Article 103 of the Labor Code: Time of payment
Status: In force
What does Article 103 say?
Wages shall be paid at least once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days. If on account of force majeure or circumstances beyond the employer’s control, payment of wages on or within the time herein provided cannot be made, the employer shall pay the wages immediately after such force majeure or circumstances have ceased. No employer shall make payment with less frequency than once a month.
The payment of wages of employees engaged to perform a task which cannot be completed in two (2) weeks shall be subject to the following conditions, in the absence of a collective bargaining agreement or arbitration award:
1. That payments are made at intervals not exceeding sixteen (16) days, in proportion to the amount of work completed;
2. That final settlement is made upon completion of the work.
Read the Labor Code on the DOLE website (it uses the article numbers before 2015)
What does it mean in plain language?
Article 103 of the Labor Code says when wages must be paid: at least once every two weeks or twice a month, with no more than sixteen days between paydays. If force majeure or circumstances beyond the employer's control prevent payment on time, the wages must be paid as soon as those circumstances end. Payment may never be less often than once a month.
The rule was Article 101 in the 1974 Labor Code. Today it is Article 103, a number the 2015 renumbering did not change, as the DOLE renumbered edition shows.
How does it work in real life?
Jessa: paid every 15th and 30th
Jessa is paid on the 15th and the 30th of each month. The gap between paydays is never more than sixteen days, so this meets Article 103.
Weng: a typhoon closes the bank
A typhoon closes the roads and the bank on payday, and Weng's employer cannot release the payroll. Article 103 allows the delay because of force majeure, but the employer must pay the wages immediately after the circumstances have ceased.
Carlo: a two-month project
Carlo is hired to finish a renovation that will take two months. Unless a collective bargaining agreement or arbitration award says otherwise, he must be paid at intervals not exceeding sixteen days in proportion to the work completed, with final settlement at the end.
What does this mean in practice?
- The form of payment (money, not coupons or vouchers) is in Article 102. Deductions are limited by Article 113.
- Article 103 does not set the deadline for final pay after the job ends. See the final pay calculator and Late or unpaid salary.
- Unpaid wages are a money claim, filed within three years. See how to file a labor complaint, how long you have to file a labor money claim and Free legal help in the Philippines.
- For an overview of the rules on pay and working time, see wages, hours and pay under the Labor Code.
What does Article 103 say?
The first paragraph sets the paydays:
Wages shall be paid at least once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days. If on account of force majeure or circumstances beyond the employer’s control, payment of wages on or within the time herein provided cannot be made, the employer shall pay the wages immediately after such force majeure or circumstances have ceased. No employer shall make payment with less frequency than once a month.
The second paragraph covers work on a task that takes longer than two weeks:
The payment of wages of employees engaged to perform a task which cannot be completed in two (2) weeks shall be subject to the following conditions, in the absence of a collective bargaining agreement or arbitration award:
- That payments are made at intervals not exceeding sixteen (16) days, in proportion to the amount of work completed;
- That final settlement is made upon completion of the work.
How do the rules fit together?
The article has three layers:
- The normal rule: at least once every two weeks, or twice a month, with no more than sixteen days between paydays. A common example is pay on the 15th and the 30th of the month.
- The exception: force majeure or circumstances beyond the employer's control. Then the wages are paid immediately after those circumstances have ceased. The exception does not cancel the wages; it only moves the date.
- The outer limit: no employer shall pay less often than once a month.
The implementing rules of the Labor Code (1989 text on the Supreme Court E-Library), Book III, Rule VIII, Section 3, repeat the normal rule: wages shall be paid not less than once every two weeks or twice a month at intervals not exceeding sixteen days, unless payment cannot be made with such regularity due to force majeure or circumstances beyond the employer's control.
What if wages are late or not paid?
Article 103 sets the time. Article 116 makes it unlawful for any person to withhold any amount from the wages of a worker, or to induce a worker to give up part of his wages, without the worker's consent:
It shall be unlawful for any person, directly or indirectly, to withhold any amount from the wages of a worker or induce him to give up any part of his wages by force, stealth, intimidation, threat or by any other means whatsoever without the worker’s consent.
In cases of unlawful withholding of wages, Article 111 allows the culpable party to be assessed attorney's fees equal to ten percent of the wages recovered.
Frequently asked questions
How often must wages be paid under the Labor Code?
Article 103 says wages shall be paid at least once every two weeks or twice a month at intervals not exceeding sixteen days.
Can my employer pay my salary only once a month?
The general rule in Article 103 is at least once every two weeks or twice a month, at intervals of not more than sixteen days. The same article also says no employer shall make payment with less frequency than once a month.
What if the employer cannot pay on time because of a calamity?
Article 103 says that if payment cannot be made on time because of force majeure or circumstances beyond the employer's control, the employer shall pay the wages immediately after those circumstances have ceased.
How are wages paid for a task that takes more than two weeks?
Unless a collective bargaining agreement or arbitration award says otherwise, Article 103 requires payments at intervals not exceeding sixteen days in proportion to the work completed, and final settlement upon completion of the work.
Is late payment of salary allowed?
Article 103 sets the time of payment, and Article 116 makes it unlawful to withhold any amount from a worker's wages without the worker's consent. Unpaid wages are a money claim that can be filed with the DOLE or the NLRC.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
Was this page helpful?