The Social Security System (SSS) in the Philippines is a government agency that provides social security protection to employees in the private sector, self-employed individuals, and members of certain government agencies. The system was established in 1957 to ensure that individuals are protected from the financial risks that come with unexpected life events, such as retirement, disability, sickness, and death.

Benefits under the Social Security Law

The benefits provided by the Social Security Law in the Philippines are intended to help members and their families cope with the financial impact of these events. Here is a more detailed breakdown of the benefits under the Social Security Law:

Retirement Benefit

The retirement benefit is payable to a member who has paid at least 120 monthly contributions prior to the semester of retirement and has reached the age of 60. The amount of the benefit depends on the member's number of contributions and the amount of the member's average monthly salary credit.

Disability Benefit

The disability benefit is payable to a member who becomes totally and permanently disabled and has paid at least 36 monthly contributions prior to the semester of disability. The benefit amount is based on the member's average monthly salary credit.

Sickness Benefit

The sickness benefit is payable to a member who is unable to work due to sickness or injury for a maximum of 180 days. The benefit amount is equivalent to 90% of the member's average daily salary credit.

Maternity Benefit

The maternity benefit is payable to a female member who has paid at least 3 monthly contributions in the 12-month period immediately preceding the semester of childbirth. The benefit amount is equivalent to 100% of the member's average daily salary credit.

Funeral Benefit

The funeral benefit is a lump-sum benefit payable to the beneficiaries of a deceased member who has paid at least one monthly contribution. The benefit amount ranges from PHP 20,000 to PHP 40,000, depending on the member's number of contributions.

Death Benefit

The death benefit is payable to the beneficiaries of a deceased member who has paid at least 36 monthly contributions prior to the semester of death. The benefit amount is a lump-sum equivalent to the member's average monthly salary credit multiplied by the number of credited years of service.

Other Benefits and Services offered by the Social Security System

Members of the SSS can also avail themselves of other benefits such as salary loans, housing loans, and educational loans, among others. These benefits are designed to provide financial assistance to members in times of need.

Contributions

Contributions to the SSS are made on a monthly basis by both the employer and the employee. The monthly contribution rate is based on the member's monthly salary credit (MSC), which ranges from a minimum of PHP 3,000 to a maximum of PHP 20,000. The current contribution rate is 12% of the employee's MSC, with the employer shouldering 8.5% and the employee 3.5%. Self-employed and voluntary members pay the entire contribution, which is 12% of their declared monthly earnings based on the prescribed schedule of contributions.

Members can check their contributions and apply for benefits online through the SSS website or through SSS branches and kiosks nationwide. It is important for members to keep track of their contributions and ensure that their contributions are up to date, as this will affect the amount of their benefits in the future.

Conclusion

In conclusion, the Social Security Law in the Philippines provides important benefits and protection to employees in the private sector, self-employed individuals, and members of certain government agencies. The benefits provided by the SSS help members and their families cope with the financial impact of unexpected life events. Members should be aware of their contributions and keep them up to date to ensure that they are eligible for these benefits when they need them.

Employee benefits are a crucial aspect of the employment relationship. They are designed to help ensure that employees receive fair compensation and are treated fairly by their employers. Under Philippine labor laws, employers are required to provide certain benefits to their employees. These benefits include the Social Security System (SSS), PhilHealth, Pag-IBIG Fund, 13th-month pay, vacation and sick leave, maternity leave, paternity leave, retirement benefits, and special leave benefits. In this blog, we will discuss each of these benefits in detail.

Social Security System (SSS)

The Social Security System (SSS) is a government-mandated insurance program that provides benefits to employees in the event of disability, sickness, retirement, or death. The purpose of the SSS is to provide social protection to workers in the private sector. Employers are required to contribute to the SSS on behalf of their employees. The contribution rate is based on the employee's monthly salary and is shared between the employer and the employee. The current contribution rate is 12% of the employee's monthly salary, with the employer contributing 7.37% and the employee contributing 4.63%.

The benefits under the SSS include sickness benefits, maternity benefits, disability benefits, retirement benefits, and death benefits. The amount of the benefit depends on the employee's contribution and length of membership in the SSS.

PhilHealth

PhilHealth is another government-mandated insurance program that provides medical and hospitalization benefits to employees and their dependents. The purpose of PhilHealth is to ensure that all Filipinos have access to affordable and quality healthcare services. Employers are required to contribute to PhilHealth on behalf of their employees. The contribution rate is 2.75% of the employee's monthly salary, with the employer and employee sharing the contribution equally.

