Social Security System (SSS) is a government agency responsible for providing social security protection to private sector employees, self-employed individuals, and voluntary members in the Philippines.
SSS was established in 1957 and is mandated to provide social security benefits to its members, which include sickness, maternity, disability, retirement, and death benefits, as well as loans, educational assistance, and other privileges.
SSS is required for private sector employees earning a particular amount of income. Simultaneously, self-employed and volunteer members may register and contribute to the system. The contributions of SSS members are used to fund the agency’s many benefits, as well as its operations and activities.
SSS, together with the Government Service Insurance System (GSIS) for government employees and the Philippine Health Insurance Corporation (PhilHealth) for healthcare, is one of the pillars of social protection in the Philippines. It is dedicated to delivering social security benefits and services to its members and their families, as well as to promoting their well-being and protecting them from financial hazards.
Table of Contents
Importance of SSS contributions
SSS contributions are essential for both employees and self-employed individuals in the Philippines for several reasons:
Access to Social Security benefits
SSS contributions provide members with access to various social security benefits, such as sickness, maternity, disability, retirement, and death benefits. These benefits provide financial assistance during need, ensuring that members and their families are protected.
Protection against financial risks
SSS contributions protect members against financial risks such as sickness, disability, and death. In the event of these risks, members and their families can receive financial assistance, ensuring that they are not burdened with additional financial pressures.
Eligibility for loans and other privileges
Members with a good payment history with SSS are eligible for various loans, such as salary, calamity, and housing loans. They are also entitled to other privileges, such as educational assistance and discounts on medicines and medical services.
Retirement benefits
Members who have continuously paid their contributions and have reached the age of 60 or have retired from employment are eligible for retirement benefits. These benefits provide a monthly pension, allowing members to enjoy financial security during retirement.
Compliances with the law
SSS contributions are mandatory for private sector employees who earn a certain amount of income, while self-employed and voluntary members may opt to register and contribute to the system. Compliance with the law ensures that members avoid penalties and legal issues related to non-compliance.
Also, SSS contributions are important for members to access social security benefits, protect against financial risks, become eligible for loans and other privileges, receive retirement benefits, and comply with the law. It is a form of investment for the future and helps secure the financial well-being of the members and their families.
Who is covered by SSS?
The Social Security System in the Philippines covers the following individuals:
Private Sector Employees
All employees working in private companies, regardless of their employment status (regular, contractual, or casual), must be registered under the SSS.
Self-Employed Individuals
Self-employed individuals, such as entrepreneurs, professionals, and freelancers, may voluntarily register with the SSS to avail themselves of its benefits.
Voluntary Members
Individuals not covered by the mandatory coverage of the SSS, such as non-working spouses and overseas Filipino workers, may also voluntarily register with the SSS.
Household Employees
Household employees, such as house helpers and caregivers, must be registered under the SSS if they earn more than P5,000 monthly.
Kasambahay or Domestic Workers
Domestic workers must be registered under the SSS if they earn over P5,000 monthly and work for at least two months.
How to register for SSS membership
In-person:
Individuals who wish to register for SSS membership can follow these steps:
- Prepare the required documents. The following documents are needed for registration:
a. Primary ID: This can be any government-issued ID, such as a passport, driver’s license, Professional Regulation Commission (PRC) ID, or Unified Multi-Purpose ID (UMID).
b. Birth certificate: This is needed to verify the member’s birth date.
c. Marriage certificate: This is needed for married women who will use their married name.
d. Other supporting documents may include a baptismal certificate, voter’s ID, or any other valid ID. - Go to the nearest SSS branch. Members can register at any SSS branch nationwide. They can also check the SSS website for the list of SSS branches.
- Fill out the SSS Form. The SSS Form can be downloaded from the SSS website or any SSS branch. Fill out the form completely and legibly.
- Submit the required documents and form. Bring the completed form and the required documents to the SSS branch. The SSS personnel will verify the documents and register the member.
- Receive the SSS number and ID. Once the registration is complete, the member will receive an SSS number and ID. This will be used to access the benefits and services of SSS.
- Start making contributions. Members can start making contributions to their SSS account. The SSS personnel will provide instructions on how to make contributions.
Online:
Individuals can also register for SSS membership online through the SSS website.
- Go to the SSS website. Access the SSS website at www.sss.gov.ph.
- Click the “Register” button. Click the “Register” button on the homepage under the “Not yet registered in My.SSS?” section.
- Choose your membership category. Select your membership category from the options presented, such as “Self-employed,” “Voluntary,” or “Employed.”
