Angeles University Foundation

Angeles City, Pampanga

College of Allied Medical Professions

Social Security System

of
The Philippines (SSS)

Members:
Bacud, Paula
Cairo, Naneth
Carreon, Hazel
David, Florielle
Gamboa, Lois
Lacson, Michaela
Lantano, Christian
Magcalas, Monica
Mangio, Phinina
Marinas, Giselle
Rodriquez, Kevin

Summary
The implementation of the Philippine Social Security Law for private sector and selfemployed workers typifies that of most other laws in the country the creditable
intention is not matched by similar execution. The Social Security System (SSS) has
been in place for over 50 years, and while its financial sustainability and growth appear
to have been strengthened after some years of floundering, there are continuing
concerns related to accountability and informal sector coverage and compliance.
Informal sector workers, who comprise a significant percentage of the labor force,
continue to be underrepresented in its membership roster. For workers of this sector
who are already members, there is the critical issue of non-remittance of monthly
contributions. Those under voluntary coverage but are just as vulnerable, such as
overseas Filipino workers (OFWs) and non-working spouses of SSS members, are likewise
underrepresented. The SSS, being a government-controlled financial institution, also has
not been immune to issues of politics, with a questionable appointment to its leadership,
and charges of proposals forwarded to use funds for programs not specified in its
Charter.
Introduction
The Philippine Social Security Act of 1954 (or the Social Security Law) was
implemented in 1957 with the founding of the Social Security System (SSS).
The
mandate of the SSS is to provide meaningful protection to private sector workers and
their families against the real life contingencies of old age, disability, death, sickness,
maternity and employment injury.
(Public sector workers are covered by the
Government Service Insurance System or GSIS.) This mandate is based on Section 2 of
the Social Security Law (Republic Act No. 1161), as amended by the Social Security Act
of 1997 (Republic Act No. 8282), to wit:
It is the policy of the State to establish, develop, promote, and perfect a sound and
viable tax-exempt social security system suitable to the needs of the people throughout
the Philippines which shall promote social justice and provide meaningful protection to
the members and their beneficiaries against hazards of disability, sickness, maternity,
old age, death and other contingencies resulting in loss of income or financial burden.
Towards this end, the State shall endeavour to extend social security protection to
workers and their beneficiaries.
With the implementation of the Social Security Law, the government adopted the
social insurance approach to social security, covering the employed segment of the labor
force in the private sector. (SSS Primer) RA 7655 (1993), An Act Increasing the Minimum
Wage of Househelpers extended compulsory social security coverage to household
helpers earning at least P1,000 a month. RA 8282, The Social Security Act of 1997
expanded compulsory coverage to include self-employed workers, agricultural workers
who are not paid any regular daily wage or who do not work an uninterrupted period of
at least six months, household helpers, parents employed by children, and minors
employed by parents. They are compulsorily covered under the new Social Security Law
and eligible for the benefits covered under various SSS programs.

Under the law, the employer is obliged to deduct from the employees their monthly
contributions, pay his/her share of contributions and remit these to the SSS. Selfemployed /voluntary members pay their own monthly contributions.

The Philippine Social Security System is a social insurance program for workers in
the Philippines. It is a government agency that provides retirement and health benefits
to all enrolled employees in the Philippines. SSS began in 1957. Members of the SSS can
also make 'salary' or 'calamity' loans. Salary loans depend on the monthly salary of the
employee. Calamity loans are for such times when there is a calamity that has been so
declared by the government, in the area where the SSS member lives, such as flooding,
earthquake and natural disasters.
Employees of the Philippine National Government do not contribute to SSS but
rather have their own system, the Government Service Insurance System or GSIS.

