The Social Security System (SSS) is a government-run institution designed to provide social security protection to workers through various benefits and financial assistance programs. Its main purpose is to ensure the well-being of its members, particularly their financial well-being, in times of need, such as illness, disability, retirement, or death.
SSS offers cash assistance and loan programs to support Filipinos in managing unexpected financial burdens and securing their economic stability. Understanding these programs is crucial for making informed decisions about personal financial planning, as they offer vital support and resources to help navigate life’s challenges.
Types of SSS Cash Assistance Programs
The Social Security System (SSS) provides a range of benefits and programs designed to offer financial assistance and support to its members in various life situations. Here are the types of SSS benefits and programs:
- SSS Benefits
- Purpose: Provide financial support in specific situations like illness, retirement, or death.
- Nature: Non-repayable financial assistance designed to aid members during times of need.
- SSS Loans
- Purpose: Offer financial assistance for immediate needs, which members are expected to repay.
- Nature: Short-term financial support that requires repayment with interest over a specified period.
These programs help members manage financial challenges due to illness, disability, retirement, and other significant life events.
Sickness Benefit
This benefit provides daily cash allowances to qualified members unable to work due to illness or injury. The SSS requires that the member has used up all paid leave and has paid at least three monthly contributions within the last 12 months before the semester of sickness. A maximum of 120 days of sick leave can be claimed per calendar year.
Purpose: To support members financially during periods of illness or injury that prevent them from working.
Amount of Benefit:
- The daily Sickness Benefit allowance is 90% of the member’s average daily salary credit (ADSC).
- The benefit can be granted for up to 120 days in a calendar year.
Maternity Benefit
The maternity benefit provides cash allowances to female members unable to work due to childbirth or miscarriage. It covers all deliveries and miscarriages, with a limit on the number of pregnancies covered. To qualify, the member must have paid at least three monthly contributions within the 12 months before the semester of delivery or miscarriage.
Purpose: To offer financial assistance to female members during childbirth or miscarriage when they cannot work.
Amount of Benefit:
- Daily Cash Allowance: 100% of the member’s Average Daily Salary Credit (ADSC).
- Duration:
- 105 days for normal or cesarean delivery.
- 120 days for solo parents under the Solo Parents’ Welfare Act (R.A. 8972).
- 60 days for miscarriage or emergency termination, including stillbirth.
- The Maternity Benefit is available regardless of the member’s civil status or the number of pregnancies.
Disability Benefit
This benefit provides a monthly pension or a lump sum amount to members who have been permanently disabled, either partially or fully. The SSS considers a range of disabilities and requires a medical evaluation to determine eligibility. To qualify, a member must have paid at least one monthly contribution before the semester of disability.
Purpose: To support members financially if they become permanently disabled and are unable to work.
Amount of Benefit:
- Monthly Pension: Varies based on the member’s contributions and average salary.
- Minimum Pension:
- PHP 1,000 for less than 10 credited years of service (CYS)
- PHP 1,200 for 10 or more CYS
- PHP 2,400 for 20 or more CYS
- Additional Benefits:
- PHP 500 monthly Supplemental Allowance
- PHP 1,000 additional benefit since January 2017
- 13th Month Pension: Paid every December to total disability pensioners, and to partial disability pensioners if their pension duration is at least 12 months
- Dependent’s Pension (for total disability): 10% of the member’s basic pension or PHP 250, whichever is higher, for up to five minor children.
- Lump Sum: Paid to members with fewer contributions.
Death Benefit
This benefit is provided to the beneficiaries of deceased SSS members. It can be in the form of a monthly pension or a lump sum amount, depending on the member’s number of contributions and whether they were pensioners at the time of death.
Purpose: To provide financial support to the family or beneficiaries of deceased members.
Amount of Benefit:
- Monthly Pension: Available to primary beneficiaries if the member has paid at least 36 monthly contributions.
