2 NARRATIVE REPORT A. Introduction Practicum or on the job training is one way by which we students are given an opportunity to apply the theories and computations that we learned from school . It also helps us to obtain applicable knowledge and skills by performing in actual work settings . Colleges and universities require their students to undergo such training within a specific number of hours as part of the curriculum and Central Philippine University is one of them. It gives student a competitive edge for their future employment and business. The said Practicum Training exposes us to the real environment of a certain organization. Thus, adjusting oneself and mingling with others is a must to cope up with different standards and attitudes of every individual in a particular field of industry. Further, practicum will be a bridge to enhance our skills in communication and technical
Transcript
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NARRATIVE REPORT
A. Introduction
Practicum or on the job training is one way by which we students are given an
opportunity to apply the theories and computations that we learned from school. It also
helps us to obtain applicable knowledge and skills by performing in actual work settings.
Colleges and universities require their students to undergo such training within a specific
number of hours as part of the curriculum and Central Philippine University is one of
them. It gives student a competitive edge for their future employment and business.
The said Practicum Training exposes us to the real environment of a certain
organization. Thus, adjusting oneself and mingling with others is a must to cope up with
different standards and attitudes of every individual in a particular field of industry.
Further, practicum will be a bridge to enhance our skills in communication and technical
activities that makes it a plus point the sooner we landed a job and help ease the culture
shock while dealing with different specialized people of their expertise.
For us students, an OJT or practicum program provides opportunities to go
through the actual methodologies of a specific job. In effect, the workplace becomes a
development venue for us student trainees to learn more about our chosen field and
practice what we have learned from the academy. We trainees can bring fresh ideas into
the organization. Given the opportunity to converse our minds freely and without fear, we
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maybe able to contribute significantly in brainstorming sessions or research
and eventually help improve the organizations productivity.
Accommodating practicum trainees can truly be beneficial not only to the trainees
but also to the companies that provide opportunities for this type of learning. There is
wisdom in the front lines. Such training can be an investment that will be valuable to the
company later on. This is also why trainees should take their internship seriously as it can
become a powerful tool and possibly even a source of recommendation when they take
that big lift from being students to career professionals.
In accordance, the practicum program of the College of Business and Accountancy
aims:
1. To apply classroom learnings in the analysis of a functioning organization.
2. To narrow the gap between academic theory and actual business practice.
3. To give students job experience and an advantage in job selection and placement.
4. To create goodwill on campus and in the community for CPU; and
5. To develop self-confidence and a professional personality.
This will not happen without the existence of excellent partners of CPU College of
Business and Accountancy. There are several companies that are willing to have student
trainees. I was lucky to hold my practicum at the Social Security System, which is a
social insurance program that provides retirement and health benefits to all enrolled
employees in the Philippines. SSS is situated at J.M. Basa cor. Mapa Streets, Iloilo City,
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in front of the Freedom Grandstand where most of the business establishments in Iloilo
are found. SSS is situated in a 4-storey building where they rented the 3rd and 4th floor.
Member Assistance Center (MAC) is located on 3rd floor at the right wing, where all
transactions regarding Loans, Retirement Benefits, Death/Funeral Benefits and the like
are covered. The left wing is where the Tellering Department and E-Center are located
where all company related transactions are to be found. Legal and Administrative
Department and the Central Processing Department (CPD) is situated on the 4th floor.
We went to SSS last October 24, 2012 to formally request for our practicum
training. I including my four classmates in Accounting Technology and the other four
Finance major students was requested to start immediately on October 25. The other 16
trainees started their work last November 5, 2012. First day of my training, I was little
nervous for it will be my first time having a “actual” job. We were introduced to the head
of MAC Department, Mr. Rene Moises Gonzaeles which will be our supervisor. He
explained to us the rules and regulation for the trainees such as to always follow the
instructions of the superiors, the type of clothes to wear and the different facilities that
can be used by the trainees. He asked us a little of our personal background and then after
that he brought us to our respective heads. I was assigned at the Corporate Lane which is
headed by Mrs. Elda Altamia and Mr. Rey Mark Casaquite. All company-related
transactions take place at the Corporate Lane. Aside from the orientation made by Sir
Rene, Ma’am Elda oriented me on how the things work at the Corporate Lane.
Fortunately, Ma’am Elda and Sir Mark have been good to me throughout my entire
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practicum training. They are one of the nicest employees at SSS. They assisted me during
my first day of work until the last day which I will be forever grateful of.
B. Description of the Work Performed
All reports and other occurring transactions that are company related were done in
the Corporate Lane. It is one of the two sections that compose E-Center of Social
Security System. The other one is the Medical Section. The section that I have been
assigned to requires proper concentration and quick in responding to situations.
Fortunately, I’ve been introduced and trained to different types of works that I have been
working on diligently and independently.
Since the start of my training, I performed the following:
a. Sorting of different forms passed by different companies through their
representatives. This requires eye attention so that you won’t make a mistake
in arranging them. Some of the forms that I sort includes:
i. R3 – or the Contribution Collection List which is used by an
employer-member to report his employees’ Social Security and
Employee’s Compensation contribution.
ii. R1-A – this form is used by employers to report new employees who
already have a Social Security number.
iii. ISL-101 – it is a form intended for loan to meet a member’s short term
credit needs.
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iv. E-4 – or a Member’s Data Amendment Form which is required when a
member needs changes on his/her account that includes correction of
name, correction of date birth and/or change of status.
v. L-501 – it is the specimen signature of a company. Company
representatives’ needs to submit this form in order to be recognized as
the official representative of their respective company.