- Provide your personal information. Fill out the registration form with your personal information, including your full name, birthdate, and contact details.
- Upload the required documents. Upload scanned copies of the required documents, such as your valid ID and birth certificate.
- Submit the registration form. Review the information you entered and click the “Submit” button.
- Wait for confirmation. Wait for the confirmation message from SSS via email or text message.
- Activate your account. Follow the instructions provided in the confirmation message to activate your My.SSS account.
- Start making contributions. Once your account is activated, you can contribute through the SSS website or any SSS-accredited payment center.
Types of SSS contributions
There are two types of SSS contributions in the Philippines: employee and employer.
Employee Contributions
These are contributions made by employees working in the private sector, voluntary members, self-employed individuals, and overseas Filipino workers. The employee is responsible for paying a percentage of their monthly salary as SSS contributions. The contribution amount is based on the employee’s monthly salary credit (MSC), which the SSS determines.
Employer Contributions
These are contributions made by employers on behalf of their employees. Employers must match their employees’ contributions, which means they also pay a percentage of their employee’s monthly salary to the SSS. The employer’s contribution is based on their employees’ MSC.
The SSS contribution rate is 13% of the employee’s monthly salary, with a minimum MSC of Php 3,000 and a maximum MSC of Php 25,000. This means the employee contributes 4% of their monthly salary, while the employer contributes 9%.
It’s important to note that SSS contributions are mandatory for private sector employees and voluntary for self-employed individuals, OFWs, and voluntary members. Failure to make contributions can result in the loss of benefits and penalties.
How to pay SSS contributions
In person
Over-the-counter payment
Members can pay their contributions directly at any SSS branch. They need to fill out the payment form and present their SSS number or ID.
Bayad Center
Members can pay their contributions at any Bayad Center branch nationwide. They need to fill out the payment form and present their SSS number or ID.
Online or Automated
Automatic Debit Arrangement (ADA)
Members can enroll in ADA to have their contributions automatically deducted from their bank account.
Online payment
Members can pay their contributions through the SSS website using their credit card or debit card. They need to register for a My.SSS account and link their card to their SSS account.
Mobile payment
Members can pay their contributions through mobile payment apps such as GCash, PayMaya, or GrabPay. They need to link their account to their SSS account and follow the payment instructions.
It’s important to note that members should always keep their payment receipts as proof of contribution. Failure to make contributions on time can result in the loss of benefits and penalties.
Penalties for late payments
Late payment of SSS contributions can result in penalties, which may vary depending on the duration of the delay and the number of unpaid contributions.
Interest
A 2% monthly interest will be charged for the unpaid contributions.
Penalty
A 3% penalty will be charged for each month of delay in payment.
Surcharge
A surcharge of 1% per month will be charged for any unpaid contributions over six months overdue.
Compromise penalty
If members fail to pay their contributions for a year or more, they will be charged a compromise penalty, equal to 3% of the unpaid contributions.
It’s important to note that failure to pay contributions on time can also result in losing benefits, such as sickness, maternity, and retirement. To avoid penalties and ensure eligibility for benefits, members should pay their contributions on time.
Benefits of continuous SSS contributions
Continuous contributions to the Social Security System provide various benefits to its members.
Sickness benefit
Members who cannot work due to sickness or injury can receive a daily cash allowance from the SSS. The benefit amount is based on the member’s average daily salary credit (ADSC) and the number of days of confinement.
Maternity benefit
Female members who have paid at least three monthly contributions in the 12 months before the semester of their childbirth or miscarriage can receive a daily cash allowance from the SSS. The benefit is equivalent to 100% of the member’s ADSC for 60 days for normal delivery or miscarriage and 78 days for cesarean delivery.
Retirement benefit
Members who have paid at least 120 monthly contributions and have reached the age of 60 or 65 (depending on the year they first paid contributions) can receive a monthly pension from the SSS. The pension amount is based on the member’s number of paid contributions and their ADSC.
Disability benefit
Members who have paid at least one monthly contribution before becoming disabled can receive a monthly pension from the SSS. The pension amount is based on the member’s ADSC and the degree of their disability.
Death benefit
In case of the member’s death, their beneficiaries can receive a lump-sum benefit from the SSS. The benefit amount is based on the member’s paid contributions and their ADSC.
Funeral benefit
In case of the member’s death, their beneficiaries can receive a funeral benefit from the SSS. The benefit is a fixed amount based on the member’s paid contributions.
Continuous contributions to the SSS can also give members access to loans, such as salary loans, calamity loans, and housing loans, which can help them in times of financial need.
SSS benefits
SSS offers several benefits to its members.