THE SSS MANDATE

DECLARATION OF POLICY
"It is the policy of the State to establish, develop,
promote and perfect a sound and viable tax-exempt
social security system suitable to the needs of the people
throughout the Philippines which shall promote social
justice and provide meaningful protection to members
and their families against the hazards of disability,
sickness, maternity, old age, death and other
contingencies resulting in loss of income or financial
burden. Toward this end, the State shall endeavor to
extend social security protection to workers and their
beneficiaries." (Section 2, RA 8282)
STATEMENT OF MISSION
To manage a sound and viable social security
system which shall promote social justice and provide
meaningful protection to members and their families
against the hazards of disability, sickness, maternity, old age, death and other
contingencies resulting in loss of income or financial burden.
STATEMENT OF VISION
A viable social security institution providing universal and equitable social
protection through world-class service.
STATEMENT OF CORPORATE VALUES
The SSS aims to institutionalize a corporate culture that instills the core values of
trust, empowerment and teamwork.
As a worker in the private sector, a self-employed or a voluntary member or as an
Overseas Filipino Worker, you can be assured of social protection. SSS is committed to
provide you and your beneficiaries with prompt, convenient, reliable and meaningful
social protection services now and in the future so that you shall receive the benefits due
in times of death, disability, old-age, sickness and maternity.

The Social Security Commission

Chairman:

JUAN B. SANTOS

Vice Chairman:

EMILIO S. DE QUIROS, JR.

Ex- Officio as Secretary of

Labor:

ROSALINDA D. BALDOZ

Members:

DIANA B. PARDO-AGUILAR
DANIEL L. EDRALIN
MARIANITA O. MENDOZA
ELIZA BETTINA R.
ANTONINO
IBARRA A. MALONZO
BIENVENIDO R. LAGUESMA

How do I apply for a Social Security System ID in the Philippines?

1. Get an SSS Number: E-1 Form and Required Documents
A person registering with the SSS for the first time as a prospective employee first
needs to fill out an E-1, or Personal Record form. Submit it to your regional SSS office
together with the original certified true copy and photocopy of any of the following:
Baptismal Certificate
Driver's license
Passport
Professional Regulation Commission (PRC) card
Seafarer's Identification and Record Book, or Seaman's book
In the absence of any of the above documents, you may present 2 of any of the
documents listed below, that include a recent photograph and your date of birth:
Alien Certificate of Registration
ATM card with cardholder's name
ATM card and, if it does not bear cardholder's name, certification from the
issuing bank that the account number belongs to the cardholder
Bank Account Passbook
Birth/Baptismal Certificate of children.
Certificate from the Office of the Northern/Southern Cultural Communities or
Office of Muslim Affairs
Certificate of Naturalization issued by the Bureau of Immigration
Company ID
Company Representative Authorization Card issued by the SSS
Credit Card
Fishermen's Card issued by the Bureau of Fisheries & Aquatic Resources
GSIS Card
GSIS Certificate of Membership
Health or Medical Card
ID card issued by local governments (e.g. Barangay, Municipality, or City)
ID card issued by professional associations recognized by PRC
Life insurance policy
Marriage contract
NBI Clearance
Overseas Workers Welfare Administration (OWWA) Card
Pag-Ibig Member's Data Form
Permit to Carry Firearms issued by the Firearms & Explosives Unit of the
Philippine National Police
PHIC Member's Data Record

Police Clearance
Postal ID Card
School ID
Senior Citizen Card
Tax Identification Card/Affidavit
Transcript of school records
Voter's Identification Card/Affidavit

Once you have an SSS Number, and have contributed into the system for one
month, you may apply for an SSS ID card.
2. Documents Needed to Submit an E-6 Form
In order to get an SSS ID, you must be active SSS member with at least one
month's contribution.
Fill out an E-6 form and submit it at your local SSS branch, along with any of the
following primary documents:
Passport
Professional Regulation Commission (PRC) card
Seaman's book
Or, in the absence of those, two of the following, at least one of which must have a
recent photograph:
Driver's license
Valid National Bureau of Investigation clearance
School or company ID
Postal ID
Senior citizen card
Voter's ID
Savings account passbook
Alien certificate of registration
Government Service Insurance System member's record
Certification from the Office of Souther/Northern Cultural Communities or
Office of Muslim Affairs
Taxpayer Identification Number (TIN) card
Always remember to bring the original copies of documents and IDs at all times.
The office won't require you to submit the original copies, but they need to see
them in order to authenticate the photocopies and verify that they are identical.
Get to the SSS branch office as early as possible. If you arrive at 6a.m. you'll
probably finish at 10a.m. At the office, get a number from the clerk responsible for
giving away the E-6 Form.
3. Obtain an ID Clearance and Capture
ID Clearance is a small paper that will indicate your schedule for ID capture. You
can't finish the whole process in one day. You need at least 2-3 days to complete
the steps because after you submit the E-6 form, ID capture is always scheduled
for a time in the few days following.
Again, be prompt arriving at the SSS office. If you are early you'll be in the front of
the queue. When you arrive, you will need to get another number from the
designated officer or guard for you ID Capture. Every ID capture batch has 20

