In general, social security basically means social insurance, which offers benefits or services to people for their contribution to an insurance program. The basic services under such a scheme include disability insurance, provision for retirement pensions, survivor benefits and unemployment insurance.
The social security system of Philippines, locally known as Paseguruhan ng Kapanatagang Panlipunan is a state run social insurance program for those working in the private, professional, and informal sectors. However, the government employees are covered under the Government Service Insurance System (GSIS). The system was established in the Republic Act No, 1161, called Social Security Act of 1954. It was in 1997 that the law was amended by the Republic Act No. 8282.
Currently, the social security system in Philippines basically covers the following three programs:
· the Social Security Program
· the Medicare Program
· the Employees' Compensation (EC) Program
Generally, those below the age of 60 years and working have to pay for the social insurance including the insurance fees, HDMF, and PhiHealth. This is applicable for the locals as well as the foreigners and thus corporations employing labor below 60 years of age are required to join social insurance.
At Establish Philippines we are a firm of trusted CPAs offering the best of social insurance services in Philippines to clients based in and out of the country. With more than a decade of experience in the domain, so far we have been able to serve the professional needs of clients based across a vast domain and cater to their social insurance demands in the best possible manner.
For more information and details on incorporation assistance and social insurance in Philippines, simply get in touch with our experts at +81-3-5369-2930.