Social Security System Benefits in the Philippines

Know your SSS benefits, know your future security. This post is a response from lots of requests and inquiries about the Social Security System benefits in the Philippines, shortly called from the acronym, SSS. What are my benefits? How to compute them? How to claim? Lots of people ask 'how to apply for my social security insurance' as well. You have to read this hub and learn.

If you’re an employee working in a private institution or employer, you surely are paying or remitting monthly contributions for your SSS. OFW (Overseas Filipino Workers), household workers and all employees under the age of 60 other than the government are covered for the social security benefits.

For those who ask, what if I’m not working in a company, can I contribute and become a member of the SSS? The answer is YES. Surely you can. If you are self-employed, you can apply to become a member then pay your contributions monthly or quarterly. The same thing if you’re not employed but capable of paying monthly contribution of your choice, you can still become an SSS member and enjoy all the benefits it offers to each member. That's what they refer to 'voluntary contribution' .

I have included the latest Social Security System Contributions Schedule below for those who want to know how much they’re gonna pay monthly according to their compensations. Feel free to ask if you wanna know something.

Below is the SSS Contribution Table for 2011.

source: sss gov

Before I go to the benefits, I just wanna say SSS is just one of the benefits of a common private employee in the Philippines. Just like any insurance, it is so helpful financial aid to all members and their beneficiaries.

The others are the PhilHealth and PAGIBIG Fund. GSIS is a version of SSS mandated to all government employees. Just so you know and just to avoid confusions here. OK now the SSS benefits…

MP (Monthly Pension) Computation

MP = P300 + (20% of AMSC) + 2% of AMSC for each CYS in excess of 10 years

MP = 40% of the AMSC

MP = P1200 (if your CYS is at least 10 or more but less than 20)

MP = P2000 (if your CYS is 20 or more)

** Your MP will be the amount resulted from each of the formula above WHICHEVER IS HIGHER
**Take note that the AMSC (Ave. Monthly Salary Credit) and CYS (creditable years of service) differ from every employee as our salary varies from time to time.
** A retiree has the option to receive the first 18 monthly pension in lump sum discounted at a preferential rate of interest to be determined by the SSS.
**The higher your SSS contribution and CYS, the higher will be your MP
**A bill has been authored in the senate to raise the minimum AMP to 3000. Let’s hope it will be approved and be raise to 5000 or more LOL

SSS Benefits in the Philippines

SSS Retirement Benefit

The SSS Retirement Benefit is synonymous to old age pension or simply retirement pension. It is a lifetime cash benefit paid to the retiree every month after he retired or after he stopped working reaching the age of 60 or 65. Any old age pensioner can receive his monthly SSS pension provided he paid at least 120 monthly contributions prior to the semester of his retirement. He’s entitled to received 13^th month pay every December as well. In case he hasn’t completed a 120 months of contributions when he reached his retirement, he is entitled to receive a lump sum amount instead. Qualified beneficiaries will receive 10% of the monthly pension benefits or P250 whichever is higher. This is so seldom because usually old age don't have children below 21 anymore upon retirement. How to compute for your SSS monthly retirement pension? What about the lump sum benefit? I have demonstrated a sample formula computation of monthly pension in this hub. Check it out.

SSS Disability Benefit

The SSS Disability Benefit just like any other social disability program adopts the World Health Organization’s definition of disability which specifically refers to “restriction or lack (resulting from impairment) of ability to perform an activity in the manner or within the range considered normal for a human being.” And who are qualified for this disability benefit? Social Secutity System members who suffer partial or total disability and have paid at least one monthly contribution to the SSS before the semester of unforeseen event are qualified. Disability benefit is also paid in two ways: thru monthly pension and lump sum amount. A disabled member is qualified to accept monthly disability pension if he has paid at least 36 monthly contributions to the SSS prior to the semester of unfortunate incident. However, the lump sum amount is granted to those who have not paid the required 36 monthly contributions. How much is the pension for disability? Just like any other type of pension, the monthly cash benefit is computed based on the disabled member’s number of paid contributions and the years of his membership. According to SSS, the lowest monthly pension is P1000 for members with less than 10 credit years of service: P1200 with at least 10 CYS and P2400 with at least 20 CYS.

SSS Sickness Benefit

Just like any human being who meets injury or sickness, SSS members can also avail for the sickness benefit. Sick benefit is a daily cash allowance paid for the number of days a member is unable to work for at least 4 days provided the member has paid at least 3 monthly contributions within the 12 month period prior to his sickness and all company sick leave pay for the year has been used. You ask how much will be the sickness benefit? The SSS member is entitled to receive per day a 90 percent of his average daily salary credit.

SSS Maternity Benefit

Obviously, the SSS maternity benefit is only intended to those female members who couldn’t work due to childbirth or miscarriage. Any female qualified for this is granted daily cash allowance provided she has contributed at least 3 months at the SSS within the 12-month period immediately before the semester of her childbirth or miscarriage. How much would be the maternity benefit? According to SSS, it is equivalent to 100 per cent of the member’s average daily salary credit multiplied by 60 days for normal delivery or miscarriage, 78 days for caesarean section delivery. Have questions? Feel free to ask me by commenting.

SSS Death and Funeral Benefit

Sounds morbid but we only die once. lol Anyway, if a SSS member died, his qualified beneficiaries and dependents could receive death and funeral benefits from the insurance company provided they are his legitimate spouse or children, illegitimate or adopted children under 21 of age. What if the member was single? His parents are qualified beneficiaries. What if she has no family or parents anymore? Well then the benefits will go to me. lol Seriously, the money will go to anyone the member listed as beneficiary in the SSS records. So it is very important to list and update your beneficiaries. When you died your soul can’t negotiate with the SSS anymore. There are two types of benefits for death and funeral: monthly pension and lump sum amount. According to the Social Security System, monthly pension is granted only to the primary beneficiaries of a deceased member who had paid 36 monthly contributions before the semester of his death. The lump sum on the other hand, is the amount granted to the primary beneficiaries of a deceased member who had paid less than 36 monthly contributions before the semester of death. The secondary beneficiaries shall be entitled to a lump sum benefit. If the beneficiary are entitled to receive monthly pension benefits, he will receive 13^th month pay every December, too.

SSS EC Compensation Benefits

All SSS members both employees and employers are automatically entitled for the EC compensation program to receive generous benefits. Benefits from sickness, injuries, death, and disability are just among the broad coverage of this type of benefits from the Social Security System. I recommend checking out this official website to understand the EC benefits totally.