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SSS Unemployment Benefits (Unemployment Insurance or Involuntary Separation Benefits)

Photo from Unsplash | Towfiqu barbhuiya

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 a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is 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.

 


AT A GLANCE:

An individual under sixty years old who has paid contributions for at least 36 months, with 12 of those months falling within the last 18 months before becoming involuntarily unemployed or separated, will receive monthly cash payments. These payments amount to 50% of their average monthly salary for a maximum of two months. However, an employee can only claim these unemployment benefits once every three years. If there are multiple qualifying situations, only the highest benefit will be paid, following the rules set by the Social Security Commission. (In accordance with Section 14-B, Republic Act No. 11199 or the Social Security Act of 2018)


 

In the cycle of work life, sometimes unexpected twists and turns can lead to a period of unemployment – facing uncertainties and wondering how to make ends meet without a steady paycheck. That is where the importance of benefits, like insurance and separation benefits, kicks in. These safety nets are like financial cushions that can soften the impact of sudden job loss.

 

The law says:

A member who is not over sixty (60) years of age who has paid at least thirty-six (36) months contributions twelve (12) months of which should be in the eighteen-month period immediately preceding the involuntary unemployment or separation shall be paid benefits in the form of monthly cash payments equivalent to fifty percent (50%) of the average monthly salary credit for a maximum of two (2) months: Provided, That an employee who is involuntarily unemployed can only claim unemployment benefits once every three (3) years: Provided, further, That in case of concurrence of two or more compensable contingencies, only the highest benefit shall be paid, subject to the rules and regulations that the Commission may prescribe. (Section 14-B, Republic Act No. 11199 or the Social Security Act of 2018)

 

What is the SSS Unemployment Benefits Program?

The SSS Unemployment Benefits Program, often referred to as Unemployment Insurance or Involuntary Separation Benefit, serves as a financial lifeline for members who find themselves involuntarily separated from their employment. This cash benefit is designed to provide temporary financial assistance during periods of unemployment, helping individuals cope with the challenges of sudden job loss. The program acknowledges the unforeseen circumstances that can affect job security and aims to alleviate the financial burden placed on members and their families during these challenging times.

 

To be eligible for the Unemployment Benefits Program, a member must have paid at least 36 months of contributions, with 12 of those months falling within the 18-month period immediately preceding the involuntary separation.

 

How to Compute is the SSS Unemployment Benefit?

The benefits come in the form of monthly cash payments, amounting to 50% of the member’s average monthly salary credit, for a maximum of two months.

Formula in Computing the Unemployment Benefit:

Average monthly salary credit x 50% x 2 months = Unemployment Benefit

 

For example, your average monthly salary credit is PHP 20,000. To calculate your Unemployment Benefit:

PHP 20,000 (average monthly salary credit) x 50% x 2 (months) = PHP 20,000

So, in this example, your Unemployment Benefit would be PHP 20,000. This means you would receive monthly cash payments amounting to 50% of your average monthly salary credit, and you can avail of this benefit for a maximum of two months.

When to File?

To get your unemployment benefits, make sure to apply within one year from the day you lost your job.

Let’s say you got laid off on August 1, 2023; you need to submit your claim by August 1, 2024, to get the benefits. It is like a one-year window to let the system know you need some support after losing your job. Another example could be if your job ended on March 15, 2023, then you should apply for the benefits by March 15, 2024, to make sure you do not miss out on the assistance you might be eligible for.

In simple words:

  • The member must not be over 60 years old;
  • There must be at least 36 months of contributions paid;
  • The 12 months of said contributions should be within the 18-month period before involuntary unemployment;
  • The unemployment benefit id eligible for monthly cash payments;
  • The payment is equivalent to 50% of the average monthly salary credit;
  • The benefit is granted for a maximum of two months;
  • The benefit is claimable once every three years for involuntarily unemployed employees; and,
  • In the case of multiple compensable contingencies, only the highest benefit is paid.

This support is not only a testament to the Social Security System’s commitment to its members’ welfare but also a practical demonstration of the importance of having a safety net in the form of unemployment benefits when facing unexpected career transitions.

 

Read also: SEPARATION PAY OF A RETRENCHED OR LAID OFF EMPLOYEE DUE TO COVID-19, NOT SUBJECT TO TAX

 

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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