Angeles University FoundationAngeles City, Pampanga

College of Allied Medical Professions

Social Security System of

The Philippines (SSS)

Members:

Bacud, PaulaCairo, NanethCarreon, HazelDavid, FlorielleGamboa, LoisLacson, MichaelaLantano, ChristianMagcalas, MonicaMangio, PhininaMarinas, GiselleRodriquez, Kevin

Summary

The implementation of the Philippine Social Security Law for private sector and self-employed workers typifies that of most other laws in the country – the creditable intention is not matched by similar execution. The Social Security System (SSS) has been in place for over 50 years, and while its financial sustainability and growth appear to have been strengthened after some years of floundering, there are continuing concerns related to accountability and informal sector coverage and compliance. Informal sector workers, who comprise a significant percentage of the labor force, continue to be underrepresented in its membership roster. For workers of this sector who are already members, there is the critical issue of non-remittance of monthly contributions. Those under voluntary coverage but are just as vulnerable, such as overseas Filipino workers (OFWs) and non-working spouses of SSS members, are likewise underrepresented. The SSS, being a government-controlled financial institution, also has not been immune to issues of politics, with a questionable appointment to its leadership, and charges of proposals forwarded to use funds for programs not specified in its Charter.

Introduction

The Philippine Social Security Act of 1954 (or the Social Security Law) was implemented in 1957 with the founding of the Social Security System (SSS). The mandate of the SSS is to provide “meaningful protection to private sector workers and their families against the real life contingencies of old age, disability, death, sickness, maternity and employment injury.” (Public sector workers are covered by the Government Service Insurance System or GSIS.) This mandate is based on Section 2 of the Social Security Law (Republic Act No. 1161), as amended by the Social Security Act of 1997 (Republic Act No. 8282), to wit:

“It is the policy of the State to establish, develop, promote, and perfect a sound and viable tax-exempt social security system suitable to the needs of the people throughout the Philippines which shall promote social justice and provide meaningful protection to the members and their beneficiaries against hazards of disability, sickness, maternity, old age, death and other contingencies resulting in loss of income or financial burden. Towards this end, the State shall endeavour to extend social security protection to workers and their beneficiaries.”

With the implementation of the Social Security Law, the government adopted the social insurance approach to social security, covering the employed segment of the labor force in the private sector. (SSS Primer) RA 7655 (1993), “An Act Increasing the Minimum Wage of Househelpers” extended compulsory social security coverage to household helpers earning at least P1,000 a month. RA 8282, “The Social Security Act of 1997” expanded compulsory coverage to include self-employed workers, agricultural workers who are not paid any regular daily wage or who do not work an uninterrupted period of at least six months, household helpers, parents employed by children, and minors employed by parents. They are compulsorily covered under the new Social Security Law and eligible for the benefits covered under various SSS programs.

Under the law, the employer is obliged to deduct from the employees their monthly contributions, pay his/her share of contributions and remit these to the SSS. Self-employed /voluntary members pay their own monthly contributions.

The Philippine Social Security System is a social insurance program for workers in the Philippines. It is a government agency that provides retirement and health benefits to all enrolled employees in the Philippines. SSS began in 1957. Members of the SSS can also make 'salary' or 'calamity' loans. Salary loans depend on the monthly salary of the employee. Calamity loans are for such times when there is a calamity that has been so declared by the government, in the area where the SSS member lives, such as flooding, earthquake and natural disasters.

Employees of the Philippine National Government do not contribute to SSS but rather have their own system, the Government Service Insurance System or GSIS.

THE SSS MANDATE

DECLARATION OF POLICY

"It is the policy of the State to establish, develop, promote and perfect a sound and viable tax-exempt social security system suitable to the needs of the people throughout the Philippines which shall promote social justice and provide meaningful protection to members and their families against the hazards of disability, sickness, maternity, old age, death and other contingencies resulting in loss of income or financial burden. Toward this end, the State shall endeavor to extend social security protection to workers and their beneficiaries." (Section 2, RA 8282)

STATEMENT OF MISSION

To manage a sound and viable social security system which shall promote social justice and provide meaningful protection to members and their families against the hazards of disability, sickness, maternity, old age, death and other contingencies resulting in loss of income or financial burden.

