Social Security System Law - RA No 11199

Benefits | Social Security System Law - R.A. No. 11199 | SOCIAL LEGISLATION

Social Security System Law (RA No. 11199): Benefits Overview

Republic Act No. 11199, also known as the Social Security Act of 2018, governs the Social Security System (SSS) in the Philippines. This law consolidates provisions on social security benefits to ensure better coverage and protection for workers and their dependents. Here is an exhaustive discussion of the benefits under the SSS as provided by the law:

1. Overview of Benefits

The SSS provides members and their beneficiaries with protection against the following contingencies:

  • Sickness
  • Maternity
  • Disability
  • Unemployment
  • Retirement
  • Death
  • Funeral expenses

Each benefit is subject to eligibility requirements, computation based on contributions, and specific conditions as prescribed by law.

2. Types of Benefits

a. Sickness Benefit

  • Eligibility:
    • The member must have at least three (3) months of contributions within the 12-month period immediately preceding the semester of sickness.
    • The member must be unable to work due to sickness or injury.
    • All leave credits must be used up.
  • Amount:
    • Daily cash allowance equivalent to 90% of the member's average daily salary credit (ADSC).
    • Payable for a maximum of 120 days in one calendar year.
  • Filing Period:
    • Must be filed within 60 days from the start of illness.

b. Maternity Benefit

  • Eligibility:
    • Female members with at least three (3) months of contributions within the 12-month period preceding the semester of childbirth or miscarriage.
  • Amount:
    • Cash allowance equivalent to 100% of ADSC.
    • Duration:
      • 105 days for live childbirth (additional 15 days for solo parents).
      • 60 days for miscarriage or emergency termination of pregnancy.
  • Additional Notes:
    • The benefit is now available for all covered female members regardless of civil status.

c. Disability Benefit

  • Eligibility:
    • Member must be unable to perform work due to permanent total or partial disability.
    • At least one (1) monthly contribution before the semester of disability.
  • Types:
    • Partial Disability: For specific loss of body functions or parts.
    • Total Disability: For conditions such as complete loss of eyesight or severe impairments.
  • Amount:
    • Monthly pension or lump-sum payment based on number and amount of contributions.
    • Monthly pension includes an additional allowance of PHP 500.

d. Unemployment Benefit

  • Eligibility:
    • Must have paid at least 36 monthly contributions, 12 of which should be within the 18 months before the involuntary separation.
    • Must not be over 60 years of age.
  • Amount:
    • Cash benefit equivalent to 50% of the member's ADSC.
    • Payable for a maximum of two (2) months.
  • Conditions:
    • Applicable only for involuntary separation (e.g., retrenchment, redundancy).

e. Retirement Benefit

  • Eligibility:
    • At least 120 monthly contributions.
    • Member is 60 years old (optional retirement) and separated from employment or self-employed.
    • Compulsory retirement age is 65 years.
  • Types:
    • Monthly Pension: Payable for life for qualified retirees.
    • Lump-Sum Payment: Equivalent to the total contributions paid plus interest, granted if the member has less than 120 contributions.
  • Additional Notes:
    • A retiree receiving a monthly pension is entitled to a 13th-month pension every December.
    • Dependents’ pension is also provided for qualified beneficiaries.

f. Death Benefit

  • Eligibility:
    • At least one (1) monthly contribution before the semester of death.
  • Types:
    • Monthly Pension: For primary beneficiaries (spouse and dependent children).
    • Lump-Sum Payment: For secondary beneficiaries if there are no primary beneficiaries.
  • Amount:
    • Computed based on the contributions and credited years of service.
    • Includes a PHP 500 monthly allowance.

g. Funeral Benefit

  • Amount:
    • Lump-sum cash benefit ranging from PHP 20,000 to PHP 40,000, depending on the number of contributions.
  • Eligibility:
    • Payable to whoever paid for the funeral expenses.

3. General Provisions on Benefit Computation

  • Average Daily Salary Credit (ADSC):
    • Computed by dividing the total salary credits for the last 60 months by the number of days in that period.
  • Monthly Pension Computation:
    • Formula considers credited years of service (CYS) and ADSC.
  • Credited Years of Service (CYS):
    • Based on the total number of contributions divided by 12.

