SSS ready to accept unemployment benefit claims

by Mary Grace Padin (The Philippine Star) – 19 August 2019

MANILA, Philippines — Members of the Social Security System (SSS) are now entitled to unemployment benefits should they get involuntarily separated from their workplace, the state pension fund announced over the weekend.

SSS president and chief executive officer Aurora Ignacio said state fund is now ready to accept applications for unemployment benefit claims, giving another layer of social security protection to its members.

“The unemployment insurance or involuntary separation benefit intends to provide SSS members who are involuntarily separated from employment with financial aid which could help them, while they are on the process of finding a new job,” Ignacio said.

The unemployment benefit is provided under Republic Act 11199 or the Social Security Act of 2018.

Under the program, member-applicants may be granted a cash benefit of half of their average monthly salary credit (AMSC) for a maximum of two months.

“For example, a member who’s earning P10,000 per month was involuntarily separated from employment. He/she may be granted a cash assistance for a maximum period of two months. The cash assistance is equivalent to one half of his AMSC, which in this case is P5,000 per month of unemployment benefit or a total of P10,000 for the two-month period of his/her unemployment.” Ignacio said.

According to SSS Circular No. 2019-11, dated July 8, 2019, members must not be more than 60 years old at the time of involuntary separation to qualify for the program. Underground and surface mine workers, and racehorse jockey members, on the other hand, must not be more than 50 and 55 years old, respectively.

Eligible members should also have at least 36 monthly contributions, 12 of which should have been made within the 18-month period preceding the month of involuntary separation.

They should also have no settled unemployment insurance or involuntary separation benefit within the last three years prior their separation.

“A covered employee who is involuntarily separated can only claim unemployment insurance or involuntary separation benefit once every three years starting from the date of involuntary separation. In case of concurrence of two or more compensable contingencies within the same compensable period, only the highest benefit shall be paid,” the circular read.

Futhermore, the SSS said the reason for separation must not arise from the employee’s fault or negligence.

The SSS said the benefit applies to members who are separated due to installation of labor-saving devices, redundancy, retrenchment, closure or cessation of operation, and disease or illness, among others.

The guidelines for the benefit program is applicable for compensable contingencies occurring on or after March 5, 2019.

Applicants will be required to present and submit documentary requirements, as well as a certification establishing the nature and date of involuntary separation from the Department of Labor and Employment.

The filing for unemployment insurance or involuntary separation benefit claims must also be made within one year from the date of involuntary separation.