Below is a comprehensive discussion of the Payroll Release Schedule for Newly Hired Employees in the Philippine context. While this guide synthesizes relevant legal provisions and common practices, please note that it is for general information only and should not be construed as specific legal advice. For precise guidance, always consult a qualified Philippine labor lawyer or the Department of Labor and Employment (DOLE).

1. Legal Basis for Payroll Release in the Philippines

1.1. The Labor Code of the Philippines

Article 103 of the Labor Code (Presidential Decree No. 442, as amended) provides the fundamental rule on when wages shall be paid. In essence, wages must be paid:
- At least once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days.
- Within seven (7) working days from the end of a wage period, unless the employer is exempted by the Secretary of Labor and Employment on grounds of industry practice or other justifiable reasons.

This means that employers generally cannot release wages beyond a 16-day interval or delay payment to the point that more than seven days elapse after a given cutoff. Thus, in practice, many Filipino employers adopt semi-monthly pay schedules (e.g., releasing salaries on the 15th and 30th of every month) or bi-weekly schedules (every two weeks), which are in line with the maximum interval permitted by law.

1.2. DOLE Guidelines

The Department of Labor and Employment (DOLE) enforces and interprets Labor Code provisions. Although it does not specify unique rules on new hires’ first paycheck, DOLE ensures that the same payment interval mandated by law applies to all employees, including newly hired ones.
DOLE also requires that correct wages and mandatory benefits (e.g., SSS, PhilHealth, Pag-IBIG contributions, and 13th month pay) be promptly and accurately computed and reported.

2. Inclusion of Newly Hired Employees in the Payroll Cycle

2.1. Commencement of Salary Entitlement

A newly hired employee’s entitlement to wages begins on the date they start working or rendering services, not from the date of the job offer or acceptance. Once the new employee commences work, the employer is legally obligated to compensate them for all hours or days worked, in accordance with the minimum statutory wages (if applicable) and the agreed rate.

2.2. First Payout Schedule

No specific legal rule dictates a unique or separate timeline for a newly hired employee’s first salary. In practice, new hires are simply added to the employer’s regular payroll cycle.
- For example, if the employer pays salaries every 15th and 30th of the month, a new hire who starts on the 5th will typically receive their first pay on the 15th (covering work from the 5th to the cutoff date).
The cutoff period is crucial. Many companies implement a “current” or “advanced” cutoff (e.g., from the 1st to the 15th, payout on the 20th), or a “previous” or “lagging” cutoff (e.g., from the 26th to the 10th of the following month, payout on the 15th). A new hire may need to wait until the next scheduled payday that follows the cutoff in which they actually rendered work.

2.3. Prorating for Partial Periods

Because new hires often begin employment in the middle of a payroll cycle, their initial pay may be prorated. Employers calculate the number of days (or hours) the new hire worked within the particular cutoff period, then release payment in the next scheduled payout.

3. Common Payroll Schedules and Practical Considerations

3.1. Semi-Monthly or Bi-Weekly Pay

A semi-monthly scheme (15th and 30th) or bi-weekly scheme (every other Friday, for instance) is most prevalent in the Philippines because it satisfies the Labor Code’s requirement of at least one payout every sixteen days.
These schedules also simplify statutory deductions (SSS, PhilHealth, Pag-IBIG) and contributions for both the employer and the employee.

3.2. Weekly or Daily Payroll

Certain industries—particularly construction, retail, or service-oriented businesses—pay daily or weekly wages, especially for rank-and-file or project-based employees.
Even if wages are settled daily or weekly, the employer must still meet the minimum wage requirements and remit statutory deductions properly.

3.3. Managerial, Executive, or Specialist Roles

Employees in higher-level or managerial positions often receive a monthly rate, typically paid in two tranches (semi-monthly). Others may receive a monthly salary in one go—though to comply with the Labor Code, DOLE generally advises that wages be paid at least twice a month, unless an exception is granted.

4. Mandatory Benefits and Newly Hired Employees

4.1. 13th Month Pay

Under Presidential Decree No. 851, all rank-and-file employees are entitled to a 13th month pay, provided they have worked for at least one (1) month during the calendar year.
For newly hired employees, 13th month pay is prorated according to the total actual earnings within the calendar year.

4.2. SSS, PhilHealth, and Pag-IBIG Contributions

Employers must enroll new hires in SSS, PhilHealth, and Pag-IBIG and begin the corresponding deductions/contributions immediately.
Failure to deduct or remit these contributions can expose the employer to penalties, even if the employee is new.

5. Delays, Withholding, and Penalties

5.1. Prohibited Acts and Penalties

The Labor Code prohibits the withholding of wages except as otherwise authorized by law (e.g., for government contributions or authorized salary deductions).
DOLE can impose administrative sanctions on employers who unjustifiably delay or withhold wages. Employees can also file a complaint or labor case for underpayment or non-payment of wages.

5.2. Deductions for Uniforms or Cash Bonds

Deductions for uniforms, tools, or equipment necessary for employment are generally not allowed if they bring the employee’s pay below the minimum wage, or if the employee did not voluntarily agree in writing.
Especially for newly hired employees, any arrangement to deduct the cost of employment-related items must comply with the Labor Code and DOLE regulations.

6. Best Practices for Employers

Orient new hires on the company’s payroll schedule, cutoff periods, and estimated date of their first payout.
Provide clear documentation (e.g., payslips) indicating gross pay, deductions, and net pay.
Ensure statutory compliance by making timely government contributions and releasing salaries within the mandated intervals.
Maintain consistency in applying payroll policies to both new and existing employees.
Communicate changes or adjustments in payroll schedules in writing, giving employees sufficient notice.

7. Frequently Asked Questions (FAQs)

Is there a law that specifically sets a different first payday for new employees?
- No. The Labor Code does not distinguish the first payday for new hires from regular payday schedules. New hires simply join the employer’s established pay cycle.
Can an employer implement a “one-month hold” for a new hire’s salary?
- Typically, no. The Labor Code requires wages to be released at least twice a month, or at intervals of no more than 16 days. Any “hold” that results in a longer-than-allowed interval is not permitted without a valid justification or exemption from DOLE.
What if the employee starts after the cutoff date?
- The employee is generally included in the next payroll that follows the close of the cutoff period in which they started working. They will be paid for the days actually worked during that cutoff period.
Are there exceptions for managerial employees to be paid once a month?
- The general rule is at least twice a month for all employees, but DOLE and jurisprudence have recognized certain exceptions for managerial or high-level employees. Employers should still confirm with DOLE or legal counsel to ensure compliance.
What happens if wages are not paid on time?
- Late or non-payment can result in administrative penalties, potential labor complaints, and possible legal liability under the Labor Code and related regulations.

8. Conclusion

In the Philippines, newly hired employees are covered by the same wage-payment rules that apply to all other employees. The Labor Code mandates that wages be released at least twice a month at intervals of no more than 16 days, and that the total wages owed for a given cutoff be released within seven working days after that cutoff ends (barring valid exemptions). Newly hired employees are simply added into whichever established schedule (semi-monthly, bi-weekly, weekly, or daily) the employer has adopted, with their pay prorated to cover the days worked since their start date.

Employers must also ensure that mandatory government contributions (SSS, PhilHealth, Pag-IBIG) and 13th month pay entitlements are properly computed from the date the new hire begins work. Failure to comply with these statutory requirements may lead to administrative sanctions or labor disputes. By following best practices—clear communication, timely payment, and consistent record-keeping—employers can uphold Philippine labor standards and ensure newly hired employees are compensated fairly and on time.