UNEMPLOYMENT INSURANCE OR INVOLUNTARY SEPARATION BENEFITS
March 9, 2019
Republic Act No. 11199 ("RA 11199") or the Social Security Act of 2018 (particularly Sec. 14-B) now provides for “Unemployment Insurance” or “Involuntary Separation Benefits” for workers who have been involuntarily separated from employment.
An employee who is involuntarily unemployed can claim this benefit PROVIDED that he/she:
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Is not over 60 years old
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Must have paid at least 36 months contributions – 12 months of which should be in the 18-month period immediately preceding the involuntary separation
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Must claim it only once every 3 years
In case of concurrence of 2 or more compensable contingencies, only the highest benefit shall be paid.
The benefit shall be:
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In the form of monthly cash payments
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Equivalent to 50% of the average monthly salary credit of the worker
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Received for a maximum of 2 months
Some definition of terms:
What is a CONTINGENCY?
This pertains to the retirement, death, disability, injury or sickness, maternity, or involuntary unemployment of the worker who is covered under Secs. 9, 9-A and 9-B of the Social Security Act (“member”).
What is the AVERAGE MONTHLY SALARY CREDIT?
That which is greater between—
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The sum of the member’s last 60 monthly salary credits immediately preceding the semester of contingency, divided by 60; OR
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The sum of the member’s all monthly salary credits paid prior to the semester of contingency, divided by the number of monthly contributions paid in the same period
What is a SEMESTER?
It is a period of 2 consecutive quarters ending in the quarter of contingency.
What is a QUARTER?
It is a period of 3 consecutive calendar months ending on the last days of March, June, September and December.
What is a MONTHLY SALARY CREDIT?
It is the compensation base for contributions and benefits indicated in the Social Security Act.
The maximum monthly salary credit to be considered shall be PhP 20,000.00.
This is based on a Contribution Table that the Social Security System (SSS) maintains and regularly updates.
Example:
(The scenario below provides only a loose example and computation. For precision, contact or visit the SSS office near you.)
Aurora is 27 years old. She started working in March 2014 and was earning the following salaries:
2014 = PhP 10,000 / month
2015 = PhP 10,800 / month
2016 = PhP 12,400 / month
2017 = PhP 13,400 / month
2018 = PhP 15,300 / month
2019 = PhP 17,200 / month
Aurora has complete SSS monthly contributions from 2014 to 2019.
She was involuntarily separated from employment on December 10, 2019.
The following is based on the SSS Contribution Table:
Range of Compensation Monthly Salary Credit
PhP 9,750 - PhP 10,249.99 PhP 10,000
PhP 10,250 - PhP 10,749.99 PhP 10,500
PhP 10,750 - PhP 11,249.99 PhP 11,000
PhP 11,250 - PhP 11,749.99 PhP 11,500
PhP 11,750 - PhP 12,249.99 PhP 12,000
PhP 12,250 - PhP 12,749.99 PhP 12,500
PhP 12,750 - PhP 13,249.99 PhP 13,000
PhP 13,250 - PhP 13,749.99 PhP 13,500
PhP 13,750 - PhP 14,249.99 PhP 14,000
PhP 14,250 - PhP 17,749.99 PhP 14,500
PhP 14,750 - PhP 15,249.99 PhP 15,000
PhP 15,250 - PhP 15,749.99 PhP 15,500
PhP 15,750 - over PhP 16,000
What is the contingency in this situation?
Aurora’s involuntary separation from employment.
What is the semester of contingency?
July 1, 2019 to December 31, 2019
What is the sum* of Aurora’s 60 monthly salary credits from the 60 months immediately preceding the semester of her involuntary separation?
Jun - Dec 2014 (6 months) = PhP 10,000 x 6 = PhP 60,000
Jan - Dec 2015 (12 months) = PhP 11,000 x 12 = PhP 132,000
Jan - Dec 2016 (12 months) = PhP 12,500 x 12 = PhP 150,000
Jan - Dec 2017 (12 months) = PhP 13,500 x 12 = PhP 163,000
Jan - Dec 2018 (12 months) = PhP 15,500 x 12 = PhP 186,000
Jan - Jun 2019 (6 months) = PhP 16,000 x 6 = PhP 96,000
*TOTAL = PhP 787,000
What is Aurora’s Average Monthly Salary Credit?
PhP 787,000 divided by 60 = PhP 13,117
How much will Aurora receive as her Unemployment Insurance or Involuntary Separation Benefits?
50% of PhP 13,117 = PhP 6,558.50
As her Unemployment Insurance or Involuntary Separation Benefits, Aurora shall receive, for 2 months only, the amount of PhP 6,558.50.