Receiving Salary While on Maternity Benefits in the Philippines

Written By Harold Respicio

Disclaimer: The following discussion is provided for general informational and educational purposes only and does not constitute legal advice. For specific legal inquiries or situations, it is strongly recommended to seek professional legal counsel.

1. Overview of Maternity Leave in the Philippines

The legal framework that governs maternity leave benefits in the Philippines is primarily:

  1. Republic Act No. 11210 (the 105-Day Expanded Maternity Leave Law), which was signed into law on February 20, 2019.
  2. Social Security Act of 2018 (R.A. No. 11199), which provides mechanisms for the Social Security System (SSS) to grant maternity benefits.

Through these laws, female workers in both the public and private sectors, as well as those in the informal economy, are generally entitled to paid maternity leave benefits.

2. Who Is Covered?

  • All covered female SSS members, regardless of civil status or legitimacy of the child, are eligible for maternity leave benefits, provided they have met the required SSS contributions.
  • Private sector employees: Those working for private companies and contributing to the SSS.
  • Government employees: Covered by the Government Service Insurance System (GSIS) but effectively also benefit from the provisions of the Expanded Maternity Leave Law (with certain administrative rules through the Civil Service Commission).
  • Self-employed, voluntary members, and domestic workers (kasambahays): Also entitled, subject to the minimum required SSS contributions.

3. Duration and Coverage of Maternity Leave

Under R.A. No. 11210, qualified women are entitled to 105 days of paid maternity leave, regardless of the mode of delivery (normal or caesarean). Additional details:

  1. Extra 15 days for solo parents: If the employee qualifies as a solo parent under R.A. No. 8972 (Solo Parents’ Welfare Act), she is entitled to 15 more days, for a total of 120 days of maternity leave.
  2. Miscarriage or Emergency Termination of Pregnancy: The law grants 60 days of paid maternity leave in cases of miscarriage or emergency termination of pregnancy.

During this leave period, the law aims to ensure continuous compensation (or an equivalent benefit) so that the mother can recover and take care of the newborn without sacrificing her financial security.

4. Payment of Salary While on Maternity Leave

A common question is whether a woman on maternity leave continues to receive her full salary or a partial amount. The answer largely depends on two aspects:

  1. SSS Maternity Benefit

    • For private sector employees, maternity benefits are typically advanced by the employer, and then the employer requests reimbursement from the Social Security System.
    • The amount of the SSS maternity benefit is based on the member’s average daily salary credit (ADSC) and the number of days of the leave.

  2. Employer Policy or CBA Provisions

    • Some employers offer additional company-paid benefits over and above the SSS benefit, especially if there are collective bargaining agreements (CBA) or internal policies ensuring the employee gets her full salary during maternity leave.
    • If the employer’s policy does not provide an enhancement or top-up, then the amount the employee receives is limited to the statutory SSS benefit (which might be less than her usual take-home pay).

4.1. Interaction of the SSS Benefit and Salary

  • “No diminution of benefits” principle: Employers cannot reduce or remove existing benefits. If a company already granted full pay for maternity leave before R.A. No. 11210, they cannot lawfully decrease it below what the law currently provides.
  • Reimbursement from SSS: Employers advance the payment to the employee in full and later file for reimbursement from the SSS for the covered portion.

4.2. Computing the SSS Maternity Benefit

Under current rules:

  • The amount of the daily maternity benefit is computed as 100% of the average daily salary credit.
  • The ADSC is determined by looking at the highest 12 monthly contributions in the 18 months immediately preceding the semester of childbirth or miscarriage.
  • Employees receive the daily maternity benefit multiplied by the number of days of maternity leave (105, 120, or 60, depending on the situation).

5. Conditions for Receiving Salary While on Maternity Leave

  1. Proper Notification
    • The pregnant worker should inform her employer of her pregnancy and the due date, following any reasonable procedure set by the employer (e.g., submitting a maternity leave form, SSS MAT-1 form prior to delivery, etc.).
  2. Active and Updated SSS Contributions
    • To claim the SSS maternity benefit, the member must have paid at least three monthly contributions in the 12-month period immediately before the semester of her childbirth or miscarriage.
  3. Submission of Documentary Requirements
    • Maternity notification form (MAT-1) before childbirth or miscarriage.
    • Proof of childbirth (e.g., birth certificate) or miscarriage (e.g., medical certificate).
    • SSS forms as required (MAT-2 for employer reimbursement).

6. Scenarios Affecting Salary Receipt

  1. Employer-Paid in Advance (with SSS Reimbursement)

    • Most common in the private sector. The employer pays the employee her maternity benefit upfront as part of the payroll, then recovers that amount from the SSS.
    • In many cases, this results in the employee effectively receiving what she perceives as her full salary or a near-equivalent amount, depending on her coverage and her employer’s practices.

  2. Additional Employer Benefits or Company Policy

    • If the employer has a policy to pay an employee’s full monthly salary for the entire duration of maternity leave, the SSS portion simply offsets part of the employer’s costs, and the employee enjoys full pay.
    • If the policy only ensures statutory compliance (i.e., the SSS benefit alone), then the employee’s pay is capped at the SSS rates unless there are additional benefits included in her contract or CBA.

