Under Philippine law, the protection of female workers during and after childbirth is a high priority. Central to this protection is Republic Act No. 11210, or the 105-Day Expanded Maternity Leave Law (EMLL). One of the most critical—and often misunderstood—provisions of this law is the requirement for employers to pay maternity benefits in advance.
Failure to comply with these rules can lead to significant legal liabilities, including interest, penalties, and potential imprisonment for company officers.
1. The Core Requirement
The Social Security System (SSS) does not pay maternity benefits directly to the employee if she is currently employed. Instead, the employer is legally mandated to pay the full maternity benefit in advance to the qualified female worker.
This payment must be made within thirty (30) days from the filing of the maternity leave application.
2. Qualifications for the Benefit
To qualify for the advance payment, the female employee must meet the following criteria:
- Contribution Requirement: She must have paid at least three (3) monthly contributions in the twelve-month period immediately preceding the semester of her childbirth or miscarriage.
- Notification: She must have notified her employer of her pregnancy and the probable date of childbirth. The employer, in turn, must transmit this notice to the SSS.
3. Computation of Benefits
The benefit amount is equivalent to 100% of the employee’s average daily salary credit (ADSC) multiplied by the number of days of leave:
- 105 Days: For live childbirth (regardless of the mode of delivery).
- 120 Days: For solo parents (under R.A. No. 8972).
- 60 Days: For miscarriage or emergency termination of pregnancy.
Note on "Salary Differential": If the employee's actual daily wage is higher than the SSS maximum ADSC, the employer is generally required to pay the "Salary Differential"—the difference between the SSS benefit and the employee’s actual full pay—unless the employer is exempted as a distressed establishment or a retail/service establishment employing not more than ten workers.
4. The Reimbursement Process
Once the employer has paid the benefit in advance, they must seek reimbursement from the SSS.
- 100% Reimbursement: The SSS shall reimburse the employer 100% of the amount legally advanced, provided the payment was made in accordance with the law.
- Online Filing: Reimbursement claims are now primarily processed through the SSS Employer Web Portal (My.SSS).
- Documentation: Employers must keep records of the proof of payment (e.g., payroll, vouchers, or bank transfers) to ensure the reimbursement is credited smoothly.
5. Liability for Non-Compliance
The EMLL and the Social Security Act of 2018 (R.A. No. 11199) impose strict penalties for employers who fail to advance the benefit:
- Direct Liability: If an employer fails to remit the required contributions or fails to provide the advance payment, the employer will be held liable to pay the SSS the equivalent of the benefits the employee would have been entitled to.
- Interest: A penalty of 1% per month (or as determined by the Social Security Commission) may be imposed on the amount due.
- Criminal Penalties: Non-compliance is a criminal offense. Responsible officers (Presidents, Managers, Directors) can face a fine ranging from P5,000 to P20,000 and/or imprisonment for six (6) years and one (1) day to twelve (12) years.
6. Key Procedural Steps for Employers
To remain compliant and ensure reimbursement, employers should follow this workflow:
| Step | Action | Timing |
|---|---|---|
| 1 | Receive Maternity Notification from the employee. | Upon the employee's knowledge of pregnancy. |
| 2 | Transmit Notification to SSS via the Portal. | Immediately after receipt. |
| 3 | Compute the benefit and Salary Differential. | Prior to the start of the leave. |
| 4 | Advance the full payment. | Within 30 days of the leave application. |
| 5 | File for Reimbursement with SSS. | After the advance payment is made. |
7. Special Considerations
- Resignation/Separation: If a female worker is separated from employment, the SSS pays the benefit directly. However, if the pregnancy occurred while she was still employed, the employer at that time may still be liable for the advance payment.
- Taxation: Maternity benefits are considered social security benefits and are generally exempt from income tax and withholding tax.