I. Legal Framework and Policy Context

The Philippine Social Security System is the state-mandated social insurance program for private-sector workers and certain categories of self-employed, voluntary, and overseas Filipino workers. It is principally governed by the Social Security Act (as amended), its Implementing Rules and Regulations (IRR), and SSS circulars and administrative procedures.

For purposes of employees aged 65 and above, SSS rules must be read alongside Philippine retirement policy for the private sector—most notably:

SSS retirement benefit rules (which recognize age 65 as the “mandatory” retirement age for eligibility), and
Private-sector retirement law (which generally treats 65 as the normal mandatory retirement age, subject to lawful exceptions such as re-employment arrangements).

The key practical legal questions are:

Is a worker aged 65+ still covered as an “employee-member” of SSS?
Must the employer still deduct and remit SSS contributions for them?
What if the worker is already an SSS retiree/pensioner?
What if the worker is 65+ but not yet receiving an SSS pension (e.g., lacks minimum contributions)?

II. Core Concepts You Must Distinguish

A. “Covered employee” vs. “SSS member”

An individual may remain an SSS “member” in the sense of having an SSS number and historical contributions, even if they are no longer within the scope of compulsory employee coverage for contribution purposes at a given time.

B. “Compulsory coverage” vs. “Voluntary/self-employed coverage”

Compulsory coverage applies when an employer-employee relationship exists and the employee is within the category the law requires to be covered.
Voluntary/self-employed coverage generally applies to members who are not currently covered as employees but may continue contributions to maintain eligibility or complete requirements.

C. “Retirement eligibility” vs. “Retirement in fact”

A person may be eligible for SSS retirement benefits at a certain age, but retirement benefits usually begin only upon filing and approval (and subject to other conditions such as contribution count and separation rules, depending on age and status).

III. Retirement at Age 65 Under SSS: Why It Matters for Coverage

A. Age 65 is the key SSS retirement threshold

SSS retirement is commonly described as:

Optional at age 60 (usually with separation/cessation conditions), and
Available at age 65 as the standard “mandatory” retirement age for eligibility in the SSS system.

Why this matters: Once a member is treated as retired for SSS purposes (i.e., granted retirement), the member is generally no longer treated as an actively covered employee-member for contribution-based benefits, and the employer ordinarily stops SSS payroll contributions for that person.

B. Practical consequence at 65+

For employees 65 and above, the SSS system’s design assumes that the person is already at/over retirement age. As a result, the default compliance posture in practice is:

SSS employee contributions are generally no longer deducted/remitted for workers 65+, and
The worker should be evaluated for retirement benefit filing (if qualified) rather than continued employee coverage.

IV. General Rule on SSS Contributions for Employees Aged 65 and Above

General Rule (Compliance Baseline)

For a worker who is already 65 years old or older, employers should generally treat the worker as beyond the normal contributory coverage as an employee-member, meaning:

No employee share should be deducted from compensation for SSS; and
No employer share should be remitted for SSS contributions for that worker; and
Payroll and SSS reporting should be managed to avoid erroneous postings (which can later trigger adjustments/refunds issues).

This baseline is strongest in either of these common situations:

The worker is already an SSS retirement pensioner; or
The worker has reached 65 and is otherwise expected to transition to retirement (even if still working under a re-employment/consulting arrangement).

V. The Most Common Scenarios (and the Correct Legal/Payroll Treatment)

Scenario 1: Employee is 65+ and is already an SSS retirement pensioner

Typical rule and practice:

The person is no longer an active contributing employee-member.
The employer should not deduct employee SSS contributions and should not remit employer SSS contributions for that worker.
If deductions/remittances continue, they are commonly treated as erroneous contributions requiring correction.

Why: Retirement pension status is intended to replace active contributory coverage.

Operational action points:

Remove the worker from SSS contribution remittance lists effective the proper payroll period.
Ensure payroll deductions stop immediately upon confirming pensioner status.

Scenario 2: Employee turns 65 while still working and has not yet filed/started SSS retirement pension

This is a frequent real-world scenario: the worker keeps working past 65 (e.g., re-hired, extended, or retained for critical skills).

Legal tension:

At 65, the member is already at the standard retirement age for SSS eligibility.
Continuing the worker as a regular contributing employee-member beyond this point is generally not the normal model of the SSS system.

Practical approach:

The worker should ordinarily be processed for SSS retirement (if qualified).
Once retirement is granted, SSS contributions stop.

If the employer continues to deduct/remit after 65: It creates a risk of:

posting errors,
future refund/adjustment work,
payroll disputes (employee deductions that should not have been withheld), and
confusion on benefit entitlement.

Scenario 3: Employee is 65+ but is NOT qualified for pension (e.g., lacks minimum monthly contributions)

SSS retirement pensions generally require a minimum number of monthly contributions (commonly understood as 120 monthly contributions for a monthly pension; otherwise, a lump-sum benefit may apply).

For an employee aged 65+ with insufficient contributions, the main practical question becomes:

Can the person still contribute to reach eligibility?

Commonly recognized treatment (subject to SSS rules in force):

The member may be allowed to continue contributions to complete the minimum requirement, but this is typically done under voluntary or self-employed status rather than as a normal employee-member beyond retirement age.
This often requires careful coordination to ensure contributions are accepted and correctly tagged, and to avoid employer remittances being incorrectly posted.

Key compliance point: Even where continued contributions are allowed to complete eligibility, the employer is not automatically obliged to keep treating the worker as a normal compulsory-covered employee-member for SSS at age 65+.

