Book III — Conditions of Employment
Article 102Forms of payment.
ELI5— what this means for you
Your employer must pay your wages in legal tender (cash or valid check/bank transfer). Payment in promissory notes, vouchers, tokens, or company scrip is illegal — even if you agree to it.
Key point
Wages must be paid in real money. Being paid in coupons, tokens, or company credit is illegal.
Official text — PD 442
Forms of payment.
No employer shall pay the wages of an employee by means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal tender, even when expressly requested by the employee.
Payment of wages by check or money order shall be allowed when such manner of payment is customary on the date of effectivity of this Code, or is necessary because of special circumstances as specified in appropriate regulations to be issued by the Secretary of Labor and Employment or as stipulated in a collective bargaining agreement.
Source: lawphil.net (PD 442 as amended)
RELATED RIGHTS
Legal disclaimer: BatasKo provides general legal information, not legal advice. For advice on your specific employment situation, consult a licensed Filipino lawyer or the Public Attorney's Office (PAO) at pao.gov.ph.