Expanded Maternity Leave Salary Differential for Daily Paid Employee

Expanded Maternity Leave Salary Differential for Daily Paid Employee

The Expanded Maternity Leave Law (EMLL) requires employer to pay the salary differential of covered employees.

R.A. 11210 expanded the benefit by generally increasing it to 105 days subject to additional days under certain situations. To qualify for the grant of maternity leave benefit, the female worker must meet the following requirements:

  1. She must have at least three (3) monthly contributions in the twelfth-month period immediately preceding the semester of childbirth, miscarriage, or emergency termination of pregnancy.

In determining the female member’s entitlement to the benefit, the SSS shall consider only those contributions paid prior to the semester of contingency; and

  1. She shall have notified her employer of her pregnancy and the probable date of her childbirth, which notice shall be transmitted to the SSS in accordance with the rules and regulations it may provide.

Employed female workers shall receive full pay which consists of:

  1. SSS maternity benefit computed based on their average daily salary credit and
  2. Salary differential to be paid by the employer, if any.

The employer shall shoulder the salary differential.

To illustrate, if the covered employee is receives a salary of PhP1,000 per day:

Maternity Period       105 days

Full Pay                      PhP1,000.00

Full Pay to be Advanced = Full Pay x Maternity Period

= PhP1,000.00 per day x 105 days

= PhP105,000.00

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Monthly Salary Credit (MSC)          PhP20,000.00

Average Daily Salary Credit = (6 months x MSC) / 180 days

= (6 months x PhP20,000 per month) / 180 days

= PhP120,000.00 / 180 days

= PhP666.666667

SSS Reimbursement = ADSC x 105 days

= PhP70,000.00

Salary Differential = FP to be Advanced – SSS Reimbursement

= PhP105,000.00 – PhP70,000.00

= PhP35,000.00

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