When a person has secured an SS number does it mean that one is already an SSS member and therefore has the right to social security benefits?
No. Securing an SS number does not automatically mean a person is already covered as a member. One is considered a member when the employer has reported one for SSS coverage by the employer and has paid at least one month contribution as an employee. For self-employed, OFW or non-working spouse, they should have paid at least one month contribution. Securing an SS number does not mean automatic membership.
What is the effect of non-reporting and non-remittance of contributions?
To the Employee
The employee is still entitled to SS benefits even if the employer fails or refuses to remit the SSS contributions.
To the Employer
An employer who does not report temporary or provisional employees is violating the SS law. The employer is liable to the employees and must:
- pay the benefits of those who die, become disabled , get sick or reach retirement age;
- pay all unpaid contributions plus a penalty of three percent per month; and
- be held liable for a criminal offense punishable by fine and/or imprisonment.
A self-employed person who fails to register with the SSS will also be fined and/or imprisoned.
However, in the event the self-employed person does not realize earnings in a given month, payment of SSS contributions for that month is no longer required.
To the Self-employed and Voluntary Member
A self-employed and voluntary member who fails to remit contributions after membership is approved, may pay the monthly contribution prospectively but is not allowed to pay contributions retroactively from the month no contribution payments were remitted.
In the case of the covered non-working spouse, if the person gets employed later, or becomes self-employed or an OFW, the membership shall be reclassified accordingly as employed or self-employed or OFW.
Can a member withdraw his membership with the SSS?
No. When a person registers for SSS membership in any capacity, either as an employee-member during employment, or as a self-employed or voluntary member the person becomes a member for life.
During such time that the member fails to remit contributions, the benefits and loan privileges provided by SSS can still be availed of for as long as the member meets the qualifying conditions for entitlement thereto.
What happens to the coverage of a member who has received a lump sum benefit for permanent total disability and is re-employed?
The recipient of a lump sum permanent total disability who is re-employed or has resumed self-employment or as an OFW or Non-working spouse, not earlier than one year from the date of disability, shall again be subject to compulsory coverage and shall be considered a new member.