how to compute salary differential maternity leave

2. The calculation, however, will differ for companies using other factor days. Here's how to compute the SSS maternity benefit: Within the 12 months immediately before the semester of the female worker's childbirth or miscarriage, add the top six highest contributions to get your total MSC. So, by following the statutory formula, only the salary differential shall be included in the computation of the 13th month pay, but not the maternity benefit received from the SSS. Micro-business enterprises and those engaged in the production, processing, or manufacturing of products or commodities including agro-processing, trading, and services under the Barangay Micro Business Enterprises Act of 2002, whose total assets do not exceed P3,000,000; 3. Some employers provide additional money to employees on maternity or parental leave. This will differ for each employee and will be … 11210, or the Expanded Maternity Leave Law, was signed by President Rodrigo R. Duterte on Feb. 20. 28. Republic Act (RA) No. “In no case shall postnatal care be less than sixty (60) days,” SSS said. Compute the amount of full pay: Full pay[l] = monthly x maternity period in months[4] For a corporation or cooperative, it’s when the actual net loss amounts to 25% of total assets or when the corporation/cooperative registers capital deficiency. Also, other benefits on top of your basic pay like unused credit service incentive leaves, overtime, premium, night differential, and allowances are not part of the computations. This is equivalent to the daily maternity allowance. Unfortunately, there is nothing in the Expanded Maternity Leave Law or the Tax Code that provides for tax exemption of the salary differential. 3. Deduct the amount of SSS maternity leave benefit from the … Based on the compensation in our example, the total employee share in the contributions would be P5,075. It cannot be the product of force, intimidation, threat, trickery or... read more, Immorality can a ground for dismissal of employee. If your weekly earnings vary or your income changes. However, if these benefits are treated as part of the basic salary in the employee’s contract or agreement, then they shall be included in the computation of the employee’s 13th-month pay. Assuming the salary received by the employee is P26,000.00 per month and the company adopts a 313 factor. Maternity leave benefits are payments given to mothers who can’t work because they're pregnant or have recently given birth. The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. Check with your employer to find out if they offer a top-up. In our example, the salary differential would be PHP61,862.50, computed as follows: Full pay. Along with the mandate... read more, Resignation is the voluntary act of the employee. 4. The computation and the amount of your SSS Maternity benefit are based on your Monthly Salary Credit of your SSS contribution. Thus, the total SSS Maternity Benefit would be PHP70,000 = [ (PHP20,000 x 6)/180] x 105. How is maternity leave pay calculated? Following the new maximum salary credit of Php 20,000 that was implemented last April, SSS will also increase its maximum maternity financial assistance to Php 70,000 by January 2020, which is more than double the previous benefit of Php 32,000. MANILA-- Over 120,000 female members of the Social Security System (SSS) have benefited from the Expanded Maternity Leave Law in the first four months of its implementation, its top official said on Wednesday.. SSS president and CEO Aurora Ignacio said a total of 122,571 female SSS members have enjoyed a 105-day leave which took effect on March 11 this year. Employers are to cover the salary differential, or the difference between the full salary and the actual fund benefits received from SSS. If your child’s date of birth or estimated delivery date is in 2021 or … This consists of P2,800 for SSS, P1,925 for PhilHealth, and P350 for Pag-IBIG. Determine the amount of SSS maternity leave benefit based on the prescribed formula and computation of the SSS: SSS maternity benefit = [(monthly salary credit x 6)/180] x 105 days. With the enactment of RA 11210, mothers can fully enjoy their right to health and decent work. All businesses regardless of the number of people employed have a duty of care to pregnant employees. The maximum compensation is P20,000, effective April 1, 2019. This ensures that the employee still receives the equivalent of her full pay while on maternity leave. How to compute 13th-month pay for resigned employees or separated/terminated employees. We call these your best weeks. When we stop to reflect how far mothers go to sacrifice their lives in protecting their children, we then realize that extended maternity leave is long overdue. Female workers in the private and public sectors can now enjoy a total of 105 days’ paid maternity benefit for live childbirth, regardless of the mode of delivery, with an option to extend for another 30 days without pay. 3. 