SEVENTEENTH CONGRESS OF THE } 
REPUBLIC OF THE PHILIPPINES 
}
F irst R e g u la r S ession  
}
S E N A T E  
s .B . No. JL 4 2 8
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of ffif ^^^rrrf
*17 
HAY - 2  
P 3  2 9
RLCtlVLD 3:;
INTRODUCED BY SENATOR VICENTE C. SOTTO III
AN ACT
ALLOWING THE MONETIZATION OF MATERNITY LEAVE CREDITS 
OF FEMALE EMPLOYEES AND THE COVERED SOCIAL SECURITY 
SYSTEM (SSS) FEMALE MEMBERS, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Section 9, Article II of the 1987 Constitution states that:
The State shall promote a ju st and dynamic social order 
that will ensure the prosperity and independence of the nation 
and free the people from poverty through policies that provide 
adequate social services, promote full employment, a rising 
standard of living, and an improved quality of life for all.
According to the Philippine Statistics Authority (PSA), in 2015, a 
family of five needed at least PhP 6,329, on average, every m onth to 
m eet the family’s basic food needs and at least PhP 9,064, on average, 
every m onth to m eet both basic food and non-food needs. These 
am ounts represent the m onthly food threshold and m onthly poverty 
threshold, respectively. They indicate increases of about 15 percent 
in food and poverty thresholds from 2012 to 2015.
The afore-cited data shows the increasing financial needs of 
every 
household 
in 
the 
country. 
Towards 
this 
concern, 
the 
governm ent has been continuously im plementing policies th at could 
somehow cushion the effect of several factors affecting the food and


poverty thresholds especially for those living below the poverty line -  
which is 16.5% of the population based on the 2015 data of PSA. 
Programs like the conditional cash transfer, medical assistance, 
autom atic m em bership to PhilHealth, and free tuition fee in state 
universities are several of the program s and services delivered to the 
said population group.
The governm ent is not unaw are of the fact th at majority of the 
population belongs to the labor force -  to be specific, 60% of the 
population are part of this cluster. T hus, the labor, being considered 
as the prim ary social economic force, has been likewise given the 
wide-ranging support of the government. From tax incentives and 
deductions, to social security program s, to leave benefits -  these are 
only some of the perquisites granted to the m em bers of the labor force 
to raise the standard of living in the Philippines.
r
However num erous these program s may seem, it appears that 
the aforesaid governm ent services can never be enough to improve the 
quality of life of every Filipino considering the variable factors that 
affect our economy like growing population, environm ental hazards, 
and our natural resources, ju st to nam e a few. There are still a lot to 
be desired.
Thus, this proposed m easure, with the intent to somehow 
augm ent the rising cost of living, seeks to grant the workingwomen -  
both from the governm ent and private sectors -  as well as the female 
m em bers of the SSS the privilege to monetize their m aternity leave 
credits, subject to some conditions.
This m easure can also encourage family planning because one 
of the proposed conditions in order to avail of the benefits under the 
bill is th at the covered female employee or SSS m em ber can only 
monetize if she did not use her m aternity leave benefit for the past


three (3) years immediately preceding the monetization. Hence, this 
m easure may be an instrum ent for solving the country’s problem of 
overpopulation.
In view of the foregoing, the passage of this bill is earnestly 
recommended.
VICE^HTE C. SOTTO III


SEVENTEENTH CONGRESS OF THE } 
REPUBLIC OF THE PHILIPPINES 
}
F irst R e g u la r S ession  
}
S E N A T E  
S.B. No. , 1 4 2 8
& :]il
0 1 1’tr 
' M
*17 
HAY- 2  
P 3  2 9
RLCtlVLD  EV;
INTRODUCED BY SENATOR VICENTE C. SOTTO III
AN ACT
ALLOWING THE MONETIZATION OF MATERNITY LEAVE CREDITS 
OF FEMALE EMPLOYEES AND THE COVERED SOCIAL SECURITY 
SYSTEM (SSS) FEMALE MEMBERS, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assem bled:
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SECTION 1. S h o rt Title. -  This act shall be known as the 
“Maternity Leave Monetization Act. ”
SECTION 2. D eclaratio n  o f Policy. — It is the policy of the 
State to promote a ju st and dynamic social order th at will ensure the 
prosperity and independence of the nation and free the people from 
poverty.
Towards this end, the State shall institutionalize policies to 
provide adequate social services, a rising standard of living, and an 
improved quality of life for all through the grant of m onetization 
privilege to woi kingwnmen in order to augm ent the increasing cost of 
living and other financial needs of their family.
SECTION 3. Coverage. -  This Act shall cover women employees, 
w hether marrii^d or unm arried, in the governm ent and the private 
sectors; as well as the other covered Social Security System (SSS) 
female m em bers who are qualified to avail of the m aternity leave 
benefits under the Social Security Law.
SECTION 4. M onetization o f M atern ity  Leave C redits. -  All 
covered female employees and SSS m em bers shall be entitled to


