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:

1.   AMENDED RULE ON WAGE DEDUCTION

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

œSEC. 10. Wage deduction. - Deductions from the wages of the employees may be made by the employer in any of the following:

a.   xxx    xxx    xxx

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All policies, rules, orders and other issuances inconsistent with the provisions of this issuance are hereby repealed or modified accordingly.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