Virtual assistants, freelancers to get social security coverage under SSS, DICT deal

MANILA — The Social Security System (SSS) has signed a partnership with the Department of Information and Communications Technology (DICT) to expand social security coverage for virtual assistants and freelancers.

The SSS, in a statement, said there are about 1.5 million virtual assistants and freelancers in the Philippines.

The virtual assistant role in the Philippines does not fall into any existing government category. This means legal protections for them are also effectively non-existent.

But a study conducted by virtual assistant outsourcing firm Remotify showed that 7 in 10 Filipino remote workers receive no employment benefits beyond their salaries. 

More than half reported inconsistent income, while 45 percent said they do not file taxes, in part due to the instability of their income. Nearly 40 percent said they struggle to prove their income when applying for credit cards, housing loans or government benefits.

The same survey showed that workers don’t see flexibility and formal employment as an either-or choice:77 percent said they want a formal employment record while continuing to work remotely, while 78 percent said they would consider being employed through an Employer of Record.

Under the partnership, virtual assistants and freelancers will be encouraged to register as self-employed SSS members. This means they will be eligible for sickness, maternity, disability, retirement, funeral, and death benefits.

The SSS contribution rate is 15 percent. For self-employed members, the monthly salary credit used to determine contributions ranges from P5,000 to P35,000.

Limlingan said the lowest monthly contribution is P760. P750 is for the regular SSS contribution, and P10 is for the Employees’ Compensation contribution.

Meanwhile, the highest monthly contribution is P5,280, which is broken down into P3,000 for the regular SSS contribution, P30 for the Employees’ Compensation contribution, and P2,250 for the Mandatory Provident Fund.

The Employees’ Compensation Program gives workers coverage for work-related sickness, disability, or death.

The Mandatory Provident Fund, meanwhile, is a retirement savings plan for SSSS members who have a monthly salary credit that exceeds P20,000.

“Freelancers and virtual assistants are an important and growing segment of our workforce,” said SSS president and chief executive officer Victor Alfonso Limlingan. “By bringing them into the SSS coverage, we ensure that they, too, can access the same protection and benefits enjoyed by other workers,” he said.