These forms are written down in a log book which I myself maintain.
After writing it down, it will be presented and checked by Ma’am Majelende
Sumido who is in charge of all the forms transactions the following day.
b. Filing of brown envelopes which contains processed R3 reports that was
passed by company representatives. These reports sum-up the total
contributions by the employer-member to their employees’ compensation
contribution. It can also be processed through online which will be convenient
to the members of SSS. These envelopes are arranged alphabetically in a
filing cabinet. I am the one in charge in receiving, filing and pulling out those
envelopes.
c. Writing down names of people who requested Maternity and Sickness
Reimbursement to the Transmittal List which to be received later by the
Central Processing Department (CPD) Medical Section. These
reimbursements will be processed and will be sent to the main office for
approval of checks. I shall make sure that I got all the Reimbursements form
including the ones which were passed to Ma’am Cheryl Evangelista at the
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Medical Section. Every afternoon I went up to the CPD section to deliver the
said transmittal lists.
d. I did try processing Electronic R3 reports when Sir Mark taught me how to do
it. It was just encoding information from the reports that was submitted by the
company and then checked if those information matched the details in the
computer system of SSS.
e. I also performed other incidental works like:
i. Photocopying and printing of the transmittal lists and other documents
that were needed by my superiors. At first I don’t know how to use the
photocopying machine but with the help of my co-trainee, I did. You
really need to establish good working relationships with others.
ii. Answering the telephone every time it rings and sometimes calling
some of the companies that submitted their reports incorrectly or if
there are errors on the format of their reports. It’s my task to inform
them that they need to get their report when there are errors so that it
can be processed immediately.
iii. Delivering files to other employees and have some document signed
by different employees. It’s best to know the people around the
workplace so that it will not be too hard in finding them when you
need them.
In doing a task, we must exert our full effort into the maximum level in order
to do what the task requires and this practicum program taught me to do that.
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C. Principles, Concepts and Skills
As an Accounting Technology student, we were equipped of understanding about
computers. Basic computer knowledge that we have learned in Comp310, like simple
typing, was very applicable on our workplace. It was very useful especially on
encoding of the Electronic R3 reports. SSS has been integrating with technology for
faster transactions and they encourage their members to register online so that it will
be much easier for them to transact. Therefore, trainees like us, should also be a
computer literate in order to cope with the technological advancement of the
company.
Also, basic knowledge of calculating interest whenever some companies have a
penalty in their contributions due to late payments is needed. This applies the
formulas that we have learned in Business Math (Bus25).
In answering and having a conversation on the telephone needs an appropriate
manner. One should be polite and know the proper protocol to be used when you’re in
a telephone situation. I remember this lesson about Etiquette on our Humanities
subject. I now realize the importance of that subject.
Having been in a new environment requires a person to adjust to his/her
surrounding. In the workplace you’ll meet different kinds of people. From the branch
manager down to the janitors, you should establish a good working relationship with
them so that staying in the company will not be as hard as possible. This was
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discussed in our management subjects. And speaking of different people, at SSS we
have met all kinds of people, from different walks of life. As what Dr. Leila Ferraris,
the Assistant Branch Head told us, we need to be very patient in dealing with the
members of the SSS for they can be really tough sometimes. This is where Business
Ethics enters. We should always keep in mind that this is a business and that we are
there to serve them. No matter what happen we should face and talk to them without
losing our temper.
D. Major Learnings
The practicum program has provided me a great change in my life. It has given
me the opportunity to explore my professional side and opportunities to go through
the actual methodologies of a specific job using the real tools, equipments and
documents.
It helped me build my competence, professionalism in dealing with people,
It helped me developed strong organizational skills and high ethical standards. It
enables me to communicate with people at all levels and I gain self confidence and
maturity throughout the training.
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The following are the values, knowledge, and ability that I have taken and
developed during our practicum to made me a productive individuals:
a. Commitment. I am responsible in the performance of my assigned tasks as I
dedicate myself to the vision and mission of the company and also to the goals
of our school to have this training.
b. Integrity. I am committed to uphold myself to the principles of honesty and
transparency in all my actions.
c. Interpersonal Relationship. Having a good communication with the
employees, is one of the most important things that I have learned. Being open
to them whenever we have questions or we need some help develop not only
our skills but improved our relationship with them.
d. Teamwork. This is really important in any organizations. We are committed to
work as one family to achieve our common goal in the spirit of cooperation,
mutual respect and trust. Thus, teamwork must always be present.
e. Confidentiality. This is needed in order to establish trust in the workplace. All
financial and non financial information are confidential in nature. So
disclosing it with third parties is not allowed. What we have heard or seen at
the company, we’ll leave it at the company.
f. Professional Behavior. I am in the actual workplace, so I must act as a
professional. My attitude will be a reflection of my school thus, proper
behavior is required.
g. Politeness. We should respect our employee and co-trainees at all times. A
simple greeting may do. This will help you build good relationship with them.
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h. Punctuality. To be a productive person you need to be punctual. There should
be no excuse of being late. We don’t need to waste our time and we should
have proper time for each specific action.
These qualities and values that I have gained on my practicum at SSS will be
forever embodied by me, may it be on workplace or outside work. I will always be
thankful that I experienced all of this because it will form an integral part of me.
E. Personal Feelings and Observations
Intelligence is one of the key to succeed. No one can take it away from us. But
having knowledge isn’t enough to succeed. We need to use it on the right way. We have
to persist to attain our goals. On my training I learned a lot in terms of socialization and
vision towards life.