  3. Voluntary and Self-Employed SSS Members

    • Self-employed or voluntary members (including freelancers, informal workers, etc.) do not receive a “salary” from an employer. Instead, they are directly paid by SSS based on their declared contributions.
    • They are responsible for making sure their contributions are up to date to be eligible for the full maternity benefit.

7. Maternity Leave and “No Work, No Pay” Policies

Philippine labor law generally prohibits offsetting leaves or pay with a “no work, no pay” principle unless the specific benefit is not mandated by law. For maternity leave, it is a statutory benefit, meaning:

  • Employers cannot apply “no work, no pay” to negate mandatory maternity leave pay.
  • The law explicitly requires that the maternity leave period be paid according to statutory benefits.

However, if a worker takes leave beyond the allotted days (beyond 105 or 120), that extension is not automatically paid unless there are contractual or company policies that provide it.

8. Impact on Other Leave Credits (e.g., Vacation Leave, Sick Leave)

  • By law, maternity leave is separate from vacation or sick leave credits. Employers cannot require employees to use their vacation or sick leave for childbirth.
  • However, if the employee wishes to extend her leave beyond the statutory coverage, she may use her accrued leaves with pay (if available) or file for leave without pay.

9. Employment Protection and Security of Tenure

R.A. No. 11210 reinforces job security for women on maternity leave:

  • Employers are prohibited from terminating employment on the basis of pregnancy or the employee’s availing of maternity leave.
  • Upon return from maternity leave, the female employee is entitled to be reinstated to her same position or a comparable position, without loss of seniority rights and other benefits.

10. Penalties for Non-Compliance

If an employer fails to comply with the provisions of the Expanded Maternity Leave Law or denies an eligible employee the full maternity benefits:

  • The employer may be subject to administrative fines, possible imprisonment under the Social Security Act for failure to remit contributions or for falsification of claims, and other penalties imposed by the Department of Labor and Employment (DOLE) or relevant government agencies.
  • The employee may file a complaint with DOLE and/or the SSS, as well as civil or administrative actions, to recover any unpaid or underpaid benefits.

11. Practical Tips for Employees

  1. Notify Early: Submit the MAT-1 (Maternity Notification) to your employer and the SSS once pregnancy is confirmed.
  2. Check Your Contributions: Ensure your SSS contributions are up to date, especially in the 12-month period before your due date.
  3. Inquire About Company Policies: Ask HR if there is a top-up policy or additional maternity benefits beyond SSS coverage.
  4. Secure Documentation: Obtain a certified true copy of your child’s birth certificate or medical proof of any miscarriage or emergency termination of pregnancy.
  5. Coordinate With Your Employer: Clarify how and when the maternity benefit will be advanced to you, and confirm the reimbursement procedure.

12. Practical Tips for Employers

  1. Establish Clear Guidelines: Adopt or update an internal policy for maternity leave, ensuring compliance with the Expanded Maternity Leave Law.
  2. Educate and Train HR: HR personnel should be fully aware of the notification processes, computations, deadlines, and reimbursement procedures with SSS.
  3. Timely Remittance: Ensure employees’ SSS contributions are properly deducted and remitted to avoid legal issues.
  4. Maintain Proper Records: Keep all documentation—employee forms, proof of pregnancy, birth certificates—for timely reimbursement from SSS.
  5. Respect the Law: Avoid any adverse employment action against employees availing of their maternity leave rights.

13. Conclusion

Receiving salary or pay during maternity leave in the Philippines is safeguarded by the Expanded Maternity Leave Law (R.A. No. 11210). The essential principle is that qualified female workers should not suffer loss of income due to pregnancy or childbirth. In most cases, employees receive their maternity benefits upfront from their employers, who in turn seek reimbursement from the SSS for the allowable amount.

While the law guarantees statutory benefits (based on the SSS computation), some companies offer supplemental maternity pay to ensure employees continue to receive their full salaries. Ultimately, whether a woman receives the full salary or only the statutory benefit depends on her company’s policies and her contribution history with the SSS.

Key Takeaway: To ensure a smooth maternity benefit claim, both employees and employers should:

  • Understand and follow the required notification procedures,
  • Check the employee’s SSS contribution status, and
  • Document everything properly for prompt reimbursement.

If any dispute arises regarding receiving salary while on maternity leave or the amount of maternity benefits, consultation with the Department of Labor and Employment (DOLE), the Social Security System (SSS), or a qualified labor lawyer is advisable.

References

  • Republic Act No. 11210 (105-Day Expanded Maternity Leave Law)
  • Social Security Act of 2018 (R.A. No. 11199)
  • SSS Circulars and Issuances
  • Department of Labor and Employment (DOLE) Regulations

(Again, this content is for general information only. For a detailed legal opinion or advice, it is best to consult a qualified lawyer or the appropriate government agencies.)

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.

Harold Respicio
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