Introduction

Maternity leave is a statutory benefit under Philippine labor law, designed to protect the welfare of working mothers during pregnancy and childbirth. The Expanded Maternity Leave Law (Republic Act No. 11210), signed on February 20, 2019, and implemented through the Implementing Rules and Regulations (IRR) issued by the Civil Service Commission (CSC), Department of Labor and Employment (DOLE), and Social Security System (SSS), increased maternity leave benefits and clarified the responsibilities of both employers and employees. A critical aspect of this law is the Maternity Leave Salary Differential, which ensures that eligible employees receive full pay during their maternity leave period.

Legal Basis

The Expanded Maternity Leave Law (R.A. 11210) amended Article 133 of the Labor Code and expanded maternity leave from 60 days (normal delivery) or 78 days (caesarean delivery) to 105 days, with an additional 15 days for solo mothers and optional allocation of 7 days to the father or alternate caregiver.

Under Section 5 of R.A. 11210 and Rule VIII of its IRR, the law mandates employers in the private sector to pay the salary differential, or the difference between the employee’s full salary and the actual maternity benefit paid by the SSS.

Coverage

1. Employees Covered

All female workers in the public and private sectors, including:

Regular, probationary, casual, project-based, contractual, and seasonal employees;
Domestic workers (kasambahays);
Workers in the informal economy and self-employed members covered by the SSS.

2. Employers Covered

All private-sector employers are required to pay the salary differential, except for those expressly exempted by the law.

Exemptions from Salary Differential Payment

Certain employers are exempted from paying the salary differential, provided they qualify under the conditions set by the IRR. Exempt employers include:

Distressed establishments, such as:
- Those under receivership, bankruptcy, or rehabilitation;
- Micro-businesses and small enterprises suffering financial losses.
Micro-business enterprises with total assets not exceeding ₱3 million, and registered under the Barangay Micro Business Enterprises (BMBE) Act of 2002 (R.A. 9178).
Establishments already providing similar or better benefits (e.g., company maternity benefits equal to or greater than full pay).
Employers of domestic workers, under R.A. 10361 (Batas Kasambahay), where the full maternity benefit is borne by the SSS.

Employers claiming exemption must apply to DOLE and submit supporting financial documents to justify exemption.

Computation of the Maternity Leave Salary Differential

The salary differential is computed as follows:

Formula:

Salary Differential = Full Pay (Monthly Salary × Number of Leave Days ÷ 30) – SSS Maternity Benefit

Example:

A female employee earning ₱30,000 per month gives birth and takes the full 105 days of maternity leave.

SSS Maternity Benefit: Based on the average daily salary credit (ADSC). Suppose SSS pays ₱70,000 total.
Full Pay Equivalent: ₱30,000 × (105 ÷ 30) = ₱105,000
Salary Differential: ₱105,000 – ₱70,000 = ₱35,000

Thus, the employer must pay the employee ₱35,000 as salary differential, ensuring the employee receives her full equivalent salary during the leave period.

Duration and Allocation of Leave

105 days with full pay for live childbirth, regardless of delivery mode.
120 days with full pay for solo mothers (as defined under R.A. 8972).
Optional 7-day transfer to the father or alternate caregiver (with corresponding reduction in the mother’s leave).

Unused leave days cannot be converted to cash unless otherwise provided by company policy.

Payment Procedures

Employee files maternity leave application with the employer and SSS.
SSS pays the maternity benefit directly to the employer (who initially advances the payment).
Employer supplements the amount by paying the salary differential, unless exempt.
Payment must be made within the payroll cycle or as soon as practicable following the employee’s return to work.

Tax Implications

Under Revenue Regulations No. 1-2015 and subsequent BIR issuances:

The SSS maternity benefit is tax-exempt.
The salary differential is taxable since it forms part of the employee’s regular compensation.

Employers must therefore withhold income tax and remit the corresponding withholding taxes to the Bureau of Internal Revenue (BIR).

Penalties for Non-Compliance

Employers who fail or refuse to pay the salary differential without valid exemption are liable under Section 18 of R.A. 11210, facing:

A fine of ₱20,000 to ₱200,000;
Imprisonment of 6 years and 1 day to 12 years; and/or
Revocation of business permit or license to operate.

Coordination with Other Benefits

The maternity leave benefit is separate from vacation and sick leave credits.
It cannot be offset against other leave entitlements.
Employees cannot receive SSS maternity benefits and company maternity benefits for the same period unless the company top-up is voluntary.

Conclusion

The Maternity Leave Salary Differential under the Expanded Maternity Leave Law ensures that Filipino working mothers receive their full salary during the crucial postnatal period. It reflects the government’s commitment to gender equality, social protection, and the promotion of maternal health. While the law places financial obligations on employers, it also provides for clear exemptions and procedural guidelines to balance the interests of both workers and business establishments.

Ultimately, compliance with R.A. 11210 not only fulfills a legal duty but also promotes a more inclusive and family-friendly workplace—an essential step toward sustainable labor practices in the Philippines.