Maternity Benefit

OVERVI
EW

QUALIFYING
CONDITIONS

HOW TO
APPLY

BENEFIT
COMPUTATION

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).
A semester refers to two consecutive quarters ending in the quarter of sickness.
A quarter refers to three consecutive months ending March, June, September
or December.
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.
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). Please refer to the table below.
4.
1. Add the six highest monthly salary credits to get the total monthly salary credit.
2. Divide the total monthly salary credit by 180 days to get the average daily salary
credit. This is equivalent to the daily maternity allowance.
3. 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.
For example, let us say that an SSS member gives birth in December 2013.
4.
1. The semester of contingency would be from July 2013 to December 2013.
2. The 12-month period before the semester of contingency would be from
July 2012 to June 2013.

3. 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).
4. The daily maternity allowance would be P500 (P90,000/180).
5. 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!

The maternity benefit shall be paid only for the first four (4) deliveries or
miscarriages starting May 24, 1997 when the Social Security Act of 1997
(RA8282) took effect.
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.

If the employee member gives birth or suffers miscarriage without the required
contributions having been remitted by the employer, or the employer fails to notify the
SSS, the employer will be required to pay to the SSS damages equivalent to the benefits
the employee would otherwise have been entitled to.
For separated/voluntary/self-employed members, the amount of benefit is paid
directly to them by the SSS.

A female member cannot claim for sickness benefit for a period of 60 days for
normal delivery or miscarriage or 78 days for caesarean delivery within which
she has been paid the maternity benefit. As a rule, no member can be entitled to
two benefits for the same period.

MANILA, Philippines (UPDATED) Wondering how your employer is computing your

income tax?
You can calculate it yourself.
In our previous story, we enumerated the items you need to consider in computing your
salary tax. (READ: What to consider in computing income tax).
Now, we'll show you how to compute it.
Here's a step-by-step guide for manual computation. You may also use the tax calculator
below.

Step 1: Determine your taxable income.

To compute your taxable income, follow this formula:
Taxable income = (Monthly Basic Pay + Overtime Pay + Holiday Pay + Night
Differential) - (SSS/PhilHealth/Pag-IBIG deductions - Tardiness - Absences)
Let's say Employee A is married with one dependent, and has a basic monthly pay of
P25,000. Based on the tables of government contributions, Employee A will pay:

P581.30 - SSS contribution (View SSS contribution table)

P312.50 - PhilHealth contribution (View PhilHealth contribution table)

P100 - Pag-IBIG contribution

Employee A's taxable income will therefore be P24,006.20. Here's how it is computed:
Taxable income = P25,000 - (P581.30 + P312.50 + P100)
= P25,000 - 993.8
= P24,006.20
Step 2: Using your taxable income, compute your income tax by referring to the
Bureau of Internal Revenue (BIR) tax table.
In the BIR table below, look for your pay period (usually it's "Monthly" for employed
taxpayers), then your status ("S/ME" means single/married with no dependent, "ME1/S1"
means married/single with one dependent, and so on).
There are 8 columns under each pay period. Under the columns are taxable income
amounts and their corresponding tax rates. As the taxable income increases, the tax rate
also goes up.
In the row indicating your status, look for the highest amount that does not exceed your
taxable income.
Let's use Employee A, with status "ME1/S1," as example. The highest amount that does
not exceed Employee A's taxable income of P24,006.20 is P17,917 (ME1/S1 row,
Column 6).
The heading of Column 6 reads "1,875.00 + 25% over."

This means Employee A's tax is P1,875 plus 25% of the difference of his taxable income
(P24,006.20) and the amount in the table (P17,917).
Here's the computation:
Tax = 1,875 + [(24,006.20-17,917) X .25]
= 1,875 + (6,089.2 x .25)
= 1,875 + 1,522.3
= P3,397.30
Tax calculator
We also provided a simple tax calculator below. All you need to do is select your salary
period and civil status, and provide the figures for the different fields.
SSS, PhilHealth and Pag-IBIG contributions will automatically appear once you put in
your basic salary. Do not use commas in the calculator. Have fun!

ASSIGNMENT
IN
ECON100

SUBMITTED BY:
CATANYAG, JENNY, E.

SUBMITTED TO:
MS. IMELDA SANOSA