The Three Government Contributions in the Philippines
Newly hired employees are eligible to contribute in the three social institutions in the Philippines. This is mandatory for the employee and the employer's side.
are the government contributions necessary?
One of the first steps in setting up a business is the company registration with the SSS, Philhealth, and Pag-IBIG to ensure that the company can remit monthly contributions on behalf of the employees. Through the contributions made by both the employees and the employer, the employees will have access to social security benefits, health insurance, and housing loans.
What makes a person eligible to receive these benefits?
1. A permanent employee or a temporary employee under the age of 60 with a monthly income of more than PHP 1,000.
2. Household workers (kasambahays, drivers, cooks, and gardeners) with a monthly income of at least PHP 1,000.
3. All Filipinos working locally or overseas either for Philippine-based or foreign-based employers.
4. All foreigners not older than 60 years old who are living and working in the Philippines, except for those who are exempted under the country’s totalization agreements.
sss benefits (RA 8282)
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It is a package of benefits in the event of death, disability, sickness, maternity, and old age.
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The amount of an employee’s sickness benefit is computed as (Daily Sickness Allowance x Approved Number of Days)
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The disability cash benefit is paid to a member who suffers a partial or total permanent disability, with at least 1 contribution paid to the SSS prior to the semester of contingency.
TYPES OF RETIREMENT BENEFITS
1. Monthly Pension is a lifetime cash benefit paid to a retiree who has paid at least 120 monthly contributions to the SSS prior to the semester of retirement.
2. Lump-Sum Amount is granted to a retiree who has not paid the required 120 monthly contributions.
TYPES OF DEATH BENEFITS
1. Monthly Pension is granted only to the primary beneficiaries of a deceased member who had paid 36 monthly contributions before the semester of death.
2. Lump-Sum Amount is granted only to the primary beneficiaries of a deceased member who had paid less than 36 monthly contributions before the semester of death.
PHIC Benefits (RA 9241)
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These are personal health services such as inpatient hospital care and outpatient care which are available for all Filipinos.
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It helps reduce your expenses during confinement of selected health services.
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Inpatient hospital care includes the following:
- Room and board
- Services of health care professionals
- Diagnostic, laboratory, and other medical examination services
- Use of surgical or medical equipment and facilities
- Prescription drugs and biologicals, subject to the limitations stated in Section 37 of RA 7875
- Inpatient education packages
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Outpatient care includes the following:
- Services of health care professionals
- Diagnostic, laboratory, and other medical examination services
- Personal preventive services
- Prescription drugs and biologicals, subject to the limitations described in Section 37 of RA 7875
- Emergency and transfer services
HDMF Benefits (RA 9679)
It is a mutual provident savings system for private and government employees and other earning groups, mandatory or voluntary membership.
Savings
a total of 3 to 4% monthly income
Short Term Loans
The employee must be active and have made at least 24 monthly contributions.
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Multi-Purpose Loan Program - designed to help finance members’ immediate medical, educational, or livelihood needs; minor home improvement, purchase of appliances and furniture, and other related needs.
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Calamity Loan Program - extended to members who have been affected by a recent calamity, as proven by a declaration of the calamity in their area of residence.
Housing Programs
End-User Financing Program where a qualified member may avail of a loan to finance the purchase, the construction of the house, the improvement, or refinancing of a lot, house, unit, or mortgage.
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Maagang Pabahay & Disenteng Buhay Program where a qualified HDMF member may purchase an acquired asset of the Fund either in cash or through a housing loan at very reasonable prices.
