Employer pays for salary differential under 105-day Maternity Leave

DOLE Department Order No. 1, Series of 2019 provided for the Guidelines on computing the salary differential under the new 105-day maternity leave law.

Notable Points:

  • The employer may only be reimbursed for maternity leave under the previous 60-day maternitu leave law.
  • The remaining 55 days shall be shouldered by the employer, which is referred to as the salary differential.
  • Salary differential is taxable.
  • For 13th month pay computation, salary differential is included as patt of basic salary.
  • Exemption on payment for salary differential requires application and approval from DOLE.

Download: DOLE Department Order No. 1, Series of 2019

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