4. Supplemental Allowances

  • Additional monthly allowances:
    • PHP 500 for disability and death pensioners.
    • 13th-month pension for retirement and death pensioners.

5. Filing and Processing of Claims

  • Claims must be filed within the prescriptive periods set by the SSS.
  • Online filing options are now available via the SSS website or mobile app.
  • Members should ensure complete documentation for faster processing.

6. Funding and Sustainability

  • Contributions from employees, employers, self-employed individuals, and voluntary members finance these benefits.
  • RA No. 11199 provides for contribution increases and adjustments to ensure fund viability and expanded coverage.

7. Recent Amendments and Key Provisions

  • Universal access to maternity benefits.
  • Introduction of unemployment insurance.
  • Gradual increase in contribution rates (current at 14%, increasing incrementally to 15% by 2025).
  • Expanded coverage for overseas Filipino workers (OFWs).

Understanding and availing SSS benefits require timely compliance with contribution requirements and adherence to filing procedures. The Social Security Act of 2018 aims to provide equitable and adequate social protection to all covered members.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.

Dependents, Beneficiaries | Social Security System Law - R.A. No. 11199 | SOCIAL LEGISLATION

Dependents and Beneficiaries under the Social Security System Law (R.A. No. 11199)

The Social Security Act of 2018 (R.A. No. 11199) governs the Social Security System (SSS) in the Philippines, providing benefits for members and their dependents. This law outlines the qualifications, rights, and scope of benefits for dependents and beneficiaries. Below is an exhaustive discussion on these provisions:

I. Dependents under R.A. No. 11199

Definition

A "dependent" refers to individuals related to the covered SSS member who may receive certain benefits in the event of the member's death or disability.

Eligible Dependents

Under Section 8(k) of R.A. No. 11199, the following are considered dependents:

  1. Legal Spouse - A legitimate spouse who is dependent upon the member for support.
  2. Child/Children - Includes the following, provided they are:
    • Unmarried
    • Not gainfully employed
    • Below 21 years of age
    • If over 21, they must be incapacitated and incapable of self-support due to physical or mental disability that existed before age 21.
    • Legitimate, illegitimate, legally adopted, or legitimated children are all eligible.
  3. Parents - If wholly dependent upon the member for support.

II. Beneficiaries under R.A. No. 11199

Definition

A "beneficiary" is the individual or group of individuals designated to receive SSS benefits such as pensions, death benefits, or other claims upon the member’s death or upon qualification under specific benefit programs.

Types of Beneficiaries

R.A. No. 11199 distinguishes between two categories of beneficiaries:

  1. Primary Beneficiaries

    • Includes the legal spouse and dependent legitimate, legitimated, legally adopted, and illegitimate children of the deceased member.
    • Order of Priority:
      • If both legitimate and illegitimate children exist, legitimate children take precedence. However, illegitimate children are entitled to half the share of legitimate children.
      • Legal spouse and dependent children share equally in the absence of a conflict.

  2. Secondary Beneficiaries

    • In the absence of primary beneficiaries, the dependent parents of the deceased member will receive benefits.
    • If no parents qualify, the benefits may go to any individual designated by the member before death.

  3. Designated Beneficiaries

    • Members may designate specific individuals as beneficiaries through their SSS records.
    • Designated beneficiaries only receive benefits if no primary or secondary beneficiaries exist.

III. Rights and Benefits of Dependents and Beneficiaries

A. Death Benefits

Dependents and beneficiaries are entitled to a lump-sum payment or monthly pension in the event of the member's death. The specific allocations are as follows:

  • Primary beneficiaries receive a monthly pension.
  • Secondary beneficiaries or designated beneficiaries receive a lump-sum payment if no primary beneficiaries exist.

B. Disability Benefits

Dependents of a permanently disabled member are entitled to an additional allowance on top of the basic monthly pension:

  • This allowance is P250 per dependent child (maximum of five children).

C. Survivorship Pension

Upon the death of a pensioner, the dependent spouse receives 100% of the pension for life or until remarriage. Children entitled to dependents’ allowance continue to receive their share of the pension.

