Social Security System Law (RA No. 11199): Benefits Overview

Republic Act No. 11199, also known as the Social Security Act of 2018, governs the Social Security System (SSS) in the Philippines. This law consolidates provisions on social security benefits to ensure better coverage and protection for workers and their dependents. Here is an exhaustive discussion of the benefits under the SSS as provided by the law:

1. Overview of Benefits

The SSS provides members and their beneficiaries with protection against the following contingencies:

Sickness
Maternity
Disability
Unemployment
Retirement
Death
Funeral expenses

Each benefit is subject to eligibility requirements, computation based on contributions, and specific conditions as prescribed by law.

2. Types of Benefits

a. Sickness Benefit

Eligibility:
- The member must have at least three (3) months of contributions within the 12-month period immediately preceding the semester of sickness.
- The member must be unable to work due to sickness or injury.
- All leave credits must be used up.
Amount:
- Daily cash allowance equivalent to 90% of the member's average daily salary credit (ADSC).
- Payable for a maximum of 120 days in one calendar year.
Filing Period:
- Must be filed within 60 days from the start of illness.

b. Maternity Benefit

Eligibility:
- Female members with at least three (3) months of contributions within the 12-month period preceding the semester of childbirth or miscarriage.
Amount:
- Cash allowance equivalent to 100% of ADSC.
- Duration:
  - 105 days for live childbirth (additional 15 days for solo parents).
  - 60 days for miscarriage or emergency termination of pregnancy.
Additional Notes:
- The benefit is now available for all covered female members regardless of civil status.

c. Disability Benefit

Eligibility:
- Member must be unable to perform work due to permanent total or partial disability.
- At least one (1) monthly contribution before the semester of disability.
Types:
- Partial Disability: For specific loss of body functions or parts.
- Total Disability: For conditions such as complete loss of eyesight or severe impairments.
Amount:
- Monthly pension or lump-sum payment based on number and amount of contributions.
- Monthly pension includes an additional allowance of PHP 500.

d. Unemployment Benefit

Eligibility:
- Must have paid at least 36 monthly contributions, 12 of which should be within the 18 months before the involuntary separation.
- Must not be over 60 years of age.
Amount:
- Cash benefit equivalent to 50% of the member's ADSC.
- Payable for a maximum of two (2) months.
Conditions:
- Applicable only for involuntary separation (e.g., retrenchment, redundancy).

e. Retirement Benefit

Eligibility:
- At least 120 monthly contributions.
- Member is 60 years old (optional retirement) and separated from employment or self-employed.
- Compulsory retirement age is 65 years.
Types:
- Monthly Pension: Payable for life for qualified retirees.
- Lump-Sum Payment: Equivalent to the total contributions paid plus interest, granted if the member has less than 120 contributions.
Additional Notes:
- A retiree receiving a monthly pension is entitled to a 13th-month pension every December.
- Dependents’ pension is also provided for qualified beneficiaries.

f. Death Benefit

Eligibility:
- At least one (1) monthly contribution before the semester of death.
Types:
- Monthly Pension: For primary beneficiaries (spouse and dependent children).
- Lump-Sum Payment: For secondary beneficiaries if there are no primary beneficiaries.
Amount:
- Computed based on the contributions and credited years of service.
- Includes a PHP 500 monthly allowance.

g. Funeral Benefit

Amount:
- Lump-sum cash benefit ranging from PHP 20,000 to PHP 40,000, depending on the number of contributions.
Eligibility:
- Payable to whoever paid for the funeral expenses.

3. General Provisions on Benefit Computation

Average Daily Salary Credit (ADSC):
- Computed by dividing the total salary credits for the last 60 months by the number of days in that period.
Monthly Pension Computation:
- Formula considers credited years of service (CYS) and ADSC.
Credited Years of Service (CYS):
- Based on the total number of contributions divided by 12.

4. Supplemental Allowances

Additional monthly allowances:
- PHP 500 for disability and death pensioners.
- 13th-month pension for retirement and death pensioners.

5. Filing and Processing of Claims

Claims must be filed within the prescriptive periods set by the SSS.
Online filing options are now available via the SSS website or mobile app.
Members should ensure complete documentation for faster processing.

6. Funding and Sustainability

Contributions from employees, employers, self-employed individuals, and voluntary members finance these benefits.
RA No. 11199 provides for contribution increases and adjustments to ensure fund viability and expanded coverage.

7. Recent Amendments and Key Provisions

Universal access to maternity benefits.
Introduction of unemployment insurance.
Gradual increase in contribution rates (current at 14%, increasing incrementally to 15% by 2025).
Expanded coverage for overseas Filipino workers (OFWs).

Understanding and availing SSS benefits require timely compliance with contribution requirements and adherence to filing procedures. The Social Security Act of 2018 aims to provide equitable and adequate social protection to all covered members.