Social security is primarily a social insurance program that provides social protection for sickness, disability, maternity, old age, death, poverty and other contingencies resulting in loss of income or financial burden. SSS (Social Security System) administers the social security system in the Philippines.
Contributions are as follows:
Monthly contributions are based on the compensation of members (refer to this schedule of contributions for more details). The current SSS contribution rate is 11% of the monthly salary credit not exceeding PHP 16,000. Contributions are shared between the employer (7.37%) and the employee (3.63%). The employee contribution is deducted from gross wages by the employer, with no action required by the employee. The employer then adds in their contribution and remits the total to SSS along with income tax.
Self-employed members pay the 11% of the monthly salary credit based on the monthly earnings declared at the time of registration. The prescribed schedule of payment depends on the last digit of your social security number and is given here. The frequency of contribution payments can be on a monthly or quarterly basis. A quarter covers three consecutive calendar months ending on the last day of March, June, September or December. Any payment for one, two or all months for a calendar quarter may be made.
A voluntary member is one who is separated from employment or ceased to be a self-employed member or non-working spouse. Amount and frequency of contributions as well as the prescribed schedule of payment are the same as a self-employed member.
For a non-working spouse of an SSS member, contribution will be based on 50% of the working spouse's last posted monthly salary credit but in no case shall it be lower than PHP 1,000. Frequency of contributions and the prescribed schedule of payment are the same as a self-employed member.
A member who is unable to work due to sickness or injury and is confined in a hospital or at home for at least four days can claim sickness benefit. A daily sickness benefit allowance equivalent to 90% of the member's average daily salary credit is paid for the number of days the member is unable to work due to sickness or injury. Employed members must notify their employer about availing the SSS sickness benefit. Voluntary or self-employed members must notify SSS directly by filing a sickness benefit application.
A member who is unable to work due to childbirth or miscarriage can claim maternity benefit. A daily maternity benefit allowance equivalent to 100% of the member's average daily salary credit is paid for 60 days for normal delivery/miscarriage/ectopic pregnancy without operation and 78 days for caesarian section delivery/ectopic pregnancy with operation. Employed members must notify their employer about their pregnancy and childbirth or miscarriage. Voluntary or self-employed members must notify SSS directly.
A member who becomes permanently disabled (partially or totally) can claim disability benefit. A cash benefit is granted either as a monthly pension or lump sum amount, plus a PHP 500 monthly supplemental allowance. The minimum monthly disability pension is PHP 1,000 if the member has less than ten credited years of service, PHP 1,200 if with at least ten credited years of service, and PHP 2,400 if with at least 20 years of credited years of service.
Beneficiaries of a deceased member are granted death benefit. A cash benefit is granted either as a monthly pension or lump sum amount, plus a 13th month pension payable every December. The minimum monthly death pension is PHP 1,000 if the member has less than ten credited years of service, PHP 1,200 if with at least ten credited years of service, and PHP 2,400 if with at least 20 years of credited years of service.
For more details on benefits, you can refer here.
The social security number assigned to you is a unique lifetime number that is used in any and all SSS transactions.
You can register with SSS by filling up SS Form E-1 (for employed members), SS Form RS-1 (for self-employed members) or SS Form NW-1 and submit it with the original/certified true copy and photocopy of any one of the primary or any two of the secondary documents to any SSS branch near you. A list of SSS branches can be found here.
You should also submit supporting documents for your beneficiaries. This includes a marriage contract if your beneficiary is your spouse and birth certificates if your beneficiary includes your children.
You can also apply for a social security number online.
If you want to move money abroad, from Philippines or to Philippines for example, Fexco provides efficient and secure global bank to bank transfers and bespoke payment solutions for both business and personal clients.
Fexco provides a secure international money transfer service online or by telephone with bank beating fx rates and low fees. Specialises in high-value transfers.
Fexco will help you to keep your overseas money transfer costs to a minimum.
|Fee||£10 < £5K or Free > £5k|
|Ccy||All (130 currencies, incl ‘exotics’)|
|Services||Repatriation of funds, Property, Regular payments, High Value payments, spot, online, telephone.|
When you are ready to make your transfer, John and his team will be available to help you with better rates and an unrivalled service to make sure your funds are delivered securely and speedily.