Dear Attorney,

I hope this letter finds you well. I am writing to seek legal advice regarding a matter that has caused me significant concern. I am currently employed in a development bank, and I would like to keep my identity anonymous for safety and privacy reasons. My issue pertains to my employer’s practice of handling Maternity Benefits.

Based on my recent observations and discussions with colleagues who have already taken maternity leave, our employer refuses to release our entire Maternity Benefit in a lump sum. Instead, they choose to continue paying our salaries while we are on maternity leave, deducting contributions such as Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), Home Development Mutual Fund (Pag-IBIG), and other deductions from these payments. Then, once our maternity leave is consumed, we receive only the remainder of our Maternity Benefit, which has already been significantly reduced. Essentially, we lose the option to receive the full amount of our Maternity Benefit without deductions.

I was under the impression that the Maternity Benefit is meant to be a benefit granted to employees in full, rather than an amount subject to the usual deductions. We are left with a fraction of what we are supposed to be entitled to, which raises questions about its legality. I am worried because my due date is approaching, and I fear encountering the same situation.

Given the complexity of this matter and the concerns of my fellow employees, I would like to request your guidance. Could you kindly clarify whether our employer’s approach is consistent with Philippine labor laws and regulations on maternity leave? What measures or remedies are available to us if we wish to assert our rights to receive our Maternity Benefits without unwarranted deductions?

Thank you very much for your time and assistance. I look forward to any advice or explanation you can provide on the applicable laws and jurisprudence governing this issue.

Respectfully yours,

(Signed) Concerned Employee

COMPREHENSIVE LEGAL ARTICLE ON MATERNITY BENEFITS UNDER PHILIPPINE LAW

Disclaimer: The following discussion is for general informational purposes only and does not constitute specific legal advice. If you need comprehensive guidance for a particular case, it is always best to consult directly with a qualified legal professional.

1. Overview of the Legal Framework Governing Maternity Benefits

Maternity Benefits in the Philippines derive from several sources of law, most notably:

Republic Act No. 11210 or the “105-Day Expanded Maternity Leave Law” (“EML Law”), which extended the maternity leave period from 60 or 78 days (under previous statutes) to 105 days for live childbirth, with an option for an additional 30 days of unpaid leave.
Social Security Act of 2018 (Republic Act No. 11199), which outlines the Social Security System’s (SSS) rules and regulations, including the entitlement and computation of Maternity Benefits for eligible private-sector employees.
PhilHealth Circulars and relevant rules, which might intersect with the provision of health-related benefits.

Under the EML Law, qualified female workers are entitled to receive 105 days of paid maternity leave for live childbirth, with an additional 15 days if the female worker qualifies as a solo parent under Republic Act No. 8972 (Solo Parents’ Welfare Act). The same law allows for 60 days of paid leave in cases of miscarriage or emergency termination of pregnancy. Through the SSS, the employer typically advances the Maternity Benefit, and subsequently, the employer is reimbursed by the SSS (subject to the guidelines for reimbursement).

2. Entitlement to the SSS Maternity Benefit

Under the Social Security Act, a member who has paid at least three monthly contributions in the 12-month period immediately preceding the semester of her childbirth or miscarriage/emergency termination of pregnancy is eligible to claim Maternity Benefits. The employee must notify her employer of the pregnancy and the approximate date of childbirth. Employers generally require submission of proof of pregnancy (e.g., medical certificate).

After giving birth (or upon the start of maternity leave), the member-employee is entitled to receive from her employer the full amount of the Maternity Benefit according to the schedule of payments and rules of the SSS. Typically, the SSS will reimburse the employer for the advanced payment, less any overpayments, underpayments, or other adjustments.

3. Computation of the Maternity Benefit

The benefit amount is based on the average daily salary credit of the covered female employee, multiplied by the number of compensable days of maternity leave (105 days for live birth, 60 days for miscarriage or emergency termination, plus an extra 15 days if the employee is a solo parent). The official SSS formula ensures that employees receive a lump sum for the duration of their maternity leave. Importantly, the EML Law provides that the benefit should not be less than two-thirds of the regular monthly wages of the worker, if such minimum thresholds apply.

4. Employer’s Obligations and Common Practices

By law, the employer is mandated to:

Advance the Maternity Benefit to the employee in full, once her maternity leave begins.
Collect reimbursement from the SSS afterward, once the correct documents (e.g., maternity leave application, medical documents) are submitted and approved.

However, in some cases, confusion arises regarding whether an employer may continue to pay an employee’s salary in the normal pay schedule, minus deductions for social insurance (SSS, PhilHealth, Pag-IBIG), taxes, and other obligations, and simply consider that as equivalent to giving the Maternity Benefit. Here is where certain administrative decisions and internal policies might conflict with the law.

Under Philippine law, the Maternity Benefit is designed to replace the employee’s compensation during her period of absence from work due to maternity leave. The general principle is that the Maternity Benefit is a statutory payment, not a net salary subject to every deduction that normally attaches to an active employee’s payroll. The guidelines from SSS, together with advisories from the Department of Labor and Employment (DOLE), emphasize that the employer must pay out the entire Maternity Benefit in one lump sum, to ensure that the employee receives financial support during her leave.

5. Legality of Deductions from Maternity Benefit

Ordinarily, certain deductions—like loans, union dues, or employee amortizations—could be processed if there is a written authorization, or if it is mandated by an outstanding court order or arbitration judgment. However, an employer’s practice of automatically deducting all social insurance contributions, taxes, or other payables from the Maternity Benefit, without the employee’s clear consent or statutory basis, can be problematic.