D. Funeral Benefits

Beneficiaries or any person who pays for the funeral expenses of the deceased member is entitled to receive a funeral grant ranging from P20,000 to P40,000, depending on the member's contributions.

E. Maternity Benefits

Although not strictly dependent-related, maternity benefits indirectly affect dependents as they provide financial aid to the mother during childbirth.

IV. Conditions Affecting Dependents and Beneficiaries

  1. Disqualification of Dependents/Beneficiaries

    • A spouse who has remarried after the death of the member ceases to qualify for survivorship benefits.
    • A child who marries or becomes employed ceases to qualify as a dependent.
    • Fraud or deliberate misrepresentation to claim benefits can result in disqualification and legal penalties.

  2. Conflicts in Claims

    • The SSS resolves conflicts in claims based on the hierarchy of beneficiaries as outlined in the law.
    • Legitimate relationships take precedence unless legal proof to the contrary is provided.

  3. Updating of Beneficiaries

    • Members are encouraged to update their list of beneficiaries regularly to reflect changes in marital status, birth of children, or adoption.

V. Administrative and Legal Considerations

  1. Proof of Dependence

    • The burden of proving eligibility as a dependent or beneficiary lies with the claimant.
    • Documents such as birth certificates, marriage certificates, and medical records may be required.

  2. Contesting Beneficiary Claims

    • Disputes over beneficiary claims are resolved by the SSS, and appeals may be made to the Employees’ Compensation Commission or courts of law.

  3. Penalties for Misrepresentation

    • Fraudulent claims or misrepresentation by dependents or beneficiaries can result in criminal charges, imprisonment, and fines under R.A. No. 11199.

VI. Key Legal References

  1. Section 8(k) - Definition of dependents
  2. Section 13 - Survivorship benefits
  3. Section 14 - Funeral benefits
  4. Implementing Rules and Regulations (IRR) of R.A. No. 11199

By adhering to the principles of equity and fairness, the Social Security System ensures that its benefits reach the rightful dependents and beneficiaries, as prescribed under the law.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.

Coverage and exclusions | Social Security System Law - R.A. No. 11199 | SOCIAL LEGISLATION

Social Security System Law (R.A. No. 11199): Coverage and Exclusions

The Social Security Act of 2018 (Republic Act No. 11199) establishes the comprehensive framework governing the Social Security System (SSS) in the Philippines. This law aims to provide social security protection to Filipino workers and their beneficiaries, covering contingencies such as sickness, maternity, disability, retirement, death, and other unforeseen economic risks.

Coverage

The SSS law ensures coverage for both mandatory and voluntary members, categorized as follows:

A. Mandatory Coverage

  1. Private Sector Employees

    • All employees not over 60 years old, including:
      • Workers engaged in commerce, industry, or services.
      • Employees on probationary, regular, or fixed-term status.
    • Coverage starts upon hiring, regardless of employment duration or nature of the job.

  2. Self-Employed Individuals

    • Individuals earning income through their labor, business, or practice of profession.
    • Examples:
      • Freelancers.
      • Business owners.
      • Independent contractors.
    • Coverage is mandatory for self-employed persons whose income is not less than ₱1,000 per month.

  3. Household Helpers (Kasambahays)

    • Domestic workers earning at least ₱1,000 per month.
    • The employer is required to register the helper and remit contributions.

  4. Overseas Filipino Workers (OFWs)

    • OFWs up to 60 years old.
    • Compulsory for land-based and sea-based workers under the jurisdiction of Philippine agencies.

  5. Persons in the Informal Economy

    • Workers in non-traditional employment arrangements or with no formal employer-employee relationship but earning at least ₱1,000 per month.
    • Examples:
      • Market vendors.
      • Public utility vehicle drivers.

  6. Government and Private Sector Dual Employees

    • Employees who work both in government (covered by GSIS) and the private sector (covered by SSS) are subject to dual coverage for their private employment.

B. Voluntary Coverage

  1. Separated Members

    • Former employees who wish to continue paying contributions to maintain eligibility for benefits.

