The Social Security System (SSS) said it plans to implement the mandatory overseas Filipino workers (OFWs) insurance provision under the Social Security Act (SSA) of 2018 by June.
During a news briefing on Monday, SSS Chief Legal Counsel Voltaire P. Agas said the SSS is targeting to implement the provision of the SSA (Republic Act 11199) “to open up all benefits offered to OFWs.”
“OFWs shall enjoy all the seven benefits under the SSS. So this is the date where we are trying to meet,” Agas said at the SSS headquarters in Quezon City. These are the sickness, maternity, disability, retirement, funeral, death and unemployment benefits.
He explained that under this provision, land-based OFWs are covered by the SSS in the same manner as self-employed individuals, meaning they will shoulder both the employer and employee contribution sharing scheme temporarily as the Department of Labor and Employment (DOLE) and Department of Foreign Affairs (DFA) will forge bilateral labor agreements asking employers from other countries to shoulder their respective contribution share.
“As mandated by the law, the SSS, the DFA and DOLE were asked to negotiate with various countries wherein we are deploying OFWs to secure a bilateral labor agreement, wherein we would ask the employer in foreign countries to consider paying the employers share. OFWs will now enjoy the benefit like a normal employee,” Agas said.
He explained that sea-based OFWs are already enjoying employee benefits as their employers’ share of contributions are being shouldered by their respective manning agencies.
“Under this law, to ensure compulsory coverage, we are trying to negotiate memorandum of agreements with the DOLE, with the POEA [Philippine Overseas Employment Administration] for the collection of the SSS contribution in the same way as the OWWA [Overseas Workers Welfare Administration] on enforcing their collections for Pag-ibig [Home Mutual Development Fund] and PhilHealth [Philippine Health Insurance Corp.],” he said.
Agas said permanent migrants may still opt to continue being covered by the SSS by becoming voluntary members of the fund.
SSS Acting Head for International Operations Group Joy A. Villacorta said that until such time that bilateral labor agreements with the SSS provisions are signed and enforced, land-based OFWs are covered in the same manner as self-employed.
“We are expecting P13 billion in the next few years [from the OFW coverage provision],” Villacorta said.
Unemployment, maternity benefits
Meanwhile, SSS officer in charge Aurora C. Ignacio said the implementing rules and regulations (IRR) for both the unemployment and maternity benefits are still being crafted in tandem with the DOLE, the DFA and the Civil Service Commission (CSC).
“The IRR or the circular for the unemployment and the maternity [provision] has not been released,” Ignacio said. “So anything that [anybody] say is still under discussion between the DOLE, the DFA and the CSC. Let’s just wait for the IRR.”
Agas said the IRR for the expanded maternity benefit, as well as the unemployment provision of the law is being eyed for issuance before May 1.
Last month, the SSS said the SSA will increase the life of the pension fund by 13 years to 2045 from 2032.
Former SSS President and CEO Emmanuel F. Dooc said the fund’s extension until 2045 is projected on the back of the implementation of the contribution increase and adjustment in minimum and maximum salary credits under the newly signed law.
Under the law, the SSS will implement a gradual increase in monthly contributions by 1 percentage point starting on the year of implementation until it reaches 15 percent in 2025. The current monthly contribution rate is at 11 percent.