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PAYMENT OF WAGES  

DISCLAIMER: This article does not create an attorney-client relationship between the author and the reader.  The answer of the author on the issue is just an expression of his general opinion based on Philippine law and hence does not constitute legal advice.

Wage represents pay or compensation for the work or service rendered by an employee. Article 97(f) of the Labor Code has extensive definition of “wage” paid to an employee.

When should an employee gets his pay from his employer? Article 103 of the Labor Code provides “ART. 103. Time of payment. Wages shall be paid at least once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days. If on account of force majeure or circumstances beyond the employer’s control, payment of wages on or within the time herein provided cannot be made, the employer shall pay the wages immediately after such force majeure or circumstances have ceased. No employer shall make payment with less frequency than once a month.”

Article 103 of the Labor Code is instructive and hence mandatory such that any agreement to the contrary, by and between the employer and the employee, is void. An employer, except in cases beyond its control, must pay the wages of its employees at least twice a month at intervals not exceeding 16 days. This is the legal basis of the twice a month payroll (Example 15th and 30th or 10th and 25th).  There is no objection if the employer pays the wages of its employees on a weekly interval, as this is more favorable to the employees.

How about if the employer pays its employees only once a month? Is this allowed following the last sentence of Article 103 of the Labor Code? Yes, this is allowed provided the 16-day interval is complied with.  Are you a bit confused as the first sentence and the last sentence of the Article seem conflicting? Article 4 of the Labor Code resolves this conflict such that when doubt exist as to the interpretation of the provision of the law, the doubt shall be resolved in favor of the employees. Article 4 of the Labor Code reads “ART. 4. Construction in favor of labor. – All doubts in the implementation and interpretation of the provisions of this Code, including its implementing rules and regulations, shall be resolved in favor of labor.”  Applying then this provision, the confused employer must pay the wages of its employees at least twice a month at intervals not exceeding 16 days.

As a final note, Article 103 of the Labor Code applies both to managerial and non-managerial employees following Article 98 of the Labor Code.

(March 27, 2025)

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