Having my internship in Social Security System was overwhelming yet
challenging. I don’t know what to expect and how to set my boundaries. At first, I was
afraid of doing something wrong or illogical that would stain the name of my school and
of course I don’t want that to happen.
As the days goes by, I became confident and learned to forget my training
worries. The training made me a better person through the challenges, adjustments and
difficulties that I face during the entire training. It showed me greater responsibilities, put
humility and respects to my workplace, co-trainees and superiors. I realized that it is not
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easy working in the real world and everything that I experienced will have a great impact
on my whole being as a person.
At the office, it’s not always work and work. Of course we also have a time where
we just enjoyed ourselves by simply laughing even at the corniest joke. Sir Mark made it
a happy and enjoyable work environment despite of the workloads that stresses us out at
times. The company treated me as a family and gave me responsibilities that I needed and
enjoyed working. All the employees made my stay at the SSS worth finishing and heavy
workloads bearable. As they say, “happy employees create a happy work environment
and produces positive and great work results”.
In sum, the practicum training wasn’t as bad as I thought it would be. In fact, 250
hours was a breeze and I just realized it was already over. Going to work and seeing those
friendly faces helped me a lot. It made me look forward in going to work everyday. I’m
sure the real world wouldn’t always have as many friendly faces like the people in SSS. I
will surely miss the employees there especially my supervisor Sir Rene and the one who
handled me, Ma’am Elda who is always generous to me and Sir Mark who I considered
now my friend.
And to sum it up, before we parted ways, Sir Mark sent me an encouragement text
message that I will be keeping in my mind and in my heart forever. It says, “Your grades
don’t matter, what is important is that you were able to learn from your experiences and
apply it in practical life. Your weaknesses will remind you to strive harder because I
believe you can do a lot better. Good luck kag halong sa pagtahak sang gina-tawag nga
pangabuhi. Congrats in advance and Job Well Done”.
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Indeed, practicum training brought me to a different ambiance and higher level of
living life because I acknowledge the skills I never thought I had and it gives me the
glimpse of what the real world has.
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ANALYSIS REPORT
A. History
An orderly and dependable system was proposed by then President Manuel Roxas
in 1948. He wanted an effective mechanism of protection for low-salaried Filipino
employees and wage earners.
Nine years later, the Social Security Law - also known as the Social Security Act -
was finally implemented, providing replacement income for employees in times of
sickness, disability, death, maternity, calamity, and old age.
The Philippine Social Security System administers two major programs, namely,
the basic Social Security (SS) Program, and the Employees' Compensation (EC)
Program.
The latter, started in 1975, was established to provide double compensation to a
worker in the event that an illness, accident, or death occurs during a work-related
activity. These benefits are extended only to SSS members with employers other than
themselves.
The implementation of the Philippine Social Security System also marked the
adoption by the government of the 'social insurance approach' to social security, covering
the working segment in the private sector.
In 1997, Pres. Fidel Ramos further strengthened the SSS with Republic Act 8282,
providing workers with better benefits, expanded coverages, and improved investment
flexibility.
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Stiffer penalties were also imposed on violators of the law, while a program of
condonation of penalties for delinquent employers was set up to increase revenues, and
thus improve services.
The Philippine Social Security System has recently been very busy releasing
loans to victims of the recent typhoon, internationally code-named Xangsane, which left
thousands of people homeless in its wake.
It has also made a significant breakthrough in its announcement that compulsory
retirees, or those reaching the compulsory retirement age of 65, may now claim their
retirement benefits on the same day they retire.
SSS President and CEO Corazon de le Paz announced this and advised
prospective compulsory retirees to begin filing their retirement claims 6 months before
they finish their service, as the processing of the benefit may now be completed in 15
working days.
From the first half of 2006, retirement pension has retained the top spot in the list
of The Philippine Social Security System's disbursement benefits, showing a 10.1%
increase for the first half of 2005.
Members of the Philippine Social Security System can now also avail of the new
SSS Infoline, which is a stand-alone computer providing information about SSS policies,
loans, benefits, and important statistics.
It can also provide information on their pending, current, or finished loan
applications and loan payments, just with the use of their digital SSS ID cards.
SSS Infoline kiosks strategically set up at the SSS Quezon City main office and at
selected shopping malls nationwide is the Philippine Social Security System's latest effort
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to provide its milions of members with a quick access to valuable information on their
membership.
Its touch-screen mechanism gives instructions in either English or Filipino, and
short audiovisual clips are also utilized to make the data easier to remember. SSS Infoline
also features a feedback page for members' comments and suggestions.
As of the first quarter of 2006, the SSS has more than 20 million members, with
over P208 billion in assets. These are invested in equities; housing, member, and
development loans; government interests; and real estate.
An average ROI of 7.3% keeps the Philippine Social Security System adequately
equipped to fulfill the social security needs of its 20-million strong member base.
Government workers are similarly protected by an institution similar to the SSS,
namely the Government Service Insurance System or GSIS.
DECLARATION OF POLICY
"It is the policy of the State to establish, develop, promote and perfect a sound and
viable tax-exempt social security system suitable to the needs of the people throughout
the Philippines which shall promote social justice and provide meaningful protection to
members and their families against the hazards of disability, sickness, maternity, old age,
death and other contingencies resulting in loss of income or financial burden. Toward this
end, the State shall endeavor to extend social security protection to workers and their
beneficiaries." (Section 2, RA 8282)
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STATEMENT OF VISION
"The SSS aims to develop and promote a viable, universal and equitable social
security protection scheme through world-class service."
Viable. Social security protection shall be provided through generations.