The benefits under PhilHealth include inpatient hospital care, outpatient care, maternity care, and preventive health care. The amount of the benefit depends on the employee's contribution and the type of medical service availed.

Pag-IBIG Fund

The Pag-IBIG Fund, also known as the Home Development Mutual Fund, is a government program that provides housing loans, savings programs, and other benefits to employees. The Pag-IBIG Fund was created to help employees save money for their housing needs. Employers must contribute to Pag-IBIG on behalf of their employees.

Employers contribute 2% of the employee's monthly salary to Pag-IBIG. The employee, on the other hand, also contributes 2% of their salary to the fund. The total contribution is then invested in different financial instruments to generate income.

The benefits under the Pag-IBIG Fund include housing loans, short-term loans, and savings programs. The housing loan program allows employees to borrow money from Pag-IBIG to purchase a home or lot. The short-term loan program allows employees to borrow money for various purposes such as education, home improvement, or emergencies. The savings program provides employees with a savings account that earns interest.

13th-month pay

The 13th-month pay is a mandatory benefit that employers must pay to their employees. It is equivalent to one month's salary and is usually paid in December. The 13th-month pay is a form of bonus that is given to employees to help them with their expenses during the holiday season.

To compute the 13th-month pay, you need to divide the employee's total basic salary for the year by 12. If the employee has worked for the whole year, they are entitled to a 13th-month pay equivalent to their one month's salary.

Vacation and sick leave

Employers are required to provide their employees with a certain number of vacation and sick leave days each year. The exact number of days varies depending on the length of service of the employee.

Employees who have worked for at least one year are entitled to five days of paid vacation leave. Employees who have worked for at least ten years are entitled to 15 days of paid vacation leave.

Sick leave, on the other hand, is granted to employees who are unable to work due to illness. Employees are entitled to a maximum of 15 days of paid sick leave per year. However, if the employee is hospitalized, they are entitled to an additional 15 days of paid sick leave.

Maternity leave and Paternity leave

Female employees are entitled to maternity leave of 105 days with pay for the first four deliveries and miscarriages. The maternity leave may be extended to 120 days for a woman who underwent a caesarian section delivery. The maternity leave benefits can also be availed of by solo parents and adoptive parents.

Male employees may also avail of paternity leave for seven days. The paternity leave can be availed of within the 60-day period after childbirth or the miscarriage.

Retirement Benefits

Retirement benefits are another essential employee benefit under Philippine labor laws. Employers are required to provide their employees with retirement benefits once they have reached retirement age or have been employed for a specific number of years. The retirement age in the Philippines is 60 years old.

Retirement benefits are provided to ensure that employees can support themselves after they retire from their job. Retirement benefits can come in the form of a lump sum payment or a monthly pension. The exact amount of retirement benefits that an employee is entitled to receive depends on various factors, such as the employee's length of service and their average monthly salary.

To compute the retirement benefits, employers can use the formula provided by the Social Security System (SSS), which takes into account the employee's length of service and their average monthly salary.

Special Leave Benefits

In addition to the employee benefits mentioned above, Philippine labor laws also provide for special leave benefits. These benefits are designed to help employees cope with specific situations that may require them to take time off work.

Examples of special leave benefits include parental leave, solo parent leave, leave for victims of violence against women and children, and leave for women who underwent surgery resulting in infertility.

To avail of these special leave benefits, employees must meet specific requirements and provide the necessary documentation to their employer. The length of the leave and the benefits provided will depend on the specific situation and the requirements set forth by Philippine labor laws.

Conclusion

In conclusion, employee benefits are an essential part of any workplace, as they help ensure that employees receive fair compensation and are treated fairly by their employers. Under Philippine labor laws, employers are required to provide their employees with various benefits, including Social Security System (SSS), PhilHealth, Pag-IBIG Fund, 13th-month pay, vacation and sick leave, maternity and paternity leave, retirement benefits, and special leave benefits.

Understanding these basic employee benefits is crucial for both employers and employees, as it helps ensure compliance with Philippine labor laws and provides a fair and supportive work environment for all. As an employer, it is essential to familiarize yourself with these benefits and ensure that your employees receive them as required by law. As an employee, it is essential to know your rights and entitlements under Philippine labor laws to ensure that you are receiving fair compensation and treatment from your employer.

In the Philippines, maternity and paternity leave are essential rights that provide employees with the opportunity to take time off from work to attend to family matters related to childbirth and childcare. These leave policies are regulated by laws and regulations, which aim to ensure that employees can balance their work and family responsibilities effectively. In this blog, we will delve into the details of maternity and paternity leave in the Philippines, including coverage, duration, benefits, eligibility, and other important information.

