Dear Attorney,

I hope this message finds you in good health and high spirits. I am writing to seek your professional guidance regarding a matter that has been weighing on me lately. For context, I am currently employed by a development bank here in the Philippines. I would prefer to remain anonymous for my own safety and privacy. My main concern involves how my employer handles our maternity benefits.

Based on my personal observations and discussions with colleagues, our company delays the release of the maternity benefit until after an employee has given birth. In some instances, employees are made to use their salary as if they were receiving their regular pay during the maternity leave, subject to the usual deductions such as taxes, government contributions, and loan payments (if any). Then, after their leave, the lump sum maternity benefit from the Social Security System (SSS) is effectively treated by the employer as a sort of “reimbursement” to themselves, leading to confusion over whether employees are truly receiving the full amount to which they are legally entitled.

I understand that under Philippine law, the maternity benefit is supposed to be separate from regular salaries—essentially, it is intended to be a financial support for a new mother’s needs without the burden of standard deductions. The current arrangement leaves many of us with only a small portion of the benefit once everything is settled. We are given no choice in the matter, as the employer automatically processes it in this manner.

Since I am nearing my due date, I want to be fully informed on the legal standing of these practices and what steps I can take to ensure that I receive the proper benefit mandated by law. I would greatly appreciate your expert advice on the relevant laws, rules, and regulations, as well as any potential courses of action should I find the employer’s procedures to be non-compliant with Philippine labor and social security regulations.

Thank you for taking the time to read and consider my concerns. I look forward to your guidance.

Respectfully,
A Concerned Employee

INTRODUCTION

Maternity leave and its associated benefits are enshrined in Philippine law to protect the health, welfare, and economic security of working mothers. Over the years, legislation has evolved to ensure more robust safeguards for women, with various statutes clarifying entitlements, funding mechanisms, and employer obligations. Despite these legal guarantees, questions arise when actual company practice appears inconsistent with the spirit—or letter—of these laws.

In particular, many employees remain uncertain about proper practices for the release of maternity benefits, the allowable deductions, and the difference between standard salaries versus the monetary benefit that replaces regular compensation during maternity leave. This comprehensive legal article aims to shed light on these matters, analyzing the applicable laws in the Philippines and providing guidance on how to address issues involving delayed disbursement, deductions, and related concerns.

LEGAL FOUNDATIONS

The 1987 Philippine Constitution
The Constitution underscores the importance of protecting the rights of working women. Article II, Section 14 states that the State recognizes the role of women in nation-building and shall ensure the fundamental equality before the law of women and men. Although not exclusively referring to maternity benefits, it lays the foundation for other legislative acts that prioritize the welfare of female workers.
Republic Act No. 11210 (105-Day Expanded Maternity Leave Law)
Enacted in 2019, RA 11210 significantly expanded maternity leave benefits for women in government service and the private sector. It provides for 105 days of paid maternity leave, with an additional 15 days for solo parents, and the option to extend for 30 days without pay. This law supersedes prior regulations that granted fewer days.
Under RA 11210, the mother is allowed to receive a maternity benefit covering the duration of her leave. Notably, the law protects women from diminution of these benefits. Employers cannot unilaterally reduce, delay, or otherwise encumber the timely release of the funds to which the employee is entitled.
Republic Act No. 11199 (Social Security Act of 2018)
The Social Security Act of 2018 codifies the process for availing of Social Security System (SSS) benefits, including the maternity benefit for qualified members. The key points include:
- Qualifying Contributions: A member must have paid at least three monthly contributions in the 12-month period immediately preceding the semester of contingency (i.e., the date of childbirth or miscarriage).
- Amount of Benefit: The SSS covers a daily maternity allowance computed based on the average monthly salary credit (AMSC). The formula ensures that the employee receives an amount reflecting her usual earnings, subject to statutory maximums.
- Employer’s Role: In a typical setup, the employer advances the maternity benefit to the employee, then seeks reimbursement from the SSS. However, employees often misunderstand how these reimbursements should be handled, particularly when the employer starts deducting from the employee’s salary or lumpsum.
The Labor Code of the Philippines
While the Labor Code may not directly set out the details of maternity benefits (which are more specifically covered under R.A. 11210 and R.A. 11199), it underscores fundamental principles of fairness, prompt payment of wages, and the avoidance of illegal deductions. Employers found to be violating these principles can be subject to administrative and even criminal penalties.

WHO IS ENTITLED TO MATERNITY BENEFITS?

Under RA 11210 and the Social Security Act, any pregnant female worker—whether in the private or public sector, married or unmarried—who has contributed to the SSS is covered by the mandatory maternity insurance scheme. The only condition is that she meets the required minimum number of contributions prior to the semester of delivery or miscarriage.

For employees in the public sector, separate mechanisms via the Government Service Insurance System (GSIS) apply. However, the fundamental principles are comparable: maternity leave benefits must be disbursed properly and promptly.