Universal. Social security protection shall be provided to all residents of the
Philippines, citizens and non-citizens alike, regardless of creed, gender, age, geographic
location and economic status, especially the disadvantaged, so that no one will become a
burden to society.
Equitable. Fair and uniform coverage shall be made available to all. Benefits shall be
meaningful and able to sustain a decent standard of living.
World-class service. Social security service that is prompt, accurate and courteous
shall be provided to ensure total member satisfaction.
STATEMENT OF CORPORATE VALUES
"The SSS aims to institutionalize a corporate culture that instills the core values of
trust, empowerment and teamwork."
TRANSPARENCY SEAL
In accordance to National Budget Circular 542:
National Budget Circular 542, issued by the Department of Budget and Management on
August 29, 2012, reiterates compliance with Section 93 of the General Appropriations
Act of FY2012. Section 93 is the Transparency Seal provision, to wit:
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Sec. 93. Transparency Seal. To enhance transparency and enforce
accountability, all national government agencies shall maintain a transparency seal on
their official websites. The transparency seal shall contain the following information: (i)
the agency’s mandates and functions, names of its officials with their position and
designation, and contact information; (ii) annual reports, as required under National
Budget Circular Nos. 507 and 507-A dated January 31, 2007 and June 12, 2007,
respectively, for the last three (3) years; (iii) their respective approved budgets and
corresponding targets immediately upon approval of this Act; (iv) major programs and
projects categorized in accordance with the five key results areas under E.O. No. 43, s.
2011; (v) the program/projects beneficiaries as identified in the applicable special
provisions; (vi) status of implementation and program/project evaluation and/or
assessment reports; and (vii) annual procurement plan, contracts awarded and the name
of contractors/suppliers/consultants.
The respective heads of the agencies shall be responsible for ensuring compliance with
this section.
A Transparency Seal, prominently displayed on the main page of the website of a
particular government agency, is a certificate that it has complied with the requirements
of Section 93. This Seal links to a page within the agency’s website which contains an
index of downloadable items of each of the above-mentioned documents.
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PLANS AND PROGRAMS WITH STATUS OF IMPLEMENTATION
Corporate Plans Status1. Implement Loan Penalty Condonation Program for Individual MembersTo address loan delinquency concerns of individual members andallow them to update their records
Implemented Penalty Condonation Program for Individual Members from April to September 30, 2012
2. Open additional Foreign OfficesTo reach out to more OFWs
Opened Dubai and Kuala Lumpur offices in September 2012 and October 2012,Respectively
3. Pursue Bilateral Agreements with Portugal, Greece and JapanTo reach out to migrant Filipinos in Portugal, Greece and Japan
Denmark and Portugal social security agreements signed on September 11 and 142012, respectively3rd exploratory meeting for Japan social security agreement on August 7‐10, 2012 Bilateral Agreement with Greece� deferred by the Office of European Affairs due toongoing reforms in its social security system Conducted initial dialogue with Filipino �community in Korea regarding theirconcerns on the Philippine‐Korea social security agreement last October 28, 2012
4. Explore innovative programs for Special Sectors (AlkanSSSya) To encourage the self‐employed in the �Special Sectors to save up fortheir monthly contribution
Implemented AlkanSSSya program to 41 �informal sector associations that includetricycle drivers and operators, “trisikad” drivers, market vendors, fish port workersand waste disposal workers as of mid-December 2012
5. Launch Member Get Member Promo Program to reach out to the OFW market�
Implemented Member‐Get‐Member �Promo from January to September 2012
6. Pursue Reform Agenda To amend the contribution rates from �10.4% to 11% and increaseMonthly Salary Credit (MSC) ceiling from P15,000 to P20,000
Conducted 10 various stakeholders �consultations from January to October 2012 Letter seeking approval on the Reform �Agenda (increase in contribution rate from10.4% to 11% and MSC from 15,000 to 16,000, and grant of 5% across‐the‐boardpension increase) was sent to the Office of the President of the Philippines early December 2012
7. Implement Redesign of Registration and Coverage System, Cash CollectionSystem and Account Management System To expedite processing of registration,
Registration and Coverage System:Parallel implementation in Diliman and Pasig Branches and full implementation inMakati and Welcome Branches
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cash collections andmonitoring of employer transactions
Cash Collections System:Parallel Implementation in 15 NCR Branches with Tellering SystemAccounts Management System: Completed external testing through �internet by 3 employers
8. Complete the Conversion of Microfilm Data to Digital Media To facilitate posting of the “unposted” �1985-1989 contributions
Completed conversion of 1,837 rolls or �4.4M images of 1985-1989 R3s (out of 4.4Mimages) in June 2012
9. Establish 24/7 Call Center To be more accessible 24/7 nationwide �and in other parts of theWorld
The infrastructure for a 24/7 has been �installed. However, the system is currentlybeing implemented on a 24/5 operation until such time that the transaction volumewarrants a 24/7 operation
10. Implement DDR (Death, Disability and Retirement) WorkflowTo expedite the servicing of Death, Disability and Retirement Benefits
Implemented DDR Workflow in July 2012
11. Implement improved Annual Confirmation of Pensioners (ACOP)To ensure that benefits are received by rightful pensioners
Implemented in January 2012 the improved ACOP that now allows confirmation ofpensioners’ existence by their depository banks
12. Implement Voluntary Provident Fund (PF) for Members To offer members a more comprehensive �retirement protection system
2 failed biddings of the PF information �system services because there were nobidders who participated Conducted pre-procurement conference (bidding) for the PF system, includingmodule for investment monitoring
13. Implement Electronic Submission of Members Collection List To improve the collection of contributions �and loan payments
Implemented electronic R3s (collection list) in March 2012 and conversion ofemployers to electronic submission of R3s is progressing well
