Bpo change payroll scheme

Hi to all,

just new here in the forum. I would like seek legal advice from our expert here. btw, my question is regarding the plan/scheduled change of our payroll scheme from 24 payout to be 26 payout which follows the 10working days fixed pay.

i'm current working in a BPO industry for almost 2 years now and our salary was been given to the usual 15th-30th payout.

now our company is planning to adopt a payroll scheme which they tagged as "every other friday pay" & paying the employee for ONLY 10 days fixed every other friday.

my questions now is like this;

1. the basic computation for the usual pay every 15th-30th is basic pay / 2 (e.g. 20,000 / 2 = 10,000)

2. to compute the daily rate is monthly salary / 21.75 (e.g. standard # of days per month as per industry) 919.54 as our daily rate.

3. now if company will implement the 10working days FIXED pay, employee's will only get 9,195.40 every payout for a month.

4. from the new scheme there will be 26payout for the year compare to that of 24days as regular payout.

5. from the computation in item 1 compare to that of in item 3 there's already a difference of 804.6 which translate to 1,609.2 every monthly as SHORT to expected monthly salary.

7. The company justify that since there is a frequent payout every other friday pay with an additional 2 more for july & december (3 payout in 1 month as there are 3 fridays). this as they translate will compensate the monthly shortage amounting to 1,609.2.

8. theres already a shortage of salary for the 1st 6months that employee is expecting.

9. does our labor code says something about this type of payout to be legal?

10. will the company needs to have an approval with DOLE/NLRC if ever they will implement as such?

11. is it fair for employee to wait 6 long months to compensate the prior shortage of pay?

12. as per my writings & understanding i know that theres a clear violation, is this enough for me to file a complaint to NLRC?

i hope that our legal expert here & trusted team enlighten my concern with your prompt response. thanks for now.

9. It is not illegal. The only thing mentioned in the LC is: Wages shall be paid at least once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days.

10.No.

11. You get paid for days worked - isn't that fair?

12. You can complain, but I doubt that it will work - nothing is lost on your end.


Can you prove diminution of benefits? I doubt it since all the money is still there, just split into other areas.

Reason for doing this - many need fixed amounts weekly for expenses, and a 15-30 pay date causes a wait of a few days extra before they get their money and they do not have the extra funds anymore.

(FYI - We implemented the same scheme a few years back.)

Hi council,

Thanks for the prompt response, i really appreciate it.

I Would like to post another queries as below after your response:

11. Yes we understand that we are still be paid but not as the same as the old scheme (15th-30th) with much lesser amount as sample computation shown in item#5. Do you think its fair?

Then with your question, Can you prove diminution of benefits?

I think there is specially the base pay, again if you refer to my sample computation from item 5,7 & 8 theres already a difference from 10,000 semi-monthly frm old scheme to new scheme of 9,195.40. What do you think?

Again thanks for your quick response.

DILgonza wrote:Hi council,

Thanks for the prompt response, i really appreciate it.

I Would like to post another queries as below after your response:

11. Yes we understand that we are still be paid but not as the same as the old scheme (15th-30th) with much lesser amount as sample computation shown in item#5. Do you think its fair?

Then with your question, Can you prove diminution of benefits?

I think there is specially the base pay, again if you refer to my sample computation from item 5,7 & 8 theres already a difference from 10,000 semi-monthly frm old scheme to new scheme of 9,195.40. What do you think?

Again thanks for your quick response.

Lesser amount per pay period but not for the total salary overall. So it's fair.

To show that it is not fair, prove that you are actually receiving less than what was promised to you.

P10,000 x 12 months = 120,000

same as

P5,000 x 24 paydays = 120,000

same as

P4,615.38 x 26 paydays (every 2 weeks) = 120,000

Hi council,

Really appreciate of what you've shown & was somehow justify that employer has another way of releasing the salary to another scheme. But on the otherside some employee (just in my case) got an incorrect impression.

The general perception of some employee was stuck on the usual payout scheme were we tend to compare the supposed monthly salary to that of 26payout scheme. Perhaps my employer should have use the same sample computation for general reference and for better understanding.

Again thanks for the time and from your prompt responce

you have to look at it from an annual perspective. if you receive the same salary for the entire year, then there is no violation. the impression of it being less comes from the fact that the new scheme has 2 payouts but that is only a 28 day period, whereas in the old scheme, months are 30 or 31 days.