Published — July 28, 2020
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
More on SSS and GSIS You may also read: Republic Act No. 7699 or The Portability Law as a Remedy of an Employee Who is Not Qualified for Benefits under the SSS Law or GSIS Law
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SSS contributions is mandatory for employees of the private sectors
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GSIS contributions is mandatory for employees of the government
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Employees may pay SSS and GSIS at the same time
Moment.
There will come a moment where you have to think or where you may be wondering of how you would want to spend your life after devoting most of your life to working. Some people have already planned about it. Some have not.
Inseparable from the privilege to earn income is the mandatory government contributions required of every covered employee which they could eventually enjoy after separation from service or employment.
What are those mandatory government contributions?
The law says:
Among them are the mandatory contributions under the Social Security System (SSS) and Government Service Insurance System (GSIS).
If a person works in the private sector, his employer is mandated to collect the required SSS contributions by deducting the same from the worker’s salary and to timely remit them to the SSS.
If a person is self-employed, he is mandated to timely remit the required contribution based on what he declared to the SSS as his monthly compensation.
However, if a person works in the government, he is not covered by and required to pay the SSS contribution. Instead, the government, which is his employer, is mandated to deduct, withhold and remit the corresponding contributions of each employee to the GSIS.
Could there be an instance where a person pays his SSS and GSIS contribution at the same time?
The law says:
Yes.
When an employee under the compulsory coverage of SSS is separated from employment, he may, however, continue to pay the total contribution. This is to maintain his right to full social security benefits.
For instance, Jose Mari, a seven-year Business Development Executive of a Construction Company has decided to resign. Throughout his stay in the Construction Company, his employer had been faithful in regularly paying his monthly SSS contributions. After three (3) months of separation from the construction company, he is now the City Prosecutor of Baguio City. As a government employee, Jose Mari is now covered by the GSIS, thus, the government is required to deduct and timely remit the corresponding mandatory contribution of Jose Mari to GSIS.
Since Jose Mari is a cautious and a wise person, he has decided to voluntarily pay his total contributions to the SSS while being covered under the GSIS at the same time.
Thus, should Jose Mari intended to be a government employee until retirement, he would enjoy his retirement benefits both under the GSIS and SSS. This is on the condition that Jose Mari had been voluntarily paying his total contributions to the SSS.
What a comfortable way to enjoy old age.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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What if He started and continued as a govt employee and decided later to contribute voluntarily on sss, will he be entitled for pension to both?
Thanks for the info!
Just curious, if say a previously Self employed SSS contributor is now a government employee, is there a need to change the type of SSS membership from SE to voluntary? Or can he/she retain SE status? What would be the difference?
I have retired from the government and my GSIS retirement benefits are still being processed. A few years back I was also working in the private sector as part-timer with SSS deductions. Can I apply for retirement benefit with SSS?
Keep working ,great job!