There are 2 groups of wage deductions: those under Art. 113 of the Labor Code and those under other laws. The allowable wage deductions under Art. 113 of the Labor Code are the following:
1.) In cases where the worker is insured with his consent by the employer and the deduction is to compensate the employer for the amount he paid as a premium on the insurance
2.) For union dues if the employer recognizes the worker's or union's right to check-off (deduct from wages) or is authorized by the worker himself
3.) In cases where the law or regulations issued by the DOLE Secretary authorizes the employer to make deductions
The following are deductions allowed by other laws
1.) If the employee has a debt to the employer and it's now due and demandable (Civil Code, Art. 1706)
2.) In court awards, wages can be subject to execution or attachment only if they cover debts for food, shelter, clothing or medical attendance (Civil Code, Art. 1703)
3.) Withholding taxes (NIRC)
4.) Salary deductions of a member of a legally established cooperative (RA 9520, Art. 58, which amended RA 6938/Philippine Cooperative Code of 2008)
5.) Deductions for payment to third persons, with the employee's written authorization (Labor Code Implementing Rules, Book 3, Rule 8, Sec. 13)
6.) Union dues (Labor Code, Art. 241 and 277)
7.) Agency fee (Labor Code, Art. 248, par. e)
8.) Deductions for meals and other facilities (Labor Code Implementing Rules, Book 3, Rule 7-A, Sec. 7)
9.) Deductions for loss or damage (Art. 114, Labor Code)
10.) SSS, Medicare, Pag-IBIG, premiums
Note, however, that under Art. 114 of the Labor Code the employer can't make the employee make a deposit to cover damages to company property. Whatever damage the employee commits must be charged to his salary.

I'm Giancarlo Enrico S. Pozon, a Wushu instructor, investor and Law Student... That's right, Law Student. I created this blog to make Philippine Law easy to understand for the average person. It's all about free legal advice. There are many law blogs. But the problem is that many of them are written for lawyers and law students. They use words that can't be understood by ordinary people.
Many lawyers, judges and law students consider themselves as superior to most human beings because of their knowledge of the law. It bothers me since the law is supposed to serve society. Since the law is meant to serve society as a whole, it is important that is must be understood by everybody.
This does not mean that we should all become lawyers. It means that although law is a highly specialized profession, the first duty of everybody in this profession is to make the law understandable to all; that's why all these articles are free legal advice.
Like I said, this blog is about law -but it's for the ordinary people, not the lawyers. It's for the ordinary folk so they will know what is good and bad for them, and that making them aware of the law will help us all improve society as a whole. This is free legal advice for everybody!
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