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This article was originally published on July 28, 2020 and has been updated to reflect recent legal developments.

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 a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is 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.

AT A GLANCE:

Under Section 11 of the Social Security Act of 2018, an employee under compulsory coverage who is separated from employment may continue to pay the total contributions to maintain his right to full benefit under the SSS. 

Furthermore, Section 4 of the Portability Law provides that all contributions paid by such member personally, and those that were paid by his employers to both Systems shall be considered in the processing of benefits which he can claim from either or both Systems: Provided, however, That the amount of benefits to be paid by one System shall be in proportion to the number of contributions actually remitted to that System. 

There comes a point in one’s life when reflection sets in, when one begins to wonder how life should be lived after devoting most of it to work.  Some people plan early for this stage; others do not.

Inherent in the privilege of earning income are the mandatory government contributions required of every covered employee. Two of the most significant are contributions to the Social Security System (SSS) and Government Service Insurance System (GSIS).

Employees in the private sector are covered under the SSS. Section 9 of Republic Act No. 11199 or the Social Security Act of 2018, coverage in the SSS shall be compulsory upon all employees including kasambahays or domestic workers not over sixty (60) years of age and their employers. Moreover, under Section 9-A of Republic Act No. 11199 or the Social Security Act of 2018, provides that Coverage in the SSS shall also be compulsory upon such self-employed persons as may be determined by the Commission under such rules and regulations as it may prescribe.

On the other hand, Government employees are covered under the GSIS. Presidential Decree no. 1146 or the Revised Government Service Insurance Act of 1977 states that membership in the System shall be compulsory for all permanent employees below 60 years of age upon appointment to permanent status: Provided, That upon approval by the President of the Philippines and subject to the availability of funds, compulsory coverage may be extended to non-permanent employees of national government agencies and local governments, either simultaneously in phases or by groups; Provided, Further, That non-permanent employees of government-owned or control corporations may be covered upon approval by the System upon request of their respective Governing Boards; Provided, Finally, that the coverage of temporary employees under R.A. No. 4968 shall remain in force. (Section 3)

In case where an employee transfer from one system to another, Republic Act No. 7699, otherwise known as the Portability Law, governs. Section 3 provides that a covered worker who transfers employment from one sector to another or is employed in both sectors shall have his creditable services or contributions in both Systems credited to his service or contribution record in each of the Systems and shall be totalized for purposes of old-age, disability, survivorship and other benefits in case the covered member does not qualify for such benefits in either or both Systems without totalization: Provided, however, That overlapping periods of membership shall be credited only once for purposes of totalization.

Could there be an instance where a person pays his SSS and GSIS contribution at the same time?

Yes. Under Section 11 of the Social Security Act of 2018, an employee under compulsory coverage who is separated from employment may continue to pay the total contributions to maintain his right to full benefit under the SSS. 

Furthermore, Section 4 of the Portability Law provides that all contributions paid by such member personally, and those that were paid by his employers to both Systems shall be considered in the processing of benefits which he can claim from either or both Systems: Provided, however, That the amount of benefits to be paid by one System shall be in proportion to the number of contributions actually remitted to that System. 

Consequently, even if the employee becomes a compulsory member of the GSIS upon entering government service, he may continue to remit SSS contributions voluntarily. 

Related Article:

• 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
• Comparison of GSIS and SSS Benefits

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.

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