EIGHTEENTH CONGRESS OF THE } 
REPUBLIC OF THE PHILIPPINES 
}
F irs t R e g u la r S e ssio n  
}
S E N A X ^  
>.B. No. <iOO
. .. K i
• 0 , «
’19 JUL 15 A10 -53
INTRODUCED BY SENATOR VICENTE C. SOTTO H I
f -
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 C onstitution 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 S tatistics A uthority (PSA), in 2018, a 
family of five needed a t least PhP 7,337, on average, every m onth to 
m eet the fam ily’s basic food needs an d  a t least PhP 10,481, on 
average, every m onth to m eet both basic food and non-food needs. 
These am o u n ts represent the m onthly food threshold and m onthly 
poverty threshold, respectively. They indicate increases of abo u t 10.5 
percent in food and poverty thresholds from the first sem ester of 
2015.
The afore-cited d ata show s the increasing financial needs of 
every 
household 
in 
the 
country. 
Tow ards 
this 
concern, 
the 
governm ent h a s been continuously im plem enting policies th a t could


som ehow  cushion the effect of several factors affecting the food an d  
poverty thresholds especially for those fam ilies living below the 
poverty line -  w hich is 16.1% of the population based on the 2018 
d a ta  of PSA. Program s like the conditional cash transfer, m edical 
assistance, autom atic m em bership to PhilH ealth, and free tuition fee 
in state universities are several of the program s an d  services delivered 
to the said population group.
The governm ent is not unaw are of the fact th a t m ajority of the 
population belongs to the labor force -  to be specific, 60% of the 
population are p a rt of th is cluster. T hus, the labor, being considered 
as the prim ary social econom ic force, h a s been likewise given the 
w ide-ranging support of the governm ent. From  tax incentives an d  
deductions, to social security program s, to leave benefits -  these are 
only som e of the perquisites granted to the m em bers of the labor force 
to raise the stan d ard  of living in the Philippines.
However nu m ero u s these program s m ay seem , it ap p ears th a t 
the aforesaid governm ent services can never be enough to im prove the 
quality of life of eveiy Filipino considering the variable factors th a t 
affect our econom y like growing population, environm ental hazards, 
an d  our n a tu ra l resources, ju s t to nam e a few. There are still a lot to 
be desired.
T hus, this proposed m easure, w ith the in ten t to som ehow  
augm ent the rising cost of living, seeks to g ran t the workingw om en -  
both from the governm ent an d  private sectors -  as well as the female 
m em bers of the SSS the privilege to m onetize their m aternity leave 
credits, subject to som e conditions.
This m easure can also encourage family planning because one 
of th e proposed conditions in order to avail of the benefits u n d er the 
biU is th a t the covered female employee or SSS m em ber can only


m onetize if she did not u se h er m aternity leave benefit for the p ast 
three (3) years im m ediately preceding the m onetization. Hence, this 
m easure m ay be a n  in stru m en t for solving the country’s problem  of 
overpopulation.
In view of the foregoing, the passage of th is bill is earnestly 
recom m ended.
VICENTE CL SOTTO III


EIGHTEENTH CONGRESS OF THE } 
REPUBLIC OF THE PHILIPPINES 
}
F ir s t R e g u la r S e ssio n  
}
S E N  
S.B. No.
£>..ir oU
I
•19 
JUL 15 AIG :53
INTRODUCED BY SENATOR VICENTEfC.LSOTTO 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:
1 
SECTION 1. S h o rt Title. -  This act shall be know n a s the “Maternity
2 
Leave Monetization Act. ”
3 
SECTION 2. D e c la ra tio n  o f Policy. -  It is the policy of the State to
4 
prom ote a ju s t and dynam ic social order th a t will ensure the
5 
prosperity and independence of the nation an d  free th e people from
6 
poverty.
7 
Tow ards th is end, the State shall institutionalize policies to
8 
provide adequate social services, a rising stan d ard  of living, and an
9 
im proved quality of life for all through the g ran t of m onetization
10 
privilege to w orkingw om en in order to augm ent the increasing cost of
11 
living and other financial needs of their family.
12 
SECTION 3. C overage. -  This Act shall cover wom en employees,
13 
w hether m arried or unm arried, in the governm ent and the private
14 
sectors; a s well a s the other covered Social Security System  (SSS)