people, regardless of your schedule. If you are scheduled for 7:00a.m., and you
arrived at 7:30a.m., and the next people on queue aren't scheduled until 8:00a.m.,
you'll still be left behind. They operate on the first come first serve basis.
The ID capture process only takes a few minutes. SSS Clerks will immediately
obtain your personal data (fingerprints, signature, facial images, and 4-digit pin
number).
4. Wait for Your SSS ID Card to Arrive by Mail
After your ID capture, you will have to wait for 30 days to receive your SSS ID by
mail. If you fail to receive the ID after 30 days, inquire to your nearest SSS Branch
Office and have your 4-digit PIN Number on hand.
There are two types of coverage under the SS Program:
1. Compulsory Coverage
o Employers
1. An employer, or any person who uses the services of another person
in business, trade, industry or any undertaking. A social, civic,
professional, charitable and other non-profit organization which hire
the services of employees are considered "employers."
2. A foreign government, international organization or its wholly-owned
instrumentality such as embassy in the Philippines, may enter into an
administrative agreement with the SSS for the coverage of its Filipino
employees.
o

Employees
1. A private sector employee, whether permanent, temporary or
provisional, who is not over 60 years old.
2. A household-helper earning at least P1,000 a month is compulsorily
covered starting Sept. 1, 1993. A household-helper is any person
who renders domestic or household services exclusively to a
household employer such as maid, gardener, cook, governess, and
other similar occupations, who is not a member of the family of the
household employer (HR) or his/her spouse.
3. A Filipino seafarer upon actual deployment by the manning agency
which, together with the foreign ship owner, act as employers.
4. An employee of a foreign government, international organization or
their wholly-owned instrumentality based in the Philippines, which
entered into an administrative agreement with the SSS for the
coverage of its Filipino workers.

Self-Employed Persons - A self-employed person, regardless of trade,

business or occupation, with an income of at least P1,000 a month and not
over 60 years old, should register with the SSS. Included, but not limited to
the following are self-employed persons:
1. Self-employed professionals;
2. Partners, single proprietors of businesses and board directors of
corporations duly registered with appropriate government agencies;
3. Actors, actresses, directors, scriptwriters and news correspondents
who do not fall within the definition of the term "employee;"
4. Professional athletes, coaches, trainers and jockeys;
5. Farmers and fisher folks; and

6. Workers in the informal sector such as market and ambulant vendors,

public utility transport drivers, tourism industry-related workers, and
others similarly situated.

2. Voluntary Coverage
o Separated Members
1. A member who is separated from employment or ceased to be a selfemployed/overseas Filipino worker/non-working spouse may opt to
become a Voluntary Member and continue paying SSS contributions
on his/her own account.
o

Overseas Filipino Workers (OFWs)

1. A Filipino recruited in the Philippines by a foreign-based employer for
employment abroad; having a source of income in a foreign country;
and permanent resident in a foreign country.

Non-Working Spouse of SSS Members

1. A person legally married to a currently employed and actively paying
SSS member who devotes full time in the management of household
and family affairs may be covered on a voluntary basis as a NonWorking Spouse, provided there is the approval of the working
spouse. The Non-Working Spouse should have never been a member
of the SSS and his/her contributions shall be based on 50 percent of
the working spouse's last posted monthly salary credit, but in no case
shall it be lower than P1,000.

