SOCIAL SECURITY SYSYTEM

HISTORY
Started its operations on September 1, 1957 with 211 personnel and assets of P6, 372 There were 224, 156 workers as members. Initially, SSS granted only death, disability, sickness, and old-age benefits under its social security program for the workers/employees in the private sector. Over the years, as its capacity for funding and administrative experience grew, additional benefits have been incorporated into the scheme, namely, hospitalization benefits under the Medicare program, employees compensation benefits, and maternity benefits.

HISTORY
Today SSS provides seven out of the nine benefits endorsed by the International Social Security Association (ISSA), an organization of social security institutions of more than one hundred countries. As of December 31, 1993, SSS had a workforce of 3, 158 employees and assets of P102.9 billion. It had ten regional and sixty provincial offices. There were more than 15 million workers as members. The SSS disbursed a total of P13.9 billion pesos in benefit payments.

HISTORY
The size and diversity of SSS investment have a substantial impact on both its operations and the national economy. In 1993, more than P99.1 billion were invested at an average yield of 15.8 percent. The earnings from such investment helped to keep down the contribution rates of the members.

SSS Administration
The SSS is under the general supervision of the Social Security Commission composed of the Secretary of Labor and Employment, the SSS administrator, and six appointed members from the labor group, management group, and the general public. The chairman of the commission is designated by the President of the Philippines. All members of the commission are appointed by the President of the Philippines. The general conduct of the operation and management functions of the SSS is vested in the administrator. He is the chief executive officer and he is responsible for carrying out the program of the Social Security System and the policies of the Social Security Commission.

Types of Coverage
1. Compulsory coverage

a. For all employers whether natural or juridical, domestic or foreign, who carry on in the Philippines any trade, business, industry, undertaking or activity of any kind and use the services of another person. b. For all employees in the private sector who are not yet sixty one years old, regardless of citizenship, nature and duration of employment and the manner of payment or source of compensation.

Types of Coverage
c. For all self-employed persons who are not yet sixty one years old with the annual gross income of at least P1,800 and belonging to any of the following groups: c.1 Members of the Philippine Bar and professionals duly licensed by the Professional Regulations Commission. c.2 Business partners, `single` proprietors, and board directors duly registered with the appropriate government agencies. c.3 Actors, actresses, directors, script writers, recording artists. Dancers, singers or musicians, and free lance movie cameramen, production men, propmen, makeup artists, graphic artists, sound effects men, film editors and bit players.

Types of Coverage
c.4Free lance writers, journalists, newscasters and news correspondents. c.5 Professional athletes, coaches, trainers, and referees licensed by the Games and Amusements Board as well as jockeys and trainers licensed by the Philippine Racing Commission. c.6 Real estate brokers, salesmen, sales brokers, real estate agents, appraisres, and consultants registered with the Bureau of Domestic Trade or any other appropriate agency. c.7 Actuaries, insurance agents and brokers registered with the Insurance Commission. c.8 Other groups of self-employed persons as may be determined by the Social Security Commission from time to time.

2. Voluntary coverage
a. For any foreign government, international, government organization employing workers in the Philippines or employing Filipinos outside the Philippines who enter into an agreement with the Philippine Government for the inclusion of such employees in the SSS except those already covered by the respective civil service retirement system. b. For Filipinos recruited in the Philippines by foreign based employers for employment abroad.

RULES AND REGULATIONS

I. Determination of Compulsory Coverage 1. The employer must have been in operation for at least two (2) years and has, at the time of admission, at least fifty (50) employees. The requirement that an employer must have 50 or more employees shall be deemed to include all employees, regardless of age, status as to permanency or non-permanency of appointment, or length of service. 2. To be compulsorily covered, an employee must fulfill all the following requisites: (a) That he is employed by an employer who is a member of the System; (b) That he must have been in the service of his employer for at least six months prior to his coverage; and (c) That he is between the ages of eighteen and sixty years.

3. The determination of whether an employer or an employee shall be compulsorily covered shall be vested in the Commission. The following general principles shall guide the Commission in deciding each case: (a) Where there are agricultural as well as industrial operations involved in the manufacture of the employers product. (b) Part-time employees (c) An employee who works for only a part of each calendar year (d) Aliens who are employed in the Philippines (e) Each borderline and/or questionable case relative to coverage of employers and/or employees shall be decided by the Commission on the merits of each case.

II. Effectivity of Coverage 1. As soon as an employer is qualified to be a member of the System, it shall be his duty to register himself with the Social Security System. The registration shall be done either personally or by registered mail, and shall be accomplished on forms to be furnished by the System. 2. Compulsory coverage in the System for all qualified employees shall begin on September 1st, 1957, and beginning August 31, 1957, and every month thereafter, the employer shall remit to the system his monthly contributions together with his employees. 3. Upon coverage, the employer shall be obliged to deduct and withhold from each of his covered employees an amount of monthly contributions to the employees monthly compensation.

