Social Security Act of 2018

Summary

The Social Security Act of 2018 (RA 11199) builds on the original 1954 Social Security Act, expanding benefits and coverage over the decades. This legislation establishes a tax-exempt system protecting Filipinos from income loss due to sickness, disability, maternity, unemployment, old age, or death. It mandates compulsory coverage for employers, employees, self-employed, domestic workers, and overseas Filipino workers, while voluntary coverage is available for spouses managing households. The Act defines the responsibilities of employers and outlines various benefits, including maternity, sickness, disability, retirement, unemployment, and death benefits, ensuring social protection for members and their families.

Takeaways

• 📜 The Social Security Act of 2018, Republic Act No. 11199, builds on the Social Security Act of 1954, which was enacted on July 18, 1954, and implemented on September 1, 1957.
• 🔄 Over time, the law has undergone multiple amendments to expand coverage and increase benefits, including changes under Republic Acts 1792, 2658, 3839, 4482, and many others.
• 🌍 The Social Security System (SSS) covers employees, employers, self-employed individuals, and overseas Filipino workers (OFWs) under compulsory coverage, with specific exceptions like government employees and foreign diplomats.
• 👷‍♀️ Self-employed individuals and domestic helpers are also covered under the SSS, even if they do not have an employer-employee relationship.
• 📅 Coverage under the SSS starts on the first day of operation for employers, the first day of employment for employees, and upon registration for self-employed persons.
• 🛡️ The SSS provides various benefits, including maternity leave, sickness benefits, permanent partial or total disability, unemployment benefits, retirement benefits, death benefits, and funeral benefits.
• 👩‍⚕️ Maternity leave covers 105 days with full pay for childbirth (normal or cesarean) and 60 days with full pay for miscarriage or emergency termination of pregnancy.
• 🩺 Sickness benefits provide a daily cash allowance for up to 120 days in a calendar year, covering 90% of the average daily salary credit for eligible members.
• 🧓 Retirement benefits are available at age 60 for optional retirement or 65 for compulsory retirement, with a lifetime monthly pension if the member has made at least 120 monthly contributions.
• ⚖️ Employers are legally required to remit contributions within the first 10 days of each month, and penalties for non-remittance include a 2% monthly penalty, and the liability extends to the managing heads of corporations or institutions.

Q & A

What is the origin of the Social Security Act in the Philippines?

The Social Security Act in the Philippines originated on July 18, 1954, with the enactment of Republic Act No. 1161, known as the Social Security Act of 1954. However, it was not implemented until September 1, 1957.

What was the significance of Republic Act No. 1792?

Republic Act No. 1792 was the first amendment to the Social Security Act, which deleted provisions related to unemployment benefits.

How has the coverage of the Social Security System evolved over the years?

Initially, coverage was based on the existence of an employer-employee relationship, but it has since expanded to include self-employed individuals, such as professionals, business owners, actors, athletes, and overseas Filipino workers.

What is the compulsory coverage under the Social Security System?

Compulsory coverage includes all employers, employees under 60 years of age, domestic helpers, self-employed persons (e.g., professionals and business owners), and overseas Filipino workers.

What are the obligations of employers under the Social Security Act?

Employers are obligated to: 1) report their employees for coverage, 2) deduct employee contributions from monthly salaries, 3) pay their own contributions, and 4) remit the contributions within the first 10 days of each month.

What penalties apply to employers for failing to remit Social Security contributions?

Employers are liable for unremitted contributions, plus a 2% penalty per month. If an employee becomes sick, disabled, retires, or dies, the employer is liable for damages equivalent to the benefits the employee would have received.

What benefits does the Social Security System provide?

The Social Security System provides a range of benefits, including: 1) maternity leave, 2) sickness benefits, 3) permanent partial and total disability benefits, 4) unemployment benefits, 5) retirement benefits, 6) death benefits, and 7) funeral benefits.

What are the conditions for receiving the SSS maternity benefit?

To qualify for the maternity benefit, the member must have paid at least three monthly contributions in the 12-month period preceding childbirth, miscarriage, or emergency termination of pregnancy, and must notify their employer about the pregnancy.

How does the Social Security System handle permanent partial disability benefits?

Permanent partial disability benefits are provided for members who lose the use of certain body parts (e.g., fingers, hands, arms, legs, ears, or eyesight). The benefit depends on whether the member has paid at least 36 contributions.

Who qualifies for the SSS unemployment or involuntary separation benefit?

SSS members qualify for unemployment benefits if they have paid at least 36 contributions, with 12 months within the 18-month period before unemployment. The benefit is available to members under 60 years old.