14. Use of Unified Multipurpose ID (UMID) CardExpand features of the UMID Card
Completed elimination of backlogs in November 2012Completed the discussion with 2 banks on the possibility of incorporating the use ofUMID card in ATMs
15. Implementation of E‐Centers To provide members an electronic means �of transacting while insidethe branch
Implemented E‐Center in 10 branches nationwide
16. Hiring of an Ad Agency To be our partner in communicating the �value of SSS membership
Hired LOWE (ad agency) in January 2012
17. Ensure best use of physical facilities Guidelines and standards of SSS Building
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To provide the SSS with clean and well maintained offices, safe andoperational utilities, facilities, equipment and transportation services
and Branch Design was formalized into amanualScored 94% in the energy conservation by the Department of EnergyAwarded for Best Practice in Waste Management by Quezon City Government andDepartment of Environment and Natural Resources
18. Acquisition of an Investment Management System To provide a more transparent and �efficient monitoring andmanagement system of Investment Portfolio
Hired SGV as consultant for IMS in �December 2012
19. Co-location of Back up Site To ensure continuous IT processing for �SSS branches nationwide
Implemented co‐location of back‐up site �on 29 July 2012
20. Enhanced Qualification Standards and Training Requirements per Position To provide a “best fit” in manpower �recruitment, staffing, andemployee development
Enhanced QS for all executive positions was formalized and forwarded to CivilService Commission for approval on 23 October 2012
MEMBERSHIP
Voluntary Coverage
a. Coverage of Separated Members
A member who is separated from employment or ceased to be self-
employed/OFW/non-working spouse and would like to continue contributing.
b. Coverage of Overseas Filipino Workers (OFWs)
A Filipino recruited in the Philippines by a foreign-based employer for
employment abroad or one who legitimately entered a foreign country (i.e. tourist,
student) and is eventually employed.
c. Coverage of Non-working Spouses of SSS members
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A person legally married to a currently employed and actively paying SSS
member who devotes full time in the management of household and family affairs
may be covered on a voluntary basis provided there is the approval of the working
spouse. The person should never have been a member of the SSS. The
contributions will be based on 50 percent of the working spouse’s last posted
monthly salary credit but in no case shall it be lower than P1,000.
Effectivity of Voluntary Coverage
1. For an overseas Filipino worker – upon first payment of contribution, in case
of initial coverage.
2. For a non-working spouse – upon first payment of contribution.
3. For a separated member – on the month he/she resumed payment of
contribution.
Compulsory Coverage
Coverage of Self-Employed Members
A self-employed person, regardless of trade, business or occupation, with an
income of at least P1,000 a month and not over 60 years old, should register with the
SSS. Included, but not limited to are the following self-employed persons.
1. self-employed professionals;
2. business partners, single proprietors and board directors;
3. actors, actresses, directors, scriptwriters and news reporters who are not under an
employer-employee relationship;
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4. professional athletes, coaches, trainers and jockeys;
5. farmers and fisherfolks; and
6. workers in the informal sector such as cigarette vendors, watch-your-car boys,
hospitality girls, among others.
Coverage of Employees
1. A private employee, whether permanent, temporary or provisional, who is not
over 60 years old.
2. A household-helper earning at least P1,000 a month is compulsory covered
starting Sept. 1, 1993.
A household-helper is any person who renders domestic services exclusively to a
household such as driver, gardener, cook, governess, and other similar occupations.
3. A Filipino seafarer upon the signing of the standard contract of employment
between the seafarer and the manning agency which, together with the foreign
ship owner, act as employers.
4. An employee of a foreign government, international organization or their wholly-
owned instrumentality based in the Philippines, which entered into an
administrative agreement with the SSS for the coverage of its Filipino workers.
5. The parent, spouse or child below 21 years old of the owner of a single
proprietorship business.
Coverage of Employers
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1. An employer, or any person who uses the services of another person in business,
trade, industry or any undertaking.
A social, civic, professional, charitable and other non-profit organization which hire
the services of employees are considered “employers.”
2. A foreign government, international organization or its wholly-owned
instrumentality such as embassy in the Philippines, may enter into an
administrative agreement with the SSS for the coverage of its Filipino employees.
LOANS
Housing Loans
Housing Loan for Workers Organization Members
The Direct Housing Loan Facility is designed to support the Government’s
Pabahay sa Bagong Siglo Program which aims to provide socialized and low-cost
housing to workers who are bona fide members of duly registered and accredited
workers’ organizations.
Housing Loan for OFWs
The Apartment/Dormitory Loan Program is a lending program of the Social
Security System (SSS) available thru its accredited participating financial
institutions (PFIs).
Drawdowns on the fund will be made by a PFI on a project-to-project basis upon
submission of required documents and upon review by the Real Estate
Department.
Housing Loan for Repairs and Improvement
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The Direct Housing Loan Facility is designed to support the Government’s
Pabahay sa Bagong Siglo Program which aims to provide socialized and low-cost
housing to overseas Filipino workers.
Individual Housing
The Individual Housing Loan Program is a lending program of the Social Security
System (SSS) established to provide funds thru SSS-accredited participating
financial institutions (PFIs).
Drawdowns will be done by the PFI in batches of ten applications for review by
the SSS Real Estate Department.
Assumption of Mortgage
Assumption of Mortgage is a lending program of the Social Security System
allowing a member in good standing to assume the updated principal balance of
an existing SSS housing loan.
