Can employers deduct from worker's wages?

No employer, in his own behalf or in behalf of any person, shall make any deduction from the wages of his employees, except: (a) In cases where the worker is insured with his consent by the employer, and the deduction is to recompense the employer for the amount paid by him as premium on the insurance; (b) For union dues, in cases where the right of the worker or his union to check-off has been recognized by the employer or authorized in writing by the individual worker concerned; and (c) In cases where the employer is authorized by law or regulations issued by the Secretary of Labor. (Article 113 of the Labor Code of the Philippines)

The following deductions are authorized by existing laws:
  1. Deduction for value of meals and other facilities.
  2. In cases where the employee is insured with his consent by the employer, deductions for the amount paid by said employer, as premiums on the insurance.
  3. In cases where the right of the employees or his union to check-off has been recognized by the employer or authorized in writing by the individual employee concerned.
  4. In cases where the employee is indebted to the employer, where such indebtedness has become due and demandable.
  5. In court awards, wages may be the subject of execution or attachment, but only for debts incurred for food, shelter, clothing and medical attendance.
  6. Withholding tax.
  7. Salary deductions of a member of a legally established cooperative.
  8. SSS, medicare and Pag-Ibig contributions.
Under the rules implementing the Labor Code, an employee’s payment of obligation to a third person is deductible from the employee’s wages if the deduction is authorized in writing by the employee. The employer may agree to make the deduction but is not obliged to do so. He must not receive any pecuniary benefit, directly or indirectly, from the transaction.