Maternity Leave in the Philippines

Maternity leave is a crucial benefit provided to female employees in the Philippines to support them during pregnancy and childbirth. Here are the key details of maternity leave:

Coverage

Female employees who are pregnant, regardless of their civil status, are entitled to maternity leave. This includes regular employees, probationary employees, project-based employees, and other types of employment.

Duration

Female employees are entitled to a maternity leave of 105 days for a normal delivery and 120 days for a cesarean section (C-section) delivery. This can be extended for another 30 days without pay upon the employee's request, subject to approval by the employer.

Benefits

During maternity leave, female employees are entitled to receive full pay, which is equivalent to 100% of their average daily salary, for the duration of their leave. This benefit is paid by the Social Security System (SSS) or the employer, depending on the circumstances. The SSS provides the benefit for employees who have paid at least three monthly contributions within the 12-month period before the semester of childbirth. For those who are not eligible for SSS benefits, the employer is required to provide the maternity benefit.

Eligibility

Female employees must have paid at least three monthly contributions to the SSS within the 12-month period before the semester of childbirth to qualify for maternity leave benefits. It is important for employees to ensure their SSS contributions are up-to-date to be eligible for maternity leave benefits.

Paternity Leave in the Philippines

Paternity leave is a valuable benefit that allows male employees to support their spouses during the childbirth process. Here are the key details of paternity leave:

Coverage

Male employees who are legally married to a female employee who gave birth are entitled to paternity leave.

Duration

Male employees are entitled to a paternity leave of seven (7) days, which can be taken consecutively or separately, within the first four (4) weeks after childbirth. However, it is subject to the agreement between the employer and the employee.

Benefits

During paternity leave, male employees are not entitled to receive full pay. However, they may use their available leave credits, such as vacation or sick leaves, or negotiate with their employer for compensation during their absence. The compensation and other arrangements during paternity leave should be mutually agreed upon by the employer and the employee.

Eligibility

Male employees must be legally married to the female employee who gave birth and must have informed their employer of the pregnancy and the intention to avail of paternity leave. Proper communication with the employer is crucial to avail of paternity leave benefits.

Additional Notes

In addition to the coverage, duration, benefits, and eligibility requirements of maternity and paternity leave, here are some important additional notes to consider:

Notification

To avail of maternity or paternity leave, employees must notify their employer in writing at least 30 days before the intended date of leave or as soon as practicable. Failure to notify may result in forfeiture of the leave. It is important for employees to communicate their plans and intentions to avail of the leave to their employer in a timely manner.

Non-discrimination

Employers are prohibited from discriminating against employees who avail of maternity or paternity leave. Employers cannot terminate, demote, or discriminate against employees in any way for taking maternity or paternity leave. It is important for employees to be aware of their rights and report any instances of discrimination to the appropriate authorities.

Documentation

Employees availing of maternity or paternity leave must provide their employer with the necessary documents, such as medical certificates, to support their leave request. It is important to keep all relevant documentation organized and readily available to ensure a smooth process when applying for and availing of maternity or paternity leave.

Flexible Work Arrangements

After availing of maternity or paternity leave, employees have the right to request for flexible work arrangements, such as reduced working hours, telecommuting, or job sharing, to help them balance their work and family responsibilities. Employers are required to consider and discuss these requests in good faith and explore possibilities for accommodating the needs of the employee.

Employer Obligations

Employers are obligated to comply with the laws and regulations related to maternity and paternity leave in the Philippines. This includes providing the necessary benefits, respecting the employee's right to avail of maternity or paternity leave, and maintaining the confidentiality of the employee's pregnancy or childbirth-related information.

Conclusion

Maternity and paternity leave are important rights that aim to support employees in balancing their work and family responsibilities during pregnancy and childbirth. Female employees are entitled to maternity leave of 105 days for normal delivery and 120 days for a C-section delivery, while male employees are entitled to paternity leave of seven days. It is important for employees to be aware of their rights, eligibility requirements, and the process for availing of maternity and paternity leave. Employers are also obligated to comply with the laws and regulations related to maternity and paternity leave and provide the necessary support to their employees. By understanding and exercising their rights, employees can ensure a smooth and supportive transition into parenthood.

 

Aside from Republic Act 10645, which provides mandatory PhilHealth coverage for all senior citizens, Republic Act No. 9994 or the Expanded Senior Citizens Act of 2010 has also upgraded and expanded services for elderly. The law's objective is to provide a more comprehensive policy that will be beneficial to senior citizens especially in terms of improving their total well-being. The privileges that the senior citizens are currently entitled to are as follows:

“(a) the grant of twenty percent (20%) discount and exemption from the value -added tax (VAT), if applicable, on the sale of the following goods and services from all establishments, for the exclusive use and enjoyment or availment of the senior citizen

“(1) on the purchase of medicines, including the purchase of influenza and pnuemococcal vaccines, and such other essential medical supplies, accessories and equipment to be determined by the Department of Health (DOH).

