LETTER OF CONCERN

Dear Attorney,

I hope this letter finds you in good health and high spirits. I am writing to seek your expert opinion regarding my situation: I am currently on maternity leave, and I have been informed that I might need to shoulder both my personal share and the employer share of government-mandated monthly contributions while I am away from work. My concern is whether it is truly mandatory for me to pay the employer share, or if I should only be responsible for my personal share.

As an employee who wishes to comply with all necessary legal requirements, it is important for me to understand my obligations correctly. I also want to avoid any complications that might arise if payments are not handled properly during my maternity leave. If possible, I would also like to know if there are any specific provisions or guidelines under Philippine laws that address how contributions to the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund (Pag-IBIG) should be handled for employees on maternity leave.

Any guidance or clarifications you could provide would be most helpful. Thank you in advance for your time and expertise.

Respectfully yours,
A Concerned Employee

LEGAL ARTICLE

In the Philippines, the matter of government-mandated contributions for employees on maternity leave is intertwined with multiple laws, rules, and regulations that each set forth obligations for employers and employees. The primary government agencies involved in administering social insurance and welfare programs are the Social Security System (SSS), the Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund (Pag-IBIG). Additionally, the Department of Labor and Employment (DOLE) provides relevant issuances and guidelines on working conditions and employee benefits. This comprehensive legal analysis will explore the key aspects of Philippine laws on maternity leave and the associated responsibilities of the employer and employee in paying government-mandated contributions, thereby shedding light on whether the female employee on maternity leave must shoulder the employer share.

1. The General Framework: Employer and Employee Contributions

Under the Philippine social security and welfare framework, employees and employers are both required to contribute to certain government programs. Specifically:

Social Security System (SSS) – Governed by Republic Act No. 11199 (Social Security Act of 2018), employees and employers are each required to remit their shares of contributions based on salary brackets provided in the law.
Philippine Health Insurance Corporation (PhilHealth) – Established by Republic Act No. 7875 (as amended by R.A. 10606 and subsequent laws), PhilHealth coverage is mandatory for all employees in the private and public sectors. The contributions are split between the employee and the employer, with varying rates depending on monthly compensation.
Home Development Mutual Fund (HDMF or Pag-IBIG) – Established under Presidential Decree No. 1752 (as amended by R.A. 9679), the Pag-IBIG Fund requires both employee and employer to contribute monthly based on prescribed rates.

The crux of the matter revolves around the question: During maternity leave, does the employee continue to shoulder only her personal share, or does she become liable for the employer’s share as well? To answer this, it is essential to delve into the applicable laws on maternity leave and relevant issuances from DOLE, SSS, PhilHealth, and Pag-IBIG.

2. Maternity Leave in the Philippines: The Governing Law

Republic Act No. 11210, otherwise known as the Expanded Maternity Leave Law, significantly increased the number of days for maternity leave to ensure that female employees receive adequate support and protection during pregnancy and childbirth. Here are the key points:

Duration of Maternity Leave: Under R.A. 11210, all covered female workers in government and the private sector are granted 105 days of paid maternity leave. This can be extended by 30 days without pay, subject to the employer’s agreement. Solo parents are granted 120 days of paid leave.
Applicable to All Sectors: The law applies to female employees in the government, private sector, as well as those in the informal economy and voluntary SSS contributors, provided that they meet the qualifying conditions.

The purpose of granting extended maternity leave is to guarantee the welfare of working mothers, ensuring they have sufficient time for recovery and for tending to the needs of the newborn. One of the most crucial features of this new law is that it explicitly obligates employers to pay for the salary differential when the SSS maternity benefit is lower than the employee’s regular wage, subject to certain limitations and conditions.

3. Payment of SSS Maternity Benefits

Before discussing the contributions, it is necessary to clarify how the SSS maternity benefit is paid. While R.A. 11210 strengthened the maternity leave provisions, the administrative processes for SSS maternity benefits remain largely anchored in the implementing rules and regulations of both the SSS Act and the Expanded Maternity Leave Law.

Under the SSS guidelines:

Eligibility: A female member is qualified to receive the SSS maternity benefit provided that she has paid at least three monthly contributions within the 12-month period immediately before the semester of her childbirth or miscarriage.
Payment Through the Employer: In the case of employed members, the SSS maternity benefit is normally advanced by the employer, who subsequently applies for reimbursement from the SSS.

Although the SSS maternity benefit is distinct from the concept of monthly SSS premiums, the question regarding the payment of the employer share during the leave arises. The law requires employers and employees to remit regular monthly contributions to ensure continuous coverage.

4. Does the Employee Shoulder the Employer’s Share During Maternity Leave?

The direct answer, in general, is no. The employee on maternity leave should not be required to pay the employer share of any government contributions. Employers are mandated by law to shoulder their portion of SSS, PhilHealth, and Pag-IBIG contributions, even while the employee is on maternity leave. The practice of requiring employees to pay the employer’s portion is inconsistent with the standard statutory scheme, unless there exists a very unusual situation or an explicit alternative arrangement that is more beneficial to the employee.