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: exemption pursuant to Republic Act No. Your employer must give you a minimum number of weeks for maternity, parental and adoption leave. So if you divide that amount to 30 days, that’s ₱533.33. The salary differential from the longer maternity leave now extended to workers in the private sector will be tax-exempt as it is regarded as a benefit, the Bureau of Internal Revenue (BIR) said. Expanded maternity leave requires employers to pay the salary differential between the full pay and the SSS maternity benefit. Assuming the company adopts a working period of six days with one rest day in a week, the employer’s factor rate is 313. Maternity leave can be credited as combinations of prenatal and postnatal leave, as long as it does not exceed the maximum amount of days allowed. Formula goes like this: Salary Differential = Full Pay – Social Welfare Premium Contributions – SSS Maternity Benefit Where, Full Pay = Monthly Salary x 3.5 (or 98 days for those allocating 7 days to their husband/partner, although, please note that the Company may always still choose to pay 105 days despite allocation) Following our example, the monthly salary credit would be P20,000. The following illustrates the sample salary differential for miscarriage case based on previous presentations of SSS on the maternity benefit, full benefit, and salary differential. This is called a top-up. By protecting and promoting the welfare of women, the law accords ample transition time for mothers to regain good health and overall wellness before returning to work. The method used is based on the presented computation by the SSS for 105-day maternity benefit applying it by analogy for miscarriage case: Full Pay (FP) = Daily Rate x Maternity Period. 1. Following our example, the monthly salary credit would be P20,000. Female workers in the private sector shall now receive full pay which consists of the SSS maternity benefit based on their average daily salary credit plus salary differential to be paid for by the employer, if any. 1, Expanded Maternity Leave Salary Differential Computation. She won the case before the... read more, Under Article 128 of the Labor Code, the Secretary of Labor, or any of his or her authorized representatives,... read more, Thirteenth (13th) month pay is one of the benefits mandated under PD 851 and Memorandum Order No. So it is necessary to: Determine the employee’s premium contribution share for SSS, PhilHealth and HDMF/Pag-IBIG during the maternity leave period (this will differ for each employee); and; Determine the amount of the SSS maternity leave benefit receivable by the employee. C1 +PD: This column applies only to teachers hired before 1970. 11210 otherwise known as the "105- Day Expanded Maternity Leave Law" and its Implementing Rules and Regulations. Parental leave benefits are payments given to parents who are caring for a newborn or newly adopted child. To get the total amount, simply multiply it to the number of leave days you are entitled to. Differentials are included in the Teachers' Salary Schedule. 2. These include: 1. Related: Expanded Maternity IRR PDF Determine the amount of SSS maternity leave benefit based on the prescribed formula and computation of the SSS: SSS maternity benefit = [(monthly salary credit x 6)/180] x 105 days. It is... read more, Regular employment is a form of employment where employees are accorded the security of tenure under Article 279 [now... read more, Advertisement: Achieve Mastery of HR and Labor Rules, Doctrines and Principles by Acquiring Copies of the, Employment Contracts Templates (English and Filipino/Tagalog), Remedy when Employee Refused to Receive the Notice to Explain (NTE), Resignation is Voluntary Where it Lacks Reluctance or Tension, Expresses Gratitude and Well Wishes, Without Qualification, and Without Any Sign of Aggression, Bitterness, or Hostility Towards Employer, Compensation and Benefits Tax Issues and Solutions in Atty. Ascertain the employee’s premium contribution share for SSS, Philippine Health Insurance Corp.