Re: Labour law for maternity leave

Hi All,

Just need some help for one of my expat worker that is going to give birth soon. Currently now I'm helping to check around whether the company will be paying her salary 100% in full when she is on maternity leave or we will have to follow the ruling of SSS that will only pay a certain portion of her salary based on what was disclosed to SSS.

Hope some one can help on this matter. Because this is quite urgent on it as we wanna understand what should be the correct amount that is needed to pay to her. Because for what I know from my hometown, we will still pay her salary in full after deduction of government contribution.

Please help to enlighten me on these.

It depends if ur employee is regularor contractual.but based on my exp when i took a maternity leave..theres a certain computation from sss of how much benefit she will be getting from sss and the company pays for her 21 days salary.multiply her daily wage to 21 then thats what she will get from company.the benefit she will be getting from sss will depend on number of months and how much she pays.she will need to file it 2 months before her expected date of delivery and upon day of her delivery they will file for maternity benefit and sss will send them a cheque in 2 weeks time.

thanks for your info, Violet.

Looking at it, it means that the computation will be based on the amount declared to SSS for the salary and I will think reaching the capped of the salary easily as she is an expat. My question is what the max that we can claim from it because based on what I understand from SSS is that the capped amount contribution of 16,000 per month. Which SSS is going to reimbursed based on the capped amount of 16,000PHP per month.

My expat colleague is getting thrice of that salary, that doesn't make sense for the company to pay only one third of her salary to her because her salary easily hits the capped of the amount contribution.

The next question is whether the company does need to pay her 2 month salary, whether or not, the capped is held at 16,000PHP. Surely the company can claim the amount from SSS, based on the capped but the remain of her salary will still need to be paid from the company right?

The maternity benefit is equivalent to 100 per cent of the member's average daily salary credit multiplied by 60 days for normal delivery or miscarriage, 78 days for caesarean section delivery.

Benefit Computation:

1.Exclude the semester of contingency (delivery or miscarriage).

2.Count 12 months backwards starting from the month immediately before the semester of         contingency.

3.Identify the six highest monthly salary credits within the 12-month period.

4.Add the six highest monthly salary credits to get the total monthly salary credit.

5.Divide the total monthly salary credit by 180 days to get the average daily salary credit. This is equivalent to the daily maternity allowance

6.Multiply the daily maternity allowance by 60 (for normal delivery or miscarriage) or 78 days (for caesarean section delivery) to get the total amount of maternity benefit.

example of computation:

SSS member gives birth in December 2015

-The semester of contingency would be from July 2015 to December 2015.
-The 12-month period before the semester of contingency would be from July 2014 to June 2015.
-Let us assume that the six highest monthly salary credits are P15,000 each. Thus, the total monthly salary credit would be P90,000 (P15, 000 x 6)
-The daily maternity allowance would be P500 (P90,000/180).
-The total maternity benefit due would be P30,000 (P500 x 60 days) for normal delivery/miscarriage/ectopic pregnancy not requiring operation, or P39,000 (P500 x 78) for caesarian cases or ectopic pregnancy requiring operation.

IMPORTANT:

For employed members, the benefit is advanced by the employer to the qualified employee, in full, within 30 days from the date of filing of the maternity leave application. The SSS, in turn, shall immediately reimburse the employer 100 percent of the amount of maternity benefit advanced to the female employee upon receipt of satisfactory proof of such payment and legality thereof.

Notification Procedures
For Employees and Employers:
As soon as a member becomes pregnant, she must immediately notify her employer of such pregnancy and the probable date of her childbirth at least 60 days from the date of conception by accomplishing the SSS Maternity Notification Form and by submitting proof of pregnancy.

The employer must, in turn, notify the SSS through the submission of the maternity notification form and proof of pregnancy immediately after the receipt of the notification from the employee member.

Notification may be made over the counter at an SSS branch, or online through the SSS Website (www.sss.gov.ph), in which the member/employer must be a registered user.




    Application Requirements

        For Notification
            For Employee , Unemployed/Self-Employed/Voluntary members
                Maternity Notification Form
                UMID or SSS biometrics ID card or two (2) other valid IDs, both with signature and at least one (1) with photo and date of birth
                Proof of pregnancy (ultrasound report)
        For Reimbursement
            For Employed Members
                Maternity Notification Form duly stamped and received by SSS
                Maternity Reimbursement Form
                UMID or SSS biometrics ID card or two (2) other valid IDs, both with signature and at least one (1) with photo and date of birth

            To ensure receipt of benefits by members, authorized company representatives who file maternity benefit claim must present the member's SSS digitized ID or E-6 acknowledgement stub with two valid IDs (at least one with photo). This requirement is in addition to the presentation by the company representative's own SSS digitized ID and blue-card.
             
Additional Requirements :

Normal delivery - certified true or authenticated copy of duly registered birth certificate. In case the child dies or is a stillborn, duly registered death or fetal death certificate.
Caesarean delivery - certified or authenticated copy of duly registered birth certificate and certified true copy of operating room record/surgical memorandum.

Hi Violet,

Thanks for the info,

1) Meaning to say if her salary is 45,000PHP per month, then it will be 45,000 x 6 months = 270,000 for the 6 months, divide by 180days which is equivalent to get to the average 1,500PHP per day then multiply by 60 days = 90,000PHP.  Which is still equal to her monthly pay.

2) or will there be a capped based on SSS contribution ceilings of 16,000PHP per month, then SSS will only treat it like 16,000PHP per month, multiply by 6 months = 96,000PHP then divide by 180days = 533.33PHP per day then multiply by 60 days = 32,000PHP. Which is based on the ceiling of SSS contribution and not her usual pay. The difference is near to 60,000PHP which is almost 2/3 of the original pay.

I will need to clarify whether 1) is the correct way or is it due to the restriction of SSS contribution ceiling then 2) is the only correct method to compute.

yes thats how you compute it, if  the 6 highest salary credits of ur employee is 45,000.SSS will then pay her that amount but it will be the company to pay it in advance to the employee and the SSS cheque will reimburst 100% of that from the payment they will send to the employee and the remains will be given to the employee,if there is.if u are still confused,,you can ask SSS for the printed computation and so u know how much u really need to give to ur employee coz SSS should be able to pay u back after that amount u will be paying in advance.ask your company representative for a printed copy of ur employees monthly contribution and the computation of her maternity benefits...i hate to say this but sometimes SSS is trying to lessen everything that they give to their members.better have a print out copy so they cant turn u around  and confused you.

Hi Violet,

Thanks for your help and explanation, but in the end when I refer to the SSS website, it seems like my second computation will only be the correct method if it exceeded 16,000.

Quoting from their site:

Monthly salary credit salary credit means the compensation base for contributions and benefits related to the total earnings for the month. (The maximum covered earnings or compensation is P16,000 effective January 1, 2014).

Meaning to say even if I pay 20,000PHP, they will still assume 16,000PHP as that is the maximum covered earnings/ compensation.