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Social Security Protection of OFWs through the Social Security System

ATTY. JOSE SONNY G. MATULAATTY. JOSE SONNY G. MATULASocial Security Commissioner

Presentation to the FFW Symposium on Migration, February 10, 2007, Regency Inn, Davao City

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Outline of Presentation

• SSS Mission and Vision

• Reaching out to OFWs

– Bilateral Agreements

– Voluntary OFW Coverage

• SSS Foreign Representative Offices• OFW Coverage and Collection

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The SSS Mission

• To promote social justicesocial justice and provide meaningful protectionmeaningful protection to members and their beneficiaries against hazards of disability, sickness, maternity, old age, and death resulting in loss of income or financial burden through a sound and viable social security system

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The SSS Vision

• VViable

• UUniversal

• EEquitable

• WWorld-class service

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Reaching out to OFWs

• SSS’ two-pronged approach:

Social SecuritySocial SecurityBilateralBilateral

AgreementsAgreements

Voluntary Voluntary OFW CoverageOFW Coverage

ProgramProgram

Voluntary Voluntary Flexi-FundFlexi-FundProgramProgram

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Bilateral Agreements

• Existing Agreements – AustriaAustria (1982)

– United KingdomUnited Kingdom (1989)

– SpainSpain (1989)

– FranceFrance (1994)

– CanadaCanada (1997)

– QuebecQuebec (1998)

– NetherlandsNetherlands (2001)

– SwitzerlandSwitzerland (2001)

– BelgiumBelgium (2001)

– South Korea South Korea (2005)

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Bilateral Agreements

• Salient Features

– MMutual assistance

– EEquality of treatment

– EExport of social security benefits

– TTotalization of membership periods

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Voluntary OFW Coverage Program• Milestones

– Started Voluntary OFW Coverage in 1995

– Forged MOA with DFA/DOLE in 1997

– Started deployment of SSS representatives in foreign countries in 1998

• Who are covered?Who are covered?– Any OFW not over 60 years old, whether

previously an SSS member or not

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Voluntary OFW Coverage Program• First-time RegistrationFirst-time Registration

Secure an Overseas Worker Record Form (OW-1) from an SSS office or download the form from the SSS website (www.sss.gov.ph)

Submit the form with any of the following documents (original and photocopies):• Birth Certificate Driver’s

License• Baptismal Certificate Seaman’s

Book• Valid Passport PRC Card

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Voluntary OFW Coverage Program• No need for OFW registration if already a No need for OFW registration if already a

prior member with an existing SS numberprior member with an existing SS number– OFW registration needed only for those who

wish to join the Flexi-Fund Program

• Effectivity of CoverageEffectivity of Coverage– Upon payment of first monthly contribution

• Basis of Monthly ContributionBasis of Monthly Contribution– Monthly earnings, set minimum of P5,000

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Voluntary OFW Coverage Program

• Monthly Contribution RateMonthly Contribution Rate– 10.4% of the OFW’s salary, not exceeding

P15,000 per month

• Minimum: P 520

• Maximum: P1,560

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Voluntary OFW Coverage Program

• Accredited Collecting Banks / Tie-upsAccredited Collecting Banks / Tie-ups- Allied Bank - LBC Bank- Asiatrust Bank - Metrobank- Bank of the Phil. Islands - Philippine National Bank- Equitable-PCI Bank - RCBC- Export and Industry Bank - Security Bank- International Exchange Bank - United Coconut Planters

Bank- Land Bank - Bank of Commerce- Chinabank - Development Bank of Phils.- Asia United Bank - East-West Bank

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Voluntary OFW Coverage Program

• BenefitsBenefits– Retirement– Disability– Death– Funeral– Sickness– Maternity

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Voluntary OFW Coverage Program

• RetirementRetirement– Cash benefit, in either monthly pension or lump sum,

paid to a member who can no longer work due to old age.

Qualifications:1) 60 years old, separated from employment or ceased to be

self employed.2) 65 years old, whether employed or not.3) Has paid at least 120 monthly contributions before

semester of retirement.

