III.

Discussions

II. Topics
• RA 8282
• Coverage
• Membership
I. Overview • Benefits
of SSS • Settlement of Disputes
I. Overview
A. SSS and YOU (a video presentation)

Concept
“The Social Security Program provides a
package of benefits in the event of death,
disability, sickness, maternity, and old age.
Basically, the Social Security System (SSS)
provides for a replacement of income lost on
account of the aforementioned contingencies.”
A. RA 8282
 B. Coverage

I. COMPULSORY COVERAGE
1. Coverage of Employees
a. A private employee
b. A household-helper
c. A Filipino seafarer
d. An employee of a foreign government, international
organization of their wholly-owned instrumentality based in
the Phils., which entered into an administrative agreement
with SSS for the coverage of its Filipino workers
e. The parent, spouse or child below 21 years old of the
owner of a single proprietorship business
B. Coverage

2. Coverage of Employers
a. Any person who uses the services of another
person in business, trade, industry or any undertaking.

b. A foreign government, international organization

such as embassy in the Philippines, may enter into
Administrative agreement with the SSS for coverage
for the coverage of its Filipino employees.
 B. Coverage

3. Coverage of Self-employed Persons

a. Self-employed professionals
b. Business partners, single proprietors
c. Actors, actresses, directors, scriptwriters and news
reporters are not under an employer-employee
relationship.
d. Professional athletes, coaches, trainers, and
jockeys
e. Farmers and fisherfolks
f. Workers in the informal sector such as cigarette
vendors, watch-your-car boys, hospitality girls, among
others.
 B. Coverage

Who are covered under the SSS?

II. VOLUNTARY COVERAGE
1. Separated Members
2. Overseas Filipino Workers (OFWs)
3. Non-working Spouse of SSS members

Effectivity of Compulsory Coverage

1. For an employee - on the first day of employment

2. For an employer - on the first day the employer hires employee/s
3. For self-employed persons – upon payment of the first valid
contribution, in case of initial coverage
C. Membership

 Employee - SSS Form E-1(Personal Data  Self-employed Members - SSS Form RS-
Record) 1(Self-employed Date Record)

 For Employers  Non-working Spouse - NW-1(duly signed

Single Proprietorships - SSS Form R- by the spouse with MC)
1(Employer Registration) and R1-
A(Employment Report) /E-1  Overseas Filipino Workers (OFWs) - OW-1

Partnerships - SSS Form R-1/R1-A/E-  Changes in member’s records - SSS Form

1/Articles of Partnership E-4

Corporations - R-1/R1-A/E-1/Articles of Note: The original or certified true copies of

Incorporation the documents should be presented to
The SSS for authentication purposes.
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%).

Self-employed 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.
How to Read the SSS Monthly Contribution Table:

Step 1. Under the “Range of Compensation” column, look for the row where your gross or
basic monthly salary falls under.

Step 2. The amount of the EmployER share and EmployEE share can be seen in the “Total
Contribution” columns. The Employer pays the amount in the “Total Contribution – ER” column,
while the Employee pays the amount in the “Total Contribution – EE” column. The amount to be
remitted to SSS by the employer is in the “Total Contribution – Total” column.

Step 3. Take note, however, that as per the SSS Citizen’s Charter, “compensation” refers to
“actual remuneration for employment, including the mandated cost of living allowance, as well
as the cash value of any remuneration paid in any medium other than cash except that part of
the remuneration received during the month in excess of the maximum salary credit as provided
under Section 18 of the SS Law.”

Step 4. If you’re Self-Employed (SE), Voluntary Member (VM), or Overseas Filipino Worker
(OFW), the only relevant column is the “SE/VM/OFW Total Contribution” column.
Due Dates of Contributions
Sample Computations: SSS Contributions

Example 1: Regular Employee earning P18,000 monthly salary

Mr. Suave works as a BPO call center agent in the Philippines. His gross
monthly compensation is P18,000. How much will be deducted from his
salary as SSS contribution (EE Share)? How much is the Employer share
(ER Share)? How much will the employer remit in total to SSS?

Answer:

SSS
RANGE OF MONTHLY SALARY
ER SHARE EE SHARE CONTRIBUTION TO
COMPENSATION CREDIT
BE REMITTED

P15,750 - over P16,000 P1,208.70 P581.30 P1,790.00

Sample Computations: SSS Contributions

Example 2: Regular Employee with Overtime Pay and Late Deductions

Ms. Minchin is a bank teller receiving P15,000 per month. She received an
overtime pay for the month amounting to P1,000 but she was late several
times and was penalized late deduction of P500. How much will be
remitted to SSS?

Answer:

SSS
RANGE OF MONTHLY SALARY
ER SHARE EE SHARE CONTRIBUTION TO
COMPENSATION CREDIT
BE REMITTED

P15,250 - P15,500 P1,171.80 P563.20 P1,735.00

P15,749.99
Sample Computations: SSS Contributions

Example 3: OFW earning P50,000 per month

Mr. Seaman works as an OFW receiving gross compensation amounting

to P50,000 per month. How much will he pay as SSS contribution?

