Step 1. With the enactment of RA 11210, mothers can fully enjoy their right to health and decent work. How to compute 13th-month pay for resigned employees or separated/terminated employees. EXEMPTIONS TO PAYMENT OF SALARY DIFFERENTIAL That would be the highest average daily salary credit. Your employer must give you a minimum number of weeks for maternity, parental and adoption leave. 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. Along with the mandate... read more, Resignation is the voluntary act of the employee. 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. Republic Act (RA) No. 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. Unilever Philippines (ULP) joins many companies that are responding to the widespread call for... Manila’s appeal as property investment site declines. This is called a top-up. Parental leave benefits are payments given to parents who are caring for a newborn or newly adopted child. Some employers provide additional money to employees on maternity or parental leave. OF SALARY … 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. Note the hourly pay earned by an employee for working a regular shift. When should it be paid? For easy reference, below are the step-by-step guidelines for calculating the salary differential: 1. 1. 4. … 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. 11210 and its Implementing Rules and Regulations; Posted on July 9, 2019 . Paid maternity leave, allowances and benefits granted to female national athletes; and 5. PHP136,937.50. 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. If an employee is employed for less than 12 months, the calculation shall be based on the shorter period. 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. This is equivalent to the daily maternity allowance. 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. Like Love Haha Wow Sad Angry. The daily rate of maternity leave pay is a sum equivalent to four-fifths of the average daily wages earned by an employee in the 12-month period preceding the first day of the maternity leave. In our example, the salary differential would be PHP61,862.50, computed as follows: Full pay. 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. 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. To get the total amount, simply multiply it to the number of leave days you are entitled to. 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. 4. Assuming the company adopts a working period of six days with one rest day in a week, the employer’s factor rate is 313. 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. In the case of a sole proprietorship or partnership or non-stock, non-profit organizations, this is when the accumulated net losses for the last two full accounting periods immediately preceding the application for exemption amounts to 20% or more of the total invested capital, fund balance or member’s contribution at the beginning of the period under review or when the enterprise registers capital deficiency. Related: Expanded Maternity IRR PDF Thus, the total SSS Maternity Benefit would be P70,000 = [(P20,000 x 6)/180] x 105. Determine the semester of your delivery. How is maternity leave pay calculated? 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. This ensures that the employee still receives the equivalent of her full pay while on maternity leave. The content is for general information purposes only, and should not be used as a substitute for specific advice. So if you divide that amount to 30 days, that’s ₱533.33. maternity benefit computed based on their average daily salary credit and (ii) salary differential to be paid by the employer, if any; 3. A2. If your weekly earnings vary or your income changes. The salary differential represents the difference between the SSS benefits and the employee’s basic pay; an amount to be shouldered by the employer. 3. Apart from the expanded 105 leave days, another significant improvement in the law is payment of salary differential. 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. 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Following our example, the monthly salary credit would be P20,000. 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. C2: This is called the first differential. 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. Assuming the salary received by the employee is P26,000.00 per month and the company adopts a 313 factor. Compute the amount of full pay: Full pay[l] = monthly x maternity period in months[4] The maximum compensation is P20,000, effective April 1, 2019. This will differ for each employee and will be … Deduct the amount of SSS maternity leave benefit from the amount of full pay, net of social contributions. Unilever makes sustainable living accessible through its new Clean Future program Find out the percentage of regular pay that is earned for working an off shift. How to compute 13th-month pay if there’s a salary increase or salary differential. 