My employer made deductions from my salary — is that legal?
Last updated: 2026-07-11 · Educational content; not legal advice.
Short answer
Generally no. Article 113 of the Labor Code prohibits an employer from making any deduction from an employee's wages except in narrow cases: (a) for insurance premiums where the worker consented, (b) for union dues where authorized in writing, and (c) where authorized by law or by regulations of the Secretary of Labor. Article 116 separately bars withholding any part of wages without the worker's consent. So deductions for cash shortages, breakages, uniforms, training bonds, or 'losses' are unlawful unless they fit a legal exception and, where required, you gave written consent.
The Labor Code and its rules allow a few additional, tightly-controlled deductions — for example, deductions for loss or damage may be allowed only where the worker is clearly shown to be responsible, is given a chance to explain, and the deduction is fair and does not exceed the actual loss, and the total deduction does not bring pay below what the law protects. Mandatory government contributions (SSS, PhilHealth, Pag-IBIG) and withholding tax are lawful because they are required by law. If a deduction does not fit an exception, it is an illegal deduction you can recover as a money claim.
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Frequently asked
Can my employer deduct for a cash shortage or damaged item?
Only under strict conditions: you must be clearly shown to be responsible, be given a real chance to explain, and the deduction must be fair, not exceed the actual loss, and comply with the Labor Code's limits. A blanket deduction imposed automatically, without those safeguards, is unlawful.
Are SSS, PhilHealth, Pag-IBIG, and tax deductions legal?
Yes. Those are mandated by law, so they are lawful deductions under the Article 113 exception for deductions authorized by law.
What can I do about an illegal deduction?
Demand the amount back in writing, then recover it as a money claim through DOLE (SEnA first) or the NLRC. Money claims generally prescribe in three years under Article 306 of the Labor Code, so do not wait.
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Boses ng kumakayod — your everyday rights as a Filipino worker on pay and dismissal: when your final/back pay must be released (DOLE Labor Advisory 06-20 — within 30 days of separation), 13th-month pay (PD 851 — 1/12 of your basic salary, on or before December 24), legal vs illegal salary deductions, unpaid wages and overtime, the twin-notice due-process rule before you can be dismissed, just causes vs authorized causes, separation pay, your Certificate of Employment (within 3 days of request), resignation notice, the regional minimum wage set by your RTWPB, and how to file with DOLE (SEnA conciliation first) or the NLRC.