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Payroll Deduction Authorization Form for Philippines

Payroll Deduction Authorization Form Template for Philippines

A legally binding document used in the Philippines that authorizes an employer to make specific deductions from an employee's salary or wages. The form complies with Philippine Labor Code requirements and related regulations, including DOLE Department Order No. 147-15. It details the nature, amount, and frequency of authorized deductions, which may include mandatory government contributions (SSS, PhilHealth, Pag-IBIG), loan repayments, union dues, or other voluntary deductions. The document provides protection for both employer and employee by clearly documenting the terms and conditions of the salary deduction arrangement while ensuring compliance with Philippine labor laws regarding allowable deductions.

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What is a Payroll Deduction Authorization Form?

The Payroll Deduction Authorization Form is a crucial document in Philippine employment relationships, required whenever an employer needs to make deductions from an employee's salary beyond statutory requirements. This document becomes necessary when implementing voluntary deductions for loans, insurance premiums, cooperative contributions, union dues, or other authorized purposes. It must comply with the Philippine Labor Code, particularly Articles 113-116, which govern salary deductions, as well as DOLE Department Order No. 147-15 that provides specific guidelines on allowable deductions. The form serves as a legal protection for employers while ensuring transparency for employees, documenting their explicit consent to the deductions. It includes detailed information about the nature, amount, and duration of deductions, and must be voluntarily executed by the employee without any form of coercion.

What sections should be included in a Payroll Deduction Authorization Form?

1. Employee Information: Employee's full name, employee ID, department, and other relevant identification details

2. Employer Information: Company name, address, and registration details

3. Deduction Details: Specific amount or percentage to be deducted, frequency of deductions, and purpose of deductions

4. Authorization Statement: Clear statement of employee's authorization for the deduction, including reference to relevant laws and regulations

5. Duration and Modification: Period for which the authorization is valid and process for modifying or revoking the authorization

6. Acknowledgment: Employee's confirmation of understanding and voluntary agreement to the deductions

7. Execution: Signature blocks for employee, employer representative, and witness if required

What sections are optional to include in a Payroll Deduction Authorization Form?

1. Additional Beneficiary Information: Required when deductions are for benefits that name specific beneficiaries (e.g., insurance policies)

2. Bank Account Details: Required when deductions are related to loan payments or savings programs with specific bank accounts

3. Union Dues Authorization: Required for union members when the deduction includes union dues

4. Multiple Deduction Schedule: Required when authorizing multiple types of deductions with different amounts or frequencies

5. Emergency Contact: Optional section for including emergency contact information when deductions relate to insurance or healthcare benefits

What schedules should be included in a Payroll Deduction Authorization Form?

1. Schedule A - Deduction Calculation: Detailed breakdown of how deductions are calculated, including any variable factors

2. Schedule B - Payment Schedule: Timeline of deductions showing dates and amounts when multiple payments are involved

3. Appendix 1 - Terms and Conditions: Detailed terms and conditions of the deduction arrangement, including all legal requirements and employee rights

4. Appendix 2 - Required Documentation: List of supporting documents provided by the employee (e.g., loan agreement, insurance policy)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Authorization Form

Cost

Free to use
Relevant legal definitions






























Clauses




















Relevant Industries

Banking and Financial Services

Manufacturing

Retail

Information Technology

Healthcare

Education

Construction

Business Process Outsourcing

Hospitality

Transportation and Logistics

Mining

Agriculture

Government Services

Telecommunications

Real Estate

Relevant Teams

Human Resources

Payroll

Finance

Legal

Compliance

Employee Relations

Operations

Administration

Corporate Services

Benefits Administration

Relevant Roles

HR Manager

Payroll Manager

Compensation and Benefits Specialist

HR Director

Finance Manager

Account Executive

HR Generalist

Payroll Administrator

Finance Director

HR Business Partner

Compliance Officer

Legal Counsel

Employee Relations Manager

HR Operations Manager

Benefits Administrator

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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