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a. Coverage in the SSS shall be compulsory upon all employees not over sixty (60)
years of age and their employers.
b. Spouses who devote full time to managing the household and family affairs, unless
they are also engaged in other vocation or employment which is subject to mandatory
coverage may be covered by the SSS on a voluntary basis.
c. Filipinos recruited by foreign-based employers for employment abroad may be
covered by the SSS on a voluntary basis.
2. Who are considered the legal dependents of the SSS member?
a. The legal spouse entitled by law to receive support from the member;
b. The legitimate, legitimated, or legally adopted, and illegitimate child who is
unmarried, not gainfully employed and has not reached twentyone years (21) of
age, or if over twentyone (21) years of age, he is congenitally or while still a minor
has been permanently incapacitated and incapable of self support, physically or
mentally; and
c. The parent who is receiving regular support from the member.
3. Who are the beneficiaries of the SSS member?
a. The dependent spouse until he or she remarries
b. The dependent legitimate, legitimated or legally adopted, and illegitimate children,
who shall be the primary beneficiaries of the member: Provided, That the dependent
illegitimate children shall be entitled to fifty percent (50%) of the share of the
legitimate, legitimated or legally adopted children: Provided, further, That in the
absence of the dependent legitimate, legitimated children of the member, his/her
dependent illegitimate children shall be entitled to one hundred percent (100%) of the
benefits. In their absence, the dependent parents who shall be the secondary
beneficiaries of the member. In the absence of all the foregoing, any other person
designated by the member as his/her secondary beneficiary.
4. When does the coverage of the employers take effect?
a. Beginning as of the last day of the month when an employee's compulsory coverage
takes effect and every month thereafter during his employment, his employer shall
pay, with respect to such covered employee, the employer's contribution in
accordance with the schedule indicated in Section Eighteen of RA 8282.
Notwithstanding any contract to the contrary, an employer shall not deduct, directly
a. If the self-employed realizes no income in any given month, he shall not be required
to pay contributions for that month. He may, however, be allowed to continue paying
contributions under the same rules and regulations applicable to a separated employee
member: Provided, That no retroactive payment of contributions shall be allowed
other than as prescribed under Section Twenty-two-A of RA 8282.
9. How do you ascertain the amount of monthly pension?
a. The monthly pension depends on the member's paid contributions, his credited years
of service (CYS), and the number of his dependent minor children that must not
exceed five. The monthly pension will be the highest amount resulting from either
one of these three pension formulae:
1. the sum of P300 plus 20% of the average monthly salary credit plus two percent
of the average monthly salary credit for each credited year of service (CYS) in
excess of ten years; or
2. forty (40%) of the average monthly salary credit; or
3. P1,200, if the CYS is at least 10 but less than 20; or P2,400, if the CYS is 20 or
more.
b. The monthly pension is paid for not less than 60 months.
A member who retires after age 60 with a total of 120 monthly contributions may be
qualified to a monthly pension based on whichever is higher of the following:
the monthly pension computed at the earliest time the member could have retired
the monthly pension computed at the time when the member actually retires.
c. A pensioner who retires more than once shall be entitled to the higher of:
13. What are the duties and responsibilities of voluntary/self-employed SSS members?
a. Pay their monthly contributions using Contributions Payment Return (SS Form
RS-5) Monthly or quarterly in accordance with the prescribed schedule; Selfemployed and voluntary members, including OFWs may change their MSC
monthly. The change may be by one or two salary brackets without requiring the
submission of documents to prove their earnings. In case the change will result to
an MSC of lower than P5,000.00, or where the change will result in more than
two salary brackets higher or lower than the present MSC, a Declaration of
Earnings must be submitted to support the new earnings. However, if the age of
the member is 55 years or older and the present MSC is more than P10,000.00,
the allowed increase is only one salary bracket regardless of whether the
Supporting documents are submitted or not.
For Overseas Filipino Workers (OFWs), the minimum MSC was increased from
P3,000.00 to P5,000.00, beginning 01 January 2004.
b. Update or correct their personal records with the SSS by submitting a duly filledup Member's Data Amendment (SS Form E-4) with supporting documents; and
c. Be conscious of changes and improvements in SSS policies and benefit structure.
Self-employed and voluntary members may enroll in the Auto-Debit Arrangement
System which allows the one-time enrollment of the SE/VM member's bank
account for the automatic payment of monthly SSS contributions and loan
repayments. This arrangement is open at the United Coconut Planters Bank,
BDO, Bank of the Philippine Islands, Metropolitan Bank and Trust Co.,
Philippine National Bank, Philippine Savings Bank, Development Bank of the
Philippines and First Consolidated Bank.
14. What is the effect of non-reporting and non-remittance of contributions?
h. To the Employee- The employee is still entitled to SS benefits even if the
employer fails or refuses to remit the SSS contributions.
i. To the Employer- An employer who does not report temporary or provisional
employees is violating the SS law. The employer is liable to the employees and
must:
1. pay the benefits of those who die, become disabled , get sick or reach retirement
age;
2. pay all unpaid contributions plus a penalty of three percent per month; and
3. be held liable for a criminal offense punishable by fine and/or imprisonment.
j. To the Self-employed Person and Voluntary Member- A self-employed person
who fails to register with the SSS may be subjected to fines and/or imprisoned.
However, in the event the self-employed or voluntary member does not realize
earnings in a given month, payment of SSS contributions for that month is no
longer required.