“The DOH shall establish guidelines and mechanism of compulsory rebates in the sharing of burden of discounts among retailers, manufacturers and distributors, taking into consideration their respective margins;

“(2) on the professional fees of attending physician/s in all private hospitals, medical facilities, outpatient clinics and home health care services;

“(3) on the professional fees of licensed professional health providing home health care services as endorsed by private hospitals or employed through home health care employment agencies;

“(4) on medical and dental services, diagnostic and laboratory fees in all private hospitals, medical facilities, outpatient clinics, and home health care services, in accordance with the rules and regulations to be issued by the DOH, in coordination with the Philippine Health Insurance Corporation (PhilHealth);

“(5) in actual fare for land transportation travel in public utility buses (PUBs), public utility jeepneys (PUJs), taxis, Asian utility vehicles (AUVs), shuttle services and public railways, including Light Rail Transit (LRT), Mass Rail Transit (MRT), and Philippine National Railways (PNR);

“(6) in actual transportation fare for domestic air transport services and sea shipping vessels and the like, based on the actual fare and advanced booking;

“(7) on the utilization of services in hotels and similar lodging establishments, restaurants and recreation centers;

“(8) on admission fees charged by theaters, cinema houses and concert halls, circuses, leisure and amusement; and

“(9) on funeral and burial services for the death of senior citizens;

“(b) exemption from the payment of individual income taxes of senior citizens who are considered to be minimum wage earners in accordance with Republic Act No. 9504;

“(c) the grant of a minimum of five percent (5%) discount relative to the monthly utilization of water and electricity supplied by the public utilities: Provided, That the individual meters for the foregoing utilities are registered in the name of the senior citizen residing therein: Provided, further, That the monthly consumption does not exceed one hundred kilowatt hours (100 kWh) of electricity and thirty cubic meters (30 m3) of water: Provided, furthermore, That the privilege is granted per household regardless of the number of senior citizens residing therein;

“(d) exemption from training fees for socioeconomic programs;

“(e) free medical and dental services, diagnostic and laboratory fees such as, but not limited to, x-rays, computerized tomography scans and blood tests, in all government facilities, subject to the guidelines to be issued by the DOH in coordination with the PhilHealth;

“(f) the DOH shall administer free vaccination against the influenza virus and pneumococcal disease for indigent senior citizen patients;

“(g) educational assistance to senior citizens to pursue pot secondary, tertiary, post tertiary, vocational and technical education, as well as short-term courses for retooling in both public and private schools through provision of scholarships, grants, financial aids, subsides and other incentives to qualified senior citizens, including support for books, learning materials, and uniform allowances, to the extent feasible: Provided, That senior citizens shall meet minimum admission requirements;

“(h) to the extent practicable and feasible, the continuance of the same benefits and privileges given by the Government Service Insurance System (GSIS), the Social Security System (SSS) and the PAG-IBIG, as the case may be, as are enjoyed by those in actual service;

“(i) retirement benefits of retirees from both the government and the private sector shall be regularly reviewed to ensure their continuing responsiveness and sustainability, and to the extent practicable and feasible, shall be upgraded to be at par with the current scale enjoyed by those in actual service;

“(j) to the extent possible, the government may grant special discounts in special programs for senior citizens on purchase of basic commodities, subject to the guidelines to be issued for the purpose by the Department of Trade and Industry (DTI) and the Department of Agriculture (DA);

“(k) provision of express lanes for senior citizens in all commercial and government establishments; in the absence thereof, priority shall be given to them; and

“(l) death benefit assistance of a minimum of Two thousand pesos (Php2, 000.00) shall be given to the nearest surviving relative of a deceased senior citizen which amount shall be subject to adjustments due to inflation in accordance with the guidelines to be issued by the DSWD.

“In the availment of the privileges mentioned above, the senior citizen, or his/her duly authorized representative, may submit as proof of his/her entitled thereto any of the following:

“(1) an identification card issued by the Office of the Senior Citizen Affairs (OSCA) of the place where the senior citizen resides: Provided, That the identification card issued by the particular OSCA shall be honored nationwide;

“(2) the passport of the senior citizen concerned; and

“(3) other documents that establish that the senior citizen is a citizen of the Republic and is at least sixty (60) years of age as further provided in the implementing rules and regulations.