 Payments of Premiums

Functions of Social Security System BENEFITS

1. Sickness Benefits A daily cash allowance paid for the number of days a member is unable to work due to sickness or injury.

Qualifying Conditions 1. The member is unable to work due to sickness or injury and is confined either in a hospital or at home for at least four days; 2. He/she has paid at least three months of contributions within the 12-month period immediately before the semester of sickness; 3. He/she has used up all company sick leaves with pay for the current year and has duly notified his/her employer; 4. He/she must notify the SSS directly by filing a sickness benefit application if he/she is separated from employment, a voluntary or self-employed member.

Sickness Benefit
Amount of Benefit 1. The amount of the member's daily Sickness Benefit allowance is equivalent to ninety percent (90%) of his/her average daily salary credit. 2. The Sickness Benefit is granted up to a maximum of 120 days in one calendar year.

2. Maternity Benefits A daily cash allowance granted to a female member who is unable to work due to childbirth or miscarriage. Qualifying Conditions 1. The member has paid at least three months of contributions within the 12-month period immediately before the semester of her childbirth or miscarriage; 2. If employed, she must have given notification of her pregnancy through her employer; 3. She must directly notify the SSS if she is separated from employment, a voluntary or self-employed member.

Maternity Benefits Amount of Benefit 1. The amount of the daily Maternity Benefit allowance is equivalent to one hundred percent (100%) of her average daily salary credit, multiplied by 60 days in case of normal delivery or miscarriage, or by 78 days for caesarian section delivery. 2. The Maternity Benefit is granted up to the first four deliveries or miscarriages only.

 3. Disability Benefits A cash benefit granted either as a monthly pension or a lumpsum amount to a member who becomes permanently disabled, either partially or totally. Qualifying Conditions 1. The member has paid at least one month contribution before the semester of disability; 2. To qualify for a disability pension, the member must have paid at least 36 monthly contributions prior to the semester of disability; 3. If with less than 36 monthly contributions, he/she is granted a lumpsum amount.

Disability Benefits Amount Of Benefit 1. If qualified, the member is granted a monthly Disability Pension, plus a P500 monthly Supplemental Allowance. 2. The lowest monthly Disability Pension is P1,000 if the member has less than ten (10) credited years of service (CYS); P1, 200 if with at least 10 CYS; and P2, 400 if with at least 20 CYS.

4. Retirement Benefits A cash benefit granted- either as a monthly pension or a lumpsum amount to a member who can no longer work due to old age. Qualifying Conditions 1. The member is at least 60 years old (optional retirement), separated from employment or has ceased to be self- employed; and had paid at least 120 monthly contributions prior to the semester of retirement; or 2. The member is 65 years old (mandatory retirement), whether employed or not, and had paid at least 120 monthly contributions prior to the semester of retirement. 3. To qualify for a retirement pension, the member must have paid at least 120 monthly contributions prior to the semester of retirement. 4. If with less than 120 monthly contributions, he/she is granted a lumpsum amount

Retirement Benefits Amount of Benefit 1. If qualified, the member is granted a monthly Retirement Pension, plus a 13th Month Pension payable every December. 2. If the member has dependent minor children, they are given a Dependent's Pension equivalent to ten percent (10%) of the member's monthly pension or P250, whichever is higher. Only five (5) minor children, beginning from the youngest, are entitled to Dependent's Pension. No substitution is allowed. 3. The lowest monthly Retirement Pension is P1, 200 if the member has 120 monthly contributions or with at least ten (10) credited years of service (CYS); P2, 400 if with at least 20 CYS.

5. Death Benefits A cash benefit granted either as a monthly pension or a lumpsum amount to the beneficiaries of a deceased member. Qualifying Conditions 1. The member has paid at least one month contribution before the semester of death; 2. A monthly Death Pension is granted to the member's primary beneficiary (legitimate spouse until he/she remarries, and dependent legitimate, legitimated or legally adopted, and illegitimate children) if the member has paid at least 36 monthly contributions prior to the semester of death; 3. A lumpsum amount is granted to the primary beneficiary if the deceased member has less that 36 monthly contributions. 4. If there are no primary beneficiaries, the member's secondary beneficiaries (dependent parents) shall be given a lumpsum amount.

Death Benefits Amount of Benefit 1. If qualified, the member's primary beneficiary is granted a monthly Death Pension, plus a 13th Month Pension payable every December. 2. If the member has dependent minor children, they are given a dependent's Pension equivalent to ten percent (10%) of the primary beneficiary's monthly pension or P250, whichever is higher. Only five (5) minor children, beginning from the youngest, are entitled to Dependent's Pension. No substitution is allowed. 3. The lowest monthly Death Pension is P1, 000 if the member has less than ten (10) credited years of service (CYS); P1, 200 if with at least 10 CYS; and P2, 400 if with at least 20 CYS.

6. Funeral Benefits A cash benefit given to whoever paid for the burial expenses of the deceased member. Qualifying Condition 1. The member has paid at least one monthly contribution. 1. Amount of Benefit The Funeral Grant amounts to P20, 000.