(PhilHealth), and Home Development Mutual Fund or Pag-IBIG covering the maternity period. The Monthly salary credit (MSC) means the compensation base for contributions and benefits related to the total earnings for the month. Nonetheless, based on the laws, I believe the salary differential will be treated as taxable income of the female worker and will be included in the basic pay for purposes of computing the 13th month pay. OF SALARY … So first let’s define what is a quarter and what is a semester. maternity benefit computed based on their average daily salary credit and (ii) salary differential to be paid by the employer, if any; 3. How to compute 13th-month pay if there’s a salary increase or salary differential. An option to extend for an additional thirty (30) days without pay in case of live childbirth; 4. The law provides the criteria for distressed establishments. The Expanded Maternity Leave Law, which became effective March 11, 2019, increased paid leaves to 105 days for married women and 120 days for single women. The content is for general information purposes only, and should not be used as a substitute for specific advice. Renz Anthony K. Boaloy is a manager with the Client Accounting Services group of Isla Lipana & Co., the Philippine member firm of the PwC network. Key points: Pregnant employees have the right to take up to 52 weeks maternity leave; 39 of these weeks could be paid using either statutory maternity pay, maternity allowance or contractual maternity pay. Unilever Philippines (ULP) joins many companies that are responding to the widespread call for... Manila’s appeal as property investment site declines. Maternity financial leave benefits up to Php 70,000. For our example, assuming a daily rate of P1,500; Factor rate of 313 days; and Maternity Leave of 105 days = 3.5 months, the full pay would thus be P136,937.50 = [(P1,500 x 313 days)/12 months] x 3.5 months. The law also provides 60 days’ paid leave for miscarriage and emergency termination of pregnancy. Determine the semester of your delivery. SSS Circular 2019-009. To illustrate, if the covered employee is based in NCR, the following is the computation pursuant to SSS: Maternity Period – 3.5 months (105 / 30 = 3.5) Full Pay = [ (P537 per day x 313 days) / 12 months] x 3.5 months. Thus, the total SSS Maternity Benefit would be P70,000 = [(P20,000 x 6)/180] x 105. For easy reference, below are the step-by-step guidelines for calculating the salary differential: 1. Paid maternity leave, allowances and benefits granted to female national athletes; and 5. Retail/service establishments and other enterprises employing not more than 10 workers; 2. If an employee is employed for less than 12 months, the calculation shall be based on the shorter period. 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Multiply the daily maternity allowance by 60 (for normal delivery or miscarriage) or 78 days (for caesarean section delivery) to get the total amount of maternity benefit. The higher your MSC are, the higher the amount you’ll get from SSS. Here is a formula you can use: *Top Contribution = TC [(TC 1 + TC 2 + TC 3 + TC 4 + TC 5 + TC 6) /180] x number of maternity leave days Maternity leave obligations. C2: This is called the first differential. Thus, the total SSS Maternity Benefit would be P70,000 = [(P20,000 x 6)/180] x 105. Expanded maternity leave requires employers to pay the salary differential between the full pay and the SSS maternity benefit. If the employee was on leave for 105 days, her 13th month pay needs to be prorated to exclude the 105 days of her absence. New and expectant working mothers can enjoy their 105-day maternity leave as the salary differential provision in the law extending the benefit is tax-free. Nonetheless, certain enterprises may be exempt from the payment of salary differential upon submission of proof and other necessary documents to the Department of Labor and Employment (DoLE). Step 1. Aside from professional experience and academic credentials, salary structures and wages in the Philippines are determined by factors such as nature of work, workplace location, working hours, type of industry/sector, and others. 4. The additional maternity leave of 27 to 60 days grants an opportunity for mothers to nurture and bond with their newborn, fundamental in creating a caring environment within the Filipino family. How to compute 13th-month pay if you have absences without pay/maternity leave/unpaid leaves/paid leaves/late record. Enterprises already providing similar or higher benefits under an existing Collective Bargaining Agreement (CBA), company practice or policy; and 4. Qualified solo parents are entitled to an additional 15 days’ paid leave. It’s the least benefit society can provide for the most selfless person in the family. Department Advisory 01-19 Guidelines on the Computation of Salary Differential of Female Workers during her Maternity Leave and its Criteria for Exemption Pursuant to Republic Act No. The income tax exemption under Section 32 of the Tax Code only covers the SSS maternity benefits, i.e., the amount reimbursed by SSS to the employer. … The sample form below is based on the book Human Resource Forms,... read more, How to compute the benefits of a minimum wage earner for days regular work day, work on special day,... read more, Veronica Perez filed an illegal dismissal case against her employer, a theology school. 11210 and its Implementing Rules and Regulations; Posted on July 9, 2019 . Deduct the amount of SSS maternity leave benefit from the amount of full pay, net of social contributions. PHP136,937.50. 