EXPANDED MATERNITY LEAVE BENEFIT IN THE PRIVATE SECTOR

EXPANDED MATERNITY LEAVE BENEFIT IN THE PRIVATE SECTOR

PURSUANT TO REPUBLIC ACT NO. 11210 AND ITS IMPLEMENTING RULES AND REGULATIONS

TIMELINE

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RA 11210 was signed into law on 20 February 2019

RA 11210 was published in the

Manila Bulletin on 23 February 2019

RA 11210 became effective on

11 March 2019

IRR of RA 11210 was signed on

01 May2019

IRR of RA 11210 was published in The Philippine Daily

Inquirer on 03 May2019

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In recognition of women’s maternal function as a social responsibility Institutionalize a mechanism to expand

the maternity leave period of women workers before they resume paid work.

Provide female with:1. Ample transition time to regain

health and overall wellness 2. Assume maternal roles

DECLARATION OF POLICY

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COVERAGE

Female workers in the public sector

1Female

workers in the private sector

2Female

workers in the informal economy

3Female

voluntary contributors

of SSS

4Female

national athletes

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Female workers in the private sector

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FW in the Private Sector

Refer to a female worker, including adomestic worker

Provides services for an employer in which either both mental or physical

efforts are used Receives compensation for such service There is an employer-employee relationship

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ELIGIBILITY AND NOTICE REQUIREMENT IN THE PRIVATE SECTOR

She must have paid at least 3 monthly

contributions in the twelve-month period

immediately preceding the semester of

contingency.

PAYMENT

The female worker shall have notified her employer of her

pregnancy and the probable date of her

childbirth.

BENEFITS

The employer shall, in turn, notify the SSS

through the prescribed manner.

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Maternity leave cannot be deferred but should be availed of either before or after the actual period of delivery in a continuous and uninterrupted manner. In no case shall postnatal care be less than sixty (60) days.

Maternity leave shall be granted to a qualified female worker in every instance of pregnancy, miscarriage or emergency termination of pregnancy regardless of frequency.

AVAILMENT OF MATERNITY LEAVE BENEFIT

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BENEFITSPaid leave with full pay for the duration of: 105 days for live childbirth; 60 days for miscarriage and emergency termination of

pregnancy Additional 15 days if female worker qualifies as a solo parent under RA 8972

Option to extend for an additional thirty (30) days without pay in case of live childbirth

Option to allocate up to seven (7) days of said benefits to: The child’s father, whether or not the same is married to the female worker Alternate caregiver

‐ A relative within the fourth degree of consanguinity; or‐ The current partner

Healthcare services for pre-natal, delivery, postpartum and pregnancy-related conditions

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1. Paid leave benefit with full pay for the duration of:a. One Hundred Five (105) days for live

childbirth, regardless of the mode of delivery, and an additional fifteen (15) days paid leave if the female worker qualifies as a solo parent under Republic Act No. 8972, or the “Solo Parents’ Welfare Act of 2000”; or

b. Sixty (60) days paid leave for miscarriage and emergency termination of pregnancy (ETP);

1. Paid leave benefit with full pay for the duration of:a. One Hundred Five (105) days for live

childbirth, regardless of the mode of delivery, and an additional fifteen (15) days paid leave if the female worker qualifies as a solo parent under Republic Act No. 8972, or the “Solo Parents’ Welfare Act of 2000”; or

b. Sixty (60) days paid leave for miscarriage and emergency termination of pregnancy (ETP);

BENEFIT: PAID LEAVE

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“Full pay” refers to actual remuneration or earnings paid by anemployer to a worker for services rendered on normal working daysand hours not lower than the wage rate fixed by the RegionalTripartite Wages and Productivity Board (RTWPB) includingallowances provided for under existing company policy or collectivebargaining agreement, if any.

FULL PAY

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HOW TO COMPUTE FOR SALARY DIFFERENTIAL

If:Monthly salary - ₱14,006.75 ML period - 105 days = 3.5months

1. Compute the amount of full pay

Full pay = monthly salary x maternity period in months

Full pay = ₱ 14,006.75 x 3.5 monthsFull pay = ₱ 49,023.63

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HOW TO COMPUTE FOR SALARY DIFFERENTIAL2. Ascertain the employee’s premium contribution share for SSS,

Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund (Pag-IBIG) covering the maternity period.

