Unemployment benefit as the 7th SSS benefit

All About Social Security

OST Filipinos rely on their jobs to support themselves and their families’ needs. So, when employees are suddenly displaced from their jobs, they lose their financial security while also trying to overcome the burden of unemployment.

MWhere do workers seek assistance when involuntarily separated from employment due to unforeseen circumstances like these?

For 16 million actively paying SSS members, they can avail themselves of an unemployment benefit in case they are displaced at work due to redundancy, installation of labor-saving devices, retrenchment, closure or cessation of operation, and disease or illness.

Alwin Velasco, a 23 years old butcher, is one of the many workers who have availed of the SSS unemployment benefit. He was

involuntarily separated from work when his company was bought by a conglomerate. In his interview with a primetime news program, he thanked SSS for this benefit, which was not a loan that he has to pay.

Velasco is one of the 4,378 employees who have availed themselves of the involuntary separation benefit. As of October 7, 2019, SSS has disbursed a total amount of P54.79 million for unemployment benefit.

The unemployment benefit, one of the landmark provisions of Republic Act 11199 or the Social Security

Act of 2018, provides involuntarily separated employees with a temporary source of income to support themselves and their families while looking for a new job.

This is the seventh benefit of SSS that grants member-applicants a cash benefit equivalent to half of their average monthly salary credit (AMSC) for a maximum of two months.

For example, a member earning P10,000 per month who was involuntarily separated from employment, may receive a cash assistance of half of his AMSC, which is P5,000 per month or a total of P10,000 of unemployment benefit for a maximum of two months.

Qualified covered employees must not be more than 60 years old at the time of involuntary separation. However, underground and surface mine workers and racehorse jockey members must not be more than 50 and 55 years old, respectively.

To qualify for unemployment insurance, member-applicants must have paid at least 36 monthly contributions, 12 months of which should have been paid within the 18-month period before the month of involuntary separation.

Member-applicants must secure a certification from the Department of Labor and Employment (DOLE) through its regional offices or Philippine Overseas Labor Offices (POLO) establishing a nature and date of involuntary separation, along with the Notice of Termination from the employer or the Affidavit of Termination of Employment.

Member-applicants may file their claims at any SSS branch or foreign office within one year from the date of involuntary separation.

The unemployment benefit which is the newest benefit—apart from sickness, maternity, disability, retirement, funeral, and death—is an additional layer of social security protection for all Filipino workers. SSS contributions are long-term savings for members.

Aurora C. Ignacio is SSS president and chief executive officer.

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