Social Security System (Philippines)

The Social Security System (SSS; Filipino: Paseguruhan ng Kapanatagang Panlipunan) is a state-run, social insurance program in the Philippines to workers in the private, professional and informal sectors. SSS is established by virtue of Republic Act No. 1161, better known as the Social Security Act of 1954. This law was later amended by Republic Act No. 8282 in 1997. Government employees, meanwhile, are covered under a separate state-pension fund by the Government Service Insurance System (GSIS).

Social Security System
Paseguruhan ng Kapanatagang Panlipunan
Logo

Main office of the SSS along East Avenue in Quezon City.
Agency overview
FormedSeptember 1, 1957[1]
HeadquartersSSS Building, East Avenue, Diliman, Quezon City
Agency executives
  • Carlos Dominguez III, De-facto Chairperson
  • Aurora Cruz-Ignacio, President and CEO
  • 09
Websitewww.sss.gov.ph

History

President Manuel Roxas, to give relief to the people who were facing difficulties in the post-war period, called on the legislators to create a social security program in his State of the Nation Address in January 1948 but he died without passing the bill.[1]

On July 7, 1948, President Elpidio Quirino succeeded Roxas and created the social security study commission through Executive Order No. 150.[2] The commission drafted the Social Security Act that was submitted to Congress. In 1954, Representative Floro Crisologo, Senators Cipriano Primicias and Manuel Briones introduced bills to the Congress that were eventually enacted as Republic Act 1161 or the Social Security Act of 1954 during the term of Ramon Magsaysay. The law was also called the Social Security Law (SSS Law).[3][4]

However, its implementation was delayed by objections made by business and labor groups. It was only in 1957 bills were presented in Congress creating the Republic Act No. 1792, amending the original Social Security Act. On September 1, 1957, the Social Security Act of 1954 was finally implemented under Carlos P. Garcia's term (Magsaysay died March that year).[1]

On September 7, 1979, the Presidential Decree No. 1636 amended the Republic Act No. 1161 and extended compulsory coverage to people who identified as self-employed. The new rules which took effect on January 1, 1980.[5][6] New rules allowed farmers and fisherfolks to be included in the coverage in 1992 and the year after, household helpers earning at least ₱1,000 monthly. The SSS, in 1995, covered laborers in informal sector earning the same wage monthly.[3]

On May 1, 1997, President Fidel V. Ramos signed Republic Act No. 8282, also known as Social Security Act of 1997. The law amended the SSS[7] and provided better benefit packages, expansion of coverage, flexibility in investments, stiffer penalties for violators of the law, condonation of penalties of delinquent employers, and the establishment of a voluntary provident fund for members.

SSS transferred the administration of its Medicare program, which gave benefits for the healthcare purposes of members, to the Philippine Health Insurance Corporation (PhilHealth) when Republic Act No. 7875 or the National Health Insurance Act of 1995 was enacted.[8] In 2017, about 2.2 million people receiving pension from the SSS saw their take-home benefits increased by ₱1,000 with the approval of President Rodrigo Duterte.[9]

Starting with a fund of ₱500,000 from the government, SSS' total assets grew to ₱474.7 billions and served 34.2 million members in 2016.[1] In 2018, the Republic Act No. 11199 or the Social Security Act of 2018 was passed, providing mandatory inclusion of Filipinos working domestically and internationally.[10]

Services

SSS provides death, funeral, maternity leave, permanent disability, retirement, sickness and involuntary separation/unemployment benefits.[11] The Employees' Compensation (EC) Program which started in 1975 provided double compensation to workers who had illness, accident during work-related activities, or died. EC benefits are granted only to members with employers other than themselves.[12]

SSS members can make 'salary' or 'calamity' loans. Salary loans are calculated based on a member's particular monthly salary credit. Calamity loans are for instances when the government has declared a state of calamity in the area where an SSS member lives, following disasters such as flooding and earthquakes.[13]

Membership requirements
  • He/she must be at least 15 years old.
  • Non-working persons are welcome.
  • In order for a member of SSS to claim lifetime monthly pension, he must be at least 60 years old and he must have at least 120 monthly contributions.[14]

Branches

SSS' offices are located in 291 branches all over the country. There is an option to email or make a call to SSS’ branches.[15] Members can utilize the toll-free number that is open on weekdays and online services for transactions such as securing SSS identification number and applying for loans, sickness and retirement benefits.[1]

List of chairpersons
  • Juan B. Santos (August 23, 2010–June 2016)[16]
  • Amado D. Valdez (October 2016–February 12, 2018)[17]
  • Aurora C. Ignacio (September 2018–March 5, 2019)
  • Carlos G. Dominguez III (ex officio; March 5, 2019–present)[18]

References
  1. Bugante, Susie (August 30, 2016). "59 years of faithful service to the nation". BusinessMirror. Retrieved June 30, 2019.
  2. "Third Republic". Official Gazette of the Republic of the Philippines. Retrieved June 30, 2019.
  3. "SSS Guidebook" (PDF). Page 2 of the Social Security System of the Philippines. Retrieved 18 May 2017.
  4. "Crisologo Museum". Vigan.ph. Retrieved 18 May 2017.
  5. "Presidential Decree No. 1636, s. 1979". Official Gazette of the Republic of the Philippines. Retrieved June 30, 2019.
  6. "SOS: The state of the SSS". Manila Standard. Retrieved June 30, 2019.
  7. Honeyman, Neil (2015-11-15). "Honeyman: The SSS pension scheme". SunStar. Retrieved July 1, 2019.
  8. "The Revised Implementing Rules and Regulations of the National Health Insurance Act of 2013 (RA 7875 as amended by RA 9241 and 10606)" (PDF).
  9. "Duterte at the halfway mark: The Filipino's gamble". Rappler. Retrieved July 1, 2019.
  10. Cu, Rea. "SSS: Law requires protection for Filipinos here and abroad". BusinessMirror. Retrieved July 1, 2019.
  11. "SSS: Higher contribution means more benefits". GMA News. Retrieved July 1, 2019.
  12. "Self-employed join gov't compensation program". BusinessWorld. Retrieved July 1, 2019.
  13. "Summary of SSS Benefits" (PDF). sss.gov.ph. Retrieved August 29, 2019.
  14. "Republic of the Philippines Social Security System". Sss.gov.ph. Retrieved October 3, 2018.
  15. "How To Get SSS ID Number Online". Cashcat.
  16. JMR/Sunnex (August 23, 2010). "Aquino swears in 36 new officials". SunStar. SunStar Publishing Inc. Retrieved May 21, 2020.
  17. Ranada, Pia (February 12, 2018). "Duterte fires SSS chairman Valdez and commissioner La Viña". Rappler. Manila, Philippines: Rappler Inc. Retrieved 21 May 2020.
  18. de Vera, Ben (March 4, 2019). "SSS: Increase in contribution to 12% likely to start by April or May". Philippine Daily Inquirer. Retrieved 21 May 2020.
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