SSS 1,960.00

PhilHealth 721.88

Pag-IBIG 350.00

Total ₱3,031.88

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HOW TO COMPUTE FOR SALARY DIFFERENTIAL3. Determine the amount of SSS maternity leave benefit of the

female worker based on the prescribed formula and computation by the SSS

Assuming the formula in computing for it is as follows:[(sum of top 6 highest MSC) / 180] x 105

(If monthly salary credit is ₱14,000.00)

SSS MB = [(₱14,000.00 x 6) / 180] x 105SSS MB = [₱84,000.00 / 180] x 105SSS MB = [₱466.66667] x 105SSS MB = ₱49,000.00

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HOW TO COMPUTE FOR SALARY DIFFERENTIAL4. Deduct from the amount of full pay the total amount of

employee’s premium contribution share and SSS maternity leave benefit.

Full pay ₱49,023.63

Social contributions 3,031.88

Subtotal ₱45,991.75

SSS maternity benefit 49,000.00

Salary differential -₱3,008.25

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HOW TO COMPUTE FOR SALARY DIFFERENTIAL

Gross pay ₱116,853.33

Less social contributions for 3.5 months:

SSS 2,800.00

PhilHealth 1,636.25

Pag-IBIG 350.00

Total deductions 4,786.25

Amount less social contributions 112,067.08

SSS maternity benefit 70,000.00

Salary differential ₱42,067.08

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SALARY DIFFERENTIAL, EXCEPTIONS

Operating distressed establishments Sole proprietorship or partnership – accumulated net loss

of at least 20% for 2 years Corporation or cooperative – net loss of at least 25% Banks or quasi-banks – under receivership or liquidation

Retail/service establishments and other enterprises employing < 10 workers

Already providing similar or more than the benefits herein provided under an existing Collective Bargaining Agreement (CBA), company practice or policy

Micro-business enterprises & engaged in the production, processing, or manufacturing of products or commodities including agro-processing, trading, and services, whose total assets < 3million (BMBE 2002)

1

2

3

4

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SALARY DIFFERENTIAL, EXCEPTIONS

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APPLICATION FOR EXEMPTION

1• Submit application in duplicate copies with the prescribed

requirements for exemption.

2• Upon receipt of the application, the DOLE shall conduct an

inspection, if necessary.

3• The DOLE shall evaluate the application and inspection notice

of result and submit its recommendation to the DOLE Regional Director for approval.

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Full payment of the maternity leave benefit shall be advanced bythe employer within thirty (30) days from the filing of thematernity leave application.

The SSS shall immediately reimburse to the employer thematernity benefits advanced to the employed femalemember, only to the extent of one hundred percent (100%)of her average daily salary credit for one hundred five (105)days, one hundred twenty (120) days or sixty (60) days, asthe case may be, upon receipt of satisfactory and legalproof of such payment.

PAYMENT AND REIMBURSEMENT

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LIMITATIONS ON THE GRANT OF MATERNITY BENEFIT

Sickness benefitThe payment of daily SSS maternity benefits shall be a bar to recovery of sickness benefits provided under Republic Act No. 11199, for the same period for which daily maternity benefits have been received.

Consecutive pregnanciesIn case overlapping of maternity benefit claims, the female member shall be granted of the same in a consecutive manner. However, the amount of benefit corresponding to the period where there is an overlap shall be deducted from the current maternity benefit claim.

Multiple childbirthsThe female member shall be paid only one maternity benefit, regardless of the number of offspring, per childbirth/ delivery.

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EXAMPLE: CONSECUTIVE PREGNANCIES

Overlapping period of ML:September 27 – October 13 (17 days)

Full pay to be received for the 2nd contingency:Amount equivalent to 43 days

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SOLO PARENT, AS PROVIDED BY RA 8972 Must have rendered at least 1 year

of service with present employer

Must have a Solo Parent ID issuedby the DSWD

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This may only be availed of:1. In cases of live childbirth,2. At the option of the female worker,

and3. Due notice was provided to employer.

BENEFIT: OPTION TO EXTEND FOR ADDITIONAL 30 DAYS

Due notice Must be in writing and Must be given at least

forty-five (45) days before the end of the female worker’s maternity leave.