An employer is not generally prohibited from withholding mandated taxes on income or similarly required government contributions, especially if the payment is interpreted as “salary.” Yet, the EML Law’s spirit suggests that the benefit itself should primarily remain intact to cover the mother’s needs during maternity leave. Some companies interpret the advanced Maternity Benefit as part of the payroll, automatically subjecting it to typical deductions. Whether this is correct depends on the nature of the payment under SSS and DOLE rules.

6. Distinguishing Maternity Benefit from Company-Paid Leave

It is essential to differentiate between:

Statutory Maternity Benefits mandated by law.
Company-initiated salary continuance or “top-ups.”

If an employer voluntarily grants a maternity allowance on top of the mandatory SSS Maternity Benefit, that company-paid portion may be subject to the usual rules on taxation and statutory contributions. However, the portion that arises specifically from the SSS Maternity Benefit is often treated separately, because it is reimbursed by the government (through SSS). Many companies simply give the employee the entire SSS Maternity Benefit in full, then follow up with separate payroll adjustments for the portion that is purely from the employer’s funds, if any exist.

7. Common Issues and Disputes

7.1. Failure to Pay the Full Amount in Lump Sum

Some employers pay the amount in increments, effectively turning the Maternity Benefit into periodic salary. This could create confusion, since employees might expect to receive the total sum upfront to meet immediate financial needs. The “continuing salary” approach can be disadvantageous if the employer deducts all normal charges (SSS, PhilHealth, Pag-IBIG, taxes, etc.) from each pay period, thereby diminishing the net benefit.

7.2. Unauthorized or Excessive Deductions

Some employers withhold amounts that are not legally required or duly authorized in writing, which can be seen as an unlawful deduction from wages or benefits. The law is protective of employees, so deductions must have a clear basis.

8. Possible Remedies and Courses of Action

Clarify Internal Policies
Employees should first request a copy of the employer’s policy regarding Maternity Benefit administration. The company’s Human Resources or Legal Department should explain how they handle the advanced SSS Maternity Benefit, especially concerning deductions.
File an Internal Grievance
Under many company manuals, employees can raise a grievance or appeal regarding salary or benefit issues. Documenting the request in writing and seeking clarification is often the first step before escalating to external agencies.
SSS Inquiry or Assistance
If the employer incorrectly withholds or mismanages the SSS reimbursement, the employee may contact the SSS directly to verify if the benefit was fully reimbursed to the employer. Employees can request assistance or file a complaint, especially if they suspect that the employer is not remitting or crediting the correct amounts.
Department of Labor and Employment (DOLE) Complaint
An employee who feels that her statutory rights under the EML Law are being violated can file a complaint with DOLE. The DOLE can investigate if there is a prima facie violation of labor standards or if the employer’s policy runs afoul of the law. An employee can also pursue legal remedies through the National Labor Relations Commission (NLRC), particularly if the issue involves monetary claims related to statutory benefits.
Consult a Private Lawyer
If the matter cannot be resolved internally, engaging private counsel is prudent. A lawyer can examine the specific facts of the case, including the company’s policy documents, your payslips, your official notices to the employer, and the relevant labor laws.

9. Employer’s Justification vs. Employees’ Rights

From an employer’s perspective, there may be administrative or accounting reasons for paying the Maternity Benefit in a staggered manner—possibly an internal alignment of payroll systems or a perception that the SSS reimbursement must be confirmed before releasing the entire amount. However, such practice should not nullify the statutory right of a female employee to receive the correct amount without undue or unauthorized deductions. Where an employer’s policy conflicts with mandated standards, the policy must yield to the law, which is protective of labor.

10. Key Takeaways for Affected Employees

Know Your Rights: Recognize that the EML Law and the SSS guidelines exist to guarantee paid maternity leave benefits. You are entitled to 105 days for a regular live birth, with the possibility of additional days if you are a solo parent.
Check Deductions Carefully: Examine your pay slips, especially during the maternity leave period. If the amounts deducted are unclear or unauthorized, request a breakdown from HR.
Assert Your Position: Communicate politely but firmly with your HR department or payroll administration. Request that you receive the full Maternity Benefit as provided by law, unless there is a written explanation for legitimate deductions.
Seek Professional Help: If the employer remains unresponsive or continues a practice that you believe violates your statutory benefits, consult a labor lawyer or file a complaint with the DOLE or SSS. Document any relevant communications to support your claim if an administrative or judicial proceeding becomes necessary.

11. Conclusion

Maternity Benefits under Philippine law serve a critical function: to provide financial security and support to working mothers during a pivotal time in their lives. The law aims to ensure that female employees enjoy these benefits without the burden of unauthorized or excessive deductions. Although there may be circumstances where partial deductions apply—particularly for mandated withholdings—a uniform practice of automatically deducting everything as if one were receiving regular wages may conflict with the spirit and letter of the EML Law, as well as SSS regulations.

When employees encounter issues such as non-lump-sum disbursement of benefits or unexplained deductions, they can take steps to clarify or dispute these matters, beginning with internal channels and, if necessary, escalating to government agencies like the DOLE or the SSS. Ultimately, awareness, documentation, and assertive communication play crucial roles in safeguarding one’s statutory rights.

It is hoped that this discussion clarifies the nuances of Maternity Benefits in the Philippines and provides you with the information you need to uphold your rights in the workplace. Should you find yourself confronted with this problem, do not hesitate to seek appropriate legal recourse. Protecting the interests of female employees during maternity leave is a fundamental priority of our labor laws, and both jurisprudence and regulations consistently uphold this protection.

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