The rationale behind this principle is that the employer’s share is precisely the employer’s responsibility under the law, representing the employer’s share of providing social welfare support to the workforce. Whether or not the employee is actively working or on a valid leave such as maternity leave, the statutory obligations to pay the employer portion of these contributions typically remain the employer’s duty.

5. Legal Basis for Not Paying the Employer Share

To give a deeper understanding, here is a more granular analysis of the statutory provisions and administrative regulations that clarify responsibility over contributions:

Social Security System
- Section 18 of R.A. 11199 (Social Security Act of 2018) states that “Compulsory coverage of employers, employees, self-employed persons, OFWs, and voluntary members shall take effect on the first day of their employment, or upon registration with the SSS.” While the law sets out the contribution schedule for both employer and employee, it does not create any exemption for the employer from paying its share when the employee is on paid leave.
- The SSS also clarifies in its circulars and FAQs that, during maternity leave, an employee maintains her employee status. Hence, she remains entitled to benefits, including the continuation of coverage, which in turn necessitates the continuation of the employer’s remittance of its share.
PhilHealth
- PhilHealth Circulars confirm that, as long as there is an employer-employee relationship, the employer’s obligation to deduct and remit the correct amount of monthly contributions remains. Even if the employee is not physically reporting for work due to approved leave, including maternity leave, she retains her employment status. Therefore, the employer is bound to fulfill its share of the contributions.
- Additionally, in the event that an employee obtains medical services during her maternity leave, her PhilHealth coverage is expected to remain intact. That coverage is contingent on the employer timely remitting contributions, which includes the employer’s share.
Pag-IBIG (HDMF)
- R.A. 9679 (Home Development Mutual Fund Law of 2009) stipulates that every employer covered by the Fund is required to register all employees who qualify, and the employer has the responsibility to remit both the employer’s and the employee’s share on time.
- The law does not specify that an employee who is on maternity leave should pay any additional amounts beyond her usual share. Consequently, the employer remains solely responsible for its portion.

In summary, none of these laws or their implementing rules authorize a scenario where an employee who is on maternity leave (or any other legally approved leave) can be made to shoulder the employer’s contribution.

6. Potential Exceptions or Special Arrangements

While the general rule is that employers must carry their share of the contributions regardless of the employee’s leave status, there could be special scenarios or employment agreements where:

Employee-Employer Agreements More Favorable to the Employee
- In certain companies, there might be enhanced benefits or alternative arrangements that are more favorable to the employee. For instance, some employers advance payments or continue paying the full coverage (both shares) on behalf of the employee during the maternity leave, and then recover the employee’s share upon the employee’s return. In such instances, the employer never demands the employee to shoulder the employer share.
Unpaid Extended Leave Beyond the Mandated Maternity Leave
- If the employee opts to extend her absence beyond the period covered by the paid maternity leave (105 days or 120 days for solo parents), that extended period might be considered under a separate, possibly unpaid leave arrangement. In such a scenario, the question arises whether the employer remains obliged to pay its share. Typically, as long as the employee remains on the company’s roster or is still considered part of the workforce, her coverage continues, and thus the employer share remains. However, if the employee is effectively on indefinite leave or has resigned, the coverage might shift to being a voluntary member arrangement, in which case the employer’s contribution obligations would generally cease because there is no longer an ongoing employment relationship.
Suspension of Business Operations
- In extraordinary situations, such as the closure or suspension of the employer’s business operations, the existing laws do not allow the employer to simply shift the financial burden of the employer share onto the employee. Should business operations be suspended, the employer and employee status might be impacted, but absent a formal termination of employment, the duty to remit remains.

7. Expanded Maternity Leave Law: Salary Differential vs. Contributions

One noteworthy source of confusion is the interplay between the salary differential mandated by R.A. 11210 and the social welfare contributions. Under the Expanded Maternity Leave Law, when a female employee qualifies for SSS maternity benefits, her employer is compelled to pay the difference (if any) between the SSS benefit and her full salary, subject to specific guidelines. However, the law does not mention anything about requiring employees to shoulder the employer’s share of SSS contributions or other mandatory contributions while on maternity leave.

If an employer attempts to deduct the employer’s share of SSS, PhilHealth, or Pag-IBIG from the employee’s salary, the employer would effectively reduce or negate the salary differential that the law intends to guarantee. Such an action would run contrary to the protective policy behind the Extended Maternity Leave Law, which aims to ensure the female employee’s financial security during her maternity leave.

