NINETEENTH CONGRESS OF THE
)
REPUBLIC OF THE PHILIPPINES
)
First Regular Session
HOUSE OF REPRESENTATIVES
HOUSE BILL NO. ____
Introduced by REPRESENTATIVE VIRGILIO S. LACSON
EXPLANATORY NOTE
Our workforce is the backbone of the economy. It is because of their hard work and
sacrifice that we enjoy the economic progress we have been experiencing in the past years.
In return, we owe it to them to advocate for laws that make their quality of lives better.
At present, the Labor Code, supplemented by the Omnibus Rules Implementing the
Labor Code, provides for the manner by which wages and other remuneration are to be
released to workers, to wit:
Rules VIII of Omnibus Rules to Implement the Labor Code of the Philippines
SECTION 1. Manner of wage payment. — As a general rule, wages shall be
paid in legal tender and the use of tokens, promissory notes, vouchers,
coupons, or any other form alleged to represent legal tender is absolutely
prohibited even when expressly requested by the employee.
SECTION 2. Payment by check. — Payment of wages by bank checks, postal
checks or money orders is allowed where such manner of wage payment is
customary on the date of the effectivity of the Code, where it is so stipulated in
a collective agreement, or where all of the following conditions are met:
(a) There is a bank or other facility for encashment within a radius of one (1)
kilometer from the workplace;
(b) The employer or any of his agents or representatives does not receive any
pecuniary benefit directly or indirectly from the arrangement;
(c) The employees are given reasonable time during banking hours to withdraw
their wages from the bank which time shall be considered as compensable
hours worked if done during working hours; and
July 28, 2022
2:29 pm
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(d) The payment by check is with the written consent of the employees
concerned if there is no collective agreement authorizing the payment of wages
by bank checks.
Moreover, in a recent advisory of the Department of Labor and Employment, Labor
Advisory no. 26 dated on August 3, 2020. The Department promotes the mode of payment
of wages through transaction accounts and electronic money, to reduce the cost and risks of
physical cash disbursements and to provide a safer alternative to physical exchange of
money.
In connection therewith, this representation earnestly seeks the passage of this bill
entitled, “Workers’ Choice of Banking Act.”
The instant bill aims to free our workforce from other unnecessary burdens in relation
to accessing their wages and remuneration. By empowering the workforce with the right to
choose the financial institution through which they receive their salaries, we unburden
them the cost of maintaining bank accounts based solely on the choice and convenience of
the employers. With this bill, employees shall have the freedom to choose a financial
institution based on factors that benefit him or her, such as ease of access, service
offerings, attraction to financial products, familiarity with the bank’s process, among
others.
To this end, this representation firmly believes that this Bill will help us achieve our
Constitutional goal to protect the rights of workers and promote their welfare.
HON. VIRGILIO S. LACSON
Manila Teachers Partylist


NINETEENTH CONGRESS OF THE
)
REPUBLIC OF THE PHILIPPINES
)
First Regular Session
HOUSE OF REPRESENTATIVES
HOUSE BILL NO. ____
Introduced by REPRESENTATIVE VIRGILIO S. LACSON
AN ACT
GRANTING PREFERENCE IN CHOICE OF BANKING SERVICES TO EMPLOYEES
IN THE PRIVATE SECTOR THROUGH WHICH TO RECEIVE THEIR SALARIES
AND OTHER MONETARY REMUNERATION, AND AMENDING THE LABOR CODE
OF THE PHILIPPINES FOR THAT PURPOSE
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
Section 1.Short Title. – This Act shall be known as “Worker’s Choice of Banking Act.”
Sec. 2. Declaration of Policy. – It shall be the policy of the State to protect the interest of
the workforce by institutionalizing their right of preference in the manner by which to receive
their salaries and wages.
Sec. 3. Amendment to the Labor Code of the Philippines. – A second sentence shall be
added to the first paragraph of Article 102, Chapter III, Title I, Book Three, of Presidential
Decree No.442 as amended and renumbered, otherwise known as the Labor Code of the
Philippines, so that the entire first paragraph shall read as follows: 
"ART. 102. Forms of Payment. - No employer shall pay the wages of an employee by
means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other
than legal tender, even when expressly requested by the employee. THE EMPLOYEES
SHALL HAVE THE RIGHT TO DESIGNATE THE BANK ACCOUNT TO
WHICH THEIR WAGES SHALL BE DEPOSITED.”
Sec. 4. Implementing Rules. - The Department of Labor and Employment shall, within
ninety (90) days from the effectivity of this Act, promulgate such rules and regulations as may be
necessary for the effective implementation of this Ac
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Sec. 5. Separability Clause. – If any provision or part of this Act is declared invalid or
unconstitutional, the remaining parts or provisions not affected shall remain in full force and
effect.
Sec. 6. Repealing Clause. – All laws, decrees, orders, rules and regulations and other
issuances or parts thereof which are inconsistent with the provisions of this Act are hereby
repealed or amended accordingly.
Sec. 7. Effectivity Clause. –
This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any newspaper of general circulation.
Approved,