Top 3 Reasons Why SSS is Beneficial to Freelancers

June 24, 2021
by Beth Terrado 
Beth was a homeschooler turned teacher then a Math tutor. When the pandemic hit, she found herself looking through freelancing & aspire to find fulfillment in pursuing this field. She knows that everyone is capable of reinventing oneself. Now, she still enjoys teaching and helping students in Math & aspires to be a freelancer while staying at home & be with her young adult children.

Social Security System (SSS) is a state-run, social insurance program in the Philippines for workers in the private, professional, and informal sectors. Freelancers or independent contractors are considered self-employed. 

When it comes to maintaining SSS contributions, a lot of freelancers put it on the back burner. With multiple financial obligations, it's usually not considered urgent and important. The negative impact may not be noticeable until a person retires, gives birth, gets sick with the need for hospitalization, or other unforeseen events.

Picture this: You've already hit 60 or 70 and you can barely fend for yourself. You've got nothing but regrets for not saving up during those productive years. You’re relying on family members or neighbors for food, medication, and other basic needs. 

You might say, you have family members who will take care of you but let’s not forget the fact that nothing in life is certain. So while you still have the time and resources, it's a great idea to allocate a portion of your income into your preferred investment vehicles and to make sure you’re updating your SSS contributions. 

I’m excited to highlight the top 3 reasons why it’s beneficial to independent contractors or freelancers but before that, let’s talk about how to become a member first. 

You must be:

  •  18 - 60 years of age
  •  With earnings of at least Php 2,000 

How to Apply as a Member?

Here are the steps on how you can apply as an SSS member:

  1. Register through my.SSS portal. Fill-out the form RS-1 (Self-Employed Data Record) with a photocopy of two (2) valid government IDs. You may also go to the nearest SSS office in your area (if the circumstances allow). 
  1. If you are already a member and want to update your data & records to Self-Employed or Voluntary, you can do so through the Member Data Change Request (SSS Form E-4). 
  1. Pay your contribution to the nearest bank or any payment channels that they provide. The amount you want to contribute depends on your capacity to pay.
  1. For the following months, you will receive a text message of your PRN (Payment Reference Number) with the corresponding payment due date. Pay your monthly contribution before the due date.
  1. You can also apply for a Unified Multi-purpose ID (UMID) card. 

Alright, let us now dive in to the most exciting part - the top 3 reasons why it is beneficial to freelancers.  

1.It will help you save for your future. 

We all know that saving money is essential in achieving financial well-being and preparing for our future but it’s not always easy. It can be shelved in favor of more tempting options to spend on trendy clothes, high-tech gadgets, and leisurely travel. It can also rank low on the list of priorities due to family obligations, such as paying for household expenses, tuition fees, and monthly rent or mortgage.

With SSS, you can gradually build up your retirement fund with ease because it doesn’t require a huge amount of money. It is the cheapest and most accessible pension scheme. 

How much should a voluntary or self-employed member contribute?

Here’s what’s stated in the SSS Primer: “If you are self-employed (SE) or a voluntary member (VM), you must pay the full 12%, based on the monthly earnings that you declared at the time of registration (for SE), or the Monthly Salary Credit (MSC) that you set for yourself.”

You may also refer to the New SSS Contribution Schedule for more details. 

2. You can apply for loans. 

SSS processes loan applications for members who meet the eligibility requirements. For instance, you can apply for a salary loan to meet your short-term credit needs. It's not only for those who are employed in traditional jobs. Even a self-employed or voluntary member can file for it. 

Here are the eligibility requirements as stated in their website:

For a one-month loan, the member-borrower must have thirty-six (36) posted monthly contributions, six (6) of which should be within the last twelve (12) months prior to the month of filing.

For a two-month loan, the member-borrower must have seventy-two (72) posted monthly contributions, six (6) of which should be within the last twelve (12) months prior to the month of filing of application.

1. The member-borrower has not been granted final benefit, i.e., total permanent disability, retirement, and death.

2. The member-borrower must be under sixty-five (65) years of age at the time of application.

3. The member-borrower has not been disqualified due to fraud committed against SSS.

I have not included the requirements that apply to those who are employed. You can visit their website for further information.

3. SSS provides self-employed and voluntary members with certain benefits.

Self-employed and voluntary members are entitled to the same benefits provided for regular employees except the ones covered by the Employees' Compensation program.​ Here they are:

· Sickness 

· Maternity 

· Disability

· Retirement 

· Funeral 

· Death 

· Calamity Loan

Each of these benefits has qualifying conditions. You may refer to the SSS summary of benefits for further details. 

Final Thoughts 

Considering all of these benefits, I think it's fair to say that becoming an active SSS member is worth your time, money, and effort. 

This is a very good way to channel your hard-earned income for your benefit in the future and in times of unforeseen events. Remember that we need to be wise in spending & investing as freelancers. 

Want to start working from home and achieve financial freedom? Start with the FREE VA Bootcamp Course.

Disclaimer: The content of this article may become outdated because of changes in the rules and regulations over time and it doesn't constitute professional advice.

