
- 13th month & SIL status
- Your computation sheet (excel/ledger)
- SEnA RFA + IDs + contact details
- Names/addresses of company, owners, HR
Employer compliance (to avoid cases)
- Written pay policies consistent with law/CBA
- Complete payroll & time records, 3–4+ years retained
- Correct application of wage orders/OT/NSD/holiday rules
- Clear, lawful deduction authorizations
- Fast-track settlement protocols at SEnA
A worked mini-example (illustrative only)
Facts: NCR employee; monthly ₱20,000; 6-day schedule; April 1–30 period; worked 26 days + 10 OT hours (ordinary days); 8 NSD hours; 1 regular holiday worked.
EDR = 20,000 × 12 ÷ 313 ≈ ₱766.13 Hourly = 766.13 ÷ 8 ≈ ₱95.77
Basic pay due = 26 × 766.13 = ₱19,918.
OT pay = 10 × 95.77 × 1.25 ≈ ₱1,197.
NSD = 8 × 95.77 × 0.10 ≈ ₱76.62
Regular holiday worked (8 hrs) = 766.13 × 2.00 = ₱1,532.26
Gross wages due ≈ ₱22,724 (plus any 13th-month accruals).
Less only lawful deductions. Balance unpaid = your claim.
FAQs
Can I be fired for filing a wage complaint? Retaliation that forces you out can be constructive dismissal (actionable). Keep records and add the claim if it happens.
Do I need a lawyer? Not required at SEnA, DOLE, or NLRC levels, but counsel helps with computations, evidence, and appeals.
Can DOLE force payment even if my employer disagrees? Yes. Through inspection/Compliance Orders. Employers can appeal (often with a bond). Non-compliance can lead to enforcement and even closure in egregious cases.
We “agreed” to a below-minimum rate—does that bind me? No. Statutory minimums and wage benefits cannot be waived.
What if I was paid in cash with no payslips? You can still prove your case through testimony, logs, messages, co-worker affidavits, and bank/GCash receipts where available. The lack of records is the employer’s problem.
Bottom line
- Start with SEnA; escalate to DOLE (enforcement/small claims) or NLRC depending on the dispute.
- Bring records and a clean computation.
- Watch the 3-year clock on money claims.
- Don’t sign unfair quitclaims; negotiate or litigate.
- Once you win, execute: garnishment/levy makes the victory real.
If you’d like, I can turn your facts into a ready-to-file computation sheet and a SEnA RFA draft—just share dates, rates, schedule, and what was paid vs. unpaid.