Payment of wages by bank checks, postal checks or money orders is allowed where such manner of wage payment is customary on the date of the effectivity of the Labor Code, where it is stipulated in a collective agreement, or where all of the following conditions are met:
- There is a bank or other facility for encashment within a radius of one (1) kilometer from the workplace;
- The employer, or any of his agents or representatives, does not receive any pecuniary benefit directly or indirectly from the arrangement;
- The employees are given reasonable time during banking hours to withdraw their wages from the bank which time shall be considered as compensable hours worked if done during working hours; and
- The payment by check is with the written consent of the employees concerned if there is no collective agreement authorizing the payment of wages by bank checks. ( Section 2: "Payment by check." Implementing Rules of the Labor Code of the Philippines, Rule VIII: PAYMENT OF WAGES, Memorandum Circular No. 2, November 4, 1992)