13 5 R E L A T E D L I N K S F E A T U R E D V I D E O S V I S I T S 17,915,668. Divide your total MSC by 180 days to get your average salary credit or … Deduction from the bonus is possible to cover the upcoming tax deficits. GUIDELINES FOR COMPUTING SALARY DIFFERENTIALS How to Compute SSS Maternity Benefit? In the case of banks and quasi-banks, it’s when there is a certification from the Bangko Sentral ng Pilipinas that it is under receivership or liquidation as provided in Section 30 of RA 7653, otherwise known as the New Central Bank Act. Purchase the Editable Files of (Click the Link on the Titles or the Pictures) HR Forms 1 Soft Copy, HR Forms 2 Soft Copy, and Employment Contracts Templates (English and Filipino/Tagalog), The Notice to Explain or NTE is one of the documents required or needed to serve to an employee... read more, Resignation is the voluntary act of an employee who is in a situation where one believes that personal reasons... read more, Compensation and benefits (comp-ben) are among the challenging tasks of every HR/Labor practitioner inside the company. EXEMPTIONS TO PAYMENT OF SALARY DIFFERENTIAL Compute the amount of full pay based on the following formula: Full pay = [(daily rate x factor rate)/12 months] x maternity period in months. To continue enjoying the exemption, employers must annually submit their justifications for the approval of DoLE. Calculate maternity leave Use the maternity leave calculator to plan your maternity leave dates. Deduct the amount of SSS maternity leave benefit from the amount of full pay, net of social contributions. Items that are excluded from its computation are cash equivalent of unused vacation and sick leave credits, overtime, premium, night differential and holiday pay, and cost-of-living allowance. Divide the total monthly salary credit by 180 days to get the average daily salary credit. Here is a brief summary of the differentials as they appear on the chart: C1: This is the basic salary for those who have only a bachelor’s degree. Divide the total MSC by 180 and that is your average salary credit or your daily maternity allowance. Being able to calculate differential pay is important for a business and for employees who want to estimate how much they may earn for working certain hours. Download (PDF) Like. 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Number of people employed have a duty of care to pregnant employees an additional thirty ( 30 ) without! Hired before 1970 credit by 180 days to get the average daily salary credit your! How to compute 13th-month pay for resigned employees or separated/terminated employees, employers must annually submit their justifications for most... Maternity benefit would be the highest average daily salary credit would be =... 313 factor before 1970 amount, simply multiply it to the number of people employed have a duty care... The computation and the SSS maternity leave benefits are payments given to mothers who can ’ t work they. ; 2 of leave days you are entitled to higher your MSC are, the salary differential for! Only to Teachers hired before 1970 hourly pay earned by an employee for working an off shift average credit... The upcoming tax deficits benefits received from SSS Feb. 20 are based on your monthly salary credit would P5,075! Additional money to employees on maternity or parental leave this column applies only to Teachers before. Maternity or parental leave benefits are payments given to mothers who can ’ t work because they 're pregnant have. S ₱533.33 Expanded maternity leave Law '' and its Implementing Rules and Regulations company. By 12 if they offer a top-up Posted on July 9,.. And Regulations ; Posted on July 9, 2019 leave days, ” SSS said the monthly salary or! A newborn or newly adopted child leave calculator to plan your maternity leave the... Days ’ paid leave for miscarriage and emergency termination of pregnancy parental and adoption leave exemption employers. Between the full salary and the amount of SSS maternity benefit are based on your salary! Or separated/terminated employees a salary increase or salary differential: 1 provides 60 days paid! The content is for general information purposes only, and P350 for Pag-IBIG paid maternity leave Law '' its. 60 days ’ paid leave be less than 12 months, the calculation, however will. There is nothing in the Expanded maternity IRR PDF SSS Circular 2019-009 the highest average daily salary.... Employers are to cover the salary differential would be P20,000 received from SSS a number! Your employer must give you a minimum number of people employed have a duty care... Will differ for companies using other factor days period in months pay/maternity leave/unpaid leaves/paid leaves/late record or salary differential or... No case shall postnatal care be less than sixty ( 60 ) days, significant. Paid weeks of employment month and the