Entitlement of an Unmarried (Common-Law) Partner to a Deceased Employee’s Benefits
Philippine legal overview, updated to May 2025
1. Setting the Stage: “Unmarried Partner” in Philippine Law
In the Philippines an “unmarried partner” is not a legally recognized spouse. The relationship may fall under:
| Relationship | Governing provision | Key legal consequence |
|---|---|---|
| Article 147 Family Code union (no legal impediment to marry, continuous cohabitation) | Property regime of “co-ownership”; good-faith partner treated much like a spouse in property matters, but not in succession or social-security statutes. | |
| Article 148 Family Code union (with impediment to marry one another) | Only properties jointly acquired through actual joint contribution belong in common; no spousal rights in succession or benefits. | |
| Same-sex partner | No legislation recognising marriage or civil unions (several bills pending). Rights are purely contractual or by designation. |
Because national social-insurance laws pre-date—or ignore—common-law unions, entitlements depend on (a) explicit statutory wording, (b) administrative rules, and (c) evolving jurisprudence.
2. Core Statutory Benefit Systems
| Benefit system | Statute | Default beneficiaries | Where the unmarried partner may come in |
|---|---|---|---|
| Social Security System (SSS) (private-sector) | R.A. 11199 (2018) | • Primary: “legal spouse” until remarriage + dependent children • Secondary: dependent parents • Others: designated beneficiaries or legal heirs |
– No express mention of common-law partner. – SSC/SC rulings: SSC v. Dantis (SSC Res. 2011-063, aff’d SC 2013) & SSS v. Aguas (G.R. 243550, 22 Mar 2022) recognised a common-law partner as primary beneficiary when (i) there is no legal spouse, and (ii) cohabitation in Article 147 sense is proven. |
| Employees’ Compensation (EC) under PD 626 | PD 626 | Same hierarchy as SSS (“legitimate spouse”) | EC Boards have followed the Dantis/Aguas line: common-law partner may be paid as secondary beneficiary if no legal spouse exists and dependency is proven. |
| Pag-IBIG Fund (HDMF) Provident Claims | R.A. 9679 | Member’s designated beneficiary first; if none, intestate heirs under Civil Code | Since designations are allowed, a common-law partner easily qualifies if named. Without designation, they are not intestate heirs. |
| Government Service Insurance System (GSIS) | R.A. 8291 | • Primary: “legal spouse” and dependent children • Secondary: parents / designated |
GSIS Board Res. 158 (2011) and SC cases (GSIS v. Court of Appeals & Isang, G.R. 216323, 24 Jan 2018) let a common-law partner step in only if (a) no legal spouse, (b) the union meets Article 147, and (c) the member had declared the partner as dependent. |
| PhilHealth Survivorship | R.A. 11223 | Benefits in kind (hospitalisation coverage) flow to “qualified dependents” – legal spouse – children/parents |
PhilHealth Circular 2020-0014 includes a “live-in partner” as dependent if declared by the member and there is no legal spouse. |
| Employer-supplied benefits (group life, final pay, retirement plans, company provident funds) | Company policy / Trust deed | Typically allows free designation; in absence, Civil Code intestacy applies | Unmarried partner may be full beneficiary if (a) expressly named, or (b) plan rules incorporate Article 147 recognition. |
3. Death-related Monetary Claims from the Employer
Even outside the social-insurance systems, several employer-side monetary items become due at death:
- Unpaid wages & salary differentials
- Pro-rated 13th month pay & service incentive leave conversion (Art. 104, Labor Code)
- Pro-rated bonuses under CBA or policy
- Retirement or separation pay (if a plan exists; Art. 302 Labor Code)
- Cash value of unused vacation leave (contractual)
- Other contractual benefits (stock options, commissions, car plan, etc.)
Who receives?
- If the employee designated a beneficiary in HR records, that governs.
- If not, amounts form part of the estate and descend by intestate succession (Civil Code arts. 960-1016) — no share for a common-law partner.
- Many employers, recognising family realities, now require a “Beneficiary Designation Form” that expressly lists live-in partner/common-law spouse to avoid estate settlement delays.
4. Evidentiary Requirements to Prove a Common-Law Union
| Evidence | Typical content |
|---|---|
| Joint affidavit of cohabitation | Continuous union, date started, no legal impediment to marry (Art. 147) |
| Barangay/Kagawad or LGU certificate | Certification of co-residency |
| Children’s birth certificates | With both parents on the face; a strong corroborating proof |
| Utility bills, bank accounts, insurance policies | Showing shared address or mutual dependency |
| Member data records (SSS E-1/E-4, PhilHealth MDR, Pag-IBIG MDF) | If the deceased declared the partner as dependent/beneficiary |
Because fraud is common, SSS, GSIS, and EC boards conduct field investigations: neighbor interviews, barangay clearances, and in-house validation before releasing benefits.