Answer:

SSS
RANGE OF MONTHLY SALARY
ER SHARE EE SHARE CONTRIBUTION TO
COMPENSATION CREDIT
BE REMITTED

P15,750 - over P16,000 P1,760.00 P15,750 - over P16,000

D. Benefits

 Sickness benefit?
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.

 What is the maternity benefit?

The maternity benefit is a daily cash
allowance granted to a female member who
was unable to work due to childbirth or
miscarriage.
How to compute the SSS Maternity
5. Divide the total monthly salary credit by 180
Benefit? days to get the average daily salary credit.

1. Exclude the semester of contingency 6. Multiply the daily maternity allowance by 60

(delivery or miscarriage)
2. Count 12 months backwards starting from
the month immediately before the semester of
contingency.
(for normal delivery or miscarriage) or 78 days
(for Caesarean Section delivery) to get the total
amount of maternity benefit.

3. Identify the 6 highest monthly salary credits

within the 12-month period.

4. Add the 6 highest monthly salary credits to

get the total monthly salary credit.
Sample Computations: SSS Contributions

Illustration:

Elsa is an employed SSS member and her expected delivery date is

September 1, 2017. How much will Elsa get from her SSS Maternity
Benefit?

Answer:
Sample Computations: SSS Contributions

Total MSC = P16,000 x 6 = P96,000 (OR)

Total MSC = P16,000 + P16,000 + P16,000 + P16,000 + P16,000 + P16,000 = P96,000
To get the Average Daily Salary Credit, divide the total MSC by 180 days (constant):
Daily Salary Credit = P96,000 / 180 days = P533.33

If Elsa delivers her child normally, multiply the daily salary credit by 60 days:

SSS Maternity Benefit (Normal Delivery) = P533.33 x 60 days = P32,000

If Elsa delivers her child via Caesarian Section, multiply the daily salary credit by
78 days:

SSS Maternity Benefit (CS Delivery) = P533.33 x 78 days = P41,600

D. Benefits

 Sickness benefit is a 90% replacement of lost earning

and is compensable on to an employee with at least
minimum of 4 days confinement either at home or in
the hospital
 Maternity benefit 100% of the ave. daily salary credit
paid to female employee for the first 4
deliveries/abortion/miscarriage
 60 days for normal & 78 days for ceasarean delivery
How to compute the SSS Sickness Benefit?
1. Exclude the semester of sickness.
 A semester refers to two consecutive
quarters ending in the quarter of sickness.
 A quarter refers to three consecutive
months ending March, June, September
or December.
4. Add the six highest monthly salary credits to
get the total monthly salary credit.
5. Divide the total monthly salary credits by 180
days to get the average daily salary credit.
6. Multiply the average daily salary credit by 90
percent to get the daily sickness allowance.

2. Count 12 months backwards starting from the 7. Multiply the daily sickness allowance by
month immediately before the semester of approved number of days to arrive at the
sickness. amount of benefit due

3. Identify the six highest monthly salary credits

within the 12-month period. Monthly salary
credit salary credit means the compensation
base for contributions and benefits related to
the total earnings for the month.
Sample Computations: SSS Sickness
An SSS member gets sick or injured in October 2018 for 20 days. How
much will he receive from SSS Sickness benefits?

a. The semester of sickness would be from July 2018 to December 2018

b. The 12-month period would be from July 2017 to June 2018 within
which the six highest monthly salary credits will be chosen.
c. Let us assume that the six highest monthly salary credits are P15, 000
each.
d. The total monthly credit could be P93, 000 (P15, 500 x 6).
f. The total monthly salary credit would be divided by 180 to get the
average daily salary credit of P516.67 (P93,000/180).
g. The daily sickness allowance is 90 percent of the of the average daily
salary credit or P516.67 (P516.67 x 90%).
h. The sickness benefit due is P10,333.33 (P516.67x 20 days).
How to compute the SSS Pension Benefit?
1. Exclude the semester of sickness.
 A semester refers to two consecutive
quarters ending in the quarter of sickness.
 A quarter refers to three consecutive
months ending March, June, September
or December.
4. Add the six highest monthly salary credits to
get the total monthly salary credit.
5. Divide the total monthly salary credits by 180
days to get the average daily salary credit.
6. Multiply the average daily salary credit by 90
percent to get the daily sickness allowance.

2. Count 12 months backwards starting from the 7. Multiply the daily sickness allowance by
month immediately before the semester of approved number of days to arrive at the
sickness. amount of benefit due

3. Identify the six highest monthly salary credits

within the 12-month period. Monthly salary
credit salary credit means the compensation
base for contributions and benefits related to
the total earnings for the month.
Sample Computations: SSS Sickness
An SSS member gets sick or injured in October 2018 for 20 days. How
much will he receive from SSS Sickness benefits?
a. The semester of sickness would be from July 2018 to December 2018

b. The 12-month period would be from July 2017 to June 2018 within which the six highest monthly salary
credits will be chosen.

c. Let us assume that the six highest monthly salary credits are P15, 000 each.

d. The total monthly credit would be P93, 000 (P15, 500 x 6).

f. The total monthly salary credit would be divided by 180 to get the average daily salary credit of P516.67
(P93,000/180).

g. The daily sickness allowance is 90 percent of the of the average daily salary credit or P516.67 (P516.67 x 90%).

h. The sickness benefit due is P10,333.33 (P516.67x 20 days).