AMOUNT AND PERIOD OF MATERNITY LEAVE

Duration
- 105 Days: Standard leave for all covered women.
- 120 Days: Leave for solo parents (under RA 8972, the Solo Parents’ Welfare Act).
- 60 Days: Leave for cases of miscarriage or emergency termination of pregnancy.
Allocation of Leaves
RA 11210 provides flexibility for employed mothers to allocate up to seven days of their maternity leave to the child’s father or an alternate caregiver. Nevertheless, the integrity of the total paid leave must remain intact.

HOW MATERNITY BENEFITS ARE USUALLY RELEASED

The Employer as a Conduit
In the private sector, the employer typically pays the maternity benefit directly to the employee—essentially substituting for wages during the leave. Afterward, the employer applies for reimbursement from the SSS. If done properly, this system ensures that the employee does not suffer from delayed payments or confusing deductions.
Direct Payment by SSS
In some circumstances, the SSS can pay the maternity benefit directly to the employee. This alternative arises if the employer fails to comply with timely remittances or if there is an arrangement authorized by the SSS. However, this is less common for regularly employed workers because the standard mechanism is employer-based payment and subsequent SSS reimbursement.

COMMON ISSUES AND POTENTIAL VIOLATIONS

Delayed or Withheld Benefits
If an employer disburses the maternity benefit only after the employee has given birth—and even then, treats it as a mere “reimbursement” subject to salary deductions—the question arises whether this practice violates the law’s directive on timely benefit payment. Typically, the mother should receive the financial aid as close as possible to when her leave begins, ensuring she has resources for prenatal and immediate postnatal expenses.
Illegal Deductions
Maternity benefits, ideally, should not be subjected to the usual salary deductions such as withholding tax or mandatory contributions (SSS, PhilHealth, Pag-IBIG). The law designates them as “benefits,” implying a nature different from regular wages. If employers deduct contributions and loan payments from the lumpsum maternity benefit, they risk contravening both the spirit and the letter of RA 11210, which protects employees from benefit diminution.
Salary vs. Benefit
Some companies confuse employees by continuing normal payroll disbursement during maternity leave—still applying taxes and other deductions—only to later recoup the amounts from the lumpsum SSS maternity benefit. This practice can be legal only if it is done transparently, with the employee’s express knowledge and agreement, and if it results in no net loss to the employee. However, absent clear accounting and informed consent, it can become a violation that disadvantages the new mother.
Miscommunication or Lack of Transparency
A common root of disputes arises from how the employer explains (or fails to explain) the process. An employer should provide a clear breakdown: the daily maternity allowance, the schedule of payments, any legally permissible deductions, and how reimbursements factor into the equation. A lack of transparency can lead employees to suspect that they are being shortchanged or forced into an arrangement that is not in their best interest.

EMPLOYER OBLIGATIONS AND EMPLOYEE RIGHTS

Prompt Payment
Under RA 11210, an employer is expected to promptly pay the employee her maternity leave benefits. Delay in releasing these amounts, absent a valid reason (e.g., lack of required documents), may be deemed a violation of labor standards.
No Reduction or Denial of Benefits
Employers have no authority to reduce the amount of maternity benefits under the 105-Day Expanded Maternity Leave Law, except under conditions specifically allowed by law (such as partial allocation of leave credits to a child’s father or designated caregiver). Any unauthorized reduction may expose the employer to administrative or judicial actions.
Prohibition on Illegal Deductions
As clarified by regulations from the Department of Labor and Employment (DOLE) and the Social Security System, maternity benefits cannot be diminished. While certain authorized deductions (e.g., mandated SSS loan repayments) might be permissible if they follow a valid agreement, blanket or automatic subtractions from the lumpsum maternity benefit raise legal questions. Employers who proceed without legal basis or an employee’s written authorization may be in violation.
Information Dissemination and Documentation
The employer must maintain accurate records of maternity benefit transactions, including the computations of daily maternity allowances, and a detailed explanation of any items deducted. Employees have the right to request these records for transparency and verification.

SEEKING REMEDIES FOR POTENTIAL VIOLATIONS

Internal Resolution
Ideally, employees should first approach their company’s human resources department or relevant administrative office to seek clarification. A calm, documented request for an explanation or adjustment could resolve misunderstandings. If the bank or company is simply following a long-standing practice based on a misunderstanding of the law, internal discussions may lead to policy revisions that protect all future claimants.
Filing a Complaint with DOLE
If discussions with the employer are unproductive, employees can file a complaint before the regional office of the Department of Labor and Employment. DOLE has the authority to conduct inspections, call for conferences, and mandate corrections when labor standards have been violated.
Approaching the Social Security System
Because maternity benefits originate from the SSS, an employee may also raise issues directly with the SSS. In some cases, the SSS can compel employers to follow lawful processes or even pay benefits directly if the employer is proven unwilling or unable to comply with the correct procedures.
Civil or Administrative Action
Persistently erring employers may face administrative sanctions. In severe scenarios, employees could explore filing a civil case to recover unpaid or improperly withheld benefits. While litigation can be time-consuming, it remains an ultimate recourse to enforce one’s rights under the law.
Legal Consultation
Consulting with a lawyer is crucial, especially in complex employment disputes. An attorney can help gather relevant documentary evidence, draft legal demands, and represent the employee in negotiations or proceedings before government agencies.