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Voluntary OFW Coverage Program• DisabilityDisability- Cash benefit, in either monthly pension or lump sum, paid to a

member who becomes disabled, either partially or totally.

Qualifications:1) suffering from partial or total disability.2) with at least one month contribution paid to SSS

prior to the semester of contingency.

Less than 36 premium payments = LUMP SUM36 or more premium payments = PENSIONDependent’s Pension is given to qualified minor children of

a totally disabled pensioner

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Voluntary OFW Coverage Program• DeathDeath

– Cash benefit, in either monthly pension or lump sum, paid to the beneficiaries of the deceased member.

• Pension - payable to primary beneficiaries of a member who has paid 36 or more premium payments prior to the semester of contingency.

• Lump sum - payable to primary beneficiaries of a member who has paid less than 36 premium payments. Payable also to the secondary beneficiaries.

• Dependent’s Pension - payable to qualified minor children (not more than five) of a death pensioner.

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Voluntary OFW Coverage Program

• FuneralFuneral

– a funeral grant of P20,000 is given to whoever paid the burial expense of the deceased member.

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Voluntary OFW Coverage Program• SicknessSickness

– A daily cash allowance paid to a member for the number of days he is unable to work due to sickness or injury.

– The cash allowance is equivalent to 90% of average daily salary credit, for a maximum of 120 days per year.

Qualifications:

1) Unable to work due to sickness or injury.

2) Confined at home/hospital for at least 4 days.

3) With at least 3 premium payments within the last 12 months before the semester of contingency.

4) Must have notified the SSS.

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Voluntary OFW Coverage Program• MaternityMaternity

– A daily cash allowance granted to a female member who is unable to work due to childbirth or miscarriage.

– The cash allowance is equivalent to 100% of member’s average daily salary credit granted for 60 days for normal delivery or miscarriage or 78 days for caesarian delivery (for first 4 deliveries/miscarriages only)

Qualifications:

• Must have notified the SSS.

• With at least 3 premium payments within the last 12 months before the semester of contingency.

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Voluntary OFW Coverage Program

• LoansLoans– Salary– Housing– House Repair & Improvement– Business Development

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Voluntary OFW Coverage Program

• Flexi - Fund (National Provident Fund)Flexi - Fund (National Provident Fund)– Provident Fund for OFW-members that allows them to

save part of their earnings abroad for future needs– Offers flexible payment terms, high-interest and tax-

exempt earnings through secure/risk-free investments

Benefits:• Retirement• Disability• Death• Early Withdrawal

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Foreign Representative Offices

1. Hong Kong Phil. Consulate General

2. Rome, Italy Phil. Embassy

3. Riyadh, KSA Phil. Embassy

4. Jeddah, KSA Phil. Consulate General

5. Al-khobar, KSA Tahwee Aj-Rajhi Bank, Al-Shamalia Dist.

6. Taipei, Taiwan Metrobank Bldg., Chiung Hsiao East Rd.

7. Brunei Phil. Embassy

8. Kuwait Phil. Embassy

9. Abu Dhabi, UAE Phil. Embassy

10. Doha, Qatar Phil. Overseas Labor Office

11. Milan, Italy Phil. Consulate General

12. San Francisco, USA San Pedro Road, Daly City

13. Sydney Blacktown, New South Wales

14. Singapore Phil. Embassy

15. London, United Kingdom Orchard House, High St., Kensington

Foreign Office Location

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Chart 1: No. of Registered OFWs (Cumulative)

260,483

380,358

455,692

525,778

592,778658,551

699,814

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2000 2001 2002 2003 2004 2005 2006**Jan-Sept. only

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Chart 2: OFW Collections for the Year

285.2

430.4 499641

772.9853.6

1,010.5

0

200

400

600

800

1,000

1,200

2000 2001 2002 2003 2004 2005 2006**Jan-Sept. only

In Million Pesos

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End of Presentation

THANK YOU!!!THANK YOU!!!