  2. Voluntary OFWs

    • OFWs who choose to continue their coverage after becoming permanent residents in other countries.

  3. Non-Working Spouses

    • Legal spouses of SSS members who are not earning but are dependent on their partner’s income, provided they pay contributions based on the working spouse’s last monthly salary credit.

  4. Filipino Permanent Residents or Naturalized Citizens Abroad

    • Formerly covered individuals who wish to continue contributing as voluntary members.

C. Expanded Compulsory Coverage

Under R.A. No. 11199, the law also expanded the coverage to include:

  • Kasambahays with less than ₱1,000 monthly income.
  • OFWs regardless of monthly income level.

Exclusions

The following individuals or groups are excluded from SSS coverage:

  1. Government Employees

    • Government personnel covered by the Government Service Insurance System (GSIS), including:
      • Permanent government employees.
      • Military and police personnel.

  2. Foreign Nationals

    • Foreign nationals employed in the Philippines but who are:
      • Covered under their home country’s social security system.
      • Protected by bilateral or multilateral agreements.

  3. Non-Working Individuals Below Income Threshold

    • Individuals with no declared income or below ₱1,000 monthly income are generally not mandatorily covered unless voluntarily enrolled.

  4. Employees Aged 60 and Above

    • Workers over 60 years old who are already receiving retirement pensions are excluded from SSS coverage.

Important Provisions

  1. Universal Coverage

    • The law adopts a framework of universal coverage, seeking to include all Filipinos under social security protections eventually.
    • It imposes obligations on employers, employees, and self-employed individuals to comply with registration and contribution requirements.

  2. Employer Obligations

    • Employers are mandated to:
      • Register their employees with the SSS.
      • Deduct and remit monthly contributions on behalf of employees.

  3. Contributions

    • Contributions are based on the prevailing schedule of monthly salary credits and are shared between the employer and the employee (for employed individuals) or solely borne by the self-employed or voluntary member.

Penalties for Non-Compliance

  • Employers who fail to register their employees or remit contributions may face penalties, including:
    • Fines.
    • Imprisonment.
    • Payment of delinquent contributions with interest.

Conclusion

R.A. No. 11199 aims to provide robust social protection for Filipinos through inclusive coverage and comprehensive benefit packages. Employers, employees, self-employed individuals, and other stakeholders must comply with the law to ensure the security and well-being of the workforce and their families.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.

Social Security System Law - R.A. No. 11199 | SOCIAL LEGISLATION

LABOR LAW AND SOCIAL LEGISLATION > III. SOCIAL LEGISLATION > A. Social Security System Law - R.A. No. 11199

Introduction

Republic Act No. 11199, also known as the Social Security Act of 2018, was enacted to amend and expand the Philippine Social Security System (SSS). The law modernizes the SSS, enhancing its capacity to provide meaningful social security benefits to Filipino workers, self-employed individuals, and voluntary members.

Below is an exhaustive discussion of its provisions, salient features, and implementing rules:

I. Objectives of R.A. No. 11199

  1. Universal Coverage: To ensure that every Filipino is provided with adequate protection against economic and social distress due to disability, sickness, maternity, old age, death, and other contingencies.
  2. Sustainability: To strengthen the SSS fund by adopting actuarial soundness to secure long-term benefits for members.
  3. Efficiency: To enhance the operational capabilities of the SSS, ensuring efficient delivery of benefits and services.

II. Salient Features of R.A. No. 11199

  1. Expanded Coverage:

    • Mandatory Membership:
      • Private-sector employees, household helpers, and overseas Filipino workers (OFWs) are mandatorily covered.
      • Includes self-employed individuals earning at least ₱1,000 per month.
    • Voluntary Membership:
      • Includes non-working spouses of SSS members, OFWs who do not fall under mandatory coverage, and former members who wish to continue contributions.

  2. Enhanced Benefits:

    • Increased pension benefits, allowing periodic adjustments in pension levels.
    • Inclusion of unemployment insurance for members who lose their jobs involuntarily.
    • Additional benefits for maternity leave and sickness.

