Pension
In the Philippines, employees may retire upon reaching the retirement age established in the employment contract, collective bargaining agreement, or company policy. If there is no retirement plan or agreement, an employee may retire at age 60 years of age or older but not after 65 years of age, at which point retirement becomes mandatory. Employees become eligible to receive a pension if they have paid at least 120 monthly Social Security contributions.
The monthly pension is calculated according to the Philippines' Social Security System's formula depending on the number of contributions. Dependents' allowance is added to the monthly pension. Pension is paid 13 times a year. An insured employee who is 60 years old at retirement and who does not qualify for pension benefits is entitled to a lump sum benefit equal to the total of the contributions paid by them and on their behalf. Employees also have the option to buy the remaining weeks of contributions to be eligible for a pension.
Both employees and employers pay contributions to the Social Security System.
Dependents/Survivors Benefits
In the Philippines, the death benefit is a cash benefit paid either as a monthly pension or lump sum to beneficiaries of a deceased member who had paid at least 36 monthly contributions before the 6-month period in which the death occurred. Primary beneficiaries include a surviving spouse and up to 5 dependent children under 21 years of age or who are disabled. Where there are no primary beneficiaries, the dependent parents are considered the secondary beneficiaries.
Primary beneficiaries are entitled to the same monthly pension the deceased employee would have been entitled to receive. If a pensioner dies, their pension is transferred to their primary beneficiaries. The monthly pension is paid for no less than 60 months. If the deceased insured member had paid less than 36 monthly contributions, a lump sum benefit is granted to their primary beneficiaries.
*COVID 19 has been included in the ECC List of Occupational and Work-related diseases, supported by diagnostic proof that the infection was caused during work or commuting to and from work.
Monthly benefits are paid by the employer to primary dependents in case of death due to work-related injury or sickness. These payments are covered under the Employees Compensation Program.
Invalidity Benefits
To qualify for a disability pension, the SSS member must be assessed as having a permanent total or partial disability. They must also have at least 36 months of contributions before the six-month period in which the disability began.
The monthly pension is calculated according to the Social Security System's formula, depending on the number of contributions. Dependents' allowance is added to the monthly pension. A supplementary allowance of PHP 500 (Philippine pesos) (USD 9.94) is paid to pensioners with total or partial disability. A pensioner with total disability is also entitled to a 13th-month pension payable every December. For a pensioner with partial disability, a 13th-month pension shall be paid provided that the pension duration is at least 12 months. Both employees and employers pay contributions to the Social Security System.
Benefits for work-related disability are covered by the Employees' Compensation Program and depend on the degree and type of disability. *COVID 19 has been included in the ECC List of Occupational and Work-related diseases, supported by diagnostic proof that the infection was caused during work or commuting to and from work.