STATEMENT OF VISION

A viable social security institution providing universal and equitable social protection through world-class service.

STATEMENT OF CORPORATE VALUES

The SSS aims to institutionalize a corporate culture that instills the core values of trust, empowerment and teamwork.

As a worker in the private sector, a self-employed or a voluntary member or as an Overseas Filipino Worker, you can be assured of social protection. SSS is committed to provide you and your beneficiaries with prompt, convenient, reliable and meaningful social protection services now and in the future so that you shall receive the benefits due in times of death, disability, old-age, sickness and maternity.

The Social Security Commission

Chairman: JUAN B. SANTOS   Vice Chairman: EMILIO S. DE QUIROS, JR.   Ex- Officio as Secretary of Labor:

ROSALINDA D. BALDOZ

   Members: DIANA B. PARDO-AGUILAR

DANIEL L. EDRALINMARIANITA O. MENDOZAELIZA BETTINA R. ANTONINOIBARRA A. MALONZOBIENVENIDO R. LAGUESMA

How do I apply for a Social Security System ID in the Philippines?

1. Get an SSS Number: E-1 Form and Required DocumentsA person registering with the SSS for the first time as a prospective employee first needs to fill out an E-1, or Personal Record form. Submit it to your regional SSS office together with the original certified true copy and photocopy of any of the following:

Baptismal Certificate Driver's license Passport Professional Regulation Commission (PRC) card Seafarer's Identification and Record Book, or Seaman's book

In the absence of any of the above documents, you may present 2 of any of the documents listed below, that include a recent photograph and your date of birth:

Alien Certificate of Registration ATM card with cardholder's name ATM card and, if it does not bear cardholder's name, certification from the issuing bank that the

account number belongs to the cardholder Bank Account Passbook Birth/Baptismal Certificate of children. Certificate from the Office of the Northern/Southern Cultural Communities or Office of Muslim

Affairs Certificate of Naturalization issued by the Bureau of Immigration Company ID Company Representative Authorization Card issued by the SSS Credit Card Fishermen's Card issued by the Bureau of Fisheries & Aquatic Resources GSIS Card GSIS Certificate of Membership Health or Medical Card ID card issued by local governments (e.g. Barangay, Municipality, or City) ID card issued by professional associations recognized by PRC Life insurance policy Marriage contract NBI Clearance Overseas Workers Welfare Administration (OWWA) Card Pag-Ibig Member's Data Form Permit to Carry Firearms issued by the Firearms & Explosives Unit of the Philippine National Police PHIC Member's Data Record Police Clearance

Postal ID Card School ID Senior Citizen Card Tax Identification Card/Affidavit Transcript of school records Voter's Identification Card/Affidavit

Once you have an SSS Number, and have contributed into the system for one month, you may apply for an SSS ID card.

2. Documents Needed to Submit an E-6 Form

In order to get an SSS ID, you must be active SSS member with at least one month's contribution.

Fill out an E-6 form and submit it at your local SSS branch, along with any of the following primary documents:

Passport Professional Regulation Commission (PRC) card Seaman's book

Or, in the absence of those, two of the following, at least one of which must have a recent photograph:

Driver's license Valid National Bureau of Investigation clearance School or company ID Postal ID Senior citizen card Voter's ID Savings account passbook Alien certificate of registration Government Service Insurance System member's record Certification from the Office of Souther/Northern Cultural Communities or Office of Muslim

Affairs Taxpayer Identification Number (TIN) card

Always remember to bring the original copies of documents and IDs at all times. The office won't require you to submit the original copies, but they need to see them in order to authenticate the photocopies and verify that they are identical.

Get to the SSS branch office as early as possible. If you arrive at 6a.m. you'll probably finish at 10a.m. At the office, get a number from the clerk responsible for giving away the E-6 Form.

3. Obtain an ID Clearance and CaptureID Clearance is a small paper that will indicate your schedule for ID capture. You can't finish the whole process in one day. You need at least 2-3 days to complete the steps because after you submit the E-6 form, ID capture is always scheduled for a time in the few days following.