Follow us on Social:

by Beth Terrado 
Beth was a homeschooler turned teacher then a Math tutor. When the pandemic hit, she found herself looking through freelancing & aspire to find fulfillment in pursuing this field. She knows that everyone is capable of reinventing oneself. Now, she still enjoys teaching and helping students in Math & aspires to be a freelancer while staying at home & be with her young adult children.

Leave a Reply

Your email address will not be published. Required fields are marked *

73 comments on “Top 3 Reasons Why SSS is Beneficial to Freelancers”

  1. Youre so cool! I dont suppose Ive learn something like this before. So nice to seek out anyone with some original ideas on this subject. realy thanks for starting this up. this website is one thing that is wanted on the internet, somebody with a little originality. useful job for bringing one thing new to the internet!

  2. Hi, I think your site might be having browser compatibility issues. When I look at your website in Safari, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, fantastic blog!

  3. I'd have to examine with you here. Which is not one thing I usually do! I take pleasure in reading a post that may make folks think. Additionally, thanks for permitting me to comment!

  4. I would like to thnkx for the efforts you have put in writing this blog. I am hoping the same high-grade blog post from you in the upcoming as well. In fact your creative writing abilities has inspired me to get my own blog now. Really the blogging is spreading its wings quickly. Your write up is a good example of it.

  5. Good day I am so glad I found your blog, I really found you by mistake, while I was searching on Digg for something else, Anyways I am here now and would just like to say thanks a lot for a incredible post and a all round interesting blog (I also love the theme/design), I don't have time to look over it all at the moment but I have book-marked it and also added in your RSS feeds, so when I have time I will be back to read much more, Please do keep up the excellent work.|

  6. I really love your website.. Excellent colors & theme. Did you make this website yourself? Please reply back as Iím planning to create my own site and would love to find out where you got this from or exactly what the theme is called. Appreciate it!

  7. You are so interesting! I do not suppose I have read through anything like this before. So nice to find somebody with a few original thoughts on this subject matter. Seriously.. thank you for starting this up. This site is something that's needed on the internet, someone with some originality!

  8. Iím impressed, I must say. Rarely do I come across a blog thatís both equally educative and amusing, and let me tell you, you've hit the nail on the head. The problem is something that too few folks are speaking intelligently about. Now i'm very happy that I came across this during my hunt for something regarding this.

  9. Your style is very unique in comparison to other people I have read stuff from. Thank you for posting when you've got the opportunity, Guess I will just bookmark this web site.

  10. After exploring a number of the blog posts on your blog, I honestly like your way of writing a blog. I bookmarked it to my bookmark site list and will be checking back in the near future. Please check out my website as well and let me know your opinion.

  11. Greetings, I do believe your site may be having browser compatibility issues. Whenever I look at your website in Safari, it looks fine however, when opening in I.E., it has some overlapping issues. I simply wanted to provide you with a quick heads up! Other than that, great blog!

  12. I love your blog.. very nice colors & theme. Did you create this website yourself or did you hire someone to do it for you? Plz answer back as I'm looking to construct my own blog and would like to find out where u got this from. thanks|

  13. Hi, I do believe this is a great site. I stumbledupon it 😉 I'm going to revisit yet again since i have bookmarked it. Money and freedom is the best way to change, may you be rich and continue to guide other people.

  14. Hello there, I believe your site could possibly be having browser compatibility issues. When I take a look at your web site in Safari, it looks fine but when opening in I.E., it has some overlapping issues. I merely wanted to provide you with a quick heads up! Other than that, excellent website!

  15. I was recommended this blog by way of my cousin. I'm now not sure whether or not this put up is written via him as nobody else understand such specific about my problem. You're amazing! Thank you!|

  16. I have to thank you for the efforts you've put in writing this website. I am hoping to check out the same high-grade content by you in the future as well. In truth, your creative writing abilities has motivated me to get my own, personal website now 😉

  17. An interesting discussion is worth comment. There's no doubt that that you ought to publish more on this subject matter, it might not be a taboo matter but usually folks don't discuss these subjects. To the next! Kind regards!!

  18. Can I just say what a relief to uncover somebody who really knows what they are discussing over the internet. You actually know how to bring an issue to light and make it important. More people really need to read this and understand this side of the story. I can't believe you're not more popular because you definitely have the gift.

  19. I'm now not sure the place you are getting your info, however good topic. I needs to spend some time studying much more or understanding more. Thanks for wonderful information I used to be on the lookout for this information for my mission.|

  20. We're a group of volunteers and starting a new scheme in our community. Your website provided us with valuable information to work on. You've done an impressive job and our entire community will be thankful to you.|

  21. Hello, I do believe your website could be having browser compatibility problems. When I take a look at your website in Safari, it looks fine but when opening in Internet Explorer, it's got some overlapping issues. I simply wanted to provide you with a quick heads up! Apart from that, excellent blog!

  22. It's actually a great and helpful piece of info. I'm glad that you just shared this helpful information with us. Please keep us up to date like this. Thanks for sharing.|

  23. Great article! This is the kind of information that are supposed to be shared around the web. Disgrace on the search engines for not positioning this submit higher! Come on over and talk over with my site . Thanks =)|

Learn the Basics

Join Our FREE Virtual Assistant Course which will teach you the basics of working from home as on online freelancer
JOIN NOW
menu-circlecross-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram