Computation of Salary Differential | Expanded Maternity Leave Law RA No. 11210

As it seems the Republic Act on the Expanded Maternity Leave Law actually comes in three parts – the Republic Act, the Implementing Rules and Regulations and the Computation of Salary Differential.

…and I see why, it isn’t as simple as it initially seemed. It is not as simple as just adding days to the number of maternity leaves. In this article, let me share with you the details of the computation of salary differential.

Also Read:

Expanded Maternity Leave: Inclusions and Implications in the Workplace

Important Points from the IRR: Expanded Maternity Leave Law

SSS Updated Table of Contributions 2019

Allocation of Maternity Leave Credits Form

Expanded Maternity Benefit Calculator by Deb

What You Need To Know

  • Full pay includes the basic salary, allowance and government contributions.
  • The Company should continue to remit while the employee is on maternity leave. In the scenario below, if the salary differential is negative, the Company shoulders both the employee and employer share. [UPDATE, Sept 9, 2019] Employer does, however, have an option to deduct the amount from the employee’s maternity benefit, provided that there is a written and signed consent from said employee. Employers should not delay any social contribution, though. This is input from DOLE. If the salary differential is positive, the Company deducts employee share from employee and continues to pay employer share.
  • Formula goes like this: Salary Differential = Full Pay – Social Welfare Premium Contributions – SSS Maternity Benefit
  • Where, Full Pay = Monthly Salary x 3.5 (or 98 days for those allocating 7 days to their husband/partner, although, please note that the Company may always still choose to pay 105 days despite allocation)
  • Remember that Monthly Salary, includes basic pay and allowance (just to ensure you didn’t miss it…)
  • Salary Differential shall be treated as taxable income.
  • Salary Differential shall be included as part of the basic salary computation for the computation of the 13th month pay

Check-out the Calculator – Expanded Maternity Benefit Calculator By Deb

Here’s the Department Advisory:

Department Advisory  01 2019 on Expanded Maternity Leave Law

There, I hope this helps clarify some of your questions.

Till next!

featured photo from freepik.com

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About Emile Therese

Emile Therese is a graduate of the University of Philippines in Diliman with a degree in Psychology. She is happily married. She and her husband, Dennis, are blessed with one amazing daughter (and hopefully at least one more child). She believes that values and character ought to be taught as early as possible and that these are key to community and nation building. This was also how she and her siblings were brought up by their two awesome parents! She is a Certified HR Professional who advocates employee engagement in its entirety. Emile believes that true employee engagement rests on the pillars of basic human needs and in ensuring that process and leadership basics are in place - the employee engagement imperatives. She hopes to contribute to making this world a better place for all of us now and the next generation. She loves sipping tea, conversations, reading and writing. The latter gave birth to two blogs - Purposeful Parenting Journey (purposefulparentingjourney.com) and Engagement Imperative (engagementimperative.com).

5 Responses

  1. Charlotte Durante

    When is the actual effectivity of the IRR for computation of salary differential? As the IRR was released last July 9, 2019 but my employer gave my benefit last July 5, 2019, am I not eligible for the new guidelines on computation of salary differential? Thanks!

    Liked by 1 person

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