8. Consequences of Non-Compliance

Employers that improperly require employees on maternity leave to shoulder the employer portion of mandatory contributions risk facing various potential legal and financial consequences. These may include:

Administrative Penalties
- SSS, PhilHealth, and Pag-IBIG have their own mechanisms for imposing penalties, interests, and surcharges on late or unremitted contributions. If an employer fails to pay its share or unlawfully deducts its share from the employee, the employer may be penalized.
Labor Complaints
- The employee may lodge a complaint with the Department of Labor and Employment (DOLE) or the National Labor Relations Commission (NLRC) for illegal deductions. DOLE Department Order No. 209 or other relevant issuances may apply, prohibiting unauthorized or unwarranted deductions from an employee’s salary.
Civil and Possible Criminal Liability
- Depending on the extent of the violation, employers may be subject to civil liability for unpaid contributions and damages. In extreme cases of deliberate, repeated, and fraudulent evasion of lawful obligations, criminal sanctions could be pursued under certain provisions of the SSS Law or the Revised Penal Code, though these are typically reserved for more egregious cases.
Damage to Employer-Employee Relationship
- Apart from the legal ramifications, requiring employees on maternity leave to pay the employer share can erode trust. This may foster an environment of dissatisfaction and conflict within the workplace, leading to increased attrition and decreased morale.

9. Practical Guidelines for Employers and Employees

For Employers

Remain Compliant: Ensure that you continue remitting both the employer’s and employee’s shares of government contributions even if the employee is not physically reporting for work due to maternity leave.
Document Everything: Maintain clear documentation of salary differential payments, government contribution remittances, and any specific agreements you may have with employees regarding extended leaves.
Seek Legal Advice: Consult with qualified legal counsel or HR professionals for any complexities regarding statutory coverage, extended leaves, and unique employment arrangements.

For Employees

Monitor Payslips and Contributions: Check payslips and contribution records. The My.SSS online portal, PhilHealth member portal, and the Pag-IBIG website can help confirm remittance of the correct amounts.
Clarify Your Arrangements: If the employer requests you to shoulder additional amounts, politely seek clarification and ask for legal or regulatory basis.
Report Violations If Needed: If your employer persists in requiring you to pay the employer share, you may consult government agencies such as the SSS, PhilHealth, Pag-IBIG, and DOLE for guidance or file a formal complaint.

10. Frequently Asked Questions

Question: Do I need to pay my own employee share while on maternity leave?
Answer: Generally, yes. You continue to be responsible for your portion of the contributions unless your employer opts to waive or cover them as part of an enhanced benefits program. Your share is typically deducted from your wages or from any salary differential you receive during your maternity leave.
Question: My employer says they are not obliged to pay their share because I am not working. Is that correct?
Answer: No. Paid maternity leave does not terminate your employment status; thus, the employer remains bound by law to pay the employer portion of your SSS, PhilHealth, and Pag-IBIG contributions, so long as the employment relationship remains.
Question: Are there any special rules for pregnant women who opt for an extended 30-day leave without pay?
Answer: During the unpaid extension, the employer-employee relationship usually remains, unless it is otherwise ended by resignation or lawful termination. Typically, the employer must continue paying its share for as long as the employee is considered on the company’s active roster. However, if the situation changes (e.g., separation from employment), the employer’s obligation to pay the employer share ends when the employment relationship ends.
Question: Could the employer’s share be withheld and then reimbursed later upon the employee’s return to work?
Answer: In principle, that should not happen unless there is a voluntary agreement that favors the employee (e.g., an employee-friendly policy). The standard rule is that the employer must remit its share on time, without seeking reimbursement from the employee.

11. Conclusion

In sum, Philippine law firmly provides that an employee on maternity leave is not required to shoulder the employer portion of any government-mandated monthly contributions. This conclusion stems from the combined effect of existing social security laws (SSS Law, PhilHealth Law, and Pag-IBIG Law) and the overarching protective policies embodied in the Labor Code of the Philippines and the Expanded Maternity Leave Law (R.A. 11210). Paid maternity leave is granted explicitly to benefit female employees, ensuring their well-being during and after pregnancy, and it does not absolve employers of their responsibilities to fulfill their share of mandatory contributions.

The consistent theme in labor and social welfare laws is that employees remain employees, even while temporarily away from work on approved leaves. Because maternity leave is a protected, legally mandated benefit, no law or regulation provides that employers can shift their statutory share of contributions onto the employee. If this scenario arises, an employee can question or challenge the practice, potentially seeking recourse through the various government agencies tasked with enforcement.

Ultimately, the overarching principle is that Philippine labor and social legislation aims to ensure a fair balance between the rights and obligations of workers and employers, prioritizing the welfare of employees. Hence, a female worker on maternity leave, whose employment status remains intact, maintains her entitlement to proper coverage, along with the presumption that the employer shoulders its share of contributions. Any deviation from this principle, such as requiring the female worker to pay the employer portion, would run counter to the protective thrust of Philippine law and could subject the employer to administrative and legal repercussions.

This discussion is intended as a comprehensive overview of the legal framework surrounding government-mandated contributions during maternity leave in the Philippines. If you require further assistance or clarification, it is best to consult directly with a legal professional or the relevant government agencies to ensure compliance with current laws and regulations.