Social Security System (Philippines)
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|Paseguruhan ng Kapanatagang Panlipunan|
Main office of the SSS along East Avenue in Quezon City.
|Formed||September 1, 1957|
|Headquarters||SSS Building, East Avenue, Diliman, Quezon City|
The Philippine Social Security System (SSS; Filipino: Paseguruhan ng Kapanatagang Panlipunan) is a state-run, social insurance program in the Philippines to workers in the private, professional, and informal sectors. SSS is established by virtue of Republic Act No.1161, better known as Social Security Act of 1954. This law was later amended by Republic Act No. 8282 in 1997.
Government employees, meanwhile, are covered under a separate state-pension fund managed by the Government Service Insurance System (GSIS).
It was former President Manuel A. Roxas who first proposed a bill in Congress, seeking the establishment of a social security system for wage earners and low-salaried employees. This he said on January 26, 1948, during his State of the Nation Address.
On July 7, 1948, after the death of President Roxas, President Elpidio Quirino created a Social Security Commission, his first official act as president. This commission drafted the Social Security Act that was submitted to Congress. This draft was introduced by Rep. Floro Crisologo, Senators Cipriano Primicias and Manuel Briones to the House and was enacted as Republic Act 1161, or the Social Security Act 1954.
However, its implementation was delayed by objections made by business and labor groups. It was only in 1957, that amendatory bills were presented in Congress creating the RA 1792, amending the original Social Security Act.
On September 1, 1957, the Social Security Act of 1954 or the Social Security Law (SS Law) was finally implemented adopting the social insurance approach to social security, covering the employed segment of the labor force in the private sector.
In 1980, some groups of self-employed persons were also required to contribute to the social security fund from which benefits are paid upon the occurrence of a contingency provided by law. In 1992, self-employed farmers and fisherfolks were also included in the program. In 1993, household helpers who earn at least ₱1,000 were included in the compulsory coverage of employees and in 1995, workers in the informal sector earning at least ₱1,000 a month, like the ambulant vendors and watch-your-car boys, were also covered by SSS.
On May 1, 1997, President Fidel V. Ramos, signed RA 8282, Social Security Act of 1997, an act which further strengthen the SSS. This act provides better benefit packages, expansion of coverage, flexibility in investments, stiffer penalties for violators of the law, condonation of penalties of delinquent employers, and the establishment of a voluntary provident fund for members.
In 1995, upon the enactment of Republic Act No. 7875 or the National Health Insurance Act of 1995, SSS, which used to administer Medicare program for hospitalization and other medical needs of private sector workers, transferred the administration to Philippine Health Insurance Corporation (PhilHealth) for an integrated and comprehensive approach to health development.
In 2017, President Rodrigo Duterte approved the SSS pension increase of Php 1,000 for more than 2.2 million SSS pensioners.
There are three programs being administered by SSS, namely:
- The Social Security Program
- The Medicare Program; and
- The Employees' Compensation (EC) Program, which started in 1975, providing double compensation to workers who had illness, death or accident during work-related activities. EC benefits are granted only to members with employers other than themselves.
SSS members can make 'salary' or 'calamity' loans. Salary loans are calculated based on a member's particular monthly salary. Calamity loans are for instances when the government has declared a state of calamity in the area where an SSS member lives, following disasters such as flooding and earthquakes.
- He/she must be at least 15 years old.
- Non-working persons are welcome.
- In order for a member of SSS to claim lifetime monthly pension, he must be at least 60 years old and he must have at least 120 monthly contributions.
- Republic of the Philippines: Social Security System: Benefits
- "Obispo: PNoy 'anti-poor', Mar Roxas 'wag iboto (Bishop: PNoy, anti-poor, don't vote for Mar Roxas)". Inquirer Bandera. January 16, 2016. Retrieved March 22, 2016.