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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:
The Social Security System (SSS) is responsible for administering social security benefits for employees in the private sector. Social security serves as a safety net, offering financial support to workers in cases of death, disability, sickness, maternity, and old age.
The implementation of the Social Security Act of 1954, also known as Republic Act No. 1161, on September 1, 1957, marked a significant milestone. Since then, the SSS has consistently expanded and enhanced its coverage and benefits through the enactment of various legislations. The most recent legislation in this regard is Republic Act No. 11199, popularly known as the “Social Security Act of 2018” or the SSS Law, which became effective on March 5, 2019.
The Social Security Act of the Philippines has undergone significant amendments to adapt to the evolving needs of the workforce and ensure the well-being of citizens. These amendments have introduced several salient features that enhance the coverage and benefits provided by the Social Security System (SSS), viz:
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Title |
Description |
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Republic Act 11210 Implementing Rules and Regulations |
An act increasing the maternity leave period to one hundred five (105) days for female workers with an option to extend for an additional thirty (30) days without pay, and granting an additional fifteen (15) days for solo mothers, and for other purposes. |
|
Republic Act 11199 Implementing Rules and Regulations |
An act rationalizing and expanding the powers and duties of the Social Security Commission to ensure long-term viability of the Social Security System |
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Republic Act 8282 |
An act further strengthening the SOCIAL SECURITY SYSTEM thereby amending for this purpose Republic Act No. 1161, as amended, otherwise known as the Social Security Law |
(Source: https://www.sss.gov.ph/sss/appmanager/viewArticle.jsp?page=resources)
Expanded Coverage
One of the most significant amendments to the Social Security Act involves the expansion of coverage. The revised law now encompasses a broader spectrum of workers, including self-employed individuals, overseas Filipino workers (OFWs), and voluntary members. This extension of coverage aims to provide a safety net for a more diverse range of individuals, ensuring that more Filipinos can avail themselves of social security benefits.
The law says:
“SEC 4. VOLUNTARY SSS COVERAGE. – The following may be covered by the SSS on a voluntary basis:
I. A spouse of a member who devotes full time to managing the household and family affairs, but does not engage in other vocation or employment which is subject to compulsory or mandatory coverage;
II. An OFW upon the termination of his/her employment overseas;
III. A covered employee who was separated from employment who continues to pay his/her contributions; and,
IV. A self-employed member who realizes no income in any given month who continues to pay his/her contributions.
A voluntary member (VM) shall pay his/her contribution in accordance with the guidelines on payment deadline applicable to self-employed members.” (Rule 13, Section 4 of the Implementing Rules and Regulations of Republic Act No. 11199)
Increased Contribution Rates
The amended Social Security Act has introduced progressive increases in contribution rates. This move is aimed at bolstering the sustainability of the SSS fund and enhancing the benefits that can be provided to members. It reflects a proactive approach to adapting to inflation and economic fluctuations while maintaining the long-term viability of the system.
Legislated Contribution Rates, Minimum and Maximum Monthly Salary Credit
The rates of contribution as well as the minimum and maximum MSCs shall be in accordance with the following schedule effective January of the year of implementation, viz:
(Source: Implementing Rules and Regulations of Republic Act No. 11199)
Enhanced Maternity Benefits
The amended law has significantly improved maternity benefits for female members. It now grants longer maternity leave periods and higher cash benefits for maternity-related expenses. This amendment acknowledges the importance of supporting working mothers during a crucial phase in their lives, promoting the overall welfare of families.
Pursuant to Republic Act No. 11210, there shall be an increase of the maternity leave period to One Hundred Five (105) days for female workers with an option to extend for an additional thirty (30) days without pay, and granting an additional fifteen (15) days for solo mothers.
Additional Sickness Benefits
To provide better protection for members during times of illness, the amended Social Security Act has extended the coverage period for sickness benefits. It ensures that employees who are unable to work due to illness can receive continued financial support, reducing the economic burden on affected individuals and their families.
The law says:
“SEC 1. SICKNESS BENEFIT. – The Sickness Benefit is a daily cash allowance paid by the employer to the member who is unable to work due to sickness or injury for each day of compensable confinement or a fraction thereof, or by the SSS, if such person is unemployed or is SE, OFW, VM who have been previously covered either as employed/SE/OFW and NW spouse.” (Rule 25, Section 1 of the Implementing Rules and Regulations of Republic Act No. 11199)
“SEC 5. AMOUNT OF BENEFIT. – The daily sickness allowance shall be equivalent to ninety-percent (90%) of the member’s average daily salary credit.” (Rule 25, Section 5 of the Implementing Rules and Regulations of Republic Act No. 11199)
Strengthened Disability Benefits
The amended law has introduced changes to disability benefits, ensuring that qualified members receive appropriate support in the event of a disabling condition. The criteria for disability eligibility have been refined, allowing for a more streamlined process in assessing and providing benefits to members facing this challenging circumstance.
The law says:
“SEC 2. PERMANENT TOTAL DISABILITY. – The following disabilities shall be deemed permanent total:
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Complete loss of sight of both eyes;
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Loss of two limbs at or above the ankle or wrists;
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Permanent complete paralysis of two limbs;
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Brain injury resulting to incurable imbecility or insanity; and
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Such cases as determined and approved by the SSS and/or the Commission.” (Rule 23, Section 2 of the Implementing Rules and Regulations of Republic Act No. 11199)
“SEC 3. PERMANENT PARTIAL DISABILITY. – If disability is permanent partial and such disability occurs after thirty-six (36) monthly contributions have been paid prior to the semester of disability, the benefit shall be the monthly pension for permanent total disability payable not longer than the period designated in the following schedule:
(Source: Rule 23, Section 3, Implementing Rules and Regulations of Republic Act No. 11199)
Inclusion of Unemployment Insurance
One of the notable additions to the amended Social Security Act is the introduction of an unemployment insurance program. This program aims to provide temporary financial assistance to involuntarily separated employees, helping them bridge the gap between jobs and maintain financial stability during the transition period.
The law says:
“SEC 1. UNEMPLOYMENT INSURANCE OR INVOLUNTARY SEPARATION BENEFIT. – The unemployment insurance or involuntary separation benefit is a monthly cash payment equivalent to fifty percent (50%) of the AMSC for a maximum of two (2) months, subject to the rules and regulations that the Commission may prescribe.” (Rule 27, Section 1, Implementing Rules and Regulations of Republic Act No. 11199)
“SEC 2. ELIGIBILITY. – The grant of unemployment insurance or involuntary separation benefit may be availed by members subject to the following conditions:
I. Not over sixty (60) years old at the time of involuntary separation, except;
a) In the case of underground mineworker or surface mineworker [R.A. No. 10757], not over fifty (50) years old; or
b) In the case of racehorse jockey [R.A. No. 10789], not over 55 years old.
II. Has paid at least thirty-six (36) monthly contributions, twelve (12) months of which should be in the eighteen (18) month period immediately preceding the unemployment or involuntary separation;
III. Involuntarily separated from employment provided that such separation did not arise from fault or negligence of the employee and which may be attributed to any of, but not limited to, the following:
a. Installation of labor-saving devices;
b. Redundancy;
c. Retrenchment to prevent loss;
d. Closure or cessation of operation; or
e. Disease/illness.” (Rule 27, Section 2, Implementing Rules and Regulations of Republic Act No. 11199)
“SEC 3. LIMITATION. – A covered employee who is involuntarily unemployed can only claim unemployment benefits once every three (3) years starting from the date of involuntary separation or unemployment.” (Rule 27, Section 3, Implementing Rules and Regulations of Republic Act No. 11199)
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