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.

A spouse who is the primary beneficiary of a deceased member is entitled to death benefit if two qualifying factors are established: 1) that he/she is the legitimate spouse; and 2) that he/she is dependent upon the member for support. 

What if the spouse remarries? Will he/she still be entitled to the same benefits? As specified under Sections 8 and 13 of the Republic Act No. 1161, as amended otherwise known as Social Security (SS) Law, "Upon the covered employee's death, his primary beneficiaries shall be entitled to the monthly pension and his dependents to the dependents' pension: Provided, That he has paid at least thirty-six monthly contributions prior to the semester of death: Provided, further, That if the foregoing condition is not satisfied his primary beneficiaries shall be entitled to a lump sum benefit equivalent to thirty-five times the monthly pension: Provided, further, That if he has no primary beneficiaries, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to twenty times the monthly pension: Provided, however, That the minimum death benefit shall not be less than the total contributions paid by him and his employer on his behalf nor less than one thousand pesos: Provided, finally, That the beneficiaries of the covered employee who dies without having paid at least three monthly contributions shall be entitled to the minimum benefit. (As amended by Sec. 5, P.D. No. 1202, S-1977 and Sec. 8, P.D. No. 1636, S-1979)"

Factual Antecedents

On August 5, 2002, respondent Teresa G. Favila (Teresa) filed a Petition6 before petitioner SSC docketed as SSC Case No. 8-15348-02. She averred therein that after she was married to Florante Favila (Florante) on January 17, 1970, the latter designated her as the sole beneficiary in the E-1 Form he submitted before petitioner Social Security System (SSS), Quezon City Branch on June 30, 1970. When they begot their children Jofel, Floresa and Florante II, her husband likewise designated each one of them as beneficiaries. Teresa further averred that when Florante died on February 1, 1997, his pension benefits under the SSS were given to their only minor child at that time, Florante II, but only until his emancipation at age 21. Believing that as the surviving legal wife she is likewise entitled to receive Florante’s pension benefits, Teresa subsequently filed her claim for said benefits before the SSS. The SSS, however, denied the claim in a letter dated January 31, 2002, hence, the petition.

In its Answer,7 SSS averred that on May 6, 1999, the claim for Florante’s pension benefits was initially settled in favor of Teresa as guardian of the minor Florante II. Per its records, Teresa was paid the monthly pension for a total period of 57 months or from February 1997 to October 2001 when Florante II reached the age of 21. The claim was, however, re-adjudicated on July 11, 2002 and the balance of the five-year guaranteed pension was again settled in favor of Florante II.8 SSS also alleged that Estelita Ramos, sister of Florante, wrote a letter9 stating that her brother had long been separated from Teresa. She alleged therein that the couple lived together for only ten years and then decided to go their separate ways because Teresa had an affair with a married man with whom, as Teresa herself allegedly admitted, she slept with four times a week. SSS also averred that an interview conducted in Teresa’s neighborhood in Tondo, Manila on September 18, 1998 revealed that although she did not cohabit with another man after her separation with Florante, there were rumors that she had an affair with a police officer. To support Teresa’s non-entitlement to the benefits claimed, SSS cited the provisions of Sections 8(k) and 13 of Republic Act (RA) No. 1161, as amended otherwise known as Social Security (SS) Law.10

Ruling of the Social Security Commission

In a Resolution11 dated June 4, 2003, SSC held that the surviving spouse’s entitlement to an SSS member’s death benefits is dependent on two factors which must concur at the time of the latter’s death, to wit: (1) legality of the marital relationship; and (2) dependency for support. As to dependency for support, the SSC opined that same is affected by factors such as separation de facto of the spouses, marital infidelity and such other grounds sufficient to disinherit a spouse under the law. Thus, although Teresa is the legal spouse and one of Florante’s designated beneficiaries, the SSC ruled that she is disqualified from claiming the death benefits because she was deemed not dependent for support from Florante due to marital infidelity. Under Section 8(k) of the SS Law, the dependent spouse until she remarries is entitled to death benefits as a primary beneficiary, together with the deceased member’s legitimate minor children. According to SSC, the word "remarry" under said provision has been interpreted as to include a spouse who cohabits with a person other than his/her deceased spouse or is in an illicit relationship. This is for the reason that no support is due to such a spouse and to allow him/her to enjoy the member’s death benefits would be tantamount to circumvention of the law. Even if a spouse did not cohabit with another, SSC went on to state that for purposes of the SS Law, it is sufficient that the separation in-fact of the spouses was precipitated by an adulterous act since the actual absence of support from the member is evident from such separation. Notable in this case is that while Teresa denied having remarried or cohabited with another man, she did not, however, deny her having an adulterous relationship. SSC therefore concluded that Teresa was not dependent upon Florante for support and consequently disqualified her from enjoying her husband’s death benefits.

SSC further held that Teresa did not timely contest her non-entitlement to the award of benefits. It was only when Florante II’s pension was stopped that she deemed it wise to file her claim. For SSC, Teresa’s long silence led SSS to believe that she really suffered from a disqualification as a beneficiary, otherwise she would have immediately protested her non-entitlement. It thus opined that Teresa is now estopped from claiming the benefits. Hence, SSC dismissed the petition for lack of merit.