  3. Flexible Contribution Scheme:

    • Regular adjustments to contributions to ensure fund viability.
    • Increased contributions from 11% to 12% starting 2019, with provisions for further increments up to 15% by 2025.
    • Contributions shared between employers (8%) and employees (4%).

  4. Unemployment Insurance Benefit:

    • Qualified members can claim financial assistance for up to two months.
    • Conditions:
      • At least 36 months of contributions, with 12 months made within the 18 months preceding unemployment.
      • Certification of involuntary separation from the Department of Labor and Employment (DOLE).

  5. Actuarial Solvency:

    • Institutionalized provisions for periodic actuarial studies to ensure fund sufficiency and long-term viability.
    • Authority granted to the SSS to adjust benefits, contributions, and investments to maintain solvency.

  6. Governance:

    • Reorganization of the SSS Board to include representatives from labor, employers, and the government.
    • The President of the Philippines is authorized to appoint members of the board.
    • Board members are held accountable for the efficient management of funds.

  7. Penalties and Enforcement:

    • Imposition of stricter penalties for employers failing to remit contributions.
    • Civil and criminal liabilities for fraudulent claims and misrepresentation.

III. Covered Benefits under the Social Security Act of 2018

  1. Sickness Benefit:

    • Daily cash allowance for members unable to work due to illness or injury.
    • Conditions:
      • At least 3 months of contributions within the 12-month period preceding the illness.
      • Certification of sickness by a qualified physician.

  2. Maternity Benefit:

    • 105 days of paid maternity leave for live childbirth, with an additional 15 days for solo parents.
    • Coverage includes miscarriage or emergency termination of pregnancy.

  3. Retirement Benefit:

    • Monthly pension for members reaching the age of 60 (optional retirement) or 65 (mandatory retirement).
    • Lump-sum payment is an alternative for members who do not qualify for monthly pensions.

  4. Disability Benefit:

    • Monthly or lump-sum cash benefits for members suffering from partial or total permanent disability.
    • Medical certification and proof of disability required.

  5. Death and Funeral Benefits:

    • Monthly pension for primary beneficiaries (spouse and children).
    • Lump-sum funeral assistance for burial expenses.

  6. Unemployment Insurance:

    • Temporary financial aid for members who are involuntarily separated from employment.

IV. Administrative Powers of the SSS

  1. Collection and Enforcement:

    • Authority to collect contributions and impose penalties on delinquent employers.
    • Garnishment of bank accounts or other assets of employers refusing to remit contributions.

  2. Investment Management:

    • Authority to invest in government securities, equities, real estate, and infrastructure projects to grow the SSS fund.
    • Investments are subject to strict fiduciary regulations.

  3. Rule-Making Authority:

    • Power to issue rules and regulations consistent with the Social Security Act.
    • Adjustments to benefits and contributions are made through board resolutions.

V. Penalties for Violations

  1. Employer Violations:

    • Failure to remit contributions: Fines ranging from ₱5,000 to ₱20,000 per affected employee.
    • Imprisonment of 6 years and 1 day up to 12 years.

  2. Fraudulent Claims:

    • Imprisonment of 6 years and 1 day up to 12 years, plus full restitution of the fraudulent claim.

  3. Obstruction of Enforcement:

    • Fines and imprisonment for individuals obstructing the enforcement of SSS rules.

VI. Implementation and Monitoring

  1. Digital Transformation:

    • Integration of online platforms for contributions, benefit claims, and inquiries.
    • Mobile applications and digital kiosks for member convenience.

  2. Collaboration with Other Agencies:

    • Partnership with DOLE for unemployment insurance certification.
    • Collaboration with government financial institutions for investment opportunities.

  3. Annual Reporting:

    • SSS is mandated to submit annual reports on fund performance, actuarial studies, and governance reforms to Congress and the Office of the President.

Conclusion

R.A. No. 11199 represents a significant milestone in the development of social security in the Philippines. By expanding coverage, enhancing benefits, and ensuring sustainability, the law seeks to provide meaningful protection for Filipino workers and their families. Its successful implementation depends on efficient governance, strict enforcement, and active participation from stakeholders.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.

Privacy Policy

Terms of Use

Lawyer Login

 
 
Privacy Policy         Terms of Use         Lawyer Login