DOLE is asking to exempt newly-hired OFW from immediate SSS payment

Labor and Employment Secretary Silvestre H. Bello III said he is proposing for the “modification” of the Implementing Rules and Regulation (IRR) of Republic Act (RA) 11199 or the Social Security Act.

The Department of Labor and Employment (DOLE) is now pushing for the temporary exemption of Filipino workers, who are bound for abroad, from immediately paying premium to the Social Security System (SSS).

The labor chief proposed that the SSS premium be collected only three months after the Filipino worker is already deployed in his or her country of destination.

“By that time, they are already earning could be considered and OFW (overseas Filipino workers),” Bello explained to reporters.

He maintained that new-hires are technically still not considered OFWs, who are covered by Republic Act (RA) 11199 or the Social Security Act.

“I already informed them of the legal contemplation: a worker, who has not been issued an OEC (overseas employment certificate) is not yet an OFW, and therefore cannot be covered by the compulsory coverage by the law,” Bello said.

The recruitment industry and migration advocates earlier rejected the Implementing Rules and Regulation (IRR) of RA 11199 making the SSS premium payment a prior requirement for the issuance of the OEC.

An OEC is a document issued by the Philippine Overseas Employment Administration (POEA) to allow a Filipino to work abroad.

“We will issue the OEC with the condition that three months after the worker has been deployed, we will start collecting his contribution,” Bello said.

Bello said his proposal has already drawn unofficial approval from the SSS management.

Last month, POEA, after consulting with its stakeholders, recommended to Bello the postponement of the rule making SSS premium a requirement for OEC issuance until the matter can be discussed by the appropriate agencies.

In an SMS, POEA administrator Bernard P. Olalia told BusinessMirror Bello’s proposal will be among the issues to be tackled in the joint committee meeting of the Department of Foreign Affairs, DOLE and SSS on Thursday.

“It will discuss all issues related to [RA 11199] coverage of OFWs,” Olalia said.