Embassies in PH urged to provide SSS coverage for workers
Macasaet hopes embassies, consulates, international organizations will provide social security coverage to Filipino workers
The Social Security System (SSS) is encouraging embassies, consulates, and international organizations in the Philippines to provide social security coverage of their Filipino employees.
The pension fund’s call comes after SSS and the Embassy of Ireland signed a memorandum of agreement that aims to provide social security coverage and employees’ compensation benefits to Filipinos working in the Irish Embassy in Manila.
Under Republic Act No. 11199 or the Social Security Act of 2018, Filipino employees working in any foreign government, such as embassies and consulates, and those employed in international organizations, are exempted from compulsory SSS coverage.
“However, embassies and consulates may enter a pact with the Philippine government to include their employees in social security coverage,” Rolando Ledesma Macasaet, SSS president and chief executive officer said.
For this reason, Macasaet said he is hopeful that other embassies, consulates, and international organizations in the country follow the example of the Embassy of Ireland in entering into an agreement with SSS for the social security coverage of their Filipino employees.
Under the agreement between SSS and the Irish Embassy, Filipino workers would become covered employees with the Embassy of Ireland as their employer.
In return, the Embassy would shoulder the employer share of their workers’ monthly SSS contributions. Currently, the SSS contribution rate is 14 percent, wherein the employer pays 9.5 percent, while the employee shoulders the remaining 4.5 percent.
Likewise, the Embassy would shoulder the employees’ compensation contributions of its employees, which range from P10 to P30 per month, depending on their Monthly Salary Credit (MSC), or the salary covered by which SSS contributions and benefits are based.
In June last year, the Embassy of Ireland expressed its intention to register its locally hired Filipino employees with the SSS to provide them with social security protection.
“We want to thank the Irish government for initiating this agreement. It is a kind gesture that will ensure that our fellow Filipinos working in the Embassy will have a safety net during times of emergencies,” Macasaet said.
As SSS members, employees are entitled to receive social security benefits such as sickness, maternity, disability, unemployment, retirement, funeral, and death benefits.
They may also apply for various loan programs, which include salary and calamity, among others. In addition, they will also get additional coverage from the Employees’ Compensation Program for work-related contingencies.
Meanwhile, Macasaet said they could further strengthen the partnership between the two countries by exchanging knowledge and best practices in implementing pension schemes.
“We are interested to learn from your country’s pension system and how the Irish government can teach us in improving our pension system,” he added.