Social Security Defined
Social Security pertains to programs
authorized by law to insure earning-
individuals against interruption or
impairment of capacity to earn, and for
certain special expenditures arising from
marriage, birth, or death. It also
encompasses child support through
allowances to families (SSA, 2016).
According to the Social Security
Administration, Social Security is not
limited to Retirement. The misconception
is that retirement is the only program
that social security has to offer. While
most of the people who are granted
benefits are retirees, others also receive
benefits due to disability, or as a qualified
beneficiary of the member for Social
Security. Depending on the situation, it
can be given to someone at any age. In
fact, Social Security gives priority to
children than any other programs of the
government.
Social security is a right assured by the
supplication of social benefits, either in
cash or in-kind, guaranteeing a living as
the minimum and, when necessary, a
contingency plan for the loss of capacity
to earn or inadequacy to sustain a living.
[4] Social security provides the nation's
most important life and disability
protection for the family in case of
contingencies.[5] While growth does not
necessarily include everyone, social
protection is essential. It serves also as a
safeguard from inevitable events and
vulnerabilities present through a lifetime.
Equity is promoted by lessening the
effects of poverty and inequality existing
in society through social protection. [6]
To address the need for a social security
system that shall benefit wage earners
and low-salaried employees, Congress
enacted RA 1161 or the Social Security
Act of 1954, as amended by RA 1792 in
1957, which established the Social
Security System (SSS). The SSS started
operating on September 1, 1997, with 211
employees catering to the needs of all
workers in the private sector with no less
than 50 employees. Under RA 1161, as
amended by the Social Security Act of
1997 (RA 8282), the SSS has been
reinforced and authorized to develop a
more inclusive coverage, significant
increment in social security benefits,
grant more loan privileges, and provide
for a voluntary contribution scheme for
its members, etc.
SSS coverage is a mandatory requirement
for all employers and employees (not over
60 years old whether permanent,
temporary or provisional; self-employed
persons) in the private sector; household
helpers earning at least Php1,000
monthly; Filipino seafarers; and
employees of a foreign government,
international organization or their
wholly-owned instrumentality based in
the Philippines. It serves as a mutual fund
that comprises stock and bond
components. It may also include money
market components. Separated members,
non-working spouses of SSS members,
and Overseas Filipino workers (OFWs)
may also apply as voluntary contributors.
Effective January 1, 2007, the monthly
contribution rates of employee and
employer are 3.33% (except for self-
employed and voluntary members who
opt to pay the full amount) and 7.07%
respectively, garnering a total equivalent
of 10.4% of an employee’s monthly salary
credit (MSC). The monthly contribution
range is from Php 104 to Php 1,560,
applicable to 29 MSC brackets ranging
from Php 1,000 to Php 15,000.