Magna Carta of Women Special Leave in the Philippines: Who Pays—and Can It Be Billed to the Client?

Overview

The Magna Carta of Women (Republic Act No. 9710) grants a Special Leave Benefit to women employees—public and private—who undergo surgery due to a gynecological disorder. The benefit is up to two (2) months with full pay, subject to eligibility and documentary requirements. It is a labor-standard, not a discretionary perk: employers are legally obligated to grant and fund it.

This article gathers, organizes, and explains the operative rules, gray areas, and practical implications—especially the perennial questions: Who pays? and Can the cost be billed to a client?

What the Special Leave Covers

Triggering event: An actual surgical procedure (open, laparoscopic, or minimally invasive) for a gynecological disorder (e.g., ovarian cysts/tumors, myoma uteri, endometriosis, adenomyosis, hysterectomy, oophorectomy, salpingectomy, etc.). Diagnosis without surgery is not covered.
Duration: Up to two months (generally treated in practice as up to 60 calendar days). The attending physician’s assessment of recuperation guides the exact period; it can be less than two months if medically warranted.
Scope: Applies to all women employees in the public and private sectors, regardless of employment status (regular, probationary, project-based, fixed-term, etc.), provided eligibility conditions are met.

Eligibility

A woman employee is typically entitled if she:

Has rendered at least six (6) months of aggregate service within the last twelve (12) months immediately prior to the surgery (continuity rules are applied liberally; broken service within the 12-month lookback may still count if the aggregate reaches six months).
Undergoes surgery for a gynecological disorder (supported by medical documentation).
Submits required documents within reasonable time (see below).

Note: The benefit is separate from maternity leave. It may be availed in addition to maternity leave if distinct qualifying events occur at different times.

“Full Pay” — What It Means and How to Compute

“Full pay” generally means the employee’s basic salary plus fixed (non-contingent) allowances that are guaranteed by law, CBA, or company policy (e.g., transportation, meal, or uniform allowances regularly given irrespective of performance/attendance). Variable pay (commissions, performance bonuses) is typically excluded unless your policy or CBA clearly includes them.

Computation approach (common practice):

Determine the daily equivalent of full pay using your standard payroll divisor (e.g., monthly rate ÷ 26/22/—depending on your company’s legally compliant divisor).
Multiply by the number of calendar days of medically certified recuperation, capped at two months.
If pay periods straddle months, compute prorations consistently with your payroll rules.

Tax and withholding: Treated like regular wages—subject to withholding tax, SSS/PhilHealth/HDMF, and other statutory deductions (unless a specific exemption applies under then-current tax rules).

Who Pays?

The employer pays. The Special Leave is a statutory employer-paid benefit under labor standards. It is not a social insurance benefit like SSS sickness (a government-cash allowance) or an HMO reimbursement.

No salary deduction or offset against the employee’s future wages is allowed.
No substitution by sick leave credits is allowed (the Special Leave is on top of existing company leaves). If recuperation exceeds two months, the excess days may be covered by sick leave, vacation leave, leave without pay, or other arrangements.

Can It Be Billed to the Client?

Short answer

Legally, the obligation runs to the employer, not to the client. You cannot transfer or charge this statutory obligation to the employee or make her “self-fund” the leave.
Commercially, whether you can pass through the cost to a client (e.g., in staffing/BPO/outsourcing setups) depends on your contract.

Contracting scenarios

Time-and-materials / cost-plus contracts
- Often allow pass-through of statutory labor costs as “reimbursables” or as line items in a rate card.
- If the agreement expressly permits charging employer-paid statutory leaves for deployed personnel, then you may invoice the client consistent with the contract’s pricing, approval, and documentation clauses.
Fixed-fee / fixed-rate contracts
- The commercial risk of statutory benefits is usually priced into the fixed fee.
- Unless the contract includes a price-adjustment or change-order mechanism covering statutory cost fluctuations, you may not invoice extra for an individual employee’s Special Leave.
Master Services Agreement (MSA) + Statements of Work (SOWs)
- MSAs often set principles (e.g., “rates are fully burdened, inclusive of statutory benefits”), while SOWs specify personnel and rates.
- If the MSA/SOW says rates are “fully loaded”, attempting a separate invoice for Special Leave may breach the agreement.
- If the MSA/SOW says “statutory costs are reimbursable at actuals”, pass-through is typically permitted (subject to documentation).

Key point: Billing a client is a commercial (contract) question; paying the employee is a legal (labor) obligation. Even if a client refuses to reimburse, the employer must still pay the employee.

Documentation & Process

For the employee

Leave application indicating the nature of leave (Magna Carta of Women Special Leave).
Medical certificate from the attending physician specifying:
- The diagnosis (or at least confirmation of a gynecological disorder),
- The surgical procedure performed, and
- The recommended recuperation period.
Hospital/surgical documents (summary, discharge notes) may be requested by the employer.
Notice: Provide notice as early as practicable; emergencies are recognized.

