Salary Differential under EMLL: Non-Taxability per DOLE Department Advisory 1-A, Series of 2019 PDF
Salary differential has finally been ruled by the BIR as non-taxable proceed to the employee. This was expressed by the bureau in RMC 105-2019 clarifying the tax treatment of maternity leave benefits under the 105-Day Expanded Maternity Leave Law.
In this Department Advisory of the DOLE, it clarifies as well that the salary differential paid by an employer on the basis thereof is exempt from income and withholding taxes.
Below is the PDF Version of the Department Advisory (original file not mine)
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