SSS OR SOCIAL SECURITY SYSTEM - GOVERNMENT MANDATORY BENEFIT

 

SSS or Social Security System is one that I did not appreciate when I was just starting as an employee. I bet all newbies and fresh graduates who happened to get their first job could relate to me especially if this was not explained well to them during their orientation. I disliked it because it is one of the deductions that I see in my payslip but never did I understand that it is also my gain, only that it is being deposited in my fund… for my future when I can no longer work as an employee.

 

So for the young employees out there, you’re so lucky because our SSS contributions nowadays have gone higher especially the employer’s part of contribution. So what does that mean? It means the higher contribution you have ( both your own and your employer’s share ), the higher retirement benefit / and other related benefit you could get in the future. That is because most of the computations of the benefits are based on the amount that we have invested while we were employed.

 

On top of that retirement benefit, below are the other benefits which we can enjoy being a member of the Social Security System.

 

1.    Sickn​ess.

2.    Maternity

3.    Disability

4.    Death

5.    Funeral

6.    Unemployment

7.    Salary Loan

8.    Calamity Loan

9.    Educational Assistance Loan

10. Housing Loan

11. Retirement

 

We will tackle each of these SSS benefits in my next writing. ‘till then. Happy Easter and I am happy to get back and relive this blog…

GAP IN APPLICANT’S EMPLOYMENT – SHOULD YOU FOCUS ON IT NEGATIVELY?

My answer is a big “NO”. Why? Because something good might have happened during the gap period. He/She may have experience a milestone in her life where she has to stop working for a while and give time to a certain happening. Probably, she got married and needed to take care of her husband’s needs. A time to deserve her married life. Or it might be that she needed to take care of her old mother. A time to pay back and express her love and care of her old parents. A time of joy and a time of sorrow – yet both entails LOVE. If you will dig on it deeper, both experiences will make him/her a mature and better individual. Both will make her strong and nurturing. Both will make him/her a good leader – happy and humane.

Some applicants do have a long gap period of employment. But have you asked her what did she do during this break? Having the gap period in employment does not always mean incompetence. In fact, some people use it in upgrading their knowledge. With the advent of new technologies, being out of work is not anymore a reason to stop learning and remain extinct. Online magazines and newspapers have left printed ones out of fashion.

Being at work the whole period does not always mean that an individual is learning or in trend with the current practices in ones field of work. There is even a higher chance for the unemployed person to continue learning and upgrading his/her craft.

With the rise of blogs and google, unemployed person has a better chance of getting updated information as long as he/she uses internet at home. A better alternative in order to add value in ones career.

So should you say “NO” to an applicant with a big gap in employment? 

LABOR POLICIES IN THE PHILIPPINES TO BE ADHERED BY THE EMPLOYERS

These are the summary of policies and employment terms and conditions consistent with the mandated labor policies set forth in the Labor Code of the Philippines.

*Under the Labor Code, your employees are entitled to compensation or wages, overtime pay, holiday and premium pay, service charges and tips in service businesses, SSS, EC , Pag-Ibig and NHI remittances, service incentive leaves, and retirement pay.

*You must pay your employees no lower than the minimum wage rates prescribed by law. The minimum wage rates are based on the normal working hours of eight (8) hours a day.

For access , see the Department of Labor and Employment website, www.dole.gov.ph.

*

ON CONTRACTUAL/CONTRACTING EMPLOYEES

Department of Labor and Employment, Department Order 18-A, with the Implementing Rules on Article 106 to 109 of the Labor Code is all about Job Contracting.

There are different types and terms of Job Contracting. One which is familiar to me is the Contractual Type of employment wherein a worker works only for a specified period time. They are not considered regular.

However, they are covered too by the rules on Labor Standards.

a.      They are entitled to government-mandated benefits - SSS, PAG-IBIG, Philhealth, 5 days Service Incentive Leave after 1 year of service.

b.       It is legally advisable not to renew their contracts. A six months service in a company, whether continuous or broken, entitles them to claim for regularization.

Another type in which I am also familiar with is hiring of personnel through an agency or contractors. The following are considered in checking if said contractor is prohibited or not.

It is a legitimate contractor when:

a)      The contractor or subcontractor carries on a distinct and independent business and undertakes to perform the job, work or service on its own account and under its own responsibility according to its own manner and method, and free from the control and direction of the principal in all matters connected with the performance of the work except as to the results thereof; (b) The contractor or subcontractor has substantial capital or investment; and (c) The agreement between the principal and contractor or subcontractor assures the contractual employees entitlement to all labor and occupational safety and health standards, free exercise of the right to self-organization, security of tenure, and social and welfare benefits.

ARTICLE V OF REPUBLIC ACT NO. 9165 - A DRUG FREE WORKPLACE – IS A MUST

Pursuant to Article V of Republic Act No. 9165 or the Comprehensive Dangerous Drugs Act of 2002, and its Implementing Rules and Regulations and DOLE Department Order No. 53-03, series of 2003 (Guidelines for the Implementation of a Drug-Free Workplace Policies and Programs in the Private Sector), the following policies and programs must be adopted to achieve a drug-free workplace:

COVERAGE

This law applies to all establishments in the private sector, including contractors and concessionaires.

COMPONENTS

Advocacy, Training and Education – employees should be kept aware and educated about the dangers of using drugs including its consequences.

Drug Testing – random drug testing should be done in accordance with the company’s rules and regulation in order to avoid or lessen the risk in the workplace.

Treatment, Rehabilitation and Referral – this option is given only to officers and employees who are diagnosed with drug dependence for the first time, or who turn to the Assessment Team for assistance, or who would benefit from the treatment and rehabilitation.

CONSEQUENCES OF POLICY VIOLATIONS

1.       Any officer or employee who violated or commits other unlawful acts as defined under Article II of RA 9165 and its Implementing Rules and Regulations shall be subject to the pertinent provisions of the said Act.

2.       Any officer or employee found positive for use of dangerous drugs shall be dealt with administratively in accordance with the provisions of Article 282 of Book VI of the Labor Code and under RA 9165.

CUSTOMER SERVICE – TO RECRUIT OR TO OUTSOURCE?

We are a customer oriented company and currently thinking of the need to have a Customer Service Desk in order to fully address the necessitates of the clients including the seems to be hard to resolve critical protest or complain. What is the best thing to do – to recruit or to outsource?

In deciding on whether to recruit or outsource personnel, following are essential to be considered:

Scope of Work and Volume of Work – Is it a very complicated task or merely just answering phone calls and queries? If it is just a small task with less danger if someone commits a mistake, then outsourcing is an option. But if entails full responsibility of the taking care of the general requirements of the clients, then recruiting a personnel would be better.

In other words, it depends on your objective and the set budget in deciding so.

NEW SSS CONTRIBUTION IN 2014

This news has been released early in May or June of this year but was finally announced and confirmed last October 2013.

It is confirmed that a 0.6 percent hike in SSS contribution will take effect in the coming year. Starting January 2014 the employee will have a share of 3.63% in the contribution and the employer with a share of 7.37%. The monthly salary credit or MSC will increase to PHP 16,000.00 per month.

Such increase in payment or contribution will result to increase in benefits. The maternity benefit is one example. Since the monthly salary credit increases as the contribution increases, then that will result to a higher computation of the said benefit. The maternity is being computed based on the monthly salary credit.