As a job seeker, one of the first requirements you’ll be hearing a lot from employers is your Social Security System number. But what exactly is SSS?

In this article, you’ll be guided in understanding SSS from its core purpose, benefits, and reasons why a membership is a crucial step towards securing your future as a working Filipino.

What is the Social Security System (SSS)?

The Social Security System, commonly known as SSS, is a government financial institution that administers social security protection among Filipino workers. 

In times of need, SSS offers vital support to laborers by providing replacement income to ease the financial burdens associated with death, disability, sickness, maternity, and old age. 

To put it simply, think of it as your financial safety net designed to protect you and your family from life’s unexpected events.

Is SSS a mandatory requirement?

At its core, yes, SSS membership is a mandatory requirement when you enter the workforce. It is a mandate that is backed by several Philippine laws:

The Republic Act No. 1161, also known as the Social Security Law, laid the foundation for mandatory coverage, the establishment of the Social Security System and its core principles.

Subsequent amendments and related laws were also reinforced to expand this mandate, such as:

• Republic Act No. 7699 (Portability Law)
  • Allows workers to combine their contributions from both Government Service Insurance System (GSIS) and the Social Security System (SSS) for a seamless transfer of benefits, ensuring they are justly rewarded for their service.
• Republic Act No. 8282 (Social Security Act of 1997)
  • Substantially increases the benefits covered by the system to more individuals and stiffer penal sanctions of SS Law violations.
• Republic Act No. 11199 (Social Security Act of 2018)
  • Strengthens SSS by expanding compulsory coverage to all employees including domestic workers, self-employed individuals, and Overseas Filipino Workers. It also enhances existing benefits and authority of the Social Security Commission.
• Republic Act No. 11210 (105-Day Expanded Maternity Leave Law)
  • Increases maternity leave period to 105 days for female workers, with an option to extend for an additional 30 days without pay, and granting an additional 15 days for solo mothers along with other provisions.

SSS Membership

As mentioned, the Social Security System (SSS) membership is generally mandatory for all employed individuals in the private sector and/or self-employed individuals. Meanwhile, Overseas Filipino Workers (OFWs) and non-working spouses can join on a voluntary basis.

As an SSS member, you contribute a percentage of your monthly income which goes into a fund used to provide financial assistance in times of your dire need. Through this membership, you are investing in a future financial safety net.

There are two (2) coverage types under the SSS program, which are compulsory and voluntary.

Compulsory Coverage

The compulsory coverage of the Social Security System applies to:

• Employees (EE): refers to individuals working in the private sector, including house helpers (kasambahay), who are not over 60 years of age;
• Self-employed (SE): refers to any person whose income is not derived from employment and not over 60 years of age; and
• Overseas Filipino Workers (OFWs): refers to any person working abroad, whether land-based or sea-based, who are not over 60 years of age.

It is worth noting that if an individual is both an SSS-covered employee and a self-employed member, they are required to contribute under both statuses. 

However, if the total contribution exceeds the maximum limit based on the highest monthly salary credit during simultaneous coverage, the excess amount is refunded through self-employed contributions.

Voluntary Coverage

The voluntary coverage of the Social Security System applies to:

• Non-working spouse (NWS): refers to people who devote full time in managing household and family affairs;
• Covered employee (EE): refers to an individual who was separated from employment;
• Self-employed (SE): refers to a member who realizes no income; and
• Overseas Filipino Workers (OFWs): refers to any person working abroad, whether land-based or sea-based, that got terminated of his/her employment overseas

SSS Benefits

Since SSS is mandated so you could have financial coverage in times of unexpected events like sickness or death. One can never be too sure of what happens tomorrow.

In this section, you will be introduced to the diverse range of benefits covered by SSS to meet specific needs for specific situations and why it is beneficial:

Sickness

Sickness benefit provides a daily cash allowance to members who are unable to work due to illness or injury, helping them replace lost income during recovery period.

To qualify for sickness benefits from SSS, a member must meet the following conditions where he/she:

• Is unable to work due to sickness or injury and is confined either in a hospital or at home for at least four (4) days;
• Has paid at least three (3) months of contributions within the 12-month period immediately preceding the semester of sickness or injury; and
• Has duly notified the SSS directly of the fact of sickness or injury.

Maternity

Maternity benefit provides a daily cash allowance to women who are unable to work due to childbirth, miscarriage, or emergency termination of pregnancy (ETP). 

It is granted to SSS female members who meet any of the instances mentioned, regardless of civil status, employment status, child legitimacy, and frequency of pregnancy.

To qualify for maternity benefits from SSS, a member must meet the following conditions where she:

• Has paid at least three (3) months of contributions in the 12-month period immediately preceding the semester of childbirth, miscarriage, or ETP. In determining the female member’s entitlement to the benefit, the SSS shall only consider those contributions paid prior to the semester of contingency;
• Has duly notified the employer of her pregnancy and the probable date of her childbirth, if employed. Moreover, the notice shall be transmitted to SSS in accordance with the rules and regulations it may provide; and
• Has duly notified the SSS directly of her pregnancy and the probable date of her childbirth, if a self-employed (SE) or voluntary member (VM), a non-working spouse (NWS), or an Overseas Filipino Worker (OFW).

Disability

Disability benefit provides a monthly pension or lump sum to a member who becomes permanently disabled, be it totally or partially.

World Health Organization (WHO) defines disability as an impairment in body function or structure, a limitation in activity, and a restriction in participation in school or work.

The Social Security System adopts WHO’s definition of disability.

To qualify for disability benefits, a member must have at least one (1) monthly contribution paid to the SSS prior to the semester of contingency and suffer from either partial or permanent total disability.

There are two types of permanent disabilities identified, and these are partial or total. For more information on specified disabilities, see the list here.

Retirement

Retirement benefit is a cash benefit paid in either monthly pension or as a lump sum to a retiree who is no longer working due to old age.

• Monthly Pension – lifetime cash benefit paid to a retiree member who has paid at least 120 monthly contributions
• Lump Sum Benefit – one-time cash benefit equivalent to the total contributions, including interest earned, paid by the retiree member who has not met 120 monthly contributions

Death

Death benefit provides monthly pension or lump sum to primary beneficiaries of the deceased member.

• Monthly Pension – lifetime cash benefit paid to primary beneficiaries of deceased member who paid atleast 36 monthly contributions
• Lump Sum Benefit – one-time cash benefit equivalent to primary beneficiaries of deceased member who has paid less than 36 monthly contributions

Funeral

Funeral benefit provides cash assistance to help lessen the cost of funeral expenses upon death of a member.

As of October 2023, the funeral benefit will be as follows:

• Variable amount from a minimum of P20,000 to a maximum of P60,000 if the member/pensioner paid at least 36 contributions up to the month of death
• Fixed amount of P12,000 if the member/pensioner paid at least 1 but less than 36 contributions up to the month of death

Unemployment

Unemployment benefit covers for members who are involuntarily separated from employment and qualifies for its eligibility.

Purpose and Importance of SSS

The Social Security System (SSS) membership is essential for providing financial security and social protection to Filipino workers in times of need. It serves as a safety net by offering various benefits including retirement pensions, sickness and maternity benefits, disability assistance, and death or funeral benefits.

Through regular contributions, members ensure that they have access to these financial aids during unforeseen circumstances such as job loss, illness, or old age. This system helps promote financial stability among workers and their families, reducing their vulnerability to economic hardships.

SSS in the Philippines FAQs

Sources: (1), (2), (3), (4), (5), (6), (7), (8), (9), (10)