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RMC No. 105-2019: Clarifies the proper tax treatment of maternity leave benefits under Republic Act No. 11210 (105-Day Expanded Maternity Leave Law)

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Summary

RMC No. 105-2019, issued October 9, 2019, clarifies the tax treatment of the salary differential paid by private-sector employers to female workers under Republic Act (RA) No. 11210, the 105-Day Expanded Maternity Leave Law.

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Key points

  1. Full pay during leave. Under Sec. 5 (c) of RA No. 11210 and its joint IRR, workers on maternity leave must receive full pay.
  2. Employer pays the differential. Private-sector employers pay the difference between the SSS cash benefits received and the worker’s average weekly or regular wages, for the duration of the leave.
  3. Tax treatment. The salary differential is a benefit exempt from Income and Withholding Taxes.

Who is affected

  • Female workers in the private sector availing of maternity leave
  • Private-sector employers

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.