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monetize sixty (60) days of their m aternity leave credits, subject to the 
following conditions:
a) T hat the m onetization should be made within fifteen (15) 
years from the birth of their first child;
b) T hat the covered employees have not availed of the m aternity 
leave benefits for the last three (3) years immediately 
preceding the m onetization; and
c) That the covered employee intending to monetize is not 
pregnant on the day of filing of the application for 
monetization.
The grant of monetization privilege under this Act shall be 
considered as an availm ent of the m aternity leave benefits in reference 
to paragraph (b) hereof
SECTION 5. M onetization f o r  Fem ale W orkers in th e  Public 
Sector. -  The monetization of the m aternity leave credits shall be 
upon the favorable recom m endation of the agency head and subject to 
the availability of funds.
The com putation of m aternity leave m onetization shall follow 
the form ula prescribed in the O m nibus Rules Implementing Book V of 
the Revised Administrative Code of the Philippines.
SECTION 6. M onetization f o r  F em ale W orkers in  th e  P riv ate 
Sector. -  The m onetization of the m aternity leave credits of the 
covered employees in the private sector shall further be subject to the 
following conditions:
a) That the female m em ber should have paid at least three (3) 
m onthly 
contributions 
in 
the 
twelve-month 
period 
immediately preceding the sem ester of her monetization;
b) That the employee shall have notified her employer of her 
intention to monetize, which notice shall be transm itted to 
the SSS in accordance with the rules and regulations it may 
provide;


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c) The full paym ent shall be advanced by the employer within 
thirty (30) days from the filing of the m aternity leave 
m onetization application;
d) That one instance of m onetization of m aternity leave credits 
shall be counted as one delivery or m iscarriage, th u s shall be 
deducted 
from 
the 
allowable 
four 
(4) 
deliveries 
or 
miscaiTiages under the Social Security Law;
e) That the SSS shall immediately reim burse the employer of 
one hundred percent (100%) of the am ount of the monetized 
m aternity leave credits advanced to the employee by the 
employer upon receipt of satisfactory proof of such paym ent 
and legality thereof; and
f) T hat if an employee m em ber should monetize without the 
required contributions having been rem itted for her by her 
employer to the SSS, or without the latter having been 
previously notified by the employer of the employee’s intent 
to monetize, the employer shall pay to the SSS dam ages 
equivalent to the benefits which said employee m em ber 
would otherwise have been entitled to.
The com putation of m aternity leave m onetization under this Act 
shall follow the formula prescribed in the Social Security Law on 
M aternity Leave Benefit.
SECTION 7. Im plem enting R ules a n d  R egulations. -  The Civil 
Service Commission, the D epartm ent of Labor and Employment, and 
the SSS shall issue the necessary rules and regulations for the 
effective im plem entation of this Act within six (6) m onths from its 
effectivity.
SECTION 8. F u n ding S ources o f M atern ity  Leave C redits 
M onetization o f SSS M em bers. -  The funds to be allocated to finance 
the m aternity leave credits m onetization of employee m em bers and 
such other qualified lemale SSS m em bers shall be charged against the 
employees contributions withheld from their m onthly salary or wage 
or earnings during the m onth in accordance with the m onthly salary


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credit, the schedule and the rate of contributions; and a portion of the
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m inim um  15% increase - from the original level of 10% -  of the
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investm ent reserve fund (IRF) from short and m edium -term  m em ber
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loans, as may be determ ined and fixed by the Social Security
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Commission.
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Provided, however, in the event th at such monetization privilege
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granted under this act necessitates the increase in the rate of
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contributions, said increase shall be based on sound actuarial
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calculations, rate of benefits, inflation, and other relevant socio-
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economic data, as may be determ ined by the Social Security
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Commission, in close coordination with the National Economic
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Development 
Authority 
and 
the 
D epartm ent 
of 
Labor 
and
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Employment.
SECTION 8. S e p a ra b ility  C lause. -  If any provision of this Act
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is declared unconstitutional or otherwise invalid, the validity of the
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other provisions shall not be affected thereby.
SECTION 9. R ep ealing C lause. — All laws, decrees, orders,
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rules and regulations or parts thereof inconsistent with this Act are
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hereby repealed or modified accordingly.
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SECTION 10. Effectixnty. -  This Act shall take effect after
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fifteen (15) days from its publication in the Official Gazette or in a
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new spaper of gcmeral circulation.
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Approved,