Pari-passu
The Pari-passu is a joint housing loan program of the Social Security System
(SSS) and the SSS’ accredited participating financial institutions (PFIs) which
enables a member to acquire his own house.
Housing Development Loan
The Housing Development Loan is a lending program of the Social Security
System (SSS) designed to support the social housing project of the government as
well as to provide affordable and decent houses to all homeless SSS members.
Corporate Housing Program
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The Corporate Housing Program of the Social Security System (SSS) is designed
to support the government’s low cost housing project, help accelerate economic
activity, and promote good labor-management relations and industrial peace.
BUSINESS LOANS
Social Development Loan Facility
The Social Development Loan Facility is a lending facility of the Social Security
System (SSS) designed to provide long-term loan assistance for the development
of facilities and establishments of institutions that provides quality education or
other academic training programs and affordable medical or health care related
services to the general population and to SSS members and their dependents.
It also aims to support the program of the national government to attain a better
distribution of educational and hospital facilities throughout the country that will
be more responsive to the needs of the particular localities and their inhabitants.
How can an SSS member avail himself of the loan facility?
SSS member-employers may avail of the loan facility through the SSS accredited
participating financial institutions (PFIs) which will on-lend the fund to eligible
borrowers for financing.
Business Development Loan
The Business Development Loan Facility is a lending facility of the Social
Security System (SSS) designed to contribute to the nation’s economic growth
and development by providing financial assistance to the business sector for the
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purpose of increasing productivity and enhancing potential earnings through
expansion, diversification and other business development projects.
It also aims to support the government’s program of invigorating economic
activity and providing more employment opportunities.
How can an SSS member avail himself of the loan facility?
SSS member-employers may avail of the loan facility through the SSS accredited
participating financial institutions (PFIs) which will on-lend the fund to eligible
borrowers for financing.
SULONG Program
The SME Unified Lending Opportunities for National Growth (SULONG)
Program by government financial institutions (GFIs) designed to give small and
medium enterprises (SMEs) greater access to short and long term funds. The
program has a total fund allocation of P100 Million. The program has a total fund
allocation of P100 million.
BENEFITS
Employee’s Compensation
What is the Employees' Compensation Program?
The Employees’ Compensation (EC) program aims to assist workers who suffer work-
connected sickness or injury resulting in disability or death. The benefits under the EC
program may be enjoyed simultaneously with benefits under the social security program
effective June 1984.
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Who are covered under the EC program?
All SSS-registered employers and their employees are compulsorily covered under the
program.
Employers and employees registered in the SSS need not register again under EC.
How much is the monthly EC contribution?
Only the employer is required to remit monthly EC contributions on behalf of the
employees, equivalent to one per cent of the employee’s monthly salary credit. The
required contribution under the current rate is P10.
How long is an employer obliged to pay for the EC contributions of his employee?
For as long as the employee works for him/her employer is obliged to pay EC
contributions.
The obligation of the employer ceases when an employee is separated from employment
or, if the employee dies during employment.
When a covered employee becomes disabled during employment, the employer’s
obligation to pay the monthly contribution arising from the employment will be
suspended during such months that the employee is not receiving salary or wages.
What are the benefits under the EC program?
Benefits under the Employees' Compensation program include:
1. Medical services, appliances and supplies provided to the afflicted member
beginning on the first day of injury or sickness, during the subsequent period of
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disability, and as the progress of recovery may require.
These benefits, however, are limited to the ward services only of an accredited
hospital and physician.
Ward services, consist of all the services an in-patients would ordinarily receive
in a hospital.
2. Rehabilitation services, consisting of medical, surgical and hospital treatment.
The SSS also provides as soon as practicable, a balanced program of remedial
treatment for handicapped members.
3. Income cash benefit for:
a. Temporary total disability or sickness. An income cash benefit equivalent
to 90 per cent of the average daily salary credit with a minimum of P10
and a maximum of P200 (effective Nov. 1, 1996).
It is payable for a period not longer than 120 consecutive days. If the
injury requires more treatment, the period may be extended up to 240
days. If it persist after this period, the injury will be considered as
permanent total disability.
This benefit is advanced by the employer every regular payday. The
amount legally paid by the employer is reimbursed 100 per cent by the
SSS in the form of cheque or thru the bank.
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b. Permanent total disability (loss of two limbs, permanent complete
paralysis of two limbs, etc.). This benefit is a monthly pension paid for as
long as the injured lives plus 10 per cent for each of the five dependent
children beginning with the youngest and without substitution.
The monthly pension is guaranteed for five years but will be suspended if
the employee is gainfully employed, recovers from permanent total
disability, or fails to present himself/herself for examination at least once a
year upon notice by the SSS or fails to submit a quarterly medical report
certified by the attending physician as required under Section 5, Rule IV
of the EC law. The minimum monthly income benefit is P2,000.
Beginning Jan. 1,1991, a permanent total disability pensioner is also given
a supplemental allowance in addition to the monthly pension. This
allowance will provide additional financial assistance to meet the extra
needs arising from the disability. Effective May 1, 1993, the supplemental
allowance is P575 a month.
Upon the death of an EC permanent total or permanent partial disability
pensioner, the SSS will pay to the primary beneficiaries 100 per cent of
the monthly pension. In addition, the dependents will be paid the
dependent’s pension. If the deceased pensioner has no primary
beneficiaries, the SSS will pay to the secondary beneficiaries the
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remaining balance of the five-year guaranteed period, excluding the
dependent’s pension.
c. Permanent partial disability (such as loss of one thumb, finger, leg). A
monthly pension is provided to the member equivalent to the pension for
permanent total disability but limited to the number of months designated
by law for a particular disability. The minimum monthly pension is
P2,000.
