Letter to the Attorney

Dear Attorney,

I hope this message finds you well. I am seeking your legal advice regarding a concern with my maternity leave benefits, specifically the release of the salary differential by my employer.

I have already received my maternity benefit from the Social Security System (SSS). However, my employer has not yet released the salary differential, which I understand should be provided within the period of my maternity leave. My maternity leave is set to end on January 12, 2025, but my employer’s HR department has informed me that the salary differential will only be released after the maternity leave ends.

I would like to know if this practice complies with Philippine labor laws. Is there any provision under the law that mandates when the salary differential should be released? If the employer’s actions are not compliant, what steps can I take to assert my rights?

Thank you for your guidance on this matter.

Sincerely,
A Concerned Employee

Comprehensive Legal Article: Maternity Leave and Salary Differential in the Philippines

Understanding Maternity Leave in the Philippines

Under the Expanded Maternity Leave Law (RA 11210), all covered female workers are entitled to 105 days of paid maternity leave for live childbirth, with an additional 15 days for solo parents, and 60 days for miscarriage or emergency termination of pregnancy. This landmark law aims to protect the welfare of working mothers, ensuring their health and financial security during and after pregnancy.

The law applies to all sectors—whether the employee is in government service, the private sector, or informal employment. It also extends to voluntary contributors of the Social Security System (SSS).

Salary Differential Explained

One of the critical features of RA 11210 is the salary differential provision, which requires employers in the private sector to pay the difference between the SSS maternity benefit and the employee’s full regular salary during her maternity leave.

For example, if an employee’s full salary amounts to ₱20,000 per month and her SSS maternity benefit covers only ₱16,000, her employer must pay the remaining ₱4,000 as a salary differential. This ensures that the employee receives her full salary throughout her maternity leave period.

However, employers who are exempt under the law, such as those who are distressed or micro-business enterprises, are not obligated to pay the salary differential, provided they comply with the documentary requirements to justify their exemption.

Timely Release of Salary Differential

The law is clear on several aspects, but the timing of the release of the salary differential is often a source of confusion for employees and employers alike. While RA 11210 and its Implementing Rules and Regulations (IRR) specify that employers are required to pay the salary differential during the maternity leave period, it does not explicitly mandate a specific date for the release of the payment.

However, the Department of Labor and Employment (DOLE), through various labor advisories, has emphasized the importance of timely payment to ensure that the financial needs of the employee are met during her recovery and postnatal care. Employers are advised to align their practices with the spirit of the law, which is to provide sufficient financial support to employees while they are on maternity leave.

Employer's Compliance Obligations

Documentation Requirements: Employers must ensure proper documentation of the employee’s maternity leave, including submission of SSS forms, medical certificates, and proof of childbirth or termination of pregnancy.
Computation of Salary Differential: Employers should calculate the salary differential accurately to avoid disputes. This includes verifying the employee’s monthly salary, SSS maternity benefit, and the corresponding amount to be covered by the employer.
Timing of Payment: While the law does not specify a fixed schedule for payment, delaying the salary differential until after the maternity leave may contravene the intent of RA 11210. DOLE’s advisories encourage employers to release the salary differential alongside the employee’s regular pay cycles during her maternity leave.

Non-Compliance and Remedies

If an employer fails to release the salary differential within a reasonable time, the employee has several options to assert her rights:

File a Complaint with DOLE: Employees can file a complaint with the DOLE Regional Office. The agency may conduct an inspection of the employer’s records and practices to ensure compliance with labor standards.
Seek Redress Under the SSS Act: Employees may also raise the matter with SSS if they believe there is a miscalculation or delay in processing the maternity benefit, though this is separate from the employer’s obligation to pay the differential.
Labor Arbitration: If the dispute persists, employees may bring their case before the National Labor Relations Commission (NLRC) for resolution.
Consult a Lawyer: Seeking legal counsel ensures that the employee is guided through the process of asserting her rights, especially if the employer continues to delay payment without valid justification.

Employer Exemptions from Salary Differential

Not all employers are mandated to pay the salary differential. Exemptions include:

Distressed Employers: Companies experiencing significant financial losses.
Micro-Business Enterprises: Registered entities with total assets not exceeding ₱3 million.
Employers in Specific Industries: Those explicitly exempted by DOLE through the IRR.

Employers claiming exemption must provide adequate proof, such as audited financial statements or certifications from government agencies.

Conclusion and Recommendations

Under Philippine law, the salary differential is a critical component of maternity leave benefits, aimed at ensuring the financial well-being of working mothers. While the law provides employers some flexibility in terms of timing, withholding the salary differential until after the maternity leave may undermine its purpose.

Recommendations for Employees:

Document all communications with HR regarding maternity leave benefits.
Verify the computation of the salary differential to ensure its accuracy.
Seek assistance from DOLE or legal counsel if the employer delays payment without valid justification.

Recommendations for Employers:

Align payroll practices to release the salary differential during the maternity leave period.
Communicate clearly with employees about their maternity leave entitlements.
Seek DOLE guidance if claiming exemption from the salary differential obligation.

By understanding and adhering to the provisions of RA 11210, both employers and employees can uphold their respective rights and responsibilities, fostering a workplace that supports the well-being of working mothers.