BIR: Salary differential on maternity leave not taxable 0 SHARES Share it! Share TweetBy Jun RamirezThe salary differential paid by private employers to their female workers on maternity leave is not subject to income and withholding taxes. Commissioner Caesar Dulay of the Bureau of Internal Revenue (BIR) made the clarification in Revenue Memorandum Circular 105-2019 regarding the proper tax treatment of maternity leave benefits under the 105-Day Expanded Maternity Leave Law (RA 11210). The circular took into consideration the separate issuances and the joint implementing rules and regulations of the Department of Labor and Employment (DOLE) and the Social Security System on the issue. Previously, the Department of Labor and Employment (DOLE) and the Social Security System (SSS) treated the extra pay as part of the salary and benefit of the recipient, making it taxable.

Source: Manila Bulletin October 16, 2019 05:03 UTC