However, if the period of permanent partial disability pension is less than
a year, the benefit may be paid in lump sum.
d. Death. A monthly pension is provided to the deceased member’s primary
beneficiaries, plus 10 per cent of such benefit for each of five dependent
children, subject to some limitations. In the absence of primary
beneficiaries, the secondary beneficiaries are entitled to the monthly
pension but not to exceed 60 months. The minimum monthly pension for
the death benefit is P2,000.
Under the EC program, a funeral benefit of P10,000 will also be paid to
any person who actually shouldered the burial expenses of the deceased
member.
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SOCIAL SECURITY BENEFITS
Sickness
What is the sickness benefit?
The sickness benefit is a daily cash allowance paid for the number of days a member is
unable to work due to sickness or injury.
How does an SSS member qualify for the sickness benefit?
1. unable to work due to sickness or injury and confined either in a hospital or at
home for at least four days;
2. at least three months of contributions within the 12 month period immediately
before the semester of sickness has been paid;
3. all company sick leaves with pay for the current year has been used up;
4. the employer has been notified, or, if a separated, voluntary or self-employed
member, the SSS directly.
Disability
What is the New Disability Program?
The new SSS Disability program is a re-designed disability program that implements the
revised manual of disability assessment. The new program adopts the World Health
Organization’s (WHO) definition of disability that states as any “restriction or lack
(resulting from impairment) of ability to perform an activity in the manner or within the
range considered normal for a human being.”
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What is the main objective of the new disability program?
The re-designed program aims to ensure that the right cash benefit for disability is paid to
truly deserving members.
What are the salient features of the new disability program?
The re-designed disability program:
adopts the WHO definition of disability which is any “restriction or lack
(resulting from impairment) of ability to perform an activity in the manner or
within the range considered normal for a human being.” Impairment is defined as
any loss or abnormality of psychological, physiological, or anatomical structure or
function.
adopts the International Statistical Classifications of Diseases and Related Health
problems Codes (ICD-10).
includes medical and functional assessments.
requires annual assessment of all pensioners except those with scheduled
disabilities stated under Section 13-A (f) of the SS Law.
What is the medical and functional assessment under the new disability program?
Under the medical assessment, nature and degree of impairment of affected body
part/system is determined through physical examination and interview supported by
appropriate diagnostic tests. While, under functional assessment, the capacity of the
individual to perform activities of daily living (ADL) is tested using the Functional
Independence Measure (FIM).
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Member should have 20% medical impairment to qualify for functional assessment.
Who is qualified for disability benefit under the new program?
A member who suffers partial or total disability with at least one monthly
contribution paid to the SSS prior to the semester of contingency is qualified.
What are some of the permanent partial disabilities?
A complete and permanent loss or use of any of the following body parts and does not
totally prevent a member from engaging in any gainful occupation
What are some of the permanent total disabilities?
The following fall under permanent total disability:
1. complete loss of sight of both eyes;
2. loss of two limbs at or above the ankle or wrists;
3. permanent complete paralysis of two limbs;
4. brain injury resulting to incurable imbecility or insanity; and
5. such cases as determined and approved by the SSS
one thumbone index fingerone middle fingerone ring finger one little fingerhearing of one earhearing of both earssight of one eye
one big toeone handone armone footone legone earboth ears
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RETIREMENT
What is the retirement benefit?
It is a cash benefit either in monthly pension or lump sum paid to a member who can no
longer work due to old age.
Who may qualify for a retirement benefit?
1. A member who is 60 years old, separated form employment or ceased to be self-
employed, and has paid at least 120 monthly contributions prior to the semester of
retirement.
2. A member who is 65 years old whether employed or not and has paid at least 120
monthly contributions prior to the semester of retirement.
For Underground Mineworkers:
1. Has reached the age of 55 years old and is an underground mineworker for at least
5 years (either continuous or accumulated) prior to the semester of retirement but
whose actual date of retirement is not earlier than March 13, 1998; separated from
employment or in the case of self-employed, has ceased self-employment, and has
paid at least 120 monthly contributions prior to the semester of retirement.
2. Has reached the age of 60 years old whether employed or not.
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Maternity
What is the maternity benefit?
The maternity benefit is a daily cash allowance granted to a female member who was
unable to work due to childbirth or miscarriage.
What are the qualifications for entitlement to the maternity benefit?
1. She has paid at least three monthly contributions within the 12-month period
immediately preceding the semester of her childbirth or miscarriage.
2. She has given the required notification of her pregnancy through her employer if
employed, or to the SSS if separated, voluntary or self-employed member.
Death and Funeral
What is the death benefit?
It is a cash benefit either in monthly pension or lump sum paid to the beneficiaries of a
deceased member.
Who are the beneficiaries of a deceased member?
The primary beneficiaries are the legitimate dependent spouse until the person remarries
and the dependent legitimate, legitimated, or legally adopted, and illegitimate children of
the member who are not yet 21 years old. In the absence of primary beneficiaries, the
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dependent parents shall be the secondary beneficiaries. In their absence, any other person
designated by the member as beneficiary in the member’s record.
OTHER SERVICES
Auto Debit Arrangement
What is the auto-debit arrangement program?
The Auto-Debit Arrangement (ADA) Program is a one-time enrollment scheme
wherein your social security contributions and loan amortizations will be automatically
deducted from your bank accounts (Savings Account/Current Account) every 10th of the
month.
With the ADA Program, paying your contribution and loan amortizations is as easy
as automatic remittance from your bank account (SA/CA).