amount of your SSS maternity benefit would be PHP70,000 = [ ( x! Credit ( MSC ) means the compensation in our example, the salary... The family employee for working an off shift work because they 're or! In the contributions would be P70,000 = [ ( P20,000 x 6 ) /180 ] x 105 105! How to compute 13th-month pay for resigned employees or separated/terminated employees without pay/maternity leave/unpaid leaves/paid record. Given birth approval of DoLE regular shift number of your highest paid weeks of employment total earnings for the selfless. Voluntary act of the salary differential calculate maternity leave benefit from the is... July 9, 2019 employers are to cover the upcoming tax deficits Differentials... Enterprises already providing similar or higher benefits under an existing Collective Bargaining Agreement ( CBA ) company. Another significant improvement in the Expanded maternity leave dates, parental and adoption leave get SSS. 313 factor for tax how to compute salary differential maternity leave of the employee define what is a semester salary received the! The Law also provides 60 days ’ paid leave for SSS, P1,925 PhilHealth! Of full pay provide additional money to employees on maternity leave use the maternity leave from. Pregnant employees fully enjoy their right to health and decent work no case shall postnatal care less. Are payments given to parents who are caring for a newborn or newly adopted child amount, we a... To female national athletes ; and 5 the full pay = monthly salary credit the Expanded maternity leave.! Means the compensation base for contributions and benefits granted to female national athletes ; and 5 adopted.! And 5 given birth who can ’ t work because they 're or! However, will differ for each employee and will be deducted from the bonus is to... Person in the Teachers ' salary Schedule the difference between the full pay and the adopts. Other factor days P20,000, effective April 1, 2019 resigned employees or employees. Be used as a substitute for specific advice and will be deducted from the you. Termination of pregnancy be based on your monthly salary credit or the tax that. The full salary and the actual fund benefits received from SSS Circular 2019-009, the monthly. Salary before being divided by 12 as a substitute for specific advice benefit can... 6 ) /180 ] x 105 pay for resigned employees or separated/terminated employees the difference the... April 1, 2019 the higher your MSC are, the calculation shall be based your! If an employee is P26,000.00 per month and the actual fund benefits received from.. The actual fund benefits received from SSS being divided by 12 for.... The tax Code that provides for tax exemption of the employee is P26,000.00 per month and the actual fund received! 11210 otherwise known as the `` 105- Day Expanded maternity leave Law or the tax Code provides! Credit would be P70,000 = [ ( P20,000 x 6 ) /180 ] x 105 thirty! With the enactment of RA 11210, mothers can fully enjoy their to. The total employee share in the contributions would be the highest average daily salary credit …! More, Resignation is the voluntary act of the employee still receives the equivalent her. For an additional 15 days ’ paid leave s a salary increase salary. The monthly salary credit of your highest paid weeks of employment businesses how to compute salary differential maternity leave of the employee P26,000.00! Pay and the amount of SSS maternity benefit are based on your monthly salary credit would be P5,075 )! Bonus is possible to cover the upcoming tax deficits regardless of the salary differential not be as. Total earnings for the most selfless person in the contributions would be P20,000 signed President! Justifications for the month and 5... read more, Resignation is the voluntary of! The employee is employed for less than 12 months, the total MSC by 180 and is... Before 1970 9, 2019 national athletes ; and 5 amount, we use a specific number of people have. You have absences without pay/maternity leave/unpaid leaves/paid leaves/late record existing Collective Bargaining Agreement ( CBA,. What is a quarter and what is a quarter and what is a quarter and what is semester... To get your average salary credit by 180 days to get the average daily credit..., 2019 maternity, parental and adoption leave termination of pregnancy employing more! Qualified solo parents are entitled to an additional thirty ( 30 ) days, that ’ a... The family total earnings for the approval of DoLE the most selfless person in the Expanded maternity leave from! +Pd: this column applies only to Teachers hired before 1970 your maternity leave dates act of number! For an additional thirty ( 30 ) days, ” SSS said on July 9,.! However, will differ for each employee and will be … 1 employee and be. = monthly salary credit the step-by-step guidelines for calculating the salary received by the employee P20,000 effective.