Maternity leave forms a cornerstone of labor protections for female workers in the Philippines. Under the expanded framework introduced by Republic Act No. 11210 (the 105-Day Expanded Maternity Leave Law of 2019), employers bear specific ongoing obligations, including the remittance of mandatory social security contributions while an employee is on leave. This liability persists because maternity leave constitutes a paid, protected period during which the employment relationship remains intact. Employers must continue handling contributions to the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund (Pag-IBIG or HDMF) without interruption.

Legal Framework

The governing statutes include:

Labor Code of the Philippines (Presidential Decree No. 442, as amended), particularly provisions on women’s employment and maternity protection.
Republic Act No. 11210, which expanded maternity leave to 105 days with full pay and introduced mechanisms for employer reimbursement.
Republic Act No. 8282 (Social Security Act of 1997, as amended), defining SSS coverage and contribution requirements.
Republic Act No. 7875 (National Health Insurance Act of 1995, as amended), for PhilHealth.
Republic Act No. 9679 (Pag-IBIG Fund Law), governing housing fund contributions.

Implementing rules issued by the Department of Labor and Employment (DOLE), SSS, PhilHealth, and Pag-IBIG clarify that paid maternity leave does not suspend the employer’s duty to remit contributions. These rules treat the period as active employment for contribution purposes.

Scope of Maternity Leave Entitlement

Every female employee in the private sector who has rendered at least one month of service qualifies for maternity leave upon childbirth or miscarriage. The standard duration is 105 calendar days for a live birth, regardless of delivery method (vaginal or cesarean). Solo parents, as defined under Republic Act No. 8972, receive an additional 15 days, bringing the total to 120 days. In cases of miscarriage or emergency termination of pregnancy, the entitlement is 60 days with full pay.

The leave may be taken in a single block or installments, subject to proper notification to the employer. The employee must notify the employer at least 30 days in advance (or as soon as practicable) and submit supporting medical documents. The employer cannot deny the leave or require the employee to use other paid leaves (such as vacation or sick leave) to cover it.

Full Pay Obligation and SSS Reimbursement Mechanism

The employer must advance the employee’s full regular salary (including basic pay and regular allowances) throughout the entire maternity leave period. This full-pay requirement ensures the employee receives 100% of her compensation as if she were actively working.

After delivery, the employer files a maternity benefit claim with the SSS. The SSS reimburses the employer for the daily maternity allowance, computed as 100% of the employee’s average daily salary credit (ADSC). The ADSC is derived from the six highest monthly salary credits in the 12-month period preceding the semester of childbirth, divided by 180.

Where the employee’s actual salary exceeds the SSS-computed benefit, the employer shoulders the difference from its own funds. The reimbursed SSS portion is tax-exempt, while any excess salary paid by the employer remains subject to applicable withholding taxes and contributions.

Employer Contribution Liability During Maternity Leave

Because the employee receives full compensation from the employer during maternity leave, the period is treated as compensable service. Consequently, the employer remains fully liable for remitting both the employee’s share and the employer’s share of contributions to SSS, PhilHealth, and Pag-IBIG.

Key principles governing liability:

The employment contract and the protected status of maternity leave under law prevent any suspension of contribution obligations.
Contributions are computed based on the actual monthly compensation paid to the employee during the leave period.
The employer withholds the employee’s share from the salary disbursed and pays its own corresponding share.
Monthly remittances must follow the regular schedule applicable to the employer’s contribution payment cycle (typically on or before the 10th, 15th, or last day of the following month, depending on the employer’s SSS-assigned due date).

SSS Contributions
SSS coverage continues uninterrupted. The employer includes the employee on the monthly Contribution Collection List (R3) or Electronic Contribution Collection List, reporting the salary actually paid during the leave. The reimbursed SSS maternity benefit itself does not constitute compensation and is not subject to further SSS contributions. However, the salary advanced by the employer is fully reportable and contributable.

PhilHealth Contributions
PhilHealth premiums (both shares) must be paid monthly based on the salary disbursed. The employee remains entitled to PhilHealth benefits, including the maternity care package that covers prenatal consultations, delivery, and postnatal care, separate from the SSS maternity cash benefit.

Pag-IBIG Contributions
Monthly Pag-IBIG (HDMF) contributions continue on the basis of the compensation paid. These contributions maintain the employee’s eligibility for housing loans, savings, and other fund benefits.

Reporting and Procedural Requirements

Employers must:

Secure a maternity notification from the employee and submit the necessary SSS Maternity Notification form (MAT-1) prior to the leave.
File the claim for reimbursement using SSS Form MAT-2 (Maternity Reimbursement) together with supporting documents (birth certificate, medical certificate, and proof of payment of full salary).
Accurately reflect the maternity leave period in the monthly remittance reports submitted to SSS, PhilHealth, and Pag-IBIG.
Maintain payroll records showing the full salary paid, deductions made, and contributions remitted for the duration of the leave.

For leaves that span multiple calendar months, each month’s contributions are computed and remitted separately based on the prorated or full salary applicable to that month.

Special Cases and Variations

Multiple Births: The base entitlement remains 105 days for the delivery event. Additional leave days may apply in accordance with medical necessity or specific SSS guidelines, but the standard computation uses the 105-day period unless medical certification supports extension.
Solo Parents: The additional 15 days follow the same full-pay and contribution rules.
Miscarriage or Emergency Termination: The 60-day paid leave triggers the same contribution obligations, with SSS providing a corresponding 60-day benefit reimbursement.
Contractual or Project-Based Employees: As long as the employment contract subsists during the leave period, contribution liability attaches.
Public Sector Employees: Government workers fall under the Government Service Insurance System (GSIS) rather than SSS. GSIS applies parallel rules on contribution continuity and benefit reimbursement, with funding drawn from government appropriations.
Unpaid Extensions: If the employee opts for additional unpaid leave beyond the mandated 105/120 days, mandatory employer contributions cease for the unpaid portion, although the employee may elect voluntary SSS and Pag-IBIG contributions.

Consequences of Non-Compliance

Failure to remit contributions during maternity leave exposes employers to:

Surcharges (typically 2% per month of delay) and interest penalties imposed by SSS, PhilHealth, and Pag-IBIG.
Administrative fines and, in repeated or willful cases, criminal prosecution under the respective social security laws.
Labor complaints before the NLRC or DOLE for violation of maternity protection provisions, potentially resulting in orders for payment of benefits, damages, and attorney’s fees.
Adverse effects on the employee’s future benefit claims, loan eligibility, and retirement savings, which may give rise to claims for moral and exemplary damages.

Accurate and timely remittance protects both the employer from penalties and the employee from gaps in social security coverage.

Tax and Accounting Treatment

The full salary paid during maternity leave is treated as ordinary compensation income, subject to withholding tax and contribution deductions. The SSS reimbursement received by the employer is excluded from gross income and does not attract income tax or further contributions. Proper journal entries must distinguish between the salary expense, contribution remittances, and the reimbursement income to ensure compliance with Bureau of Internal Revenue (BIR) rules.

In summary, Philippine law imposes a clear and continuing obligation on employers to remit SSS, PhilHealth, and Pag-IBIG contributions throughout an employee’s paid maternity leave. This requirement stems from the protected character of the leave and the fact that the employer continues to provide compensation. Strict adherence to remittance schedules, accurate reporting, and proper documentation safeguards employers against liabilities while upholding the social protection objectives of maternity legislation.