Social Security Law

Social Security Act of 2018

Republic Act No. 11199

Employer – Any person, natural or juridical, domestic or foreign, who carries

on in the Philippines any trade, business, industry, undertaking, or activity of
any kind and uses the services of another person who is under his orders as
regards the employment, except the Government and any of its political
subdivisions, branches or instrumentalities, including corporations owned or
controlled by the Government. In case of self-employed person, he shall be
both employer and employee at the same time.

Employee – Any person who performs services for an employer in which

either or both mental or physical efforts are used and who receives
compensation for such services, where there is an employer-employee
relationship.

Employment – Any service performed by an employee for his employer

except:
1. Services where there is no employer-employee relationship in
accordance with existing labor laws, rules, regulations and
jurisprudence;
2. Service performed in the employ of the Philippine government or
instrumentality or agency thereof;
3. Service performed in the employ of a foreign government or
international organization, or their wholly-owned instrumentality;
4. Such other services performed by temporary and other employees
which may be excluded by regulation of SSS.

Coverage

1. Compulsory Coverage
a. All employees not over 60 years of age and their employers;
b. Domestic helpers whose income is not less than P1,000/month and not
over 60 years of age and their employers

Per RA No. 10361, a domestic worker who has rendered at least 1 month of
service shall be covered by SSS, Philhealth and Pag-ibig, and shall be
entitled to all the benefits in accordance with the pertinent provided by law.
c. Self-employed person whose income is not derived from employment as
well as those mentioned in Sec 9-A:
1.
1. All self-employed professionals;
2. Partners and single proprietors of business;
3. Actors and actresses, directors, scriptwriters, and news
correspondents who are not employees;
4. Professional athletes, coaches, trainers and jockeys;
5. Individual farmers and fisherman; and
6. All sea-based and land-based OFWs, as defined under RA 8042,
provided they are not over 60 years old.

2. Voluntary Coverage
1.
1. Spouses who devote full time to managing the household and
family affairs.
2. An OFW upon the termination of his/her employment overseas;
3. A covered employee who was separated from employment who
continues to pay his/her contributions;
4. Self-employed who realizes no income for a certain month;
5. Filipino permanent migrants, including Filipino immigrants,
permanent residents and naturalized citizens of their host
countries.

3. By Agreement
Any foreign government, international organization, or their wholly-owned
instrumentality employing workers in the Philippines or employing Filipinos
outside of the Philippines.
Pension

Monthly Pension
A lifetime cash benefit paid to a retiree who has made at least 120 monthly
contributions prior to the semester of retirement. The monthly pension is
paid for not less than 60 months.
The monthly pension shall be the highest of the following amounts:
1. PHP 1,200 for members with at least 10 CYS and P2,400 for those with
at least 20 CYS;
2. 40 percent (40%) of the AMSC;
3. The sum of PHP 300 plus 20 percent (20%) of the AMSC plus two
percent (2%) of the AMSC for each CYS in excess of 10 years.
There are two ways you can compute your AMSC. The final AMSC amount
should be the greater of these two:
• Sum of the last 60 MSC prior to the semester of retirement divided by
60; or
• Total salary credits prior to the semester of retirement divided by the
total number of contributions.

Benefits

I. Sickness Benefits
It is a daily cash allowance paid by the employer to the member who is
unable to work due to sickness or injury.

Qualifying conditions
1. The member is unable to work due to sickness or injury and is
confined either in a hospital or at home for at least 4 days.
2. He/she has paid at least 3 months of contributions within the 12-
month period immediately before the semester of sickness or injury.
3. He/she has used up all company sick leaves with pay for the current
year and has duly notified his/her employer.
 4. He/she must notify the SSS directly by filing a sickness benefit
application if he/she is separated from employment, a self-employed
or voluntary member, including OFW member.

Amount of benefit
The amount of the member’s daily sickness benefit allowance is equivalent
to 90% of his/her ADSC.
The sickness benefit is granted up to a maximum of 120 days in 1 calendar
year.

II. Maternity Benefit

It is a cash allowance granted to qualified female members who are unable
to work due to childbirth or miscarriage.