- The primary beneficiary receives a monthly Death Pension plus a 13th Month Pension every December.
- If the member has minor children, they get a Dependent’s Pension of 10% of the monthly pension or PHP 250, whichever is higher, for up to five children. The minimum monthly Death Pension is:
- PHP 1,000 for less than 10 years of service (CYS)
- PHP 1,200 for 10+ years of service
- PHP 2,400 for 20+ years of service
- Plus an additional PHP 1,000 benefit starting January 2017.
- Lump Sum: Given to secondary beneficiaries if contributions are less than 36 months or if there are no primary beneficiaries. If no secondary beneficiaries are available, the lump sum goes to the member’s designated beneficiaries or legal heirs.
Retirement Benefit
The retirement benefit offers a monthly pension or lump sum amount to members who have reached the age of 60 and are no longer employed or have already stopped working. It ensures a steady income after retirement.
Purpose: To ensure financial security for members during their retirement years.
Amount of Benefit:
- Monthly Pension: Calculated based on the member’s average monthly salary credit and contributions.
- Includes a 13th Month Pension every December.
- If the member has dependent minor children, they receive a Dependent’s Pension equal to 10% of the member’s pension or PHP 250, whichever is higher, for up to five children.
- The minimum pension is;
- PHP 1,200 with 120 months of contributions (10 credited years of service, CYS), or
- PHP 2,400 with 20 CYS.
- An additional PHP 1,000 benefit has been effective since January 2017.
- Retirees can opt to receive the first 18 months of pension as a lump sum, excluding Dependent’s Pension.
- Lump Sum: Given if the member has less than 120 monthly contributions.
Funeral Benefit
This benefit is a cash grant given to whoever paid for the burial expenses of a deceased SSS member. It is provided to ease the financial burden of funeral costs.
Purpose: To assist with the funeral expenses of a deceased member.
Amount of Benefit:
- A fixed amount ranging from PHP 20,000 to PHP 40,000 depending on the member’s contribution and average monthly salary credit (MSC).
Unemployment Benefit
The Unemployment Benefit is provided to SSS members who have been involuntarily separated from employment. Eligible members must have paid at least 36 monthly contributions, 12 of which should have been made in the 18 months preceding the involuntary separation. The benefit aims to assist displaced workers while they search for new employment.
Purpose: To provide financial support to members who have lost their jobs involuntarily.
Amount of Benefit:
- Cash benefit: If qualified, the employee is granted an amount that is equivalent to equivalent to 50% of the member’s average monthly salary credit (AMSC) for a maximum of two months.
- The benefit is granted thru a one-time payment, and the claim must be filed within a year from the date of involuntary separation.
Employees’ Compensation (EC) Program
The EC Program provides additional benefits to workers who suffer work-related injuries, sickness, or death. This program complements the regular SSS benefits and covers all workers in the private sector, as well as government employees. Benefits include medical services, rehabilitation, and cash payments.
Purpose: To provide additional financial and medical support to workers who encounter work-related hazards.
Amount of Benefit:
- Cash Benefits: Provided for temporary or permanent disability, death, and funeral.
- Temporary Total Disability (TTD): Between PHP 110 and PHP 480 per day.
- Permanent Partial/Total Disability (PPD/PTD): Minimum pension of PHP 2,000, plus an additional PHP 1,150 since January 1, 2017. A supplemental allowance of PHP 1,000 is added.
- Dependent’s Pension: Minor children receive 10% of the monthly pension (up to 5 children).
- Death Benefit: Monthly pension plus a 15% increase, with a minimum of PHP 2,000 and an additional PHP 1,150 since January 2017.
- Funeral Benefit: PHP 30,000.
- Medical Services: Includes medical care, appliances, and rehabilitation services.
Salary Loan
The Salary Loan is a short-term credit facility available to employed, self-employed, and voluntary SSS members. It is designed to provide financial assistance to cover various personal needs. The loan amount is based on the member’s Monthly Salary Credits (MSC) and contribution history, offering flexibility in addressing immediate financial requirements.
