Persida Acosta: SSS compulsory coverage of sea-based OFWs

SSS compulsory coverage of sea-based OFWs
Persida Acosta May 31, 2025 https://www.manilatimes.net/2025/05/31/legal-advice/sss-compulsory-cover...

Dear PAO,
I have an uncle who is currently fifty-five (55) years old. He worked as a seafarer in different foreign vessels. When he went to the Social Security Systems (SSS) to avail of his retirement benefits, he found out that his contributions had not been paid by his principal employer. So, he asked for an explanation from his principal employer. His employer explained that the company was not obligated to cover his SSS membership since he was hired abroad and was covered by another insurance provider. Is my uncle's principal employer correct?

Sofia

Dear Sofia,

Under Philippine law, the Social Security System (SSS) is a mandatory social security program designed to protect Filipino workers, including seafarers, by providing benefits for sickness, maternity, disability, death, and retirement.

The coverage under the SSS is compulsory for all employers in the private sector and their employees who are not over 60 years of age, whether with permanent or provisional employment status. This includes domestic helpers.

Under Republic Act (RA) 11199, also known as the Social Security Act of 2018, the compulsory coverage of overseas Filipino workers (OFWs,) which is particularly mentioned in its Section 9-B (a) and (b), is as follows:

"Section 9-B. Compulsory Coverage of Overseas Filipino Workers (OFWs) -

"(a) Coverage in the SSS shall be compulsory upon all sea-based and land-based OFWs as defined under Republic Act No. 8042, otherwise known as the Migrant Workers and Overseas Filipinos Act of 1995, as amended by Republic Act No. 10022: Provided, That they are not over sixty (60) years of age.

"All benefit provisions under this Act shall apply to all covered OFWs. The benefits include, among others, retirement, death, disability, funeral, sickness and maternity.

"(b) Manning agencies are agents of their principals and are considered as employers of sea-based OFWs.

"For purposes of the implementation of this Act, any law to the contrary notwithstanding manning agencies are jointly and severally or solidarity liable with their principals with respect to the civil liabilities incurred for any violation of this Act.

"The persons having direct control, management or direction of the manning agencies shall be held criminally liable for any act or omission penalized under this Act notwithstanding Section 28(f) hereof."

Thus, under the new Social Security Act of 2018, SSS coverage is compulsory for all sea-based and land-based OFWs. The Department of Foreign Affairs (DFA), the Department of Labor and Employment (DOLE), and the SSS are mandated to ensure this compulsory coverage of OFWs through bilateral social security and labor agreements and other measures for enforcement. OFWs who are terminated from their employment overseas may continue to pay contributions on a voluntary basis to maintain their rights to full benefits, while Filipino permanent migrants, including Filipino immigrants, permanent residents and naturalized citizens of their host countries may be covered by the SSS on a voluntary basis. (Sec. 9-B, (e) to (g), RA 11199)

In the case of Joint Ship Manning Group, Inc. vs. SSS, (GR 247471, July 07, 2020, penned by Honorable Chief Justice Alexander Gesmundo), the respondents sought to annul and declare Section 9-B of RA 11199 as unconstitutional. However, the Supreme Court ruled that Section 9-B of RA 11199 is constitutional insofar as sea-based OFWs are concerned. It stated that:

"R.A. No. 11199 was enacted, among others, to extend social security protection to Filipino workers, local or overseas, and their beneficiaries. Sec. 9-B(a) states that OFWs shall have compulsory coverage by the SSS. Sec. 9-B(b) states that manning agencies are agents of their principals and are considered as employers of sea-based OFWs which make them jointly and severally or solidarily liable with their principals with respect to the civil liabilities therein. On the other hand, the recruitment agencies of land-based OFWs are not considered as agents of their principals, and thus, are not jointly and solidarily liable for the SSS contributions. x x x

"Sec. 9-B(b) of R.A. No. 11199 simply reiterates the provisions in other existing laws and regulations that manning agencies are jointly and solidarily liable with the principal foreign ship owners for monetary claims. Under Section 1(A)(1) of the 2010 POEA-SEC, the principal foreign ship owner has the primary duty to extend SSS coverage to seafarers."

Regarding the situation of your uncle, his principal employer may be incorrect. As a seafarer, he is entitled to mandatory SSS coverage. The mployer cannot evade its obligations just because your uncle was hired abroad and covered by another insurance provider. It is clear under the Social Security Act of 2018 that coverage in the SSS shall be compulsory for all sea-based and land-based OFWs.

We hope that we are able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

We appreciate your trust and support.

Editor's note: Dear PAO is a daily column of the Public Attorney's Office. Questions for Chief Acosta may be sent to [email protected]