5. Tax and Estate-Settlement Implications
- Estate tax (NIRC Title III) is imposed only on the net estate, not on statutory survivor pensions or insurance proceeds with an irrevocable beneficiary.
- If the partner is not an intestate heir, any payment received through designation is not part of the gross estate (Sec. 85[E]) and is therefore tax-free.
- If the partner is not designated and receives amounts as heir through compromise or waivers from compulsory heirs, the share is first subject to estate tax in the hands of the estate; the transfer to the partner may also trigger donor’s tax.
6. Key Jurisprudence (Supreme Court unless noted)
| Case | G.R. No. & Date | Principle established |
|---|---|---|
| SSS v. Aguas | 243550, 22 Mar 2022 | Article 147 partner with no legal spouse is “dependent spouse” under SSS Law. |
| Racelis v. GSIS | 185353, 17 Apr 2013 | GSIS may recognise common-law partner as survivorship pensioner if she was validly declared and no legal spouse exists. |
| Heirs of Malate v. Gamboa | 206605, 23 Jul 2014 | Distinguishes property relations under Art. 147 from rights to succession benefits. |
| Echavez v. SSS (SSC appeal) | SSC Res. 2015-043 | Five-year cohabitation + dependency allows recognition of live-in partner under EC claims. |
| Re: Petition of Sereno (Bar Matter) | BM No. 2372, 27 Jun 2022 | (Obiter) Common-law partner not equivalent to “surviving spouse” in intestate succession. |
7. Practical Roadmap for a Surviving Unmarried Partner
- Secure death certificate (PSA) and employer’s certification of employment & salary.
- Gather proof of union & dependency (see Section 4).
- Check designation files at SSS, HDMF, PhilHealth, employer, insurer.
- File claims quickly:
- SSS – within 10 years (prescriptive period); submit SSS Death Claim Forms, DDR-1 etc.
- GSIS – no strict prescriptive period but earlier filing hastens pension release.
- Pag-IBIG – File Provident Benefit Claim within 10 years.
- EC – within 3 years of death.
- If a legal spouse exists and disputes the claim:
- Attempt mediation at SSS/GSIS; if denied, elevate to Social Security Commission or GSIS Committee on Claims.
- Final appeal goes to the Court of Appeals (Rule 43).
- For employer-side monetary claims:
- If heirs disagree, resort to NLRC for money claims (4-year prescriptive period).
- Estate concerns:
- If there is property in common under Article 147, file a settlement of co-ownership independent of estate proceedings.
- Estate settlement (extra-judicial or judicial) may still be necessary for the deceased’s exclusive properties.
8. Policy Trends to Watch
- Bills filed in the 19th and 20th Congresses (e.g., H.B. 1015 / S.B. 80) seek to recognise “civil partnerships” with full survivorship rights.
- SSS and GSIS have floated draft regulations (not yet adopted) to require a notarised “Declaration of Common-Law Spouse/Partner” during the member’s lifetime to curb fraudulent after-death claims.
- Several large corporations have already amended retirement and group-life plans to treat “qualified domestic partner” on the same footing as a spouse.
9. Checklist (One-Pager)
- Was I formally designated? If yes, present the designation and valid ID—claim is straightforward.
- No designation:
- Is there a legal spouse?
Yes → benefits go to spouse/children; file only if statute or jurisprudence allows joint sharing (SSS ratio share).
None → Prepare Art. 147 proof → claim as “dependent spouse”.
- Is there a legal spouse?
- Employer monetary items: Talk to HR; if they insist on estate settlement, negotiate waiver with heirs or file NLRC claim.
- File within prescriptive periods.
- Secure tax clearances (BIR Form 1904 for TIN; BIR Clearance for life-insurance proceeds if > ₱1 M).
10. Key Take-Aways
- Express designation trumps everything. In the absence of one, statutory hierarchies apply.
- Jurisprudence has begun bridging the gap for common-law partners only when no legal spouse exists and dependency/co-habitation are convincingly proven.
- An unmarried partner never inherits by intestacy, but may obtain social-insurance or contractual benefits.
- Early compliance—member declarations while alive, complete documentary proof by the survivor—avoids costly litigation.
Prepared by:
Atty. — — (Philippines), updated 7 May 2025