D. Benefits

 What is a Retirement benefit?

 It is a cash benefit granted - either as a monthly pension or a
lump sum amount - to a member who can no longer work due to
old age.

 Who may qualify for a retirement benefit?

 A member who is 60 years old (optional retirement), separated
from employment or has ceased to be self-employed, and has
paid at least 120 monthly contributions prior to the semester of
retirement; or
 A member who is 65 years old (mandatory retirement), whether
employed or not, and has paid at least 120 monthly
contributions prior to the semester of retirement.
D. Benefits

 How much monthly pension will a retiree receive?

 The member is granted a monthly retirement pension,

if he/she has paid at least 120 monthly contributions
prior to the semester of retirement.

 If with less than 120 monthly contributions, he/she is

granted a lump sum amount.

 The lowest monthly pension is P1,200 if the member

has 120 monthly contribution or with at least 10
credited years of service (CYS); P2,400 if with at least
20 CYS.
D. Benefits

 Terminologies

Average Monthly Salary Credit (AMSC) is

computed based on the last 5 years of service.

Credited Years of Service (CYS) is the total number

of years your SSS contribution is paid.
3 Simple Formula to Compute Your Pension
Sample Computations: SSS Contributions

Example:

Mr. Wise started working at the age of 20 and he is planning to retire

when he reaches the age of 60. His salary for the last 5 years is ₱16,000.
Compute the amount of pension he will get when he retires?

Given:

CYS: 40 years (started working at 20 and plans to retire at 60)

AMSC: ₱ 16,000 (this is the maximum MSC regardless of his salary)
Sample Computations: SSS Pension
Sample Computations: SSS Pension

Average SSS Retirement Benefit

2012: ₱3,707
2013: ₱3,577
2014: ₱3,792
2015: ₱3,780
2016: ₱3,658
Sample Computations: SSS Pension
D. Benefits

•DEATH BENEFIT
 What is the death benefit?
 A cash benefit granted - either as a monthly pension or a lump
sum amount to the beneficiaries of a deceased member.

 Who may qualify for a death benefit?

The member has paid at least one monthly contribution.
35 mos. and below contributions – lump sum 36 mos. and above –
monthly pension
The TYPES OF DEATH BENEFITS are:

1) the monthly pension; and

2) the lump sum amount.

“The monthly pension is granted only to the primary beneficiaries of a

deceased member who had paid 36 monthly contributions before the semester
of death.”

“The lump sum 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.”
D. Benefits

•FUNERAL BENEFIT
 What is the funeral grant?
 A cash benefit given to whoever pays the burial expenses
of the deceased member or pensioner. (pensioner-refers to
retiree or partial/total disability pensioner)

How much is the amount of funeral benefit?

 The amount ranging from the minimum of P20,000 to a
maximum of P40,000 depending on the member’s paid
contributions and CYS.
•Death & Funeral

“The primary beneficiaries are the legitimate dependent

spouse until he or she remarries and legitimate,
legitimated, legally adopted or illegitimate dependent
children of the member. In the absence of primary
beneficiaries, the secondary beneficiaries are the
dependent parents of the member. In their absence, the
person designated by the member as beneficiary in
his/her member’s record will be the recipient.”
F. SALARY LOAN

All currently employed, currently contributing self-employed or voluntary member.

For a one-month loan, the member-borrower must have thirty six (36) posted monthly
contributions, six (6) of which should be within the last twelve (12) months prior to the
month of filing of application.
For a two-month loan, the member-borrower must have seventy two (72) posted
monthly contributions, six (6) of which should be within the last twelve (12) months
prior to the month of filing of application.

The member-borrower whose employer must be updated in the payment of contributions.

The member-borrower has not been granted final benefit, i.e., total permanent disability,
retirement and death

The member-borrower must be under sixty-five (65) years of age at the time of application

The member-borrower has not been disqualified due to fraud committed against the SSS.
Know Your Rights

As an SSS member, you’re protected by law against negligence or non-compliance of

your employer when it comes to paying SSS contributions.

The Social Security Act of 1997 (Republic Act 8282)

requires all employers in the Philippines to deduct the monthly SSS
contributions from their employees’ salaries, pay their share of contributions, and remit
these contributions to the SSS on time. Employers must also submit the monthly report
of their employees’ contributions to the nearest SSS office.

Employers who violate the Social Security Law will be fined PHP 5,000 to PHP 20,000 or
jailed for at least six years. They must also remit all unpaid SSS contributions in addition
to a 3% penalty each month, and pay the benefits of employees who die, become
disabled, get sick, or reach retirement age.
Thank you