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.
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Hi! may I ask where I could find the DOLE document pertaining to this (below) written above? So we can have supporting documents to show her.
“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.”
We have only 1 employee and she is not able to meet her monthly hours and yet by law we still have to giver her full maternity benefit matching her supposed monthly pay. Granted her salary differential is negative, we cannot also shoulder her share for her benefits for the amount of time she will be gone as she is also availing her leave more than 1 month before her due date.
Hello! how about if weekly salary ng employee? How yung computation ng full pay? Should i still get the daily rate of the employee? thanks
Hi! I saw a memorandum from BIR (https://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/RMC%20Full%20Text%202019/RMC%20No.%20105-2019.pdf) released on October 2019. This clarifies the treatment of salary differential. Per this circular, salary differential is NOT subject to income and withholding tax as this is considered as a benefit 🙂
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!
Hello Sweetly Rose, for those with daily rate, this formula may be used, (daily rate*factor)/12
What if the employee is hourly rate. Are we still going to follow the comoutation for monthly basis?