Again, be prompt arriving at the SSS office. If you are early you'll be in the front of the queue. When you arrive, you will need to get another number from the designated officer or guard for you ID Capture. Every ID capture batch has 20 people, regardless of your schedule. If you are scheduled for 7:00a.m., and you arrived at 7:30a.m., and the next people on queue aren't scheduled until 8:00a.m., you'll still be left behind. They operate on the first come first serve basis.

The ID capture process only takes a few minutes. SSS Clerks will immediately obtain your personal data (fingerprints, signature, facial images, and 4-digit pin number).

4. Wait for Your SSS ID Card to Arrive by MailAfter your ID capture, you will have to wait for 30 days to receive your SSS ID by mail. If you fail to receive the ID after 30 days, inquire to your nearest SSS Branch Office and have your 4-digit PIN Number on hand.

There are two types of coverage under the SS Program:1. Compulsory Coverage

o Employers1. An employer, or any person who uses the services of another person in business,

trade, industry or any undertaking. A social, civic, professional, charitable and other non-profit organization which hire the services of employees are considered "employers."

2. A foreign government, international organization or its wholly-owned instrumentality such as embassy in the Philippines, may enter into an administrative agreement with the SSS for the coverage of its Filipino employees.

o Employees1. A private sector employee, whether permanent, temporary or provisional, who is not

over 60 years old.2. A household-helper earning at least P1,000 a month is compulsorily covered starting

Sept. 1, 1993. A household-helper is any person who renders domestic or household services exclusively to a household employer such as maid, gardener, cook, governess, and other similar occupations, who is not a member of the family of the household employer (HR) or his/her spouse.

3. A Filipino seafarer upon actual deployment by the manning agency which, together with the foreign ship owner, act as employers.

4. An employee of a foreign government, international organization or their wholly-owned instrumentality based in the Philippines, which entered into an administrative agreement with the SSS for the coverage of its Filipino workers.

o Self-Employed Persons - A self-employed person, regardless of trade, business or occupation, with an income of at least P1,000 a month and not over 60 years old, should register with the SSS. Included, but not limited to the following are self-employed persons:

1. Self-employed professionals;2. Partners, single proprietors of businesses and board directors of corporations duly

registered with appropriate government agencies;3. Actors, actresses, directors, scriptwriters and news correspondents who do not fall

within the definition of the term "employee;"4. Professional athletes, coaches, trainers and jockeys;5. Farmers and fisher folks; and6. Workers in the informal sector such as market and ambulant vendors, public utility

transport drivers, tourism industry-related workers, and others similarly situated.

2. Voluntary Coverageo Separated Members

1. A member who is separated from employment or ceased to be a self-employed/overseas Filipino worker/non-working spouse may opt to become a Voluntary Member and continue paying SSS contributions on his/her own account.

o Overseas Filipino Workers (OFWs)1. A Filipino recruited in the Philippines by a foreign-based employer for employment

abroad; having a source of income in a foreign country; and permanent resident in a foreign country.

o Non-Working Spouse of SSS Members1. A person legally married to a currently employed and actively paying SSS member who

devotes full time in the management of household and family affairs may be covered on a voluntary basis as a Non-Working Spouse, provided there is the approval of the working spouse. The Non-Working Spouse should have never been a member of the SSS and his/her contributions shall be based on 50 percent of the working spouse's last posted monthly salary credit, but in no case shall it be lower than P1,000.

Schedule of Contribution

Rate of Contributions to SSS

The monthly contributions are based on the compensation of members. The current SSS contribution rate is 11% of the monthly salary credit not exceeding P16,000 and this is being shared by the employer (7.37%) and the employee (3.63%). Self-employed and voluntary members pay the 11% of the monthly salary credit (MSC) based on the monthly earnings declared at the time of registration. For OFWs, the minimum monthly salary credit is pegged at P5, 000. For the non-working spouse, the contribution will be based on 50% of the working spouse(s) last posted monthly salary credit but in no case shall it be lower than P1, 000.