Sickness Benefit
A daily cash allowance is given to members who are unable to work due to sickness or injury. The amount of the benefit is based on the member’s average daily salary credit and the number of days of confinement.
Maternity Benefit
A daily cash allowance is given to female members who have paid at least three monthly contributions in the 12 months before the semester of their childbirth or miscarriage. The benefit equals 100% of the member’s average daily salary credit for 60 days for normal or miscarriage and 78 days for cesarean delivery.
Disability Benefit
A monthly pension is given to members who have paid at least one monthly contribution before becoming disabled. The pension amount is based on the member’s average daily salary credit and the degree of their disability.
Retirement Benefit
A monthly pension is given to members who have paid at least 120 monthly contributions and have reached the age of 60 or 65 (depending on the year they first paid contributions). The pension amount is based on the member’s number of paid contributions and their average daily salary credit.
Death Benefit
A lump-sum benefit is given to the beneficiaries of a deceased member. The benefit amount is based on the member’s paid contributions and average daily salary credit.
Funeral Benefit
A fixed amount is given to the beneficiaries of a deceased member to cover the member’s funeral expenses.
Employee Compensation Benefit
A benefit provided to employees who suffer work-related sickness, injury, or death. It includes medical services, rehabilitation services, and cash benefits.
Unemployment Benefit
A cash benefit is provided to involuntarily separated employees, including retrenched or terminated workers. The benefit aims to provide financial assistance to help the employee while they search for a new job.
SSS loans and other privileges
Salary loan
A short-term loan is given to employed or self-employed members who have paid at least 36 monthly contributions. The loan amount is based on the member’s average monthly salary credit and is payable in 24 monthly installments.
Housing loan
A long-term loan is given to members who have paid at least 24 monthly contributions. The loan can be used to purchase a lot, construct a house, or make home improvements. The loan amount is based on the member’s capacity to pay and the property’s appraised value.
Calamity loan
A loan is given to members who reside in areas declared under a state of calamity by the government. The loan can finance urgent needs such as home repairs or payment of medical bills. The loan amount is based on the member’s average monthly salary credit and is payable in 24 monthly installments.
Educational assistance
A financial assistance program for members or their dependents pursuing their college education. The program provides a one-time grant that covers tuition and other school fees.
Discounts on medicines and medical services
A benefit that provides members and their dependents with discounts on medicines and medical services from partner establishments. The discounts can range from 10% to 50% off the regular price and can be availed by presenting the member’s SSS ID or E-Card Plus.
SSS programs
Flexi-Fund Program
The SSS Flexi-Fund Program is a voluntary savings program for SSS members who wish to save for retirement or other long-term goals. Members can contribute any amount on top of their regular SSS contributions, earning a higher interest rate than the regular SSS savings. The program also offers various benefits, such as life insurance, disability benefits, and retirement benefits. Members can withdraw their savings at any time or leave it until retirement, where they can receive the lump-sum savings or opt for a monthly pension.
Overseas Workers’ Program
The SSS Overseas Workers’ Program (OWP) is a social security program for Filipino overseas workers. The program aims to provide social security protection to overseas Filipino workers (OFWs) who may encounter risks and uncertainties while working abroad.
The OWP covers sickness, maternity, disability, retirement, and death benefits. OFWs can also avail of the SSS savings program and loans such as Salary Loans, Housing Loans, and Calamity Loans. To be eligible for the program, OFWs must be registered members of the SSS and should have paid at least one monthly contribution before leaving the Philippines.
SSS Online Services
SSS Mobile App
The SSS Mobile App is a free downloadable application for Android and iOS smartphones. It allows members to access their SSS records, apply for salary loans, view their loan balances and payment history, and check their contribution status. Members can also use the app to view the nearest SSS branch and their contact information.
SSS Online Portal
The SSS Online Portal is a web-based platform that allows members to access their SSS records, apply for salary loans, request an SSS ID or E-Card, and check their contribution status. Members can also use the portal to view their employment history, payment history, and other benefits such as sickness, maternity, and retirement benefits. The portal requires members to create an account and register their SSS number to access the services.
SSS Text Facility
The SSS Text Facility is a service that allows members to access their SSS records and receive updates through text messaging. Members can text a designated SSS number to inquire about their contribution status, salary loan balance, or other benefits.
The service also provides members notifications and reminders about upcoming payments or deadlines. Members can subscribe to the service by registering their mobile number through the SSS website or any SSS branch.
SSS Forms and Requirements
Here are the SSS forms required for specific member needs.
