MANILA, Philippines – The Social Security System (SSS) will soon extend the benefits of its members and support them in times when they are in between jobs.
This week, President Rodrigo Duterte has signed into law Republic Act 11199 or the Social Security Act of 2019. One of the provisions of the law is to allow members to file for “unemployment insurance” or involuntary separation benefits while they are looking for new employment.
Senator Richard J. Gordon, author of the said law, explained that members shall be given insurance for two months. He said, “For the first time in the country’s history, meron na ngayong (there is now an) unemployment insurance. It will start with two months, at least meron kang P10,000 a month if you had been paying contributions under the maximum salary credit. For two months, makakapaghanap ka ng trabaho.”
Gordon, chairman of the Committee on Government Corporations and Public Enterprises, added, “It will allow you to look for another job. While hindi ka pwedeng magrelax at kailangang maghanap ka agad ng trabaho (You have to find work fast) because you can only get a maximum of two months, you will have something for your expenses.”
Here are a few things you need to know about the new SSS unemployment benefit:
If you are paying the maximum monthly salary credit which is P16,000, unemployment benefit would be half of that or more or less P8,000 for two months.
For example, even if the member's monthly salary is at P150,000 and 12% contribution would be at P18,000, the maximum monthly salary credit is only capped at P16,000. Therefore, the maximum unemployment benefit a member can get is around P8,000.
The lower the monthly salary credit, the lesser the unemployment benefit.
Among the provisions of the new SSS Law, is the increase of contributions rate starting this year. From the current 11%, the monthly contribution rate will increase to 12%, with 4% coming from the employee, and 8% coming from the employer. Gradual increase will continue annually until it reaches 15% by 2025.
— Sally, The Summit Express
This week, President Rodrigo Duterte has signed into law Republic Act 11199 or the Social Security Act of 2019. One of the provisions of the law is to allow members to file for “unemployment insurance” or involuntary separation benefits while they are looking for new employment.
Senator Richard J. Gordon, author of the said law, explained that members shall be given insurance for two months. He said, “For the first time in the country’s history, meron na ngayong (there is now an) unemployment insurance. It will start with two months, at least meron kang P10,000 a month if you had been paying contributions under the maximum salary credit. For two months, makakapaghanap ka ng trabaho.”
Gordon, chairman of the Committee on Government Corporations and Public Enterprises, added, “It will allow you to look for another job. While hindi ka pwedeng magrelax at kailangang maghanap ka agad ng trabaho (You have to find work fast) because you can only get a maximum of two months, you will have something for your expenses.”
Here are a few things you need to know about the new SSS unemployment benefit:
- Unemployment benefit is equivalent to 50 percent of his/her average monthly salary credit for a maximum of two months
- Only those who involuntarily lost their job or without fault of their own (laid off) shall be qualified
- Members should have a least 36 months of contributions, 12 months of which should be in the 18-month period immediately preceding the involuntary unemployment or separation
- Unemployment benefit is not a loan but part of the SSS benefits their members can enjoy like sickness and maternity
- members who wish to file should not be over 60 years old
If you are paying the maximum monthly salary credit which is P16,000, unemployment benefit would be half of that or more or less P8,000 for two months.
For example, even if the member's monthly salary is at P150,000 and 12% contribution would be at P18,000, the maximum monthly salary credit is only capped at P16,000. Therefore, the maximum unemployment benefit a member can get is around P8,000.
The lower the monthly salary credit, the lesser the unemployment benefit.
Among the provisions of the new SSS Law, is the increase of contributions rate starting this year. From the current 11%, the monthly contribution rate will increase to 12%, with 4% coming from the employee, and 8% coming from the employer. Gradual increase will continue annually until it reaches 15% by 2025.
— Sally, The Summit Express
