Why Some Employees See Lower Take-Home Pay After ReadyCash Deductions

Why Some Employees See Lower Take-Home Pay After ReadyCash Deductions

You might notice that, after ReadyCash deductions, some employees’ net pay is lower than usual, and wonder if this should be limited or automatically adjusted.

Is There a Legal Minimum Net Pay?

In the private sector, there isn’t a legal requirement for a minimum “take-home pay” after deductions. While some companies choose to ensure employees always take home a certain amount, this is a company practice, not a legal obligation.

According to the Department of Labor and Employment (DOLE) and Articles 112–115 of the Labor Code, deductions from wages are allowed if they are:

• Required by law, or

• Made with the employee’s written consent, or

• For a just and valid cause, with due process

ReadyCash deductions fall under deductions made voluntarily with the employee’s written consent. That means there’s no legal minimum threshold for take-home pay in this case.

Why Does Net Pay Sometimes Appear Low?

When net pay is lower, it’s usually because the employee has chosen a loan amount and repayment plan, which the system deducts automatically.

In other words, the net pay simply reflects the deductions agreed upon by the employee. It’s not an error or compliance issue—it corresponds to the employee’s chosen loan and repayment arrangement.