What Are the Unemployment Benefits from SSS

Being suddenly unemployed is one of the most stressful things. Suddenly losing your ability to pay bills, buy food, and rent is like losing your means to live.

It is a relief to know that if you are not yet 60 years of age and were previously paid for your SSS contributions or are currently paying, you are entitled to an “SSS unemployment benefit,” thanks to your membership to the SSS!

Despite this, this is the first time a well-established program like the Social Security System has been able to provide such a benefit. It was only possible because the newly enacted law, RA 11199, or the so-called Social Security Act of 2018, passed just recently.

Last February 8, 2019, Senator Richard Gordon authored a law signed by former President Rodrigo Duterte.

What is the purpose of Republic Act No. 11199?

The law stipulates a benefit available for individuals who lose their jobs or are forced into involuntary unemployment and are active paying members of the Social Security System (SSS). Members who contributed at least three years but are unemployed for a maximum period of two months are entitled to use 50% of their average monthly wage as a living allowance.

For low-income earners, such as minimum wage workers, this would mean a minimum monthly income of Php10,000 and a minimum payment of Php20,000 over two months.

A member of the SSS is entitled to receive the unemployment benefit. This will help them transition from the state of being suddenly unemployed to finding their subsequent employment. This transition should not take longer than two months, if possible. Therefore, one can understand why the benefit period is so short.

Sen. Gordon cited as the author of the bill-turned-law himself, claimed that this was the first time in our country’s history that we now have access to unemployment insurance. If you are an unemployed SSS member who pays contributions under the maximum salary credit available, you will be entitled to receive Php10,000/month if you are actively paying contributions.

Even though the Php10,000 per month allowance is not enough to cover the costs of essentials such as bills and food, the purpose of the benefit is to not be dependent on it for the long haul. There is no reason this is needed; it is simply to provide the member with the support they need to go through the rough times following their layoff from work as quickly as possible.

SSS Unemployment Benefits Under RA11199

There is no loan involved in this transaction.

Preexisting members of SSS may find that adding the “SSS unemployment benefit” to their membership and contributions will fall outside of the specific benefits they have accrued due to their participation in SSS. As a part of these benefits, you can receive sickness, disability, maternity, retirement, death, and funeral benefits.

RA11199’s most striking feature is that it grants seven benefits due to being a long-term and active member of SSS, which includes unemployment as the most obvious addition.

SSS unemployment benefits should be taken as their name implies and should not be confused for a “loan” whose intent is obscured by subtle labeling.

Therefore, any claimant who has earned money from their contribution while unemployed can rest assured that this money is theirs, and they are not obligated to return it with accrued interest at the end of the unemployment period.

Two-month unemployment benefits from SSS

It is important to note that even if you belong to one of the longest paying and most active SSS groups, the “unemployment benefit” is strictly limited to 2 months maximum. 

It should be pointed out that this “benefit” is not of the same magnitude as a “retirement benefit” and therefore cannot be relied upon for an extended period. It is just there to assist laid-off employees in overcoming the difficulties they are bound to face when they are laid off.

Further, it is worth noting that the unemployment benefit provided by the Social Security System (SSS) is eligible for claim by all qualified members. Still, there is an expiration date for the benefit’s validity.

The unemployment benefit is only available to a valid member of the Social Security System if, after the expiration of the first three years, the member is again unemployed involuntarily.

To qualify for the benefit, you must be unemployed.

As a result of this law, it will not be called SSS unemployment benefit if it can be availed by all qualified members on a whim and not based on lost employment.

The “unemployment benefit,” as its name suggests, was designed to help valid members transition from one job to another after losing their previous position.

Cash support should be 50% of the member’s average monthly salary.

Even though the benefit should not provide less than Php10,000 in cash as a minimum, this does not necessarily mean that every individual who qualifies for the benefit will receive the same amount each month for two months.

Depending on the member’s average monthly income from their last employment and other significant factors in the computation, the amount will depend on the member’s average monthly payment from their previous job.

Benefits were drawn from the recent increase in SSS contributions.

For SSS to continue to provide this level of support to its disadvantaged members, the organization must be able to find funding from somewhere to sustain this program. Due to its increased contribution demand from existing members, unemployment benefits are paid from the SSS pool.

A reasonable increase from 11% to 12% for 2019 by RA 11199 is the same law that caused the hike. As derived from the same direction, there are still some expected future hikes of 1% every two years starting in 2019.

This means it will increase from 12% in 2019 to 13% in 2021, 14% in 2023, and 15% in 2025. With all the existing members of SSS contributing to it, “1 percent” may seem like a small amount. Still, it amounts to a considerable amount needed to sustain the law’s dictates.

SSS unemployment insurance helps newly laid-off members cope with the loss of their income. The benefit of this perk is that members do not need to wait until they’re 60 to get a share of their sacrifices over the years.

Two-month financial support seems insignificant, but it’s better than nothing, right?