Payment of wages shall be made at or near the place of undertaking, except as otherwise provided by such regulations as the Secretary of Labor and Employment may prescribe under conditions to ensure greater protection of wages.
Labor Code · Wages · Chapter III – Payment of Wages
Place of Payment
Payment of wages shall be made at or near the place of undertaking, except as otherwise provided by such regulations as the Secretary of Labor and Employment may prescribe under conditions to ensure greater protection of wages.
See Sec. 7 of R.A. No. 6727 (1989), Wage Rationalization Act, which provides that “[u]pon written permission of the majority of the employees or workers concerned, all private establishments, companies, businesses, and other entities with twenty five (25) or more employees and located within one (1) kilometer radius to a commercial, savings or rural bank shall pay the wages and other benefits of their employees through any of said banks and within the period of payment of wages fixed by P.D. No. 442, as amended.” See also the Labor Advisory on Payment of salaries thru Automated Teller Machine (ATM) (1996), which allows payment through ATM of banks provided the following conditions are met: (1) The ATM system of payment is with the written consent of the employees concerned; (2) The employees are given reasonable time to withdraw their wages from the bank facility which time, if done during working hours, shall be considered compensable hours worked; (3) The system shall allow workers to receive their wages within the period or frequency and in the amount prescribed under the Labor Code, as amended; (4) There is a bank or ATM facility within a radius of one (1) kilometer to the place of work; (5) Upon request of the concerned employee/s, the employer shall issue a record of payment of wages, benefits and deductions for a particular period; (6) 6. There shall be no additional expenses and no diminution of benefits and privileges as a result of the ATM system of payment; (7) The employer shall assume responsibility in case the wage protection provisions of law and regulations are not complied with under the arrangement.
Text and numbering follow the Department of Labor and Employment's 2022 edition of Presidential Decree No. 442, as amended and renumbered under DOLE Department Advisory No. 01, series of 2015. Former article numbers are shown in brackets. Notes are DOLE's editorial notes. Amendments after that edition are not included. For information and research only, and not legal advice. For certified copies, refer to the Official Gazette or the issuing agency.