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June 1, 2022

OWNERSHIP, USAGE AND ADMINISTRATION OF THE WORKING CHILD’S INCOME

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Published — March 23, 2021

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

Aside from managing the working child’s income, read also: Knowing the consequences of employment of children

  • A credit or refund of taxes may be allowed only when a taxpayer files in writing a claim for credit or refund

  • A written claim for tax credit or refund shall be filed within two (2) years after the payment of tax or penalty

  • A Tax Credit Certificate is a document reflecting the amount due to a taxpayer from the overpayment or erroneous payment of taxes

May a child’s income be used to support the needs of the family?

In our previous article, we wrote about the employment of children. When a child is employed, there is a corresponding income. To repeat the question, may a child’s income be used to support the needs of the family?

The law says:

The wages, salaries, earnings and other income of the working child shall belong to him or her in ownership and shall be set aside primarily for his or her support, education or skills acquisition and secondarily to the collective needs of the family. This is on the condition that not more than twenty (20) percent (20%) of the child’s income may be used for the collective needs of the family.

Who administer the income of the working child?

The law says:

The income of the working child and/or the property acquired through the work of the child shall be administered by both parents. In the absence or incapacity of either of the parents, the other parent shall administer the same. In case both parents are absent or incapacitated, the income of the working child shall be administered by the persons in the following order:  

  1. The surviving grandparent. In case there are several surviving grandparents, the one designated by the court, taking into account all relevant considerations, especially the choice of the child over seven years of age, unless the grandparent so chosen is unfit.
  2. The oldest brother or sister, over twenty-one years of age, unless unfit or disqualified; and
  3. The child’s actual custodian, over twenty-one ears of age, unless unfit or disqualified.

The parent or legal guardian of a working child below eighteen (18) years of age shall set up a trust fund for at least thirty percent (30%) of the earnings of the child whose wages and salaries from work and other income amount to at least two hundred thousand pesos (P200,000.00) annually, for which he or she shall render a semi-annual accounting of the fund to the Department of Labor and Employment (DOLE). The child shall have full control over the trust fund upon reaching the age of majority.


Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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