SSS Membership
SSS Form E-1 or Personal Record is required for new SSS members. It is used to register for an SSS number and must be submitted with supporting documents such as a birth certificate or passport.
Salary Loan
SSS Form ISL-101 or Salary Loan Application is required for members who wish to avail of a salary loan. It must be accompanied by a photocopy of the member’s SSS ID or two valid IDs with a photo and signature.
Housing Loan
SSS Form HL-1 or Application for Direct Housing Loan, is required for members who want to avail of a housing loan. The form must be accompanied by supporting documents such as a lot or house and lot purchase agreement, tax declaration, and building plans and specifications.
Sickness Claim
SSS Form CLD-9A or Sickness Benefit Application is required for members who cannot work due to sickness or injury. The form must accompany a medical certificate and other supporting documents, such as an employment certification or leave of absence form.
Maternity Claim
SSS Form MAT-1 or Maternity Benefit Application is required for pregnant female members who have given birth. The form must accompany a medical certificate, ultrasound report, and proof of pregnancy, such as an OB-GYN record.
Disability Claim
SSS Form DDR-1 or Disability Claim Application is required for members who are permanently disabled due to an illness or injury. The form must accompany a medical certificate and other supporting documents, such as an employment certification or leave of absence form.
Retirement Claim
SSS Form DDR-1 or Retirement Claim Application is required for members who have reached the age of 60 and have paid at least 120 monthly contributions to the SSS. The form must be accompanied by a valid ID and other supporting documents such as a bank passbook or ATM card.
Death Claim
SSS Form DDR-1 or Death Claim Application is required for beneficiaries of deceased members. The form must be accompanied by a certified true copy of the member’s death certificate, burial permit, and other supporting documents such as a marriage contract or birth certificate of dependents.
Note: The required forms and supporting documents may vary depending on the specific circumstances and type of SSS application. It is advisable to check the SSS website or visit an SSS branch for more information.
SSS Updates and News
The best place to get the latest updates on SSS benefits and programs is the official website of the Social Security System at www.sss.gov.ph. The website provides up-to-date information on the benefits and programs offered by the SSS and the latest news and announcements.
Members can access their SSS accounts online and view their contributions, loans, and other transactions. In addition to the website, the SSS maintains official social media accounts on Facebook, Twitter, and YouTube, where members can get updates and interact with the agency. Finally, members can visit an SSS branch or contact the SSS hotline at 1455 for more information and assistance.
Challenges SSS face
The Social Security System faces several challenges in providing social protection to its members.
Financial sustainability
The SSS faces financial challenges in ensuring the long-term sustainability of its programs. This is due to several factors, including the increasing number of retirees, the high cost of medical treatment, and the low rate of contributions from some members.
System inefficiencies
The SSS also faces challenges in its processes and systems, including the long waiting times for processing claims and the slow delivery of benefits. The agency has been improving its systems and processes through digitalization and automation.
Coverage gaps
Another challenge is a large number of informal sector workers not covered by the SSS, which limits the agency’s ability to provide social protection to a large population segment.
Changing demographics
The SSS also faces challenges from changing demographics, including the aging population and the increasing number of overseas Filipino workers. These changes require the SSS to adapt its programs and services to meet the evolving needs of its members.
External factors
External factors such as natural disasters, economic downturns, and pandemics can also affect the SSS’s ability to provide benefits and services to its members. The agency must be able to respond quickly and effectively to these external challenges to ensure the continuity of its programs.
Conclusion and SSS future
The future of the Social Security System is likely to be shaped by several trends and challenges.
Digitalization
The SSS has been working to modernize and streamline its processes through digitalization and automation. In the future, this trend is likely to continue, as the agency seeks to improve the efficiency and accessibility of its services.
Expansion of coverage
The SSS is expected to expand its coverage to include more informal sector workers and self-employed individuals. This will require the agency to develop new programs and services tailored to the needs of these groups.
Aging population
The aging population in the Philippines is expected to increase, which will put pressure on the SSS to provide adequate retirement and healthcare benefits to a growing number of retirees.
Sustainability: The SSS will need to ensure the long-term sustainability of its programs, given the increasing costs of healthcare and the growing number of beneficiaries. This may require the agency to explore new sources of revenue and to implement cost-cutting measures.
External factors
The SSS will also need to be prepared to respond to external factors such as natural disasters, economic downturns, and pandemics. This may require the agency to develop contingency plans and to work closely with other government agencies and stakeholders.
Ultimately, the future of the SSS in the Philippines will depend on the agency’s ability to adapt to these trends and challenges, and to provide high-quality social protection to its members.
