OFW Party List Representative Marissa “Del Mar” Magsino filed yesterday House Bill 10286 or An Act Expanding the Involuntary Separation Benefit, Amending for the Purpose Section 14-B of Republic Act No. 11199, otherwise known as the “Social Security Act of 2018”
The party list lawmaker proposed to enhance the welfare of workers in the private sector who face involuntary separation from their employment.
Under Republic Act No. 11199 or the ‘Social Security Act of 2018’, workers in the private sector who are involuntarily separated from their employment have a reprieve through unemployment benefits that can help ease their financial burden while looking for a new job. Also called the ‘Unemployment Insurance or Involuntary Separation Benefit’, it is a cash benefit granted by the Social Security System (SSS) to covered employees consisting of an amount that is equivalent to 50% of the member’s average monthly salary credit (AMSC) for a maximum of two (2) months.
The benefit is granted thru a one-time payment, and the claim must be filed within a year from the date of involuntary separation.
HB 10286 aims to expand the coverage and benefits of involuntary separation from 50% to 75% of the qualified member’s AMSC to account for the impact of extraordinary inflation that has hit the country in recent years and from the time of the enactment of the law in (RA 11199) in 2018. Under the proposed amendment, eligible members will be entitled to receive monthly cash payments equivalent to 75% of the AMSC for a maximum of 2 months.
“Ang pagkawala ng trabaho nang hindi inaasahan ay traumatic sa karamihan sa ating mga kababayan, ito man ay dahil nagsarado ang kumpanya o di kaya’y kinakailangan magtanggal ng mga empleyado. Although the existing law provides for a benefit that will help bridge their daily needs until they find a new job, the current rate of 50% of the member’s average monthly salary credit (AMSC) is evidently insufficient. Inflation rate is continuously on the uptick while our purchasing power is diminishing. Thus, I am proposing an increase of the involuntary separation benefit from 50% to 75% of the AMSC,” said Magsino
In particular, this bill aims to benefit workers in the private sector who fall in the lower echelons of the economic ladder and those with peculiar circumstances, including Overseas Filipino Workers (OFWs), solo parents as defined in law, kasambahays, and similar covered groups, whenever they unfortunately find themselves struck by involuntary separation from employment. In particular, the intermittent nature of employment of OFWs poses greater vulnerability to them. Since they are included in the coverage of RA 11199, they will benefit from the proposed expansion, which is hoped to be an additional safety net for the vulnerable sectors.