LOANS
1. Salary Loan A cash loan granted to an employed, currently-paying self-employed or voluntary member. It is intended to meet the member's short-term credit needs. Qualifying Conditions 1. An employed, currently-paying self-employed or voluntary member who has six posted monthly contributions in the last 12 months prior to the month of filing of loan application. 2. For one-month loan, the member must have 36 posted monthly contributions prior to the month of filing of application. 3. For two-month loan, the member must have 72 posted monthly contributions prior to the month of filing of loan application. 4. If employed, the member's employer must be updated in contribution and loan remittances. The member must also be updated in the payment of other loans with SSS.

Salary Loan
Amount of Loan 1. A one-month loan is equivalent to the average of the member's last 12 monthly salary credits posted. 2. A two-month loan is equivalent to twice the average of the member's last 12 monthly salary credits posted, but not exceed P24, 000. 3. The loan shall be charged an interest rate of ten percent (10%) per annum, with the first year's interest deducted in advance. The second year's interest is included in the monthly amortizations. 4. A service fee of one percent (1%) of the loan amount is also deducted in advance. 5. The loan is payable within two years in 24 equal monthly installments.

NEWS AND UPDATES Global media firm awards SSS text facility A global media hub based in the United States has picked the Social Security System (SSS) to receive its 2011 Honors Laureate distinction for "visionary applications of information technology" that gives members access to their contribution and loan records using mobile phones. SSS salary loan releases up 41 percent to P3.6-B The Social Security System (SSS) said nearly 250,000 members availed of salary loans in the first three months this year totaling P3.6 billion, which was 41 percent higher than the P2.6 billion for the same period last year.

NEWS AND UPDATES ISSA strategy for the extension of social security coverage While the ISSA has tackled coverage extension at many conferences and in a number of publications, the crucial importance of improved coverage prompted the ISSA to develop an explicit strategy to guide and structure its activities in the future. This document outlines the ISSA strategy. It defines the priority challenges for coverage extension, specific opportunities for social security institutions, a collaborative ISSA process for defining action plans of social security institutions to work towards extending coverage and the role of the ISSA in supporting its member institutions to implement these plans.

NEWS AND UPDATES

Rizal exhibit at SSS The Social Security System (SSS) has opened a historical exhibit on the life of Jose Rizal at the SSS Museum and Library at the basement of the SSS headquarters in Diliman, Quezon City to commemorate the national heros 150th birth anniversary last June 19. The exhibit, which carries the theme "Rizal @ 150: Haligi ng Bayan," is open to members and the general public on Mondays to Fridays from 8 a.m. to 7 p.m. until August 12.

DEFINITIONS OF TERMS
Sec. 8 Terms Defined. For the purposes of this Act, the following terms shall, unless the context indicates otherwise, have the following meanings: System The Social Security created by this Act. Commission The Social Security Commission as herein created. Employer Any person, natural or juridical, domestic or foreign, who carries on in the Philippines any trade, business, industry, undertaking, or activity of any kind and uses the services of another person who is under his orders as regards the employment, except the Government and any of its political subdivisions, branches or instrumentalities, including corporations owned or controlled by the Government.

 Employee Any person who performs services for an employer in which either or both mental and physical efforts are used and who receives compensation for such services. Dependent Any unmarried legitimate or legitimated child of the covered employee who is under eighteen years of age, and any such child over eighteen years of age, and the legitimate spouse and parents of said employee who are unable to work and who are wholly dependent upon regular support from him. Compensation - All remuneration for employment, including the cash value of any remuneration paid in any medium other than cash except that part of the remuneration in excess of five hundred pesos received during the month.

 Daily rate of compensation The total regular compensation for the customary number of hours worked each day, or the total regular monthly compensation divided by the number of working days in a month. Monthly The total period from one end of the last payroll period of the preceding month to the end of the last payroll period of the current month if compensation is on hourly, daily, or weekly basis; if on any other basis, monthly shall mean a period of one month. Premium The contributions paid to the System by the employee and by his employer for him.

 Employment Any service performed by the employee for his employer, except(1) Agricultural labor; (2) Domestic service in a private home; (3)Employment purely casual and not for the purpose of occupation or business of the employer; (4) Service performed by an individual in the employ of his son, daughter, or spouse, and service performed by a child under the age of twenty-one years in the employ of his parents; (5)Service performed on or in connection with an alien vessel by an employee if he is employed when such vessel is outside the Philippines;

(6) Service performed in the employ of the Philippine Government or an instrumentality or agency thereof; (7) Service performed in the employ of a school, college or university if such service is performed by a student who is enrolled and is regularly attending classes therein; (8) Service performed in the employ of a foreign government or international organization, or their wholly owned instrumentality. (9) Service performed as a student nurse in the employ of a hospital or nurses training school, and service performed as an intern in the employ of a hospital by an individual who holds the degree of Doctor of Medicine; and (10) Such other services performed by temporary employees which may be excluded by regulation of the Commission.