Unemployment benefits in the Philippines are payments made by the government to
unemployed
Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work during the referen ...
people. The
unemployment benefits
Unemployment benefits, also called unemployment insurance, unemployment payment, unemployment compensation, or simply unemployment, are payments made by authorized bodies to unemployment, unemployed people. In the United States, benefits are fun ...
provided by the Philippine government is sourced either from the country's
Social Security System
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...
(SSS) or the
Government Service Insurance System
The Government Service Insurance System ( fil, Paseguruhan ng mga Naglilingkod sa Pamahalaan, abbreviated as GSIS) is a government-owned and controlled corporation (GOCC) of the Philippines. Created by Commonwealth Act No. 186 and Republic Act ...
(GSIS).
Private sector
The Social Security Act of 2018 mandates the government to provide unemployment benefits to private sector employees who were involuntarily separated from employment.
Unemployment benefit is also referred to as unemployment insurance or involuntary separation benefit.
The payments are sourced from the country's
Social Security System
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...
(SSS).
[ The benefits are not dispensed as a loan and thus does not incur additional fees to the claimant.
Until 2018, there was no unemployment benefit scheme for private employees. The Social Security Act of 1954 has provisions related to unemployment benefits but the provisions were included without prior study on the solvency of the then to be established social security system. The provisions on unemployment benefits were dropped when the legislation was amended in 1957 to prioritize retirement, sickness, disability and death benefits.
Under the 2018 legislation, the benefits are dispensed through a one-time payment to equal to 50 percent of the claimant's monthly salary for a maximum of two months. It must also be filed a year from the date of separation.][
]
Qualifications
The unemployment benefit of the SSS also covers the ''kasambahay'' (housemaids) as well as Overseas Filipino Workers
Overseas Filipino Worker (OFW) is a term often used to refer to Filipino migrant workers, people with Filipino citizenship who reside in another country for a limited period of employment. The number of these workers was roughly 1.77 million be ...
(OFWs; Filipino migrant workers
A migrant worker is a person who migrates within a home country or outside it to pursue work. Migrant workers usually do not have the intention to stay permanently in the country or region in which they work.
Migrant workers who work outsi ...
). Claimants should have made 36 monthly contributions to the SSS, 12 months of which should be in the 18-month period immediately preceding the month of involuntary separation.
Employees who were involuntarily separated from employment for the following reasons are ineligible to avail for unemployment benefit:
*Willful disobedience to lawful orders
*Gross and habitual neglect of duties
*Fraud
In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compens ...
or willful breach of trust/loss of confidence
*Commission of a crime or offense
*Analogous cases like abandonment, gross inefficiency, disloyalty / conflict of interest / dishonesty.
The claimant must also be no above 60 years old at the time of separation; not above 50 years if they are underground or surface mineworker; not above 55 years old if they are a racehorse jockey.
Public sector
Unemployment benefits of former government employees are sourced from the Government Service Insurance System
The Government Service Insurance System ( fil, Paseguruhan ng mga Naglilingkod sa Pamahalaan, abbreviated as GSIS) is a government-owned and controlled corporation (GOCC) of the Philippines. Created by Commonwealth Act No. 186 and Republic Act ...
(GSIS). Payments are equal to 50 percent of the claimant's average monthly compensation and are dispensed monthly for two to six months, depending on the claimant's length of service. Eligible workers are those who have made the compulsory 12 months integrated contributions to the GSIS under Republic Act No. 8291 and were involuntarily separated from their employment.
References
{{Asia topic, Unemployment benefits in
Labor in the Philippines
Welfare in the Philippines
Philippines
The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no),
* bik, Republika kan Filipinas
* ceb, Republika sa Pilipinas
* cbk, República de Filipinas
* hil, Republ ...
Social security in the Philippines