See the full coverage of SSS, its benefits, requirements, and the updated contribution table for 2023 payments.
The Philippine social security system is a government-mandated program. Additionally, it aims to protect the private sector employees and their dependents from the financial impact of many unforeseen events. It can either be from disability, sickness, maternity, retirement, death, and other related contingencies. Furthermore, it is administered by the Social Security System (SSS), a government agency in charge of program implementation.
Legal Basis
The SSS was established on September 1, 1954, by Republic Act No. 1161, also known as the Social Security Law. This law has been amended several times to improve the program’s benefits and coverage, with the most recent amendment being Republic Act No. 11199, also known as the Social Security Act of 2018.
Social Security Act of 2018
The Philippines’ Social Security Act of 2018 amends the Social Security Law, which established the Social Security System (SSS) in 1954. On February 7, 2019, the Social Security Act of 2018 was signed, which eventually went into effect on March 5, 2019.
The amendment aims to strengthen the SSS and expand its coverage. This is to ensure that more Filipinos can enjoy social security benefits. The key provisions of the law are the following:
Increased contribution rate
The Social Security Act of 2018 increased the contribution rate of SSS members from 11% to 12% in 2019, and to 13% in 2021. Such move is intends to ensure the sustainability of the SSS and its ability to provide benefits to its members.
| Year | Contribution Rate | Employer Share | Employee Share |
|---|---|---|---|
| 2019 | 12% | 8% | 4% |
| 2020 | 12% | 8% | 4% |
| 2021 | 13% | 8.5% | 4.5% |
| 2022 | 13% | 8.5% | 4.5% |
| 2023 | 14% | 9.5% | 4.5% |
| 2024 | 14% | 9.5% | 4.5% |
| 2025 | 15% | 10% | 5% |
| After 2025 | 15% | 10% | 5% |
Increase in minimum and maximum monthly salary credits
The law also increased the minimum and maximum monthly salary credits (MSCs) determining the contributions and benefits that SSS members can receive. Furthermore, the minimum MSC was increased from Php 1,000 to Php 2,000. On the other hand, the maximum MSC was increased from Php 16,000 to Php 20,000.
Expanded coverage
The law also expanded the coverage of the SSS to include overseas Filipino workers (OFWs) and self-employed individuals. This means that more Filipinos can now enjoy social security benefits from the SSS, regardless of their employment status.
Overall, the Social Security Act of 2018 is a significant step towards ensuring that more Filipinos can enjoy social security benefits and financial protection, particularly during times of economic hardship. The law aims to strengthen the SSS and make it more sustainable, while also expanding its coverage and benefits to benefit more Filipinos.
Scope
The SSS covers private sector employees, self-employed individuals, and voluntary members. Employers are required to register their employees with the SSS and remit their contributions on a monthly basis. Self-employed individuals and voluntary members, on the other hand, are required to register and make their own contributions.
Benefits
The SSS provides various types of benefits to its members, including the following:
Sickness Benefit
Provides cash assistance to members who are unable to work due to illness or injury. The benefit is equivalent to 90% of the member’s average daily salary credit (ADSC) and can be availed for a maximum of 120 days per year.
Maternity Benefit
Provides cash assistance to female members who are unable to work due to childbirth or miscarriage. The benefit is equivalent to 100% of the member’s ADSC and can be availed for a maximum of 105 days.
Disability Benefit
Provides cash assistance to members who are permanently or temporarily disabled and unable to work. The benefit is equivalent to a percentage of the member’s ADSC, depending on the degree of disability.
Retirement Benefit
Provides cash assistance to members who have reached the retirement age of 60 and have made at least 120 monthly contributions. The benefit is equivalent to a monthly pension, based on the member’s ADSC and length of service.
Death Benefit
Provides cash assistance to the beneficiaries of a deceased member. The benefit is equivalent to a lump sum amount, based on the member’s ADSC and length of service.