Maternity Leave in the Philippines: Employer & Payroll FAQ Guide

Maternity leave is a statutory benefit mandated by law that gives female employees paid leave during childbirth or pregnancy-related medical events. This guide explains who is entitled, how much to pay, who covers the cost, tax treatment, reimbursement rules, and employer responsibilities.

This article is written for employers, HR practitioners, bookkeepers, and payroll processors. Here is a list of topics discussed in this article. You can click the link and jump directly to the topic or question that you need.

• What law governs maternity leave in the Philippines?
• Who is entitled to maternity leave?
• How many maternity leave days are allowed?
• Can maternity leave be extended?
• Who pays maternity leave?
• How is maternity benefit computed?
• Is there a maximum maternity benefit?
• What is Salary Differential?
• Employers Exempt from Paying Salary Differential
• Is maternity leave taxable?
• Does maternity leave affect payroll deductions?
• What documents are required for maternity claims?
• When should the employer release maternity pay?
• What happens if maternity pay is denied or delayed?
• Is maternity leave included in 13th month pay computation?
• Can employees transfer unused maternity leave to the father?

What law governs maternity leave in the Philippines?

Maternity leave is governed by the following

✅ Republic Act 11210 – Expanded Maternity Leave Law
✅ Implementing Rules and Regulations (IRR) by DOLE & SSS

This law expanded maternity leave from 60 days to 105 paid days and clarified the role of SSS reimbursements and employer salary differential obligations.

Who is entitled to maternity leave?

A female worker is entitled if she:

✅ Is an active SSS member
✅ Has paid at least three (3) monthly contributions within the 12-month period before the semester of childbirth or miscarriage

Coverage includes:

• Regular employees
• Casual and contractual workers
• Probationary employees
• Household workers (kasambahay)
• Voluntary / self-employed members

How many maternity leave days are allowed?

Can maternity leave be extended?

Yes.

✅ The employee may extend 30 additional days without pay with prior notice to the employer.

Who pays maternity leave?

✅ SSS pays the cash benefit

But the process works as follows:

1. Employer advances payment to employee
2. Employer submits maternity claim to SSS
3. SSS reimburses the employer

Voluntary and self-employed members receive payment directly from SSS.

How is maternity benefit computed?

The benefit is based not on actual salary, but on the employee’s SSS Monthly Salary Credits (MSC) from the SSS Table.

Step 1 – Identify semester of contingency

The semester is the two consecutive quarters that include the delivery date.

Step 2 – Determine look-back period

Select the 12 months immediately before the semester.

Step 3 – Get the six highest MSCs

Choose the top 6 Monthly Salary Credits paid by the employee within the 12-month look-back period.

Step 4 – Compute ADSC

$$\text{ADSC} = \frac{\text{Total of 6 highest MSCs}}{180}$$

Step 5 – Compute Total Benefit

$$\text{Benefit} = \text{ADSC} \times \text{Leave Days}$$

Is there a maximum maternity benefit?

✅ Yes.

SSS benefits are capped at the maximum MSC of ₱30,000/month.

Maximum possible maternity benefits:

Even if the employee’s salary exceeds the cap, SSS will reimburse up to these limits only.

What is Salary Differential?

Salary differential is the difference between the employee’s actual salary during leave and the SSS benefit paid.

Formula:

Salary Differential = Actual Salary – SSS Benefit

When is it required?

Most employers must pay the salary differential to ensure the employee receives full pay during maternity leave.

Employers Exempt from Paying Salary Differential

Under RA 11210, the following employers are exempt:

1. Distressed establishments
   • Two consecutive years of losses or negative net worth
2. Registered BMBEs
   • Total assets ≤ ₱3M (excluding land)
   • With BMBE LGU certificate
3. Retail or service employers with 10 or fewer workers
4. Employers already providing equal or better maternity benefits

Exemption applies ONLY to the salary differential.
Employers must still advance SSS maternity benefits and file reimbursements.

Is maternity leave taxable?

❌ NO – maternity benefit is not taxable
❌ NO – salary differential is also not taxable as clarified by RMC No. 105-2019

These payments are treated as statutory benefits, not compensation income.

Does maternity leave affect payroll deductions?

During maternity leave:

• ❌ No SSS, PhilHealth, Pag-IBIG contributions are deducted on SSS maternity benefits.
• ❌ No income withholding tax on benefits or salary differential.
• ✅ Normal benefits continue afterward when employee resumes work.

What documents are required for maternity claims?

Employers typically need:

✅ MAT-1 notification form (via SSS portal)
✅ Proof of pregnancy or delivery record (medical certificate / birth certificate)
✅ Employer bank details for reimbursement
✅ Payroll proof of advancement

When should the employer release maternity pay?

✅ As soon as the employee submits complete maternity documents

Delays in payment may lead to:

⚠ DOLE labor complaints
⚠ Back wage claims

What happens if maternity pay is denied or delayed?

Employees can file complaints with:

• DOLE
• SSS

Employers may be ordered to:

• Release unpaid benefits
• Pay penalties and interest
• Issue corrective payroll adjustments

Is maternity leave included in 13th month pay computation?

• ❌ Maternity benefit from SSS is not included in 13th month pay
• ✅ Salary differential is included in the computation of 13th month pay

Maternity leave pay from SSS is not considered basic salary and excluded in the computation of 13th month pay. The salary differential however is included as part of the basic salary for the purposes of computation of the 13th month pay according to the DOLE handbook as quoted below.

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. – DOLE handbook

To learn more about 13th month pay computation and the earnings included in the computation, please refer to How to Compute 13th Month Pay?

Can employees transfer unused maternity leave to the father?

✅ Yes, up to 7 days may be transferred to the child’s father or alternate caregiver, with employee consent.