DEPARTMENT ORDER NO. 195,

Series of 2018 Rule Amending Section 10 of Rule VIII of the Implementing Rules and Regulations of the Labor Code on Wage Deduction

Reader note — Original 2018 amending order. This issuance amends only §10(b) of Rule VIII, Book III, while retaining the omitted §10(a) through its “XXX” marker. Written employee authorization, employer agreement, and the prohibition on direct or indirect pecuniary benefit must be read together. This order does not state a universal deduction percentage or replace all rules on deposits for loss or damage. The Supreme Court reproduction records adoption on 27 July 2018 and filing on 5 September 2018; filing is distinct from the newspaper publication required by Part V. The full current payroll and sector-specific implementation framework is outside this original-order reader.

Later enforcement context. D.O. 238, Series of 2023 prescribes procedures for DOLE’s visitorial and enforcement powers, including inspection of payroll records and compliance orders for unpaid wages and benefits. Its procedural rules do not substitute for the written authorization and other conditions stated below or establish a universal deduction percentage. This reader preserves the original 2018 amendment and does not present a consolidated current payroll manual.

Pursuant to Article 113 (c) of the Labor Code of the Philippines, as renumbered, authorizing the Secretary of Labor and Employment to issue regulations on wage deduction, and Section 10 of Rule VIII of the Implementing Rules and Regulations of Book III of the Labor Code, this issuance is hereby issued amending the rules on wage deduction for the guidance of all concerned:

I. AMENDED RULE ON WAGE DEDUCTION

Section 10 (b) (Wage deduction) of Rule VIII (Payment of Wages) is hereby amended, as follows:

"SEC. 10. Wage deduction. — Deductions from the wages of the employees may be made by the employer in any of the following:

1. XXX XXX XXX
2. When the deductions are with written authorization of the employees for payment to THE EMPLOYER or a third person and the employer agrees to do so, provided that the latter does not receive any pecuniary benefit, directly or indirectly, from the transaction."

II. NON-DIMINUTION OF BENEFIT

Nothing in this issuance shall be construed to cause the diminution or substitution of any benefits and privileges currently enjoyed by the employee at the time of the issuance hereof.

III. REPEALING CLAUSE

All policies, rules, orders and other issuances inconsistent with the provisions of this issuance are hereby repealed or modified accordingly.

IV. COMPLIANCE AND ENFORCEMENT

The DOLE Regional Offices shall inspect and monitor the proper implementation of this issuance.

V. EFFECTIVITY

This issuance shall take effect fifteen days after its publication in a newspaper of general circulation.

Manila, Philippines, 27 July 2018.

(SGD) SILVESTRE H. BELLO III Secretary