What are the advantages of joining the ada?
With the ADA Program, you save time, money and effort. Also, your payments are
immediately posted. You no longer need to:
go to the bank or to SSS every month for your social security contributions and
loan amortization payments;
fill-up so many forms;
queue at the bank or at the SSS; and
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worry, for your accounts are easily and accurately recorded.
SSSNet ELECTRONIC DATA INTERCHANGE (EDI)
The Social Security System aims to continually enhance its delivery of services to
members with the use of information technology.
In achieving this task, the SSS must be able to move data and funds within and
outside the organization in the fastest, most precise and cost-effective manner.
It is in this light that the SSS embarked on a project to automate the transfer of data
and funds as well as facilitate the members' access to SSS benefits through the SSSNet,
using electronic data interchange (EDI) technology.
What is EDI?
EDI is the organization-to-organization, computer-to-computer exchange of data in a
standard, structured, machine readable and processable format.
It is the electronic transfer of business information from one computer to another,
using agreed standards to structure the data.
EDI is a milestone in information exchange from established methods of computer-
to-computer communication such as modems, electronic mail or on-line links to a host
computer.
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With EDI, the receiving computer can understand and act upon the information sent,
extracting and processing such data as needed for its own company's use before sending it
to a third party.
This does not mean that a business needs to be highly computerized to take
advantage of the EDI. With the right software and telecommunications link, EDI
applications can be successfully undertaken on any type of computer from a mainframe
to a laptop.
What is an EDI message?
An EDI message is the electronic equivalent of any group of information contained
in a traditional paper business document such as name, address of sender, delivery date
and terms of payment.
THE EDI PROJECT
The SSSNet is a full-cycle EDI solution. The initial stage of the project is focused
on the Contributions process using the SSSNet Employer Contributions Program, the
electronic transmission of employees' monthly contributions.
The EDI Objectives
To improve the delivery of service;
To provide convenience to SSS partners (banks and employers);
To streamline manual operations and shorten processing and updating of
employee remittances; and
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To immediately reconcile and post contributions.
SSS Flexi-Fund
What is the SSS Flexi-fund?
The SSS Flexi-fund is a voluntary, provident fund for overseas Filipino workers (OFWs).
It is an additional service provided by the SSS on top of the regular OFW membership.
Why do I need to join the SSS Flexi-fund Program?
The SSS, through the Flexi-fund Program, provides OFWs the opportunity to set aside a
part of their earnings abroad and maximize the returns on their Flexi-fund contributions.
Your accumulated funds are investments for the future. It is offered as a supplement to
SSS benefits, which you are entitled to as a regular OFW member, by promoting savings
generation, thus serving as your additional layer of social security protection.
Who may enroll in the SSS Flexi-fund?
The Flexi-fund is open to all OFWs who are:
recruited in the Philippines by foreign-based employers for work abroad;
having a source of income in a foreign country; or
residing permanently in a foreign country.
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SSS ID
The SSS is now issuing its enhanced Social Security Identification Card, which
makes use of biometrics technology.
The new SS ID will enable the SSS to ascertain the identity of its bearer through the
card's two-dimensional bar code that will contain his electronically captured fingerprint.
The fingerprint can be matched against all other fingerprints in the SSS database,
assuring that benefits and loans are promptly paid out to the right person.
The ID card contains a magnetic stripe that can be used together with online SSS
information kiosks to enable members to know the number of their SSS contributions. It
will also allow the bearer to use point-of-service technology such as automated teller
machines in the future.
An active SSS member with at least one monthly contribution and SSS pensioners
may apply for the new SS ID by filling out and submitting an SSS Form E-6 to the
nearest SSS branch that has facilities for SS ID capture.
B. Problems Identified
As an organization we cannot escape from the things called “problems”. We can’t
deny the fact that problem do exist. Every organization needs to identify the problem so
that solution may be given for an efficient and productive environment result. Some of
the problems I encountered were:
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1. Employees are not totally computer literate. As a company whose
transactions are done mostly online, this may be a problem. Some
employees don’t know how to do basics in computer which
sometimes delays transactions.
2. Network is often offline. The company is connected online to the
main office for transactions but oftentimes, the network is offline
making interruption to the transactions and affects productivity.
3. Lack of computers. There were cases where trainees need to
encode some documents for their tasks yet there were no available
computers. Sometimes employees share only computer which
causes delay in doing a job.
4. Not enough employees. This is what always clients complain about
especially during deadlines of payments. Why not add additional
employees? Hundreds or maybe thousands of people are coming
everyday at their office and the number of employees serving the
clients is not enough. Sometimes employees have two to three jobs
at the same time.
C. Recommendations
In order for the company to be effective and productive, they should focus on how
to address the common problems encountered everyday. We were assigned in a
government office which is not equipped with modernized technology gadgets or tools.
As a result, tasks that could be done immediately using computers are delayed because
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the company doesn’t have enough computer equipments. Interruption in one’s tasks
affects the employees’ productivity. I suggest that they need to add more computers so
that no employees share the same computer and transactions could be done smoothly.
Improving the computer system of the company is also recommended. Fixing it will
result to more efficient performed tasks.
Also they need to have a training seminar on basic computer skills for employees
that are having a hard time using a computer. It will lessen the delays and add
productivity to the company.
Lastly, management should think about adding more employees so that they can
serve their clients well. Additional employees will produce faster performance of tasks
and employees can attend the needs of their clients better.
Addressing these problems means management knows how to respond to the
needs not only of the clients but also the needs of the employees working on the company