Exception: Medical emergency

but subsequent notice shall be given to the employer.

1. Child’s father– Regardless whether the female

and the child’s father are married– Over and above the benefit

provided under Republic Act No. 8187, or the “Paternity Leave Act of 1996”

2. Alternate caregiver– Only upon election of the mother

taking into account the best interest of the child

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BENEFIT: OPTION TO ALLOCATE

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ALTERNATE CAREGIVER

a. A relative within the fourth degree of consanguinity; or “Relative within the fourth degree of consanguinity”

refers to a person who is related to the female worker byblood and shares the same ancestry or lineage.

b. The current partner, regardless of sexual orientation orgender identity, of the female worker sharing the samehousehold. “Current partner” refers to a person who shares an

intimate relationship and lives with the female worker.

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EFFECT OF ALLOCATION

In case the female worker avails of the option to allocate, theSSS shall pay her the amount of the maternity benefitcorresponding to the period not allocated.

As applicable, the father or, in his death, absence, or incapacity,the alternate caregiver shall be granted by his employer a leavewith pay equivalent to a period from one (1) to seven (7) days. May be enjoyed either in a continuous or in an intermittent

manner not later than the period of the maternity leaveavailed of.

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ALLOCATION OF BENEFIT

The female worker shall notify her employer of her option toallocate with her application for maternity leave.

The father or alternate caregiver, as the case may be, shallnotify the employer concerned of his or her availment of theallocated leave and the inclusive dates therefor. This written notice to the employers shall be required even if

the child’s father or the alternate caregiver is employed in thepublic sector.

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ALLOCATION OF BENEFIT

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ALLOCATION OF BENEFIT

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5. Health care services for pre-natal, delivery, postpartum and pregnancy-related conditions granted to female workers, particularly those who are neither voluntary nor regular members of the SSS, as governed by the existing rules and regulations of the Philippine Health Insurance Corporation (PhilHealth).

BENEFIT: HEALTH CARE SERVICES

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Maternity leave with full pay shall begranted even if the childbirth,miscarriage, or emergency terminationof pregnancy occurs not more thanfifteen (15) calendar days after thetermination of an employee’s service, asher right thereto has already accrued. NOTE: The above-mentioned period of 15 days

shall not apply when the employment of thepregnant woman worker has been terminatedwithout just cause.

GRANT OF MLB AFTER TERMINATION OF EMPLOYMENT

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The maternity leave benefits granted under Republic Act No. 11210 and its IRR shall be enjoyed by a female worker in the public sector and in the private sector even if she has a pending administrative case.

EFFECT OF MLB WITH PENDING ADMINISTRATIVE CASE

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Non-diminution of benefits Security of tenure

o Shall not be considered as gap in the service

o Shall not be used as basis for demotion in employment or termination

‐ The transfer to a parallel position or reassignment from one organizational unit to another in the same agency or private enterprise shall be allowed: Provided, That it shall not involve a reduction in rank, status, salary, or otherwise amount to constructive dismissal.

Non-discrimination against employment of women

PROHIBITIONS

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TAXATION

The amount of salary differential shall be treated as the taxable income of the female worker subject to the rules and regulations of the Bureau of Internal Revenue.

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TAXATION

“Further, since the provisions of Section 2.78.1(B)(1)(e) under RR No. 2-98 do not provide any qualification in granting tax exemption on payments of benefits under the SSS law, the salary differential is exempt from income and withholding taxes.”

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THIRTEENTH (13TH) MONTH PAY

The salary differential shall be included as part of the basic salary for purposes of computation of the 13th month pay of the rank-and-file employee.

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DISPUTE RESOLUTION

Social Security Commission (SSC)

DOLE Field/Provincial/Regional Office

Any dispute, controversy, or claim

as regards the grant of SSS maternity leave benefit

arising out of or relating to the payment of salary differential

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LIABILITY OF THE EMPLOYER

Fine of not less than Twenty

thousand pesos (P20,000.00) nor more than Two

hundred thousand pesos

(P200,000.00)Imprisonment of

not less than six (6) years and one (1)

day nor more than twelve (12) years

Non-renewal of business permits

For inquiries, you may reach us at:

1349DOLEHOTLINE