Certain employers are exempted to pay full maternity benefits to employees in the private sector.
Under Section 2 of Rule III of the implementing rules and regulations of the Expanded Maternity Leave Law (RA 11210), an employed female worker in the private sector or in the informal sector shall receive full pay which consists of:
- SSS maternity benefit computed based on their average daily salary credit and
- Salary differential to be paid by the employer, if any
There is salary differential if the monthly salary of the female worker is greater than the maternity benefit given by SSS based on the average daily salary credit.
However, not all female workers can receive salary differential because certain employers are exempted from paying this as long as they comply with the requirements and criteria set forth in the implementing rules. In this case, the female worker is only entitled to her SSS maternity benefits and no to salary differential.
The exempted employers are provided in Section 5 of Rule VI of the implementing rules, thus:
1. Those operating distressed establishments.
- For corporation/cooperative:
When the actual net loss amounts to 25{affa41581c539e77a889a6a46af960df9ff1c7424670374343af90ba11e244ac} of total assets or when the corporation/cooperative registers capital deficiency, i.e. negative stockholders’ equity immediately preceding the application for exemption,
- For sole proprietorship and partnership:
When the accumulated net losses for the last two (2) full accounting periods immediately preceding application for exemption ammounts to 20{affa41581c539e77a889a6a46af960df9ff1c7424670374343af90ba11e244ac} or more of the total invested capital at the beginning of the period under review or when the sole proprietorship/partnership registers capital deficiency, i.e. negative net worth as of the last full accounting period immediately preceding application for exemption.
- For Non-stock, non-profit organizations:
When the accumulated net losses for the last two (2) full accounting periods immediately preceding application fr exemption amounts to 20{affa41581c539e77a889a6a46af960df9ff1c7424670374343af90ba11e244ac} or more of the fund balance/members’ contribution at the beginning of the period or when an establishment registers capital deficiency, i.e. negative fund balance/members; contributions of the last full accounting period or interim period, if any, immediately preceding application for exemption.
- For banks and quasi-banks
When there is a certification from the Bangko Sentral ng Pilipinas that it is under receivership or liquidation as provided in Section 30 of RA 7653, otherwise known as the New Central Bank Act.
2. Those retail/service establishments and other enterprises employing not more that ten (10) workers:
When it is engaged in the retail sale of goods and/or services to end users for personal or household use and it is regularly not more than ten (10) workers regardless of status, except the owner/s, for at least six (6) months in any calendar year.
3. Those considered as micro-business enterprises and eegaged in the production, processing, or manufacturing of products or commodities including agro-processing, trading, and services, whose total assets are not more than Three Million Pesos (P3,000,000.00) in accordance with the Barangay Micro Business Enterprises (BMBE’s) Act of 2002; and
4. Those who are already providing similar or more than the benefits herein provided under an existing Collective Bargaining Agreement (CBA), company practice or policy.
The foregoing exemptions are subject to an annual submission of justification by the employer claiming exemption for the approval of the Department of Labor and Employment (DOLE).
Download the full text of the implementing rules and regulations below.