Purpose: To provide short-term financial assistance to members for personal needs.
Benefit:
- Loan Amount:
- One-month loan: Equivalent to the average of the member’s last twelve (12) MSCs or the amount applied for, whichever is lower.
- Two-month loan: Equivalent to twice the average of the member’s last twelve (12) MSCs, rounded to the next higher MSC, or the amount applied for, whichever is lower.
- Interest Rate: 10% per annum, based on the diminishing principal balance.
- Repayment Period: Up to 24 months.
- Additional Terms:
- Interest continues to accrue on the outstanding principal balance if the loan is not fully paid at the end of the term, and penalties may be applied.
- In case of default, unpaid amounts will be deducted from the member’s future long-term benefits (e.g., Retirement, Total Disability, or Death).
- The loan can be renewed after payment of at least 50% of the original loan amount, with at least 50% of the loan term having lapsed.
Calamity Loan
The Calamity Loan is a financial assistance program provided during declared states of calamity. It aims to help members cope with the aftermath of natural disasters and emergencies.
Purpose: To provide financial assistance to members affected by calamities and emergencies.
Benefits:
- Loan amount: Equivalent to one month’s salary credit or the requested amount, whichever is lower.
- Repayment period: 24 months.
Pension Loan
The Pension Loan program is designed to provide economic assistance to qualified SSS retiree pensioners by offering low-interest loans. This loan aims to help pensioners meet their financial needs while leveraging their monthly pension as a basis for the loan amount.
Purpose: To provide low-interest loans to qualified SSS retiree pensioners for their financial needs.
Benefit:
- Loan Amount: Based on the member’s monthly pension and contribution history, up to a maximum of PHP 200,000.
- Interest Rate: 10% per annum.
- Repayment Period: 6, 12, or 24 months.
- Eligibility Requirements:
- Must be a retiree-pensioner with a My.SSS account.
- Must be 85 years old or younger by the end of the loan term.
- Must not have any deductions from the monthly pension or existing advance pension under the SSS Calamity Loan Assistance Package.
- Must be regularly receiving a monthly pension with an “Active” status.
Educational Loan
The Educational Loan program provides short-term financial assistance to SSS members or their beneficiaries for educational purposes. It aims to help members fund their education or that of their legal dependents. To qualify, members must have paid at least 36 monthly contributions, 6 of which should be within the last 12 months before the application.
Purpose: To assist members in financing the education of themselves or their dependents.
Benefit:
- Amount of Loan:
- Degree Course: Maximum of Php20,000 per semester/trimester/quarter term or actual tuition/miscellaneous fees, whichever is lower, rounded off to the next higher Php100.
- Vocational/Technical Course (minimum of 2 years): Maximum of Php10,000 per semester/trimester or actual amount of tuition/miscellaneous fees, whichever is lower, rounded off to the next higher Php100.
- The loan shall be funded by National Government (NG) and SSS on a 50:50 basis.
- Any excess on the tuition fee and miscellaneous expenses shall be borne by the member/beneficiary.
- Interest rate: 6% per annum.
- Repayment Terms:
- Degree Course: The term is up to five (5) years and loan payment shall start after 18 months for semestral courses, 15 months for trimestral courses or 14 months & 15 days for quarter term courses from the scheduled last release date or from the date of last release for those who will not avail of the subsequent releases.
- Vocational/Technical Course: The term is up to three (3) years and loan payment shall start after 18 months for semestral courses or 15 months for trimestral courses from the scheduled last release date or from the date of last release for those who will not avail of the subsequent releases.
- Additional Terms:
- Any unpaid educational assistance loan shall be deducted from the future benefit of the member.
