C1 +PD: This column applies only to teachers hired before 1970. 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. These include: 1. 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. Differentials are included in the Teachers' Salary Schedule. 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. Deduct the amount of SSS maternity leave benefit from the amount of full pay, net of social contributions. 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. 3. 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. Retail/service establishments and other enterprises employing not more than 10 workers; 2. “In no case shall postnatal care be less than sixty (60) days,” SSS said. 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. 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. Divide the total MSC by 180 and that is your average salary credit or your daily maternity allowance. It is because the SSS monthly salary credit is capped at ₱16,000. Paid maternity leave, allowances and benefits granted to female national athletes; and 5. 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. 2. So if you divide that amount to 30 days, that’s ₱533.33. 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. 4. Some employers provide additional money to employees on maternity or parental leave. 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. 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. 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. 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. 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. 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. In our example, the salary differential would be PHP61,862.50, computed as follows: Full pay. Employers are to cover the salary differential, or the difference between the full salary and the actual fund benefits received from SSS. The Monthly salary credit (MSC) means the compensation base for contributions and benefits related to the total earnings for the month. This will differ for each employee and will be … Maternity financial leave benefits up to Php 70,000. 3. 1, Expanded Maternity Leave Salary Differential Computation. Check with your employer to find out if they offer a top-up. 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. 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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To continue enjoying the exemption, employers must annually submit their justifications for the approval of DoLE. 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. 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 The maximum compensation is P20,000, effective April 1, 2019. 28. It’s the least benefit society can provide for the most selfless person in the family. SSS Circular 2019-009. OF SALARY … Calculate maternity leave Use the maternity leave calculator to plan your maternity leave dates. The salaries of those working in major cities and business districts are relatively higher compared to those employed in second-tier cities and provincial areas around the country. Your employer must give you a minimum number of weeks for maternity, parental and adoption leave. 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. 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. 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. Along with the mandate... read more, Resignation is the voluntary act of the employee. This consists of P2,800 for SSS, P1,925 for PhilHealth, and P350 for Pag-IBIG. EXEMPTIONS TO PAYMENT OF SALARY DIFFERENTIAL We call these your best weeks. The law also provides 60 days’ paid leave for miscarriage and emergency termination of pregnancy. The higher your MSC are, the higher the amount you’ll get from SSS. How is maternity leave pay calculated? How to compute 13th-month pay for resigned employees or separated/terminated employees. 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. This is called a top-up. Unfortunately, there is nothing in the Expanded Maternity Leave Law or the Tax Code that provides for tax exemption of the salary differential. maternity benefit computed based on their average daily salary credit and (ii) salary differential to be paid by the employer, if any; 3. Note the hourly pay earned by an employee for working a regular shift. Assuming the salary received by the employee is P26,000.00 per month and the company adopts a 313 factor. It cannot be the product of force, intimidation, threat, trickery or... read more, Immorality can a ground for dismissal of employee. 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. The computation and the amount of your SSS Maternity benefit are based on your Monthly Salary Credit of your SSS contribution. 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. Compute the amount of full pay: Full pay[l] = monthly x maternity period in months[4] 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. If your weekly earnings vary or your income changes. Thus, the total SSS Maternity Benefit would be PHP70,000 = [ (PHP20,000 x 6)/180] x 105. Expanded maternity leave requires employers to pay the salary differential between the full pay and the SSS maternity benefit. All businesses regardless of the number of people employed have a duty of care to pregnant employees. The content is for general information purposes only, and should not be used as a substitute for specific advice. Step 1. For easy reference, below are the step-by-step guidelines for calculating the salary differential: 1. 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) … Determine the semester of your delivery. 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. Like Love Haha Wow Sad Angry. Following our example, the monthly salary credit would be P20,000. Maternity leave obligations. PHP136,937.50. 3. 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. So first let’s define what is a quarter and what is a semester. The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. A2. 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. Republic Act (RA) No. 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. 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. Absences or unpaid leaves will be deducted from the basic salary before being divided by 12. 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. 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). An option to extend for an additional thirty (30) days without pay in case of live childbirth; 4. 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