Due Dates of Contributions

For Employed members

It is important that you are aware of the payment deadlines for contributions and member loans in order to avoid incurring penalties. If you are an employee-member, your employer must pay your contributions and member loans monthly in accordance with the prescribed schedule of payment which is according to the 10th digit of the Employer's ID Number. Late payments will result to penalties and delays in the processing of your benefits and loans. The frequency of payment is on a monthly basis for business and household employers.

For Self-employed and Voluntary members

If you are a self-employed or a voluntary member, the prescribed schedule of payment is also being followed, (depending on the 10th (last digit) of the SE/VM SS number). However, the frequency of contribution payments for self-employed or a voluntary member can be on a monthly or quarterly basis. A quarter covers three (3) consecutive calendar months ending on the last day of March, June, September and December. Any payment for one, two or all months for a calendar quarter may be made.

For OFWs

Payment of contributions for the months of January to December of a given year may be paid within the same year; contributions for the months of October to December of a given year may also be paid on or before the 31st of January of the succeeding year.

Due Dates of Loan Payments

For member loans, payment should be made monthly in accordance with the prescribed schedule of payment which is according to the 10th digit of the SS ID/Number.

Benefits

Covered employees are entitled to a package of benefits under the Social Security and Employees' Compensation (EC) Programs in the event of death, disability, sickness, maternity and old age. Self-employed and voluntary members also get the same benefits as covered employees, except those benefits under the EC program.

Basically, the SSS provides for a replacement of income lost on account of the aforementioned contingencies. The benefits under the Social Security Program are:

o Sickness The sickness benefit is a daily cash allowance paid for the number of days a member is

unable to work due to sickness or injury.o Maternity

The maternity benefit is a daily cash allowance granted to a female member who was unable to work due to childbirth or miscarriage.

o Disability Adopting the World Health Organization's (WHO) definition, disability is any

"restriction or lack (resulting from impairment) of ability to perform an activity in the manner or within the range considered normal for a human being". The redesigned SSS Disability Benefit program adopts the International Classification of Diseases and Related Health Problems codes and takes into account the medical management of illnesses and injuries and their corresponding impairment ratings.

o Retirement The retirement benefit is a cash benefit either in monthly pension or lump sum paid to

a member who can no longer work due to old age.o Death

It is a cash benefit either in monthly pension or lump sum paid to the beneficiaries of a deceased member. The primary beneficiaries are the legitimate dependent spouse until the person remarries, and the member's dependent legitimate, legitimated, or legally adopted, and illegitimate children who are not yet 21 years old. In the absence of primary beneficiaries, the dependent parents shall be the secondary beneficiaries. In their absence, any other person designated by the member as beneficiary in the member's record.

o Funeral It is a cash benefit given to whoever pays the burial expenses of the deceased

member or pensioner.

Retirement Benefits

There are two types of retirement benefit: Monthly pension - a lifetime cash benefit paid to a retiree who has paid at least 120 monthly

contributions to the SSS prior to the semester of retirement. Lump sum amount - granted to a retiree who has not paid the required 120 monthly contributions. It

is equal to the total contributions paid by the member and by the employer including interest.

Monthly Pension Benefit Computation

The monthly pension depends on the member's paid contributions, his credited years of service (CYS), and the number of his dependent minor children that must not exceed five. The monthly pension will be the highest amount resulting from either one of these three pension formulae:

1. the sum of P300 plus 20 percent of the average monthly salary credit plus two percent of the average monthly salary credit for each credited year of service (CYS) in excess of ten years; or

2. forty (40) percent of the average monthly salary credit; or3. P1,200, if the CYS is at least 10 but less than 20; or P2,400, if the CYS is 20 or more.

The monthly pension is paid for not less than 60 months.

A member who retires after age 60 with a total of 120 monthly contributions may be qualified to a monthly pension based on whichever is higher of the following:

The monthly pension computed at the earliest time the member could have retired had been separated from employment or ceased to be self-employed plus all adjustments thereto; or

The monthly pension computed at the time when the member actually retires.