Qualifying conditions
1. The member has paid at least 3 months of contributions within the 12-
month period immediately preceding the semester of childbirth,
miscarriage or emergency termination of pregnancy.
2. If employed, she must have notified her employer of her pregnancy
and probable date of her childbirth, notice of which shall be
transmitted to the SSS.
3. She must directly notify SSS if she is unemployed, a self-employed or
a voluntary member, non-working spouse, including OFW member.

Amount of benefit
The amount of the daily cash allowance is equivalent to 100% of the
member’s ADSC for a compensable period of 105 days for normal or CS
delivery, 120 days for solo parents under RA 8972 or 60 days for
miscarriage or emergency termination of pregnancy including stillbirth. It is
granted regardless of member’s civil’s status frequency of pregnancy.

III. Disability Benefit

It is a cash benefit granted – either as a monthly pension or a lump sum
amount – to a member who becomes permanently disabled, either partially
or totally.
Qualifying conditions
1. The member has paid at least 1 month contribution before the
semester of disability.
2. To qualify for a monthly disability pension, he/she must have paid at
least 36 monthly contributions prior to the semester of disability.
3. If with less than 36 monthly contributions, he/she is granted a lump
sum amount.

Amount of benefit
The minimum monthly disability pension is P1,000 if the member has less
than 10 CYS; P1,200 if with at least 10 CYS; and P2,400 if with at least 20
CYS. If qualified, the member is granted a monthly disability pension plus
P500 monthly supplemental allowance.
Dependent’s pension (total disability) – 10% of the member’s basic monthly
pension, or P250, whichever is higher. Only 5 dependent minor children,
beginning from the youngest, are entitled. No substitution is allowed.
Plus 1,000 additional benefit.
13th month pension – payable every December to total disability pensioners;
if partial, it will be paid provided that pension duration is at least 12 months.

IV. Retirement benefit

A cash benefit granted – either as a monthly pension or a lump sum amount
– to a member who can no longer work due to old age.

Qualifying conditions
1. The member is at least 60 years old, separated from employment or
ceased to be self-employed/OFW/household helper.
2. Member is at least 65 years old, whether employed/self-employed,
working as OFW/household helper or not;
3. Member has paid at least 120 monthly contributions prior to the
semester of retirement.
4. If with less than 120 monthly contributions, the member shall be
entitled to a lump sum amount equivalent to the contributions paid by
him/her and on his/her behalf. However, a member has the option to
continue paying contributions to complete the 120 months to become
eligible for monthly pension.
Amount of benefit
If qualified, the member is granted a monthly retirement pension, plus a
13th month pension payable every December.
If the member has dependent minor children, they are entitled to receive a
Dependent’s Pension.
The retiree has the option to receive the first 18 months pension in lump
sum.
Plus 1,000 additional benefit.

V. Death Benefit
A cash benefit granted – either as a monthly pension or a lump sum amount
– to the beneficiaries of a deceased member.

Qualifying conditions
1. For primary beneficiaries to be entitled to monthly pension, deceased
member but have paid at least 36 monthly contributions prior to the
semester of death.
2. If with less than 36 monthly contributions prior to the semester of
death, a lump sum amount is granted to the primary beneficiaries.
3. Secondary/designated beneficiaries and legal heirs are entitled to lump
sum benefit only regardless of the number of contributions paid by the
member.

Amount of benefit
If qualified, the member’s primary beneficiary is granted a monthly death
pension, plus a 13th month pension payable every December. If there are
no primary beneficiaries, the member’s secondary beneficiaries shall be
given a lump sum amount. In their absence, the lump sum benefit is paid to
the member’s designated beneficiaries or his/her legal heirs.
If the member has dependent minor children, they are entitled to receive a
Dependent’s Pension.
The retiree has the option to receive the first 18 months pension in lump
sum.
Plus 1,000 additional benefit.

VI. Funeral Benefit

A cash benefit given to whoever paid for the funeral expenses of the
deceased member.

Qualifying conditions
1. The employee-member was reported for coverage by his/her
employer.
2. A self-employed member/OFW/non-working spouse who had at least 1
contribution payment.
3. The employee-member was subject to compulsory coverage but was
not reported for coverage by his/her employer.

Amount of benefit
It is a variable amount ranging from a minimum of P20,000-40,000,
depending on the member’s number of paid contributions and AMSC.

