Voluntary Contribution in the Philippines: Guide for First-Timers

(SPOT.ph) Financial security has never been more critical during times of need than when realizing a looming uncertainty. Contingencies such as layoffs, calamities, and recently, the pandemic, have always forced us to dip into our life savings just to get by. Good thing there’s an option that can motivate you to save for the future in the form of social security, health insurance, and housing benefits—voluntary contribution.

If you’re unsure about how you can avail of insurance coverage from the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund (HMDF, also known as Pag-IBIG), this guide will walk you through the process of voluntary contributions to primary insurance agencies in the Philippines.

What to Know About Voluntary Contributions in PH

Understanding Voluntary Contributions

Voluntary contributions are payments that you initiate to government-mandated agencies as a member of the informal economy consisting of self-employed, freelancers, house helpers (kasambahay), and Overseas Filipino Workers (OFWs).

Beyond these categories, some of these agencies have also extended the coverage to non-working spouses and individuals who were separated from their jobs and have expressed an intention to continue initiating monthly contributions.

Unlike private-employed individuals and government employees, voluntary contributors to social security and insurance benefits don’t get automatic deductions to their income as the payments are willingly made each month.

While employed contributors incur deductions to the salary at a mandated amount for each agency, voluntary contributors are guided by payment matrices according to their income brackets. In other words, you’ll still need to contribute a specified amount to avail of insurance and benefits coverage.

Three main agencies will allow you to become a voluntary member—the SSS, PhilHealth, and Pag-IBIG. With SSS, you’ll be able to access loans, unemployment and maternity benefits, as well as monthly pensions in your senior years. Meanwhile, PhilHealth gives