A pensioner who retires more than once shall be entitled to the higher of: the monthly pension computed for the first retirement claim; or the re-computed monthly pension for the new claim

Dependents Allowance 1. The legitimate, legitimated or legally adopted, and illegitimate children, conceived

on or before the date of retirement of a retiree will each receive dependents' allowance equivalent to 10 percent of the member's monthly pension, or P250, whichever is higher.

2. Only five minor children, beginning from the youngest, are entitled to the dependents' allowance. No substitution is allowed.

3. If there are more than five dependents, the legitimate, legitimated or legally adopted children shall be preferred.

The dependents' allowance stops when the child reaches 21 years old, gets married, gets employed, or dies. However, the dependents' allowance is granted for life for children who are over 21 years old, if they are incapacitated and incapable of self-support due to physical or mental defect that is congenital or acquired during minority.

Benefit PaymentThe retiree-member has the option to receive the first 18 months' pension paid out in lump

sum, but discounted at a preferential rate of interest to be determined by the SSS. The member shall start receiving his pension on the 19th month, and every month thereafter. This option for advance payment shall be exercised only when filing the first retirement claim. It is only the advanced pension payments that are discounted on the date of payment; the dependent's allowance and 13th month pension are excluded from the advanced 18-month pension amount. The monthly pension is paid thru the member's designated bank thru which he wishes to receive his pension benefits under the "Mag-Impok sa Bangko" program. This became mandatory effective September 1,1993.

Upon approval of the claim, the SSS will send the member a notice voucher indicating when to withdraw the benefit from the bank.

Other Benefits 1. The retiree is entitled to a 13th month pension payable every December.2. All retiree pensioners prior to the effectivity of RA 7875 on March 4, 1995 are

automatically considered members of PhilHealth and, along with their legal

dependents, are entitled to PhilHealth hospitalization benefits. On the other hand, retirees effective March 4,1995 up to the present will be entitled to PhilHealth hospitalization benefits only if they have contributed 120 monthly Philhealth/Medicare contributions. The counting of 120 monthly contributions shall start in 1972, when the Medical Care Act of 1969 started implementation.

A copy of the DDR print-out indicating the type of claim is retirement in nature and the effectivity date of the pension, or in its absence, a copy of retiree-pensioner certification issued by SSS shall be required. They need to register under Philhealth for the issuance of a Philhealth ID card for non-paying members.

Coverage Expansion

1. AlkanSSSya Program. As part of our drive to bring social security protection to more informal sector workers, the SSS launched in early 2012 the “AlkanSSSya” – a microsavings program that offers convenient collection and remittance of contributions and ensures access to affordable social protection. By the end of 2012, we had signed up 49 informal sector groups, representing over 11,000 potential members, to register as self-employed members under the AlkanSSSya program.

2. Member-Get-Member promo. The Member-Get-Member (MGM) promo for OFWs, which ran from January to June 2012, aimed to encourage OFWs to spread the good news of affordable social security protection by encouraging their fellow OFWs to become or to resume being actively contributing SSS members. A total of 6,249 OFWs joined the MGM promotion, of whom 3,453 were nominees and 2,796 were nominators. During the six month run of the Promo, we awarded 54 winners during the monthly draws, and 16 winners in the Grand Draw held on September 7, 2013.

3. New Foreign Offices. To reach more overseas-based Filipinos, the SSS opened two new foreign offices in 2012 – one in Dubai and another in Kuala Lumpur, Malaysia. We also detailed more personnel to man our foreign offices, and others to serve as “roving” foreign officers so that they could cover a wider area in their countries of responsibility, while keeping our foreign offices always manned. To ensure the equal social protection of OFWs and Filipinos living and working aboard, we sealed two new bilateral social security agreements (SSAs) in 2012: first with Denmark, then with Portugal. By yearend, negotiations also started for bilateral SSAs with Japan and Sweden.

4. Stakeholders’ Meetings. To bring SSS closer to our stakeholders, particularly those in the provinces, and to gather direct feedback from them, SSS conducted Stakeholders’ Meetings in seven areas in 2012. These were held in Tuguegarao, Laoag and Vigan, General Santos, Iloilo, Olongapo and Bataan.

Sources: https://www.sss.gov.ph/sss/