Philippines now has social security partnership with Germany, Japan

The Philippines, with the Social Security System (SSS) taking the lead in its pursuit, now has bilateral Social Security Agreements (SSAs) with Germany and Japan effective June 01 and August 01 of this year, respectively, ensuring the protection of social security rights for more than 230,000 Filipinos abr oad.

SSS President and Chief Executive Officer Emmanuel F. Dooc said that these bilateral SSAs, aimed at reducing or eliminating nationality- and territory-based restrictions on social security, will benefit an estimated 47,214 Filipinos in Germany and 182,917 Filipinos in Japan, who are working or residing permanently in these two countries.

SSAs promote the welfare of all persons covered under the social security programs of either or both countries for retirement, disability and death contingencies. Its guiding principles are embodied in the 1962 ILO Social Security Convention No. 118 on the Equality of Treatment and the 1982 ILO Social Security Convention No. 157 on the Maintenance of Social Security Rights. There are four salient features of an SSA namely: (1) equality of treatment, (2) export of benefits, (3) totalization of insurance periods, and (4) mutual administrative assistance.

“With the bilateral SSAs in place, Filipinos are now entitled to social security benefits under the same conditions applicable to nationals of Germany and Japan and we are looking forward to extend the same protection to more Filipinos working or residing abroad,” said Dooc.

The latest in the pipeline, she said, include at least four FDI projects worth $10 million from Taiwan, which are separate from the P866-million committed investments approved by the SBMA in the first quarter of this year.

“These companies, which are into manufacturing and recycling, will initially employ at least 260 workers, and these workers would come from our neighbor communities,” Eisma said.

She added that more employment opportunities will be opened with the big-ticket investments that were approved this year. These are the redevelopment of the Binictican Golf Course by a Japanese firm for at least $30 million; redevelopment of the Triboa Clubhouse and facilities by a Taiwanese company for P2 billion; construction of a 400-room five-star hotel and resort for $20 million; and development of the Subic Bay International Airport (SBIA) into a world-class business aviation center for $8 million.

Eisma further said that there are now 1,587 business locators with more than 134,000 workers in the Subic Bay Freeport, and with development largely suitable only within the fenced-in portion of the former Subic Naval Base, the SBMA has to expand into nearby areas to sustain local economic growth.

“It’s a good thing that the neighboring towns have pledged about 21,000 hectares for these future projects,” she said.

Eisma said these include 9,000 hectares in San Antonio, Zambales, which are ideal for resort development and leisure businesses; 10,000 hectares in San Marcelino, Zambales, for agriculture, mining and quarrying; 500600 hectares in Subic, Zambales for factories, agriculture, and energy; and 500 hectares in Castillejos, Zambales for light to medium industry, and warehousing.

Meanwhile, the city of Olongapo pledged 900 hectares for housing, light industry and tourism, while Hermosa, Bataan allotted 505 hectares for light to heavy industry, renewable energy, metal industry, and vehicle assembly/ auction.

SBMA records indicate that the Subic Bay Freeport Zone recorded a 14% increase in employment last year when its active workforce reached a total of 128,200, compared to 112,600 in 2016.

Most of the workers in the Subic Freeport come from the neighboring areas of Olongapo City, which accounts for 36 percent; Zambales, 27 percent; and Bataan, 12 percent.— Ric Sapnu