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Questions and Answers
What is the basis for the monthly salary credit of self-employed individuals in the Philippine Social Security System?
What types of income are excluded from the net earnings of self-employed individuals in the Philippine Social Security System?
Who contributes to the operation of the Philippine Social Security System?
What is the responsibility of the Philippine government with regards to the solvency of the SSS?
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What benefits are provided by the Philippine Social Security System to its members and their beneficiaries?
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What is the basis for determining the contributions of self-employed individuals to the Philippine Social Security System?
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What can be said about the benefits prescribed in the SSS Act?
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Study Notes
Contributions and Guarantees in the Philippine Social Security System
- Contributions of self-employed individuals to the Philippine Social Security System (SSS) are determined according to Section 18 of the SSS Act.
- Self-employed individuals must pay both the employer and employee contributions based on their average monthly net earnings declared at the time of registration with the SSS.
- Net earnings refer to the net income from the individual's business or profession as reflected in their income tax returns for the immediately preceding year.
- Rental income, dividends, interest investments, and other types of income not derived from their registered business or profession are excluded from net earnings.
- The average monthly net earnings declared at registration serve as the basis for the monthly salary credit, unless the individual makes a new declaration based on their latest income tax returns.
- The Philippine government contributes to the operation of the SSS by annually appropriating funds from the National Treasury to meet estimated expenses.
- The Congress may appropriate additional funds as needed to maintain an adequate working balance of the SSS funds based on periodic actuarial studies.
- The government of the Philippines accepts general responsibility for the solvency of the SSS to guarantee the benefits prescribed in the SSS Act.
- The benefits prescribed in the SSS Act cannot be diminished.
- Section 14 of Presidential Decree No. 1636 amended Section 19-A of the SSS Act.
- Republic Act No. 1792 amended Section 21 of the SSS Act.
- The Philippine Social Security System provides benefits to its members and their beneficiaries, such as retirement, disability, sickness, and death benefits.
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Description
Test your knowledge on the Philippine Social Security System with this quiz on Contributions and Guarantees. Learn about the contributions required from self-employed individuals, the role of the government in funding the SSS, and the benefits provided to members and their beneficiaries. This quiz is perfect for anyone seeking to understand the ins and outs of the Philippine Social Security System.
