Members of the Social Security System (SSS) who are about to lose their jobs may claim involuntary separation benefits from the state-run pension fund.
The unemployment insurance is among the provisions of the Republic Act No. 11199, otherwise known as the Social Security Act of 2019, a landmark legislation which President Rodrigo Duterte has recently signed into law.
Senator Richard Gordon, principal author of the said legislation, said that the provision of the unemployment insurance, or the involuntary separation benefits under SSS, is the first of its kind in the country’s history.
He further explained that a member who had been paying contributions under the maximum salary credit may claim up to P10,000 a month. The said amount will allow the member to look for another job.
The member needs to find another job, fast
However, the senator said that the unemployed member cannot relax and needs to find another job immediately, as he can only get a maximum of two months’ worth of benefits to cover his expenses.
According to Section 14-B of R.A. 11199, a member who finds himself voluntarily unemployed can claim unemployment benefit equivalent to 50 percent of his average monthly salary credit for a maximum of two months.
The member should not be more than 60 years of age. He or she should have at least 36 monthly contributions where twelve months of such contribution should have been made within the 18-month period prior to the involuntary unemployment or separation.
Under the said law, a member may only claim unemployment benefits once every three years.
Aside from the provision of unemployment insurance, the Social Security Act of 2019 also mandates the compulsory coverage of overseas Filipino workers below 60 years old. As such, the number of OFWs who are members of the SSS will increase from the current 500,000 to 2.5 million.
Furthmore, the new law also increased the contribution rates from the current 11 percent to 15 percent.