1 
fem ale m em bers who are qualified to avail of the m aternity leave
2 
benefits u n d er the Social Security Law.
3 
SECTION 4. M o n etizatio n  o f M a te rn ity  L eave C red its. -  All covered
4 
fem ale em ployees an d  SSS m em bers shall be entitled to m onetize sixty
5 
(60) days of their m aternity leave credits, subject to the following
6 
conditions:
7
8 
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10
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a) T hat the m onetization should be m ade w ithin fifteen (15) 
years from the birth of their first child;
b) T hat the covered em ployees have not availed of the m aternity 
leave benefits for the last three (3) years im m ediately 
preceding the m onetization; and
c) T hat the covered employee intending to m onetize is n o t 
p reg n an t on the day of filing of the application for 
m onetization.
15 
The gran t of m onetization privilege u n d er th is Act shall be
16 
considered a s  a n  avaU m ent of the m aternity leave benefits in reference
17 
to paragraph (b) hereof.
18 
SECTION 5. M o n etiza tio n  f o r  F em ale W orkers in  th e  P u b lic
19 
S ecto r. -  The m onetization of the m aternity leave credits shall be
20 
upon the favorable recom m endation of the agency head and subject to
21 
the availability of funds.
22 
The com putation of m aternity leave m onetization shall follow
23 
the form ula prescribed in the O m nibus R ules Im plem enting Book V of
24 
th e Revised A dm inistrative Code of the Philippines.
25 
SECTION 6. M o n etiza tio n  f o r  F e m a le  W orkers in  th e  P riv a te
26 
S ecto r. -  The m onetization of the m aternity leave credits of the


1 
covered em ployees in th e private sector shall further be subject to the
2 
following conditions:
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
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19
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21 
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27
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a) T hat the female m em ber should have paid a t least three (3) 
m onthly 
contributions 
in 
the 
tw elve-m onth 
period 
im m ediately preceding the sem ester of her m onetization;
b) T hat the em ployee shall have notified h e r em ployer of her 
intention to m onetize, w hich notice shall be transm itted to 
the SSS in accordance w ith the rules and regulations it m ay 
provide;
c) The full paym ent shall be advanced by the em ployer w ithin 
thirty (30) days from the filing of the m aternity leave 
m onetization application;
d) T hat one instance of m onetization of m aternity leave credits 
shall be counted a s one delivery or m iscarriage, th u s shcdl be 
deducted 
from 
the 
allowable 
four 
(4) 
deliveries 
or 
m iscarriages u n d er the Social Security Law;
e) T hat the SSS shall im m ediately reim burse the em ployer of 
one hun d red  percent (100%) of the am ount of the m onetized 
m aternity leave credits advanced to the employee by the 
em ployer upon receipt of satisfactory proof of such paym ent 
an d  legality thereof; and
f) T hat if a n  employee m em ber should m onetize w ithout the 
required contributions having been rem itted for h er by her 
em ployer to the SSS, or w ithout the latter having been 
previously notified by the em ployer of the em ployee’s intent 
to m onetize, the em ployer shall pay to the SSS dam ages 
equivalent to the benefits w hich said employee m em ber 
w ould otherw ise have been entitled to.


1 
The com putation of m aternity leave m onetization u n d er th is Act
2 
shall follow the form ula prescribed in the Social Security Law on
3 
M aternity Leave Benefit.
4 
SECTION 7. Im p lem e n tin g  R u les a n d  R e g u la tio n s. -  The Civil
5 
Service Com m ission, the D epartm ent of Labor and Em ploym ent, and
6 
th e SSS shall issue the necessary rules an d  regulations for the
7 
effective im plem entation of th is Act w ithin six (6) m onths from its
8 
effectivity.
9 
SECTION 
8. 
F u n d in g  
S o u rce s 
o f M a te rn ity  
Leax>e 
C re d its
10 
M o n etiza tio n  o f SS S M em bers. -  The funds to be allocated to finance
11 
the m aternity leave credits m onetization of employee m em bers and
12 
su ch  other qualified female SSS m em bers shall be charged against the
13 
em ployees contributions w ithheld from their m onthly salary or wage
14 
or earnings during the m onth in accordance w ith the m onthly salary
15 
credit, the schedule an d  the rate of contributions; an d  a portion of the
16 
m inim um  15% increase - from the original level of 10% -  of the
17 
investm ent reserve fund (IRF) from short an d  m edium -term  m em ber
18 
loans, as m ay be determ ined and fixed by the Social Security
19 
Com m ission.
20 
Provided, however, in the event th a t su ch  m onetization privilege
21 
granted u n d er th is a ct n ecessitates the increase in the rate of
22 
contributions, said increase shall be based on sound actuarial
23 
calculations, rate of benefits, inflation, an d  other relevant socio-
24 
econom ic data, a s m ay be determ ined by th e Social Security
25 
C om m ission, in close coordination w ith the N ational Econom ic
26 
D evelopm ent 
A uthority 
and 
the 
D epartm ent 
of 
Labor 
and
27 
Em ploym ent.


1 
SECTION 8. S e p a ra b ility  C lause. -  If any provision of th is Act
2 
is declared unconstitutional or otherw ise invalid, the validity of the
3 
other provisions shall not be affected thereby.
4 
SECTION 9. R ep e a lin g  C lause. -  All law s, decrees, orders, rules an d
5 
regulations or p arts thereof inconsistent w ith th is Act are hereby
6 
repealed or modified accordingly.
7 
SECTION 10. E ffectiv ity . -  This Act shall take effect after fifteen (15)
8 
days from its publication in the Official G azette or in a new spaper of
9 
general circulation.
Approved,