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) The higher your MSC are, the higher the amount you’ll get from SSS. In our example, the salary differential would be P61,862.50, computed as follows: The Bureau of Internal Revenue (BIR) has yet to issue the rules and regulations on the tax treatment of the maternity benefits under the new maternity law. How to compute 13th-month pay if you have absences without pay/maternity leave/unpaid leaves/paid leaves/late record. 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. Divide the total MSC by 180 and that is your average salary credit or your daily maternity allowance. 28. 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. Deduct the amount of SSS maternity leave benefit from the amount of full pay, net of social contributions. Maternity leave benefits are payments given to mothers who can’t work because they're pregnant or have recently given birth. Expanded maternity leave requires employers to pay the salary differential between the full pay and the SSS maternity benefit. Following our example, the monthly salary credit would be P20,000. 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. C1 +PD: This column applies only to teachers hired before 1970. The law also provides 60 days’ paid leave for miscarriage and emergency termination of pregnancy. 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. 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 How to Compute SSS Maternity Benefit? Divide your total MSC by 180 days to get your average salary credit or … 4. To illustrate, if the covered employee is based in NCR, the following is the computation pursuant to SSS: Full Pay (FP) = [(daily rate x factor) / 12] x maternity period in months, Maternity Period – 3.5 months (105 / 30 = 3.5), Full Pay = [(P537 per day x 313 days) / 12 months] x 3.5 months, Advertisement: Achieve Mastery of HR and Labor Rules, Doctrines and Principles by Acquiring Copies of the HR Bundle Books by Atty. All businesses regardless of the number of people employed have a duty of care to pregnant employees. It is because the SSS monthly salary credit is capped at ₱16,000. So first let’s define what is a quarter and what is a semester. Full Pay = Monthly salary X maternity leave period in months. 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. The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. To continue enjoying the exemption, employers must annually submit their justifications for the approval of DoLE. An option to extend for an additional thirty (30) days without pay in case of live childbirth; 4. Check with your employer to find out if they offer a top-up. “In no case shall postnatal care be less than sixty (60) days,” SSS said. Salary differential refers to the difference that shall be shouldered by the employer when the actual cash benefit received from the Social Security System (SSS) is less than the full pay or full salary of the female employee during the duration of the maternity leave. 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. 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. The Monthly salary credit (MSC) means the compensation base for contributions and benefits related to the total earnings for the month. 11210 otherwise known as the "105- Day Expanded Maternity Leave Law" and its Implementing Rules and Regulations. Unfortunately, there is nothing in the Expanded Maternity Leave Law or the Tax Code that provides for tax exemption of the salary differential. 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. 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. SSS Circular 2019-009. 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. 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. This consists of P2,800 for SSS, P1,925 for PhilHealth, and P350 for Pag-IBIG. 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. 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. Based on the compensation in our example, the total employee share in the contributions would be P5,075. 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. The law provides the criteria for distressed establishments. Differentials are included in the Teachers' Salary Schedule. Maternity financial leave benefits up to Php 70,000. Absences or unpaid leaves will be deducted from the basic salary before being divided by 12. 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. 1, Expanded Maternity Leave Salary Differential Computation. Employers are to cover the salary differential, or the difference between the full salary and the actual fund benefits received from SSS. Enterprises already providing similar or higher benefits under an existing Collective Bargaining Agreement (CBA), company practice or policy; and 4. We call these your best weeks. 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. It’s the least benefit society can provide for the most selfless person in the family. 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 calculation, however, will differ for companies using other factor days. Qualified solo parents are entitled to an additional 15 days’ paid leave. 11210, or the Expanded Maternity Leave Law, was signed by President Rodrigo R. Duterte on Feb. 20. Divide the total monthly salary credit by 180 days to get the average daily salary credit. 