Are SSS Maternity Benefits Tax-Exempt Under the ₱90-Thousand Ceiling?

Comprehensive Philippine Tax & Labor-Law Analysis (updated to 2025)

1. Background: What the “₱90-Thousand Ceiling” Really Covers

Provision	Source	Key idea
§32(B)(7)(e), National Internal Revenue Code (NIRC) (as amended by the TRAIN Law – R.A. 10963, effective 1 Jan 2018)	Tax Code	Exempts from income tax the 13th-month pay and other benefits of employees up to an aggregate cap of ₱90,000 per calendar year. Amounts above the cap are taxable.
“Other benefits” – examples in BIR issuances	BIR RMC No. 50-2018, BIR RR No. 11-2018	Productivity incentives, Christmas bonuses, holiday pay differentials, etc.

Important nuance: the ceiling applies only to the items enumerated (or analogous benefits) under §32(B)(7)(e). It does not automatically subsume every payment an employee receives.

2. Separate, Uncapped Exemption for SSS Benefits

Provision	Source	Effect
§32(B)(4), NIRC	Tax Code	Exempts from income tax “benefits received from or enjoyed under the Social Security System.” There is no monetary cap – it is a full exemption.

Because the NIRC already carves out a distinct, uncapped category for SSS benefits, those benefits are not lumped together with the “other benefits” that share the ₱90-k cap.

3. What Counts as an SSS “Benefit”?

Under R.A. 11199 (2018) – the Social Security Act, SSS maternity benefit is a social insurance cash benefit paid for the member’s temporary loss of income due to childbirth or miscarriage. Payments are:

Computed and funded by SSS (not by the employer, except for the employer’s cash‐flow advance which is later reimbursed).
Granted by virtue of statute, not as an employer’s voluntary bonus.

SSS classifies the maternity benefit as part of its “short-term benefits,” akin to sickness benefit – distinct from salary, bonus, or 13th-month pay.

4. BIR Administrative Guidance & Rulings

Issuance	Year	Take-away
BIR Ruling (DA-402-2009)	2009	Affirmed that SSS maternity benefits are covered by §32(B)(4) and therefore fully tax-exempt.
BIR RMC No. 013-2014	2014	Required employers to exclude SSS benefits from taxable compensation; any employer-paid supplement to the maternity benefit (beyond SSS rate) is taxable unless it falls under a separate exemption.
BIR FAQ on TRAIN (2018)	2018	Re-iterated that the ₱90 k ceiling “does not alter the separate exemptions expressly listed in §32(B)(1) to (6), including SSS benefits.”

To date (June 2025) the BIR has issued no circular reversing or limiting these positions.

5. Interaction in Payroll Practice

Scenario	Tax treatment on the employee
SSS maternity benefit (reimbursable, processed through employer’s payroll)	Fully exempt under §32(B)(4); do not include in the ₱90 k running total.
Employer-paid make-up pay (e.g., 100 % of salary vs. SSS cap)	Taxable unless it independently qualifies as “other benefit” subject to the ₱90 k ceiling, or another exemption (e.g., de minimis).
13th-month pay received in the same year as maternity leave	Apply ₱90 k ceiling only to the 13th-month/bonus pool. Ignore the SSS benefit when monitoring the cap.

Withholding mechanics

Do not withhold income tax on the SSS maternity benefit.
Track the remaining room under the ₱90 k cap for true “other benefits.”
Reflect the exempt SSS benefit in Part IV (“Non-Taxable Compensation”) of BIR Form 2316.

6. Illustrative Example (CY 2025)

Item	Amount (₱)	Tax-status	Notes
SSS maternity benefit (normal delivery, 105 days)	70,000	Exempt (§32(B)(4))	Not counted against ₱90 k
Employer top-up (difference to full pay)	30,000	Taxable compensation	Not an SSS benefit
13th-month pay	85,000	Exempt (within ₱90 k)	Counts toward cap
Christmas bonus	30,000	5,000 exempt / 25,000 taxable	Remaining cap = ₱5 k

Result: Only ₱25 k becomes taxable; the ₱70 k SSS maternity benefit never affected the ceiling.

7. Common Pitfalls & How to Avoid Them

Mis-tagging in payroll software – code SSS maternity benefit as “NT-SSS” (non-taxable-SSS) rather than as “13th-month/other benefit.”
Over-withholding when maternity leave straddles two calendar years – apportion the benefit correctly; each tranche remains exempt.
Fringe Benefit Tax (FBT) misconceptions – SSS maternity benefit is not a fringe benefit; FBT rules apply only to employer-granted benefits to managerial staff outside the SSS scheme.

8. Interplay with the Expanded Maternity Leave Law (R.A. 11210, 2019)

RA 11210 increased duration (105 days) and allowed solo parents +15 days.
Funding source remains SSS, so tax treatment unchanged.
Employer’s option to transfer up to 7 days to the father (paternity leave) or alternate caregiver does not convert the amount into a taxable benefit; it is still an SSS benefit received by the mother but assigned to the transferee.

9. Accounting & Documentary Requirements

Document	Purpose
SSS ML‐1 (Maternity Notification) & ML‐2 (Reimbursement)	Evidence that cash came from SSS.
BIR Form 2316 & Alphalist	Show non-taxable amount under code “SSSBEC” (or equivalent).
Books of accounts	Record reimbursement from SSS as other income, then offset against maternity benefit advance.

Failure to retain supporting SSS vouchers can draw assessment under §57(A)/(C) NIRC for erroneous non-withholding, so keep copies for at least 10 years.

10. Key Take-Aways

Statutory hierarchy matters. SSS maternity benefit is exempt under §32(B)(4); the ₱90-k ceiling of §32(B)(7)(e) never applies to it.
Only the excess, employer-given portions that are not reimbursable by SSS may be taxed—and may or may not fall under the ₱90 k cap.
Payroll configuration must separately tag SSS benefits to avoid accidental withholding or eroding an employee’s ₱90 k entitlement.
No BIR issuance to date (June 2025) has modified the long-standing view that SSS maternity benefits are fully income-tax-exempt.
Documentation – keep SSS vouchers and ensure proper disclosure in Form 2316 to survive audit.

⚖️ Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a Philippine tax professional or legal counsel for specific situations.