Title
Amendment on wage deduction rules
Law
Department Order No. 195, S. 2018
Decision Date
Sep 5, 2018
The Department Order amends wage deduction rules, allowing employers to deduct wages only with written employee authorization for payments to themselves or third parties, while ensuring no reduction in existing employee benefits.
A

Q&A (DEPARTMENT ORDER NO. 195, S. 2018)

Department Order No. 195, s. 2018 amends Section 10 (b) of Rule VIII of the Implementing Rules and Regulations of Book III of the Labor Code concerning wage deductions.

Deductions may be made with the written authorization of the employee for payment to the employer or a third person, provided the employer does not receive any pecuniary benefit directly or indirectly from the transaction.

The employer must not receive any pecuniary benefit, either directly or indirectly, from the wage deduction transaction.

No provision of this issuance shall cause diminution or substitution of any benefits and privileges currently enjoyed by the employee as of its issuance date.

DOLE Regional Offices are responsible for inspecting and monitoring the proper implementation of this issuance.

It took effect fifteen days after its publication in a newspaper of general circulation.

They are repealed or modified accordingly to conform with this issuance.

There must be a written authorization from the employee, and the employer must agree to make the deduction without any financial gain.

No, it does not diminish or substitute any benefits or privileges currently enjoyed by the employees.


Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.