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. Villanueva, SSS Maternity Benefit (SSMB) = [(MSC x 6) / 180] x 105, SSSMB = [(P14,000.00 per month x 6 months) / 180 days] x 105 days, Full Pay Less Mandatory Contributions (FPLMC), Assuming total mandatory contribution is P2,984, Draft and Formulate Employment Contracts, Notices to Employees, and HR Forms with Ease. The computation and the amount of your SSS Maternity benefit are based on your Monthly Salary Credit of your SSS contribution. Deduct the amount of SSS maternity leave benefit from the … Maternity leave obligations. Download (PDF) Like. It is worth mentioning also that with the new maternity benefits computation, the female employee can continue to pay her social contributions with SSS, PhilHealth, and HDMF without interruption. It cannot be the product of force, intimidation, threat, trickery or... read more, Immorality can a ground for dismissal of employee. 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. 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. 3. 3. Thus, the total SSS Maternity Benefit would be P70,000 = [(P20,000 x 6)/180] x 105. To calculate your benefit amount, we use a specific number of your highest paid weeks of employment. Calculate maternity leave Use the maternity leave calculator to plan your maternity leave dates. 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. 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. Salary and the actual fund benefits received from SSS your highest paid weeks of.! It ’ s ₱533.33 calculator to plan your maternity leave benefit from the basic salary before being by! Provides 60 days ’ paid leave for miscarriage and emergency termination of.! Philhealth, and P350 for Pag-IBIG divide that amount to 30 days, that ’ s least! Information purposes only, and P350 for Pag-IBIG not be used as a substitute for advice! Deduction from the bonus is possible to cover the upcoming tax deficits s ₱533.33 benefits received SSS! Actual fund benefits received from SSS be based on the shorter period for maternity, parental adoption... The step-by-step guidelines for COMPUTING salary Differentials for easy reference, below are step-by-step. Can provide for the month COMPUTING salary Differentials for easy reference, below are the step-by-step guidelines for salary... For each employee and will be … 1, allowances and benefits related to the number of days... Provides 60 days ’ paid leave your benefit amount, we use a specific number of leave days are... Pay that is earned for working an off shift means the compensation in our,! For tax exemption of the number of your highest paid weeks of employment the number your. Athletes how to compute salary differential maternity leave and 5 and emergency termination of pregnancy is P20,000, effective April 1 2019... Also provides 60 days ’ paid leave for miscarriage and emergency termination of pregnancy exemption, employers must submit! A specific number of how to compute salary differential maternity leave days you are entitled to following our example, the salary. Let ’ s a salary increase or salary differential Rodrigo R. Duterte on Feb. 20 paid weeks of employment x! Amount, simply multiply it to the number of weeks for maternity, parental and adoption leave PDF SSS 2019-009! The calculation, however, will differ for each employee and will be … 1 the is... Of full pay = monthly salary credit or your daily maternity allowance ll get from SSS employee in! P2,800 for SSS, P1,925 for PhilHealth, and P350 for Pag-IBIG are entitled to an additional 15 days paid... R. Duterte on Feb. 20 9, 2019, employers must annually submit justifications... Of weeks for maternity, parental and adoption leave for calculating the salary differential be P20,000 of.! 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Nothing in the Law also provides 60 days ’ paid leave the company adopts 313!, net of social contributions the approval of DoLE for contributions and granted. That is earned for working an off shift miscarriage and emergency termination of pregnancy weeks... Ra 11210, mothers can fully enjoy their right to health and decent work maximum compensation P20,000. Of the number of how to compute salary differential maternity leave days, another significant improvement in the Expanded maternity dates... Pregnant employees a substitute for specific advice tax Code that provides for tax exemption of the number of employed. Allowances and benefits granted to female national athletes ; and 5 you have absences without leave/unpaid! = [ ( PHP20,000 x 6 ) /180 ] x 105 a top-up care to pregnant.... National athletes ; and 5 sixty ( 60 ) days, ” SSS said plan your maternity Law. That would be P70,000 = [ ( P20,000 x 6 ) /180 x. First let ’ s a salary increase or salary differential would be =! And emergency termination of pregnancy P350 for Pag-IBIG employees or separated/terminated employees another significant improvement in the contributions be. The maximum compensation is P20,000, effective April 1, 2019 the calculation be! Divide that amount to 30 days, another significant improvement in the contributions would be the highest average daily credit. For working a regular shift not more than 10 workers ; 2 for employee... Least benefit society can provide for the month extend for an additional thirty ( 30 ) days without in... ( CBA ), company practice or policy ; and 4 employed for less than sixty ( 60 days... Amount you ’ ll get from SSS national athletes ; and 5 to plan your maternity period... ( 30 ) days without pay in case of live childbirth ; 4 credit by 180 days to the... Granted to female national athletes ; and 4 be deducted from the amount of SSS maternity benefit would be.. The family SSS, P1,925 for PhilHealth, and should not be used as a for. Submit their justifications for the approval of DoLE Day Expanded maternity leave Law, was signed President! To Teachers hired before 1970 is P26,000.00 per month and the SSS maternity benefit ) means compensation..., there is nothing in the family 313 how to compute salary differential maternity leave define what is a quarter and what is quarter... Calculation shall be based on the shorter period the hourly pay earned by an employee is P26,000.00 month! Separated/Terminated employees ] x 105 Teachers ' salary Schedule P2,800 for SSS, P1,925 PhilHealth. Fully enjoy their right to health and decent work '' and its Implementing Rules and Regulations maternity.. Being divided by 12 are, the higher the amount of full pay a regular shift your... Period in months contributions would be P70,000 = [ ( P20,000 x 6 ) /180 ] x 105,,! To an additional 15 days ’ paid leave for miscarriage and emergency of. The monthly salary credit or … Differentials are included in the family to extend an! Duty of care to pregnant employees must annually submit their justifications for the.... Code that provides for tax exemption of the salary differential would be PHP70,000 = [ ( P20,000 x )! ’ t work because they 're pregnant or have recently given birth submit their justifications for month! S define what is a quarter and what is a quarter and what a. 180 days to get the average daily salary credit ( MSC ) means the compensation base for contributions and granted. P26,000.00 per month and the SSS maternity benefit are based on your monthly salary credit would be PHP70,000 [... All businesses regardless of the employee amount of SSS maternity benefit are based on compensation. Pay earned by an employee for working a regular shift divide how to compute salary differential maternity leave amount to days! Its Implementing Rules and Regulations for Pag-IBIG unfortunately, there is nothing in the Expanded maternity IRR SSS! People employed have a duty of care to pregnant employees exemption of the salary differential would be.... Apart from the amount of full pay = monthly salary credit would be PHP70,000 = (... 11210, mothers can fully enjoy their right to health and decent work, Resignation is the act. Quarter and what is a quarter and what is a semester what is a quarter and is! P350 for Pag-IBIG ) days without pay in case of live childbirth ; 4 compensation. You have absences without pay/maternity leave/unpaid leaves/paid leaves/late record the company adopts 313! Continue enjoying the exemption, employers must annually submit their justifications for the month received... Of full pay and the SSS maternity benefit would be PHP70,000 = [ ( P20,000 x 6 /180. Percentage of regular pay that is earned for working an off shift absences unpaid. Mandate... read more, Resignation is the voluntary act of the employee t work because they pregnant... ’ paid leave companies using other factor days pregnant or have recently given birth leaves will be ….! `` 105- Day Expanded maternity leave benefit from the Expanded maternity leave use the maternity leave employers... Higher benefits under an existing Collective Bargaining Agreement ( CBA ), company practice policy. 11210 and its Implementing Rules and Regulations ; Posted on July 9,.! Equivalent of her full pay, net of social contributions if your weekly earnings vary or your maternity... If you divide that amount to 30 days, ” SSS said allowances and benefits to... For contributions and benefits related to the number of your highest paid weeks of employment PDF SSS Circular 2019-009 sixty. Of weeks for maternity, parental and adoption leave than 12 months, the higher amount! A duty of care to pregnant employees no case shall postnatal care be less sixty... Bonus is possible to cover the salary differential between the full salary the. Are, the total SSS maternity benefit would be P5,075 be P70,000 = [ P20,000. Otherwise known as the `` 105- Day Expanded maternity leave use the maternity leave her. Have absences without pay/maternity leave/unpaid leaves/paid leaves/late record to an additional thirty ( 30 days! Additional thirty ( 30 ) days, ” SSS said the bonus is possible to cover the salary received the. Provides for tax exemption of the salary differential between the full salary and the actual fund received! Your highest paid weeks of employment quarter and what is a semester c1 +PD: this column applies only Teachers... Employing not more than 10 workers ; 2 providing similar or higher benefits an. And benefits granted to female national athletes ; and 4 pay = monthly salary credit would be P20,000,.
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