Department Advisory No. 01, Series of 2019 (DOLE) or the Guidelines on the Computation of Salary DifferentialAtty Elvin
On July 4, 2019, the Department of Labor and Employment issued the guidelines on the computation of salary differential of female workers during her maternity leave and its criteria for exemption pursuant to R.A. 11210 and its IRR. View the PDF Copy of DOLE D.A. 01, Series of 2019 here.
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According to the said advisory, the employer shall pay the salary differential 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:
- Compute the amount of full pay:
Full Pay = monthly salary x maternity period in months
- Ascertain the employee’s premium contribution share for SSS, Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund (Pag-Ibig) covering the maternity period.
- Determine the amount of SSS maternity leave benefit of the female worker based on the prescribed formula and computation by the SSS.
- Deduct from the amount of full pay the total amount of employee’s premium contribution share and SSS maternity leave benefit.
The “Full Pay” as defined in Section 1 (j), Rule II of the IRR of R.A. 11210 refers to actual remuneration or earnings paid by an employer to a worker for services rendered on normal days and hours not lower than the wage rate fixed by the Regional Tripartite Wages and Productivity Board (RTWPB) including allowances provided for under existing company policy or collective bargaining agreement.
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If the female worker is not uniformly paid whereby daily rate or monthly rate cannot be determined, the average of her monthly salary for the last twelve-moth period shall be adopted.
Article 13 of the Civil Code provides that a month shall be understood as thirty (30) days.
DOLE Illustration for Expanded Maternity Leave of 105 days or 3.5 months:
A. Monthly Salary of PhP14,006.75
Full Pay PhP49,023.63
Social Welfare Contributions PhP 2,984.07
SSS Maternity Benefit PhP70,000.00
Salary Differential PhP -2,960.45
Other deductions such as loans, may be deducted from the salary differential as may be agreed upon by the employer and the female worker.
B. Monthly Salary of PhP31,300.00
Full Pay PhP109,550.00
Social Welfare Contributions PhP 4,656.31
SSS Maternity Benefit PhP 70,000.00
Salary Differential PhP 34,893.69
The amount of salary differential shall be treated as taxable income of the female worker subject to the rules and regulations of the Bureau of Internal Revenue. (See No. III, D.A. 01, Series of 2019)
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.