Schedule of Contribution

Rate of Contributions to SSS

The monthly contributions are based on the compensation of members. The
current SSS contribution rate is 11% of the monthly salary credit not exceeding P16,000
and this is being shared by the employer (7.37%) and the employee (3.63%). Selfemployed and voluntary members pay the 11% of the monthly salary credit (MSC) based
on the monthly earnings declared at the time of registration. For OFWs, the minimum
monthly salary credit is pegged at P5, 000. For the non-working spouse, the 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 P1, 000.
Due Dates of Contributions

For Employed members

It is important that you are aware of the payment deadlines for contributions and
member loans in order to avoid incurring penalties. If you are an employee-member,
your employer must pay your contributions and member loans monthly in accordance
with the prescribed schedule of payment which is according to the 10th digit of the
Employer's ID Number. Late payments will result to penalties and delays in the
processing of your benefits and loans. The frequency of payment is on a monthly basis
for business and household employers.
For Self-employed and Voluntary members
If you are a self-employed or a voluntary member, the prescribed schedule of
payment is also being followed, (depending on the 10th (last digit) of the SE/VM SS
number). However, the frequency of contribution payments for self-employed or a
voluntary member can be on a monthly or quarterly basis. A quarter covers three (3)
consecutive calendar months ending on the last day of March, June, September and
December. Any payment for one, two or all months for a calendar quarter may be made.
For OFWs

Payment of contributions for the months of January to December of a given year

may be paid within the same year; contributions for the months of October to December
of a given year may also be paid on or before the 31st of January of the succeeding year.
Due Dates of Loan Payments
For member loans, payment should be made monthly in accordance with the
prescribed schedule of payment which is according to the 10th digit of the SS ID/Number.

Benefits
Covered employees are entitled to a package of benefits under the Social
Security and Employees' Compensation (EC) Programs in the event of death,
disability, sickness, maternity and old age. Self-employed and voluntary members also
get the same benefits as covered employees, except those benefits under the EC
program.
Basically, the SSS provides for a replacement of income lost on account of the
aforementioned contingencies. The benefits under the Social Security Program are:
o

Sickness
The sickness benefit is a daily cash allowance paid for the number of
days a member is unable to work due to sickness or injury.
Maternity
The maternity benefit is a daily cash allowance granted to a female
member who was unable to work due to childbirth or miscarriage.
Disability
Adopting the World Health Organization's (WHO) definition, disability
is any "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". The redesigned SSS Disability Benefit
program adopts the International Classification of Diseases and
Related Health Problems codes and takes into account the medical
management of illnesses and injuries and their corresponding
impairment ratings.
Retirement
The retirement benefit is a cash benefit either in monthly pension or
lump sum paid to a member who can no longer work due to old age.
Death
It is a cash benefit either in monthly pension or lump sum paid to the
beneficiaries of a deceased member. The primary beneficiaries are
the legitimate dependent spouse until the person remarries, and the
member's dependent legitimate, legitimated, or legally adopted, and
illegitimate children who are not yet 21 years old. In the absence of
primary beneficiaries, the dependent parents shall be the secondary
beneficiaries. In their absence, any other person designated by the
member as beneficiary in the member's record.
Funeral
It is a cash benefit given to whoever pays the burial expenses of the
deceased member or pensioner.

Retirement Benefits
There are two types of retirement benefit:
Monthly pension - a lifetime cash benefit paid to a retiree who has paid at least
120 monthly contributions to the SSS prior to the semester of retirement.
Lump sum amount - granted to a retiree who has not paid the required 120
monthly contributions. It is equal to the total contributions paid by the member
and by the employer including interest.
Monthly Pension
Benefit Computation
The monthly pension depends on the member's paid contributions, his
credited years of service (CYS), and the number of his dependent minor
children that must not exceed five. The monthly pension will be the highest
amount resulting from either one of these three pension formulae:
1. the sum of P300 plus 20 percent of the average monthly salary credit
plus two percent of the average monthly salary credit for each credited
year of service (CYS) in excess of ten years; or
2. forty (40) percent of the average monthly salary credit; or
3. P1,200, if the CYS is at least 10 but less than 20; or P2,400, if the CYS is
20 or more.
The monthly pension is paid for not less than 60 months.
A member who retires after age 60 with a total of 120 monthly contributions
may be qualified to a monthly pension based on whichever is higher of the
following:
The monthly pension computed at the earliest time the member could
have retired had been separated from employment or ceased to be selfemployed plus all adjustments thereto; or
The monthly pension computed at the time when the member actually
retires.
A pensioner who retires more than once shall be entitled to the higher of:
the monthly pension computed for the first retirement claim; or
the re-computed monthly pension for the new claim

Dependents Allowance
1. The legitimate, legitimated or legally adopted, and illegitimate
children, conceived on or before the date of retirement of a retiree
will each receive dependents' allowance equivalent to 10 percent
of the member's monthly pension, or P250, whichever is higher.
2. Only five minor children, beginning from the youngest, are
entitled to the dependents' allowance. No substitution is allowed.
3. If there are more than five dependents, the legitimate, legitimated
or legally adopted children shall be preferred.

