Published — June 28, 2018
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Related Topic: Imprisonment for Non-Remittance of SSS, Pag-IBIG and PhilHealth Contributions
The Philippine Social Security System (“SSS”) 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 country. To be sure, SSS is responsible for the country’s Social Security Program [See: R.A. No. 8282], which provides for a package of benefits in the event of death, disability, sickness, maternity and old age. Since the SSS basically provides for a replacement of lost income on account of the aforementioned contingencies [See: Handbook on Workers’ Statutory Monetary Benefits, p. 58], employers would be able to protect their employee’s well being simply by complying with the program’s requirements, as the program would be able to help such employers provide assistance to their employees through benefits that the latter may avail of.
Sickness benefits
Sickness benefit pertains to the daily cash allowance paid for the number of days a member is unable to work due to sickness or injury. To qualify for the availment of sickness benefit, the following conditions must be present, namely:
- The member is unable to work due to sickness or injury and is confined either in a hospital or at home for at least four days.
- The member has paid at least 3 months of contributions within the 12-month period immediately before the semester of sickness.
- The member has used up all company sick leaves with pay for the current year and has duly notified his/her employer.
- The member must notify the SSS directly by filling a sickness benefit application if he/she is separated from employment, a voluntary or self-employed member [See: SSS Guidebook, p. 39].
The amount of an employee’s sickness benefit is computed as: the daily sickness allowance times the approved number of days [See: Handbook, p. 59].
Maternity benefits
Maternity Benefit pertains to the daily cash allowance granted to a female member who is unable to work due to childbirth or miscarriage. To claim for maternity benefits, the employee shall have notified her employer of her pregnancy and the probable date of her childbirth, which notice shall be transmitted to the SSS.
To qualify for the availment of maternity benefit, the following conditions must be present, namely:
- The member has paid at least three months of contributions within the 12-month period immediately before the semester of her childbirth or miscarriage.
- If employed, she must has given notification of her pregnancy through her employer, or must have directly notified the SSS if she is separated from employment, a voluntary or self-employed member.
The amount of the daily Maternity Benefit allowance is equivalent to 100% of her average daily salary credit, multiplied by 60 days in case of normal delivery or miscarriage, or by 78 days for caesarian section delivery. Said Maternity Benefits may be granted only up to the first four deliveries or miscarriage [See: Sec. 14-A].
Retirement benefits
Retirement Benefits pertain to the cash benefit paid to a member who can no longer work due to old age. To qualify for retirement benefit, a member should be at least 60 years old and unemployed, and has paid at least 120 monthly contributions prior to the semester of retirement (optional retirement). Also qualified for retirement benefits are members who are 65 years old, whether employed or not (compulsory retirement). If employed, the member should have paid at least 120 monthly contributions prior to the semester of retirement.
Retirement Benefits may be in the form of monthly pension or payment of lump sum amount. The monthly pension is 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. The lump sum amount, on the other hand, is granted to a retiree who has not paid the required 120 monthly contributions, and is equal to the total contributions paid by the member and by the employer including interest [See: Sec. 12-B].
Disability benefits
The new SSS Disability program is a re-designed disability program that implements the revised manual of disability assessment. The new program adopts the World Health Organization’s (“WHO”) definition of disability that states as 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 re-designed program aims to ensure that the right cash benefit for disability is paid to truly deserving members [See: SSS Guidebook, p. 58].
Disability benefits may take the form of monthly pension or lump sum payment. The monthly pension is a cash benefit paid to a disabled member who has paid at least 36 monthly contributions to the SSS prior to the semester of disability. The lump sum amount is granted to those who have not paid the required 36 monthly contributions [See: Sec. 13-A].
Death and funeral benefits
Death Benefit pertains to the cash benefit either in monthly pension or lump sum paid to the beneficiaries of a deceased member, which may be paid either through monthly pensions, or in lump sum amount. The monthly pension is granted only to the primary beneficiaries of a deceased member who had paid 36 monthly contributions before the semester of death. The lump sum is the amount granted to the primary beneficiaries of a deceased member who had paid less than 36 monthly contributions before the semester of death. The secondary beneficiaries shall be entitled to a lump sum benefit [See: Sec. 13].
A funeral grant up to a maximum of P40,000 is given to whoever pays the burial expenses of the deceased member or pensioner [See: SSS Circular No. 2015-009]. The primary or secondary beneficiaries of a deceased employee-member, who had no contribution payment at all and who was reported for coverage shall be entitled to funeral benefit only [See: Sec. 13-B].
Maintaining the well being of one’s own employees should be endeavored by every employer, and the programs of SSS are tools to achieve that without employers having to provide for everything from their own pockets. To this end, all such employers have to make sure is that their employees are duly registered, all their contributions are religiously deducted and remitted, and keep themselves and their employees aware of the program’s conditions for availing its benefits.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding social security and other employee welfare benefits, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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