For the employer

Policy/handbook language clearly describing the benefit and process.
Confidentiality: Handle medical information consistent with the Data Privacy Act—limit access on a need-to-know basis; avoid unnecessary diagnostic detail in payroll/HRIS entries and client communications.
Payroll coding: Separate pay code (“MCW Special Leave – Full Pay”) for auditability.
Record-keeping: Keep leave ledger, medical certificate, and payroll proofs for inspection.

Coordination with Other Benefits

Sick Leave (company policy): Special Leave is separate. Do not deduct the two months from sick leave. Excess recuperation may tap sick leave or other leaves.
SSS Sickness Benefit: Employees generally cannot receive SSS sickness benefit for days already paid in full by the employer. If recuperation exceeds two months and becomes unpaid, SSS sickness may be explored for the excess days (subject to SSS rules).
HMO/Health Insurance: May cover medical costs (e.g., hospital bills), but not wages.
Maternity Leave: Distinct legal basis and qualifiers. The same event normally cannot be double-claimed as both maternity and Special Leave.

Limits, Frequency, and Non-Conversion

Per surgery, per qualifying event. If separate surgeries occur at different times, each may trigger a new entitlement if eligibility requirements are again satisfied.
Nonconverting/noncumulative: Unused portions of the two months do not convert to cash and do not carry over.
No diminution: Employers cannot reduce or waive the benefit through policy or contract; any agreement attempting to do so is void for being contrary to labor standards.

Compliance, Audits, and Penalties

Non-compliance risks labor complaints, wage orders, administrative fines, and potential criminal penalties under applicable rules. Audits typically check: (1) eligibility screening, (2) medical proof, (3) pay computation, and (4) timely payment.

Practical Guidance for Employers

Update contracts:
- For outsourcing/staffing: Clarify whether service fees are fully loaded or reimbursable as to statutory paid leaves (including the Magna Carta Special Leave).
- Add a change-in-law or statutory cost clause, allowing rate adjustments if mandated benefits change.
Tighten payroll rules:
- Define “full pay” components consistent with law, CBA, and internal policy.
- Document the payroll divisor and calendar-day application.
Privacy-by-design:
- Use neutral codes in payslips (avoid specific diagnoses).
- Limit medical detail when communicating with clients—share only what’s strictly necessary (e.g., “employee is on a statutory paid medical leave pursuant to Philippine law”) and only if the contract requires notice.
Train HR and managers:
- Emphasize eligibility, non-diminution, and separation from other leaves.
- Standardize the medical certificate template you expect physicians to complete (while honoring the employee’s free choice of doctor).

Practical Guidance for Employees

Plan and notify as soon as surgery is scheduled; for emergency procedures, notify at the earliest opportunity.
Secure complete medical certification to avoid delays.
Understand overlaps: Special Leave is in addition to other leaves but not convertible to cash if unused.

Worked Example (Private Sector)

Monthly basic salary: ₱40,000
Fixed allowances (guaranteed monthly): ₱5,000
Total “full pay” monthly base: ₱45,000
Medically certified recuperation: 45 calendar days

Daily rate (example only; use your lawful payroll divisor): ₱45,000 ÷ 30 = ₱1,500/day

Pay for the leave: ₱1,500 × 45 = ₱67,500 (subject to regular payroll taxes and contributions)

Frequently Asked Questions

Q: Can we require the employee to use up sick leave first? A: No. Special Leave is on top of other company leaves.

Q: The employee had laparoscopic surgery and was cleared in 21 days. Do we still pay two months? A: No. Pay only the medically certified recuperation period, up to two months.

Q: Can we refuse because she has only five months of service? A: Yes, lack of the 6-month aggregate service within the last 12 months disqualifies her—though you may grant ex gratia leave under company policy.

Q: Can we invoice our client for the paid leave? A: Only if the contract allows (e.g., reimbursable statutory costs or fully burdened rates that already price it in). Regardless, the employer must pay the employee.

Q: Does this apply to government employees? A: Yes. The civil service has parallel rules that grant the same two months with full pay for qualifying surgeries, administered under government HR procedures.

Takeaways

The Magna Carta of Women Special Leave is a mandatory, employer-paid benefit for women who undergo gynecological surgery.
Up to two months with full pay—computed using basic salary plus fixed allowances—based on the physician-certified recuperation period.
Billing to a client is a matter of contractual risk allocation, not a condition for paying the employee. Draft MSAs/SOWs accordingly.
Observe privacy, documentation, and payroll rigor to stay compliant and audit-ready.

This article is for general guidance in the Philippine context and is not a substitute for legal advice on specific facts or contracts.