The dependents' allowance stops when the child reaches 21 years old, gets
married, gets employed, or dies. However, the dependents' allowance is
granted for life for children who are over 21 years old, if they are incapacitated
and incapable of self-support due to physical or mental defect that is
congenital or acquired during minority.

Benefit Payment
The retiree-member has the option to receive the first 18 months' pension
paid out in lump sum, but discounted at a preferential rate of interest to be
determined by the SSS. The member shall start receiving his pension on the
19th month, and every month thereafter. This option for advance payment
shall be exercised only when filing the first retirement claim. It is only the
advanced pension payments that are discounted on the date of payment; the
dependent's allowance and 13th month pension are excluded from the
advanced 18-month pension amount. The monthly pension is paid thru the
member's designated bank thru which he wishes to receive his pension
benefits under the "Mag-Impok sa Bangko" program. This became mandatory
effective September 1,1993.
Upon approval of the claim, the SSS will send the member a notice voucher
indicating when to withdraw the benefit from the bank.

Other Benefits
1. The retiree is entitled to a 13th month pension payable every
December.
2. All retiree pensioners prior to the effectivity of RA 7875 on March 4,
1995 are automatically considered members of PhilHealth and, along
with their legal dependents, are entitled to PhilHealth hospitalization
benefits. On the other hand, retirees effective March 4,1995 up to the
present will be entitled to PhilHealth hospitalization benefits only if
they have contributed 120 monthly Philhealth/Medicare contributions.
The counting of 120 monthly contributions shall start in 1972, when
the Medical Care Act of 1969 started implementation.
A copy of the DDR print-out indicating the type of claim is retirement
in nature and the effectivity date of the pension, or in its absence, a
copy of retiree-pensioner certification issued by SSS shall be
required. They need to register under Philhealth for the issuance of a
Philhealth ID card for non-paying members.

Coverage Expansion
1. AlkanSSSya Program. As part of our drive to bring social security protection to more
informal sector workers, the SSS launched in early 2012 the AlkanSSSya a
microsavings program that offers convenient collection and remittance of contributions
and ensures access to affordable social protection. By the end of 2012, we had signed up
49 informal sector groups, representing over 11,000 potential members, to register as
self-employed members under the AlkanSSSya program.
2. Member-Get-Member promo. The Member-Get-Member (MGM) promo for OFWs,
which ran from January to June 2012, aimed to encourage OFWs to spread the good news
of affordable social security protection by encouraging their fellow OFWs to become or to
resume being actively contributing SSS members. A total of 6,249 OFWs joined the MGM
promotion, of whom 3,453 were nominees and 2,796 were nominators. During the six
month run of the Promo, we awarded 54 winners during the monthly draws, and 16
winners in the Grand Draw held on September 7, 2013.
3. New Foreign Offices. To reach more overseas-based Filipinos, the SSS opened two
new foreign offices in 2012 one in Dubai and another in Kuala Lumpur, Malaysia. We
also detailed more personnel to man our foreign offices, and others to serve as roving
foreign officers so that they could cover a wider area in their countries of responsibility,

while keeping our foreign offices always manned. To ensure the equal social protection of
OFWs and Filipinos living and working aboard, we sealed two new bilateral social security
agreements (SSAs) in 2012: first with Denmark, then with Portugal. By yearend,
negotiations also started for bilateral SSAs with Japan and Sweden.
4. Stakeholders Meetings. To bring SSS closer to our stakeholders, particularly those
in the provinces, and to gather direct feedback from them, SSS conducted Stakeholders
Meetings in seven areas in 2012. These were held in Tuguegarao, Laoag and Vigan,
General Santos, Iloilo, Olongapo and Bataan.

Sources:
https://www.sss.gov.ph/sss/