Scenario 4: Worker is 65+ but is engaged as a consultant/contractor (no employer-employee relationship)

If there is no employer-employee relationship (e.g., legitimate independent contractor arrangement), then SSS employee coverage rules do not apply in the same way.

Possible SSS membership treatment:

The individual may contribute, if allowed, as self-employed or voluntary, subject to age and eligibility rules and SSS policies at the time.

Caution: Misclassification risk is real. Calling someone a “consultant” does not automatically remove employer-employee relationship. If the relationship is later found to be employment, SSS and labor liabilities can follow.

VI. What Benefits Are Affected at Age 65+?

Once a person is no longer treated as an actively contributing employee-member (or becomes a retirement pensioner), the availability of certain benefits changes.

A. Benefits that are generally tied to active contribution status

Benefits such as sickness (and other contribution-contingent benefits) typically require that the member be an actively contributing member within prescribed periods.

For workers 65+, if contributions stop (as they normally should), then:

access to contribution-based short-term benefits can be limited or cease, depending on benefit-specific qualifying rules.

B. Retirement replaces the “income replacement” function

At 65+, the SSS system’s primary income replacement benefit is retirement (monthly pension if qualified, otherwise lump sum).

C. Death and funeral benefits remain relevant

Even for retirees/pensioners, SSS-related death and funeral benefit frameworks remain relevant to beneficiaries (subject to SSS rules and eligibility).

VII. Employer Duties and Payroll Compliance for 65+ Workers

A. Stop unlawful/erroneous deductions

If SSS contributions are no longer properly due for a 65+ worker (especially a pensioner), the employer must ensure:

no employee share is deducted; and
payroll coding is corrected.

Continuing deductions without legal basis can expose the employer to:

employee monetary claims,
refund obligations, and
administrative correction burdens.

B. Correct reporting and remittance

Employers should keep SSS reporting consistent with the worker’s correct status:

avoid reporting a 65+ retiree/pensioner as an active contributing employee,
ensure separation/retirement status updates are reflected where required in SSS systems and internal payroll records.

C. Handle erroneous contributions properly

If contributions were mistakenly remitted:

employers typically need to process an SSS correction/adjustment (often involving documentation and coordination between employer and employee to recover employee deductions, if any).

Practical note: Corrections are easier when detected quickly; prolonged erroneous remittances can complicate reconciliations.

VIII. Relationship With Private-Sector Retirement Pay (RA 7641) and Continued Work After 65

Even when SSS contributions stop at 65+, employers must still observe retirement and labor rules:

SSS retirement benefits and employer retirement pay are conceptually separate. SSS is a social insurance benefit; employer retirement pay arises from law, CBA, or company retirement plan.
Mandatory retirement age in the private sector is generally 65, but continued work after 65 can occur through:
- re-employment contracts,
- consulting arrangements,
- project-based employment (if legitimate), or
- other lawful structures.
SSS contribution stoppage does not automatically legalize or invalidate continued employment. It simply affects the worker’s SSS contribution status and related benefits.

IX. Risk Map: Common Compliance Pitfalls for 65+ Employees

1) Continuing SSS deductions/remittances “because payroll is automatic”

This is the most common error. It can lead to:

improper employee deductions,
refund/adjustment processing, and
potential disputes when the employee notices deductions despite pensioner/over-age status.

2) Assuming that “still working” always means “still SSS-covered”

For workers past retirement age, SSS treatment does not always mirror the day-to-day reality of continued work.

3) Failing to plan for employees who reach 65 without enough contributions

A worker who is 65+ but lacks minimum contributions needs:

a clear path (pension vs. lump sum, and whether additional voluntary contributions are possible/appropriate),
aligned payroll treatment, and
documented HR decisions regarding re-employment.

4) Confusing SSS retirement with company retirement

An employee can be retired for employer purposes and separately file for SSS retirement benefits; these are not the same process and do not always start on the same date.

X. Practical Checklist for Employers With 65+ Workers

Confirm the worker’s SSS status
- Are they already an SSS retirement pensioner?
- Have they filed/been granted retirement?
- Do they lack minimum contributions?
Implement correct payroll treatment
- Stop SSS deductions and employer counterpart where SSS employee contributions are no longer properly due at 65+.
Align HR documentation
- Document retirement, separation, or re-employment terms.
- Clarify whether the post-65 arrangement is re-employment and on what legal basis.
Avoid erroneous remittances
- Audit payroll remittance lists for workers nearing retirement age.
- Reconcile exceptions promptly.

XI. Practical Checklist for Employees Aged 65 and Above

Check your contribution count and eligibility
- Determine whether you meet the contribution requirement for a monthly pension.
Clarify whether you are already considered retired by SSS
- If you are already a pensioner, confirm that payroll is not deducting SSS contributions.
If you are 65+ and short of contributions
- Understand whether continued contributions are allowable (and under what membership category), and how that affects the timing and type of retirement benefit (monthly pension vs lump sum).

XII. Bottom Line

In Philippine practice and under the structure of SSS retirement rules, age 65 is the decisive point: workers aged 65 and above are generally treated as beyond the normal contributory coverage as employee-members, and employers ordinarily should stop deducting and remitting SSS contributions for them—especially once the worker is an SSS retirement pensioner. For the narrower set of workers who are 65+ but not yet pension-qualified, continued contributions may be possible under special membership treatment (commonly outside normal employee contribution remittance), and must be handled carefully to avoid erroneous payroll deductions and reporting.