Direct Housing Loan Facility for OFWs
This loan program is designed to provide Overseas Filipino Workers (OFWs) with financial assistance for purchasing a house and lot, condominium unit, or for constructing a new residential property. The program accommodates various housing needs, from socialized to low-cost housing, with loan terms and interest rates tailored to the borrower’s capacity and the value of the collateral.
Purpose: To help OFWs secure or improve residential properties in the Philippines, offering them a means to invest in housing while working abroad.
Benefit:
- Loanable Amount: Up to PHP 2,000,000, determined by the appraised value of the collateral (70-90%), borrower’s capacity to pay, and actual need.
- Socialized Housing Loan: Up to PHP 450,000
- Low-cost Housing Loan:
- Over PHP 450,000 up to PHP 1,000,000
- Over PHP 1,000,000 up to PHP 1,500,000
- Over PHP 1,500,000 up to PHP 2,000,000
- Up to three qualified SSS members related within the first civil degree of consanguinity or affinity may combine their loans for a single property, provided the combined amount does not exceed the allowable limit.
- Term of Loan: Payable in multiples of five years, up to a maximum of 15 years, subject to the borrower’s age (not to exceed 65 years at loan maturity) and the economic life of the building.
- Interest Rate:
- Up to PHP 450,000: 8% per annum
- Over PHP 450,000 up to PHP 1,000,000: 9% per annum
- Over PHP 1,000,000 up to PHP 1,500,000: 10% per annum
- Over PHP 1,500,000 up to PHP 2,000,000: 11% per annum
- Collateral: Acceptable collateral includes a TCT/OCT/CCT registered in the borrower’s name and free from liens. The loan is secured by a first Real Estate Mortgage (REM) and must be covered by an HGC guaranty.
- Insurance Coverage: Mortgage Redemption Insurance, Fire Insurance, and Home Guaranty Corporation coverage are required, with premiums shouldered by the borrower.
- Manners of Payment: Payments can be made through various overseas payment centers, including PNB, i-Remit, Ventaja, Metrobank, BDO, RCBC, BOC, AUB, and Bancnet online payments.
Housing Loan for Repairs and/or Improvements
This loan program offers financial assistance to SSS members for repairing or improving their existing residential properties. It is designed to help members enhance the value and livability of their homes by providing a loan that is payable over an extended period with a fixed interest rate. Eligible members can use the loan for various home improvement projects as determined by the SSS.
Purpose: To assist members in financing the repair and improvement of their residential properties, ensuring better living conditions and increased property value.
Benefit:
- Loanable Amount: Up to PHP 1,000,000, based on the appraised value of the property (70-90%), borrower’s capacity to pay, and the actual need as assessed by SSS.
- Interest Rate: 9% per annum. Fixed for the first 15 years, with re-pricing every five years thereafter for loans with terms beyond 15 years.
- Term of Loan: Payable in multiples of five years, up to a maximum of 20 years (15 years for OFWs).
- Collateral: Acceptable collateral includes the TCT/OCT/CCT registered under the borrower’s name, secured by a first mortgage.
- Insurance: The loan must be covered by Mortgage Redemption Insurance and Fire Insurance, with premiums paid by the borrower.
- Loan Fees: Processing fee of 0.5% of the loan amount (minimum PHP 500, maximum PHP 3,000) and an inspection fee of PHP 500.
Video: How to Enroll a Disbursement Account for Your SSS Benefit Claims or Loans
One of the most important step when filing for a benefit claim or a loan from the SSS via the online platform is to ensure that you have a disbursement account or an account where the SSS can send the money for you to withdraw from. To learn how to enroll one, watch this video from MySSSPH:
Summary
Cash assistance and loan programs are created and offered by the SSS in an attempt to provide financial support to Filipinos during various life events and emergencies, ensuring stability and aid when needed most. By understanding and utilizing these benefits, you can better prepare for unexpected challenges and take advantage of resources available for financial relief.
For more information on how to apply for these programs and maximize their benefits, visit the SSS official website or contact your nearest SSS branch today.