VII. Unemployment Benefit

Also called unemployment insurance or involuntary separation benefit, is a
cash benefit granted to covered employees, including Kasambahay and
OFWs who are involuntarily separated from employment.

Qualifying conditions
1. Member should not be over 60 years old at the time of involuntary
separation; not over 50 if an underground or surface mineworkers;
and not over 55 is a racehorse jockey.
2. Member had 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. Involuntary separation must not be based on fault or negligence of the
employee.

Amount of benefit
It shall be equivalent to twice the half of the AMSC. It is granted thru one-
time payment, and the claim must be filed within a year from the date of
involuntary separation.

Exemption from Tax, Legal Process and Lien

The SSS and all its assets and properties, all contributions collected and all
accruals thereto and income or investment earnings therefrom as well as all
supplies, equipment, papers or documents shall be exempt from any tax,
assessment, fee, charge, or customs or import duty; and all benefit
payments made by the SSS shall likewise be exempt from all kinds of taxes,
fees or charges, and shall not be liable to attachments, garnishments, levy
or seizure by or under any legal or equitable process whatsoever, either
before or after receipt by the person or persons entitled thereto, except to
pay any debt of the member to the SSS.

Employee’s Contributions
Beginning on the last day of the calendar month when an employee’s
compulsory coverage takes effect and every month thereafter during his
employment, the employer shall deduct and withhold from such employee’s
monthly salary, wage, compensation or earnings, the employee’s
contribution in an amount corresponding to his salary, wage, compensation
or earnings during the month in accordance with the monthly salary credits,
the schedule and the rate of contributions as may be determined and fixed
by the SSS.

Employer’s Contributions
Beginning on the last day of the month when an employee’s compulsory
coverage takes effect and every month thereafter during his employment,
his employer shall pay, with respect to such covered employee, the
employer’s contribution in accordance with the schedule provided. An
employer shall not deduct, directly or indirectly, from the compensation of
his employees covered by the SSS or otherwise recover from them the
employer’s contributions with respect to such employees.

Contributions of the Self-Employed Member

The monthly salary credits, the schedule and the rate of contributions shall
also apply to self-employed, voluntary, and other members. Provided, That
the monthly earnings declared by the self-employed member at the time of
his registration with the SSS shall be considered as his monthly
compensation and he shall pay both the employer and the employee
contributions.

Remittance of Contributions
The contribution imposed herein shall be remitted to the SSS within the first
10 days of each calendar month following the month for which they are
applicable or within such time as the Commission may prescribe.
The delinquent employer shall pay besides the contribution a penalty
thereon of two percent (2%) per month from the date the contribution falls
due until paid.
Failure or refusal of the employer to pay or remit the contributions herein
prescribed shall not prejudice the right of the covered employee to the
benefits of the coverage.
In case of self-employed members, they shall remit their monthly
contributions quarterly on such dates and schedules as the Commission may
specify through rules and regulations: Provided, that no retroactive payment
of contributions shall be allowed.

Method of collection and Payment

Payment may be made in cash, checks, stamps, coupons, tickets, or other
reasonable devices that the Commission may adopt.

Employment Records and Reports

If an employee subject to compulsory coverage should die or become sick or
disabled or reach the age of sixty (60) without the SSS having previously
received any report or written communication about him from his employer,
the said employer is obliged to pay to the SSS damages equivalent to the
benefits to which said employee member would have been entitled had his
name been reported on time by the employer to the SSS, except that in case
of pension benefits, the employer shall be liable to pay the SSS damages
equivalent to the accumulated pension due as of the date of settlement of
the claim or to the five (5) years’ pension, whichever is higher, including
dependents’ pension.
Penal Clause
A fine of P5,000.00 to P20,000.00, or imprisonment for not less than 6 years
and 1 day nor more than 12 years, or both, at the discretion of the court
shall be imposed in case of violation of this Act. Where the violation consists
in failure or refusal to register employees or himself, in case of the covered
self-employed or to deduct contributions from the employees’ compensation
and remit the same to the SSS, the penalty shall be a fine of P5,000.00 to
P20,000.00 and imprisonment for not less than 6 years and 1 day nor more
than 12 years.