The Republic Act on the Expanded Maternity Leave Law (RA 11210) comes in three parts – the Republic Act, the Implementing Rules and Regulations and the Computation of Salary Differential.
It was 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 About Salary Differential Computation for the Expanded Maternity Leave Law
- 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.
- Sharing formula with you. 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
Department Advisory 01 2019 on Expanded Maternity Leave Law
There, I hope this helps clarify your questions.
Thank you! Glad to have you back!
For Strengths Coaching and HR Consulting, please send an email to emiletherese@yahoo.com. As a Gallup-Certified Strengths Coach, I am happy to join your personal, family and team development journey.
For more HR, Employee and Leadership related topics, follow me on Engagement Imperative, LinkedIn and Facebook.
featured photo from freepik.com