GUIDELINES ON THE COMPUTATION OF SALARY DIFFERENTIAL OF FEMALE WORKERS DURING HER MATERNITY LEAVE

Read also: Further Empowering Rights of Women: Highlights of Republic Act No. 11210 or the “105-Day Expanded Maternity Leave Law”

• The employer shall pay the salary differential between the full salary of female worker during her maternity leave and the actual cash benefits received from the Social Security System (SSS).

• 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.

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

The Department of Labor and Employment issued Department Advisory No. 01 Series of 2019 to guide all concerned on the computation of the salary differential of female workers during maternity leave.

Department Advisory No. 01 Series of 2019 provides that:

• COMPUTATION OF SALARY DIFFERENTIAL

The employer shall pay the salary differential between the full salary of female worker during her maternity leave and the actual cash benefits received from the Social Security System (SSS) which shall be computed as follows:

1. 1. Compute the amount of full pay:

      Full pay = monthly salary x maternity period in months

   2. 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.
   3. Determine the amount of SSS maternity leave benefit of the female worker based on the prescribed formula and computation by the SSS.
   4. Deduct from the amount of full pay the total amount of employee’s premium contribution share and SSS maternity leave benefit.
   1. 1.  

   To illustrate, below is a sample computation:

   Monthly Salary	Expanded maternity leave (105 days or 3.5 months)			Salary differential
   	Full pay	Social welfare premium contributions	SSS maternity benefit
   Php14,006.75	Php49,023.63	Php2,984.07	Php49,000.00	-Php2,960.45
   Php31,300.00	Php109,550.00	Php4,656.31	Php70,000.00	Php34,893.69

   • COVERAGE FROM INCOME TAX OF THE SALARY DIFFERENTIAL

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

   • EFFECT ON THE COMPUTATION OF 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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