“In the purchase of goods and services which are on promotional discount, the senior citizen can avail of the promotional discount or the discount provided herein, whichever is higher.

“The establishment may claim the discounts granted under subsections (a) and (c) of this section as tax deduction based on the cost of the goods sold or services rendered: Provided, That the cost of the discount shall be allowed as deduction from gross income for the same taxable year that the discount is granted: Provided, further, That the total amount of the claimed tax deduction net of VAT, if applicable, shall be included in their gross sales receipts for tax purposes and shall be subject to proper documentation and to the provisions of the National Internal Revenue Code (NICR), as amended.”

Is there a penalty for employers who fail to remit employees’ SSS contributions? By strengthening Republic Act 8282, there will be stiffer penalties for delinquent employers. Problems with SSS contributions have created a negative effect on SSS pensioners and P1200 per month cannot support the pensioners’ daily needs. According to Neri Colmenares, the uncollected contributions should be used in increasing the pension of most SSS members, which include OFWs. There are thousands of cases where employers do not remit SSS contributions. While it reflects on the employee’s payslip, the anomaly remains unexplained and undiscovered until the employee resigns.

Section 28 of RA 8282 states that non-remittance of worker’s SSS contributions shall be punishable by:

“a fine of not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00), or imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the discretion of the court: Provided, That 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 not less Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) and imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years.

"(f) If the act or omission penalized by this Act be committed by an association, partnership, corporation or any other institution, its managing head, directors or partners shall be liable for the penalties provided in this Act for the offense.

"(g) Any employee of the SSS who receives or keeps funds or property belonging, payable or deliverable to the SSS and who shall appropriate the same, or shall take or misappropriate, or shall consent, or through abandonment or negligence, shall permit any other person to take such property or funds, wholly or partially, or shall otherwise be guilty of misappropriation of such funds or property, shall suffer the penalties provided in Article Two hundred seventeen of the Revised Penal Code.

"(h) Any employer who, after deducting the monthly contributions or loan amortizations from his employee’s compensation, fails to remit the said deduction to the SSS within thirty (30) days from the date they became due, shall be presumed to have misappropriated such contributions or loan amortizations and shall suffer the penalties provided in Article Three hundred fifteen of the Revised Penal Code.

"(i) Criminal action arising from a violation of the provisions of this Act may be commenced by the SSS or the employee concerned either under this Act or in appropriate cases under the Revised Penal Code: Provided, That such criminal action may be filed by the SSS in the city or municipality where the SSS office is located, if the violation was committed within its territorial jurisdiction or in Metro Manila, at the option of the SSS.”

Senior citizens can now gain greater peace of mind because with the amended law, they are going to be covered by PhilHealth’s national health insurance program effective November 25, 2014. Senior citizens sixty years old and above can take advantage of this coverage. To qualify for this coverage, they need to provide proof of Filipino citizenship and they must be a resident of the country for at least six months. The senior citizen PhilHealth coverage also entitles members to declare dependents. 

What can senior citizens expect from PhilHealth coverage? 

Due to the privilege of senior citizen members to declare dependents, their spouses can also be enrolled as members as well. Members need to keep in mind that Senior Citizen category should not be mistaken or confused for Lifetime Member Category. With Lifetime Member Category, members are not required to pay contributions to become eligible for the benefits. On the other hand, Senior Citizen members need to have premium contributions and these are taken from the Sin Tax Law proceeds. 

Enrolment of senior citizen members is usually done in bulk. The list will be obtained from cities and municipalities. Each office will be required to follow the standard text file as the information will be uploaded to the database. Although individual enrolment is allowed, this is highly discouraged. 

For bulk enrolment, an electronic list of senior citizens must be obtained from the Office of the Senior Citizen Affairs or OSCA. Qualified applicants will be automatically enrolled. For individual enrolment, applicants are advised to go directly to any PhilHealth office. Some of the privileges that senior citizen members can enjoy include free dental and medical services, access to all government medical facilities, which are still subject to guidelines and many more. These are going to be issued by the Department of Health or DOH. With this amendment, senior citizens will heave a sigh of relief knowing that the country’s health insurance has got them covered. 

For individual membership, applicants are required to submit a duly accomplished PhilHealth Registration Form or also referred to as PMRF and proof that the member is indeed a senior citizen. Once the applicant has complied with the membership document requirements, a PhilHealth ID card and MDR will be issued. These will serve as proof of enrolment. 

Senior citizen members will have access to inpatient hospital care, Z-benefits, ambulatory or day services and many other packages. Senior citizens just need to present their card, proof of identification and MDR if they wish to avail of these benefits.