Can an increase in the minimum wage be offset by paid service charges?
An increase in the minimum wage cannot be offset by the employees’ share of service charges. As mandated by Article 96 of the Labor Code of the Philippines, service charges are completely separate from regular wages. If a wage order increases the minimum wage, employers cannot count paid service charges as compliance. Establishments must comply with the new basic wage rates independently of the collected service fees. 16-May-26About Nicolas and De Vega Law Offices
Nicolas and De Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com/.