PRACTICAL TIPS FOR EMPLOYEES

Document Everything
Keep copies of prenatal consultations, ultrasound reports, official receipts for medical expenses, pay slips reflecting deductions, and any communications from your HR department or employer. These records will be invaluable if you need to prove a claim later.
Know Your Entitlements
Understand the difference between your daily wage and the SSS maternity benefit computation. Verify whether your employer is using the correct average monthly salary credit when applying for reimbursement.
Communicate Clearly
If you believe the employer’s practice is illegal or detrimental, present your concerns respectfully but firmly. Request written responses to ensure clarity and accountability.
Organize Your Co-Workers
If multiple employees share the same concern, a unified approach can expedite policy changes. Employers may respond more promptly when they realize that the issue affects several members of the workforce, not just a single individual.
Stay Updated with New Issuances
Labor laws evolve. Keep track of DOLE announcements, SSS circulars, and relevant statutes that may further clarify or modify existing regulations. Knowledge is power: it prevents confusion and helps employees identify if and when their rights are being violated.

CONSEQUENCES FOR EMPLOYERS WHO VIOLATE MATERNITY BENEFIT LAWS

Administrative Penalties
DOLE may impose administrative fines on employers who fail to comply with the Expanded Maternity Leave Law or SSS regulations. Repeated or willful non-compliance can subject the company to increased scrutiny, possible suspension of operations, or other disciplinary measures.
Civil Liability
An aggrieved employee may file a civil case to recover the full amount of maternity benefits plus damages if the employer’s conduct is proven unlawful. The court can award moral and exemplary damages, especially if it finds that the employer acted in bad faith or with gross negligence.
Criminal Liability
In extreme cases, labor officials or even the Department of Justice may pursue criminal charges against corporate officers if the violation meets the threshold for criminal sanctions (e.g., fraud or deliberate evasion of obligations).
Damage to Reputation
Beyond legal penalties, a company that shortchanges employees on maternity benefits risks damaging its public image. As social media and worker networks increasingly share and discuss corporate labor practices, reputational harm can have long-lasting consequences for the employer’s business.

CONCLUSION

Philippine laws on maternity benefits are designed to safeguard pregnant employees from financial insecurity and undue stress during a critical period of their lives. The 105-Day Expanded Maternity Leave Law (R.A. 11210) grants a generous leave policy, while the Social Security Act of 2018 (R.A. 11199) ensures that eligible employees receive appropriate financial support. Employers are entrusted with administering these benefits promptly, accurately, and without unauthorized deductions.

When an employer delays releasing the maternity benefit, treats it as a mere salary substitute subject to routine deductions, or fails to account for the net amount to which an employee is entitled, it raises serious legal concerns. Employees affected by such irregularities are encouraged to gather detailed records, communicate with management, and, if necessary, seek help from government agencies like the DOLE or the SSS. Consulting a lawyer can provide personalized insights into one’s legal options and ensure that the rights granted by law are duly enforced.

In your specific situation—where a bank is allegedly withholding the lumpsum maternity benefit until after childbirth, paying it out as if it were a regular salary (complete with deductions) and not providing any choice to the employee—there may be valid grounds to question the legality of this arrangement. The practice seems to contradict the principle that maternity benefits must be granted free of impermissible deductions and in a timely manner.

Should you decide to pursue formal action, the first step would be to request a clear statement of your employer’s policy. Ask your HR department for a written breakdown of how they compute and release the benefit, including references to any legal bases they are relying upon. If their explanation appears incomplete or inconsistent with RA 11210, you may elevate the issue to DOLE or SSS for an official inquiry. An experienced labor lawyer can assist in framing your communications and, if necessary, preparing legal documents to assert your rights.

Ultimately, your journey toward ensuring a fair and lawful distribution of maternity benefits can set a precedent for other employees. By shedding light on any existing discrepancies, you not only protect yourself but also help safeguard the welfare of fellow working mothers. Remember that the law stands firmly on the side of protecting and promoting maternal health and well-being—an employee’s vigilance in upholding these rights is a vital part of that legal framework.

May this comprehensive guide provide clarity and confidence as you navigate the matter. The laws are in place to protect employees, and the government agencies that implement them are ready to help. With the right knowledge, documentation, and professional support, you can assert your rights, seek remedies if necessary, and ensure that your maternity benefits are provided in the manner intended by law.

Disclaimer: This legal article is provided for informational purposes only and does not constitute formal legal advice. Individuals facing specific legal issues or disputes are advised to consult with a qualified attorney for personalized guidance.