SSS sets guidelines in giving unemployment insurance

By Rea Cu, Businessmirror, Jul 18, 2019

THE Social Security System (SSS) has issued a circular embodying the implementing guidelines for the payment of unemployment insurance or involuntary separation benefit, in accordance with Republic Act (RA) 11199 or the Social Security Act of 2018.

The benefit is meant to help members of the state-run pension fund who were involuntarily separated from their jobs.

Under SSS Circular 2019-011, to be eligible for the unemployment insurance or involuntary separation benefit, employees must not be over 60 years of age at the time of involuntary separation from employment, with the exception of underground mine workers who should not be over 50 years of age and race horse jockeys who should not be over 55.

The covered employees must also have paid at least 36 monthly contributions, “12 months of which should be in the 18-month period immediately preceding the month of involuntary separation.”

They also must have no settled unemployment insurance or involuntary separation benefit within the last three years prior to the involuntary separation from employment.

Reasons for the involuntary separation may include redundancy, retrenchment or downsizing, closure of the operations, commission of a crime or offense of the employer against the employee or any of the immediate members of his family, and inhuman and unbearable treatment by the employer of the employee, among others.

Disqualification

Meanwhile, an employee will not be qualified for the unemployment insurance or involuntary separation benefit if he or she has shown serious misconduct, willful disobedience to lawful orders, as well as gross and habitual neglect of duties, among others.

“The reasons for involuntary separation of OFWs shall be determined by the DOLE [Department of Labor and Employment],” the circular read.

Claims for the unemployment insurance and involuntary separation benefit should be filed within one year from the date of the employee’s involuntary separation.

The benefit payout will be done through the member’s SSS unified multipurpose ID (Umid) enrolled as an automated teller machine (ATM) or through the Union Bank of the Philippines (UnionBank) Quick Card account, and not through cash or check payments.

For documentary requirements, the SSS listed an original copy as well as a photocopy of one of the primary ID cards or documents, namely: passport, Umid card and driver’s license, among others.

The applicants must also provide a certification from DOLE establishing the nature and date of involuntary separation from employment, which can be sourced in DOLE regional offices and Philippine Labor Offices (Polo).

The SSS circular also prescribed limitations in applying for the unemployment insurance and involuntary separation benefit. Covered employees may only claim once every three years starting from the date of involuntary separation, and in case of concurrence of two or more compensable contingencies within the same period, only the highest benefit shall be paid.

For cases such as overlapping benefits, when the involuntarily separated employee files a case against the employer, when the filing or payments involves fraudulent or false claims, or when the employee is rehired within the same compensable period, “the settled unemployment insurance or involuntary separation benefit shall be deducted either in partial or full from the future benefits of the member.”

The unemployment insurance or involuntary separation benefit is a cash benefit granted to covered employees including kasambahay (domestic workers) and overseas Filipino workers (OFW) who were involuntarily separated from their employment.

“The guidelines shall be applicable for compensable contingencies occurring on or after March 5, 2019,” the circular added.

SSS Circular 2019-011 was signed by SSS President and CEO Aurora C. Ignacio last July 8, 2019.

In February this year, the SSS said that RA 11199 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.