Things To Check When Generating Pay Stubs For Your Workers
EMPLOYERS ARE PROHIBITED by law to pay workers below minimum wage. However, not all employers follow the labor laws to the letter. In fact, most violations don’t even go reported since most employees are too scared to speak up about their situation. But if you want to stay clear of these issues, use real pay stubs as your reference.
This will not only help you avoid fines and penalties from the Department of Labor and Employment (DOLE) but it will also ensure that workers receive their proper salaries every payday. If you’re looking for a way to generate pay stubs, here are the things you must put into consideration.
The law allows an employer to deduct from a worker’s salary only five instances:
Taxes and other mandatory contributions such as SSS, PhilHealth, PagIBIG Loans Union dues Rent/lease on company properties Uniforms or work clothes Legal fees incurred by the company for labor-related cases.
Note that the deductions should only have taken from the worker’s take-home pay, not his gross salary. So if an employee makes P25,000 a month, you may only deduct P14,400 for taxes and other mandatory contributions. The remaining amount will still go directly to his bank account.
With this list, you can easily create a pay stub for your workers. But if it’s still too confusing, simply go to the Department of Labor and Employment website for more information on how to compute salaries legally.