- Personal Finance»
SSS Benefits Philippines: Social Security System Benefits
If you are under 60 and an Overseas Filipino Worker (OFW), a household worker, or an employee for any private organization, you are making monthly contributions to your Social Security System benefits account.
Find out here how to compute and access your SSS retirement benefits and the other types of benefits you may qualify for.
DISCLAIMER: I'm not affiliated with the SSS. This article shares publicly available information about SSS member's benefits. For answers to specific, individual questions visit your SSS branch or contact SSS hotlines.
The SSS: Some Basics
The SSS Retirement Benefit is an old-age pension or retirement pension. It is a lifetime cash benefit paid every month to a person 60 or older who has has retired or stopped working. Any senior Filipino can receive their monthly SSS pension, provided they have made at least 120 monthly contributions prior to the semester of their retirement. Recipients are also entitled to a "13th month pay" every December.
Filipino seniors who have not completed 120 months of contributions when they retire are entitled to receive a lump sum amount of 10% of their monthly pension benefits or P250, whichever is higher.
Below is a sample formula for how to compute your monthly pension.
Monthly Pension Computation
Monthly Pension = MP
Average Monthly Salary Credit = AMSC
Creditable Years of Service = CYS
- MP = P300 + (20% of AMSC) + 2% of AMSC for each CYS in excess of 10 years
- MP = 40% of the AMSC
- MP = P1200 (if your CYS is at least 10 or more but less than 20)
- MP = P2000 (if your CYS is 20 or more)
To calculate your MP, compute each of the above formulas. Your MP is the highest amount.
- The AMSCand CYS are different for every employee as salaries vary over time.
- Retirees have the option to receive the first 18 months' pension in one lump sum, minus a rate of interest calculated by the SSS.
- The higher your SSS contribution and CYS, the higher your MP.
Can I Contribute to SSS Benefits?
If you do not work for a company or are self-employed, you can still become a member of the SSS and contribute to a benefits account. This is called a "voluntary contribution." All you have to do is:
- Apply to become an SSS member.
- Make monthly or quarterly contributions to your account.
- See the SSS Contribution Table below to figure out how much to contribute based upon your income.
2015 Schedule of SSS Contributions
Other SSS Benefits: Disability, Sickness, Maternity, Death, Employee Compensation, and Loan
In addition to retirement benefits, members of the Social Security System are entitled to a range of other benefits.
- The SSS Disability Benefit covers employees who cannot work due to partial or total disability and have paid at least one monthly contribution to the SSS before the disability took place. Disability benefits can be paid in two different ways: monthly pension or lump sum. Only members who have paid at least 36 monthly contributions to their account qualify for monthly payments. The lump sum payment is available to those tho have not paid the required 36 monthly contributions. Just like any other type of pension, the monthly cash benefit is computed based on the disabled member’s number of paid contributions and years of membership. According to SSS, the lowest monthly pension is P1000 for members with less than 10 credit years of service, P1200 for those with at least 10 CYS, and P2400 for those with at least 20 CYS.
- The SSS Sickness Benefit is a daily cash allowance paid for the number of days a member is unable to work for a minimum of four days. Qualifying members must have paid at least three monthly contributions within the 12-month period prior to illness. In addition, all company sick leave pay for the year must have been used. SSS members are entitled to receive 90 percent of their average daily salary per day.
- The SSS Maternity Benefit is for female members who cannot work due to recent childbirth or miscarriage. Female members who have contributed to her their accounts for three months during the past 12 months qualify for a daily cash allowance. Benefits are as follows: The member's average daily salary multiplied by 60 for a normal delivery or miscarriage or 78 for caesarean section delivery.
- SSS Death and Funeral Benefits are available when an SSS member dies. Qualified beneficiaries and dependents (including parents) can receive death and funeral benefits. Anyone listed as a beneficiary in the member's SSS records can receive benefits, so it is important to be sure that beneficiary lists are kept current. There are two types of benefits for death and funeral: monthly pension and lump sum amount. According to the Social Security System, monthly pensions are granted only to the primary beneficiaries of a deceased member who had paid 36 monthly contributions before the semester of their death. The lump sum, on the other hand, is available to primary beneficiaries of a deceased member who had paid less than 36 monthly contributions before the semester of death. Secondary beneficiaries are entitled to a lump sum benefit. If the member was entitled to receive monthly pension benefits, their beneficiaries will receive 13th month payments in December.
- All SSS members (employees and employers) are automatically entitled to Employee Compensation, or EC. These benefits cover temporary or permanent work-related sickness, disability, or injury.
- SSS members may qualify for loans for home or business.