Maternity Leave Process In Philippines

MATERNITY LEAVE PROCESS IN PHILIPPINES

Maternity leave in Philippines is for a period of 3.5 months or 105 days.

The employee should submit SSS Maternity Notification and proof of pregnancy as XML (HR Officer of the Employer) will submit the notification and process application to the agency.

See below screenshot copy of the information needed for submission

Then, we also need to enroll Disbursement Account (Bank account linked to the Social Security online services) so that paid advanced maternity benefit to the employee will be reimbursed by the agency.

This should be enrolled before we apply for the Maternity Benefit Reimbursement or before the employee has given birth.

Once the employee has given birth, Employer will apply for the reimbursement and submit supporting documents (Certificate of Live Birth).

For the qualification and computation of the Maternity Benefit, see below summary:

Qualifying Conditions

The member has paid at least three (3) months of contributions within the 12-month period immediately before the semester of her childbirth or miscarriage/emergency termination of pregnancy

If employed, she must have given notification of her pregnancy through her employer

Amount of Benefit

The amount of the member's daily Maternity Benefit allowance is equivalent to the Average Daily Salary Credit (ADSC)

ADSC = Ave. Monthly Salary Credit / 180
x 60 days for miscarriage/emergency termination of pregnancy
x 105 days for live childbirth (normal or caesarean section delivery)
x 120 days for solo parent under R.A. 8972 (Solo Parents' Welfare Act of 2000)
105 days + 15 days

The Maternity Benefit is granted to a qualified female worker in every instance of pregnancy, miscarriage, or emergency termination of pregnancy regardless of frequency.

EXAMPLE OF SALARY DIFFERENTIAL CALCULATION TO BE BORNE FOR EMPLOYEE

Kindly see below computation for the SSS maternity benefit and salary differential. This is an example for Philippines employee Danilyn Carmelo

SSS MATERNITY BENEFIT:

1.       Contingency / Delivery Month: December 2023

2.       Add 6 highest monthly salary credit within the 12month period = 120,000.00

3.       Average Daily Salary Credit = 120,000.00 / 180days = 666.6667

4.       SSS Maternity Benefit = 666.6667 X 105days = P70,000.00

SALARY DIFFERENTIAL:

1.       Full pay – 181,499.00 X 3.5months = 635,246.50

2.       Employee’s Premium Contribution

a.       SSS           P 1,350.00

b.       PHIC              1,600.00

c.       HDMF               100.00

Total Statutory contribution per month = 3,050 X 3.5 months = 10,675.00

3.       SSS Maternity Benefit = 666.6667 X 105days = P70,000.00

Full pay is greater than SSS Maternity Benefit and Employee’s Premium Contribution, hence, Employer has to pay the employee the salary differential amounting to P554,571.50

In summary, full pay will be given to the employee. The P 70,000.00 SSS maternity benefit will be reimbursed by the Social Security Agency, while the  Salary Differential of P 554,571.50 is shouldered/paid by the employer and will not be reimbursed by the agency.

PROCESS TO BE FOLLOWED AFTER COMPUTATION OF SALARY DIFFERENTIAL:

·         Account Manager must be informed immediately of the maternity leave so that the client can be notified.

·         This salary differential amount must be shared with Finance team

·         Maternity Leaves must be booked in Cascade once the employee has submitted the forms

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