13th-Month Pay During Maternity Leave in the Philippines: A Practical Legal Guide

Snapshot (TL;DR)

Yes, rank-and-file employees remain entitled to 13th-month pay even if they went on maternity leave.
But the maternity benefit itself (the SSS-paid amount) is not part of the 13th-month computation.
13th-month pay is generally 1/12 of “basic salary earned” within the calendar year, which means it’s tied to salary for work performed, not to social insurance benefits.
Payment deadline: on or before December 24 each year (or earlier if company policy/CBA sets an earlier date).
Tax: 13th-month + other benefits are tax-exempt up to ₱90,000 (TRAIN). Maternity benefits from SSS are also tax-exempt.

Legal Bases and How They Interact

1) 13th-Month Pay

Presidential Decree No. 851 (and its rules) requires private-sector employers to pay all rank-and-file employees a 13th-month pay not less than 1/12 of their basic salary earned within the calendar year.
“Basic salary” generally excludes allowances and monetary benefits that are not considered part of the regular or guaranteed pay for work (e.g., COLA, overtime premium, night differential, holiday premium, discretionary bonuses).

2) Maternity Leave

Republic Act No. 11210 (Expanded Maternity Leave Law) grants 105 days paid maternity leave for every covered female worker per pregnancy, with an additional 15 days for solo parents. Up to 7 days may be transferred to the father/alternate caregiver (subject to conditions).
Funding in the private sector: the maternity benefit is paid by the SSS (the employer usually advances and then reimburses with SSS).
Salary differential: if the SSS benefit is less than the employee’s full pay, employers generally pay the difference (unless legally exempt—e.g., distressed establishments, micro-businesses under BMBE, and other specific exempt categories under the IRR).

Why this matters for 13th-month: the law pegs the 13th-month base to “basic salary earned.” SSS maternity benefits are social insurance benefits, not salary for work performed. Thus, they’re excluded from the 13th-month computation.

Core Rule on Inclusion/Exclusion

Included in the 13th-month base

Basic salary actually earned (pay for days worked) within the calendar year.
Company-guaranteed, regular wage components that form part of basic pay (per contract/CBA/company policy or jurisprudence).

Excluded from the 13th-month base

Maternity benefits paid by SSS (including the portion advanced by the employer).
Allowances (e.g., COLA), overtime premium, night differential premium, holiday premium, discretionary bonuses, monetized leave conversions, and similar non-basic items.

What about salary differential during maternity leave?

By default, the salary differential is not pay for work performed; it exists to bridge the gap between SSS benefit and full pay.
Common practice treats salary differential like other non-basic wage adjustments—excluded from the 13th-month base.
Exception: If a CBA, contract, or longstanding company practice expressly treats the differential as part of basic salary, it can be included. In the absence of such clear language, conservative compliance is to exclude it.

Worked Examples

Assumptions across examples: monthly basic salary ₱30,000; 5-day workweek; no allowances; no overtime; no premium pay; not tax-exempt issues beyond standard TRAIN.

Example A — Maternity leave entirely within the year

Jan–Mar: Worked (3 months) ⇒ basic salary earned = ₱90,000
Apr–Jun: On maternity leave (SSS pays; employer may pay differential). Exclude SSS benefit (and, by default, the differential) from 13th-month base.
Jul–Dec: Worked (6 months) ⇒ basic salary earned = ₱180,000
13th-month = 1/12 × (₱90,000 + ₱180,000) = ₱22,500

Example B — Leave straddles year-end

Oct–Dec (Year 1): On maternity leave ⇒ exclude SSS maternity benefit from Year-1 base.
Jan (Year 2): Still on maternity leave ⇒ exclude SSS benefit from Year-2 base for January.
The employee gets pro-rated 13th-month each year solely from salary earned for months actually worked in that year.

Example C — Entire year on maternity leave (no work rendered that year)

Salary earned = ₱0 (only SSS benefit received).
13th-month = 0 (because there is no basic salary earned that year).
In the next year, once she returns to work and earns salary, 13th-month resumes based on that year’s earnings.

Coverage, Eligibility, and Timing

Covered employees: All rank-and-file employees in the private sector regardless of position, designation, or employment status (probationary, regular, project-based, seasonal, casual), provided they earned basic salary during the year.
Resigned/Separated/Terminated: Still entitled to pro-rated 13th-month based on salary earned up to their separation date.
New hires and rehires: Pro-rated based on salary earned from hire/re-hire date through December.
Deadline: On or before December 24. Many employers split into two tranches (e.g., mid-year and December), but only one payment is legally required by the deadline unless company policy/CBA provides otherwise.
No-diminution / company practice: If your company has historically included certain items in the 13th-month base, abruptly removing them may violate the no-diminution of benefits rule.

Tax Treatment

13th-month pay + “other benefits” are tax-exempt up to ₱90,000 under the TRAIN law. Any excess is taxable.
SSS maternity benefits are not subject to income tax.
Salary differential paid by the employer follows the ordinary income tax/withholding rules if it is treated as taxable compensation (typical).

Payroll & HR Compliance Checklist

Track “basic salary earned” monthly (exclude maternity benefits and, by default, salary differential).
Document any CBA/company-policy deviations (e.g., if you intentionally include some items in the base).
Check exemption status for salary differential (if applicable) under the maternity law’s IRR.
Compute pro-rata for new hires, separations, and those on leave.
Pay by Dec 24; keep payroll proofs and computations.
Withhold taxes correctly (watch the ₱90,000 cap).
Communicate clearly with employees how maternity leave affects their 13th-month computations.

Frequently Asked Edge Cases

Employee worked partial months before/after leave: Include only the salary actually earned in those months.
Piece-rate/commission-heavy roles: If a component is guaranteed and part of basic pay, it may be included; pure commissions or results-based incentives typically aren’t part of basic salary unless company policy/CBA says otherwise.
Company grants a separate “13th-month-like” Christmas bonus: That’s different from statutory 13th-month. Its inclusion/exclusion rules depend on your own policy/CBA (but it doesn’t replace the statutory benefit).
Employee had multiple maternity leaves in the same year: Computation principle doesn’t change—still based on basic salary earned that year.
Government employees: PD 851 applies to the private sector. The public sector follows civil service/DBM rules on year-end bonuses and cash gifts, which are structured differently.

Employer–Employee Talk Track (Practical Script)

Employee: “Will my 13th month include my maternity leave pay?”
Employer: “You’ll receive 13th-month pay for the salary you earned when you worked this year. The maternity benefit from SSS isn’t part of basic salary, so it’s excluded from the 13th-month calculation. If our policy/CBA ever includes the salary differential as basic pay, we’d include it; otherwise we follow the default rule.”

Bottom Line

Entitlement remains, but computation excludes the SSS-funded maternity benefit (and typically the salary differential).
The only amounts counted toward the 13th-month base are those that are basic salary earned for work performed during the calendar year (plus any items your CBA/policy treats as basic pay).
Keep your policies explicit, your records clean, and your payments on or before December 24.