Social Security System Law (R.A. No. 11199): Coverage and Exclusions

The Social Security Act of 2018 (Republic Act No. 11199) establishes the comprehensive framework governing the Social Security System (SSS) in the Philippines. This law aims to provide social security protection to Filipino workers and their beneficiaries, covering contingencies such as sickness, maternity, disability, retirement, death, and other unforeseen economic risks.

Coverage

The SSS law ensures coverage for both mandatory and voluntary members, categorized as follows:

A. Mandatory Coverage

Private Sector Employees
- All employees not over 60 years old, including:
  - Workers engaged in commerce, industry, or services.
  - Employees on probationary, regular, or fixed-term status.
- Coverage starts upon hiring, regardless of employment duration or nature of the job.
Self-Employed Individuals
- Individuals earning income through their labor, business, or practice of profession.
- Examples:
  - Freelancers.
  - Business owners.
  - Independent contractors.
- Coverage is mandatory for self-employed persons whose income is not less than ₱1,000 per month.
Household Helpers (Kasambahays)
- Domestic workers earning at least ₱1,000 per month.
- The employer is required to register the helper and remit contributions.
Overseas Filipino Workers (OFWs)
- OFWs up to 60 years old.
- Compulsory for land-based and sea-based workers under the jurisdiction of Philippine agencies.
Persons in the Informal Economy
- Workers in non-traditional employment arrangements or with no formal employer-employee relationship but earning at least ₱1,000 per month.
- Examples:
  - Market vendors.
  - Public utility vehicle drivers.
Government and Private Sector Dual Employees
- Employees who work both in government (covered by GSIS) and the private sector (covered by SSS) are subject to dual coverage for their private employment.

B. Voluntary Coverage

Separated Members
- Former employees who wish to continue paying contributions to maintain eligibility for benefits.
Voluntary OFWs
- OFWs who choose to continue their coverage after becoming permanent residents in other countries.
Non-Working Spouses
- Legal spouses of SSS members who are not earning but are dependent on their partner’s income, provided they pay contributions based on the working spouse’s last monthly salary credit.
Filipino Permanent Residents or Naturalized Citizens Abroad
- Formerly covered individuals who wish to continue contributing as voluntary members.

C. Expanded Compulsory Coverage

Under R.A. No. 11199, the law also expanded the coverage to include:

Kasambahays with less than ₱1,000 monthly income.
OFWs regardless of monthly income level.

Exclusions

The following individuals or groups are excluded from SSS coverage:

Government Employees
- Government personnel covered by the Government Service Insurance System (GSIS), including:
  - Permanent government employees.
  - Military and police personnel.
Foreign Nationals
- Foreign nationals employed in the Philippines but who are:
  - Covered under their home country’s social security system.
  - Protected by bilateral or multilateral agreements.
Non-Working Individuals Below Income Threshold
- Individuals with no declared income or below ₱1,000 monthly income are generally not mandatorily covered unless voluntarily enrolled.
Employees Aged 60 and Above
- Workers over 60 years old who are already receiving retirement pensions are excluded from SSS coverage.

Important Provisions

Universal Coverage
- The law adopts a framework of universal coverage, seeking to include all Filipinos under social security protections eventually.
- It imposes obligations on employers, employees, and self-employed individuals to comply with registration and contribution requirements.
Employer Obligations
- Employers are mandated to:
  - Register their employees with the SSS.
  - Deduct and remit monthly contributions on behalf of employees.
Contributions
- Contributions are based on the prevailing schedule of monthly salary credits and are shared between the employer and the employee (for employed individuals) or solely borne by the self-employed or voluntary member.

Penalties for Non-Compliance

Employers who fail to register their employees or remit contributions may face penalties, including:
- Fines.
- Imprisonment.
- Payment of delinquent contributions with interest.

Conclusion

R.A. No. 11199 aims to provide robust social protection for Filipinos through inclusive coverage and comprehensive benefit packages. Employers, employees, self-employed individuals, and other stakeholders must comply with the law to ensure the security and well-being of the workforce and their families.