SSS Benefits Available To Employees During The Covid19 Pandemic

Read also: COVID – 19 AND ITS IMPACT ON THE MANAGEMENT PREROGATIVE OF EMPLOYERS

To contain the spread of the coronavirus, the government had to implement an Enhanced Community Quarantine (ECQ). As a result, many businesses were not able to operate and many employees were not able to work. Accordingly, many of these employees were not paid. In order to mitigate the financial burden of the employees, Social Security System provided the following services:

1. Calamity Loan

Features of SSS Calamity Loan

• Loan amount: One monthly salary credit (MSC) up to PHP 20,000 or the total amount of damage, whichever is lower
• Interest rate: 10% per annum 10% interest per annum starting on the fourth month and would be computed “on a diminishing principal balance”.
• Loan shall be payable in 27 months inclusive of three moratorium period.
• Loan amortization shall start on the 4^th month following the date of the approval of the loan.
• Waived service fee

Who Can Apply?

The SSS calamity loan is open to any member affected by Covid-19 situation and who:

• Paid at least 36 monthly contributions, six of which are posted within the last 12 months before the month of loan application
• Home address or property at an area declared under the State of Calamity
• Has not availed of any of these SSS benefits: total permanent disability, retirement, or death
• Has no outstanding SSS Loan Restructuring Program or Calamity Loan Assistance Program

Application Process

The loan applications will be accepted through the SSS website or its mobile app as members can file using their MySSS account. Once approved, loan proceeds will be credited through member’s enrolled bank account.

2. MORATORIUM ON SHORT TERM LOAN

This will be automatic for all eligible loans. Thus, affected SSS member need not file a request or application.

• Who are qualified:
Residents of the entire Philippines affected by Covid-19 situation

• Eligible members:
1. Salary, Calamity and Emergency Loan granted from January 01, 2018 to 16 March 2020
2. Must have at least 36 months contributions, 6 of which should be posted within the last 12 months prior to the month of filing of application;
3. Restructured loan under the Loan Restructuring Program and Educational Assistance Loan that is currently amortizing.

• Moratorium period:  shall be for the applicable months of February to April 2020.
• Qualified members shall be electronically identified based on the eligibility qualifications and will be automatically covered by the moratorium. They need not file a request to SSS.

3. UNEMPLOYMENT INSURANCE OR INVOLUNTARY SEPARATION BENEFIT

This is cash benefit granted to covered employees, including Kasambahays and OFWs who are involuntarily separated from employment.

• Eligibility:
1. Should not be over 60 years of age at the time of involuntary separation except:
1. Underground or surface mineworkers – not over 50 years old
2. Racehorse jockey – not more than 55 years old
2. Has paid at least 36 monthly contributions 12 months of which should be in the 18 month period immediately preceding the month of involuntary separation
3. Has no settled unemployment benefit within the last  3 years prior to the days of involuntary separation
4. Has been involuntarily separated provided that the reason for involuntary separation was due to authorized causes.

Please note that employees shall not be qualified to receive if separation was due to just causes.

• Amount of benefit:

Unemployment Benefit = Average Monthly Salary Credit (AMSC) X50% X 2 Months

• Prescriptive Period Of Filing: within 1 year from date of involuntary separation

• Limitations:
1. A covered employee who is involuntary separated can only claim unemployment benefit once every 3 years starting the date of involuntary separation.
2. In case of concurrence of 2 or more compensable contingencies within the same compensable period, only the highest benefit shall be paid.
3. For the following cases, the settled unemployment benefit shall be deducted, either in partial or full from the future benefit/s of the member:
   1. Overlapping benefits;
   2. When the involuntarily separated employee files a case/ complaint against his/ her employer and the resolution thereof showed:
      1. That the reason for termination was due to just cause/s under Article 297 of PD 442;
      2. That the case/ complain resulted in re-instatement of involuntary separated employee with payment of backwages;
   3. When the filing, processing or payment involves misrepresentation, fraud or false claims;
   4. When the employee is rehired or re-employed within the compensable period

• Payment method:
1. Credited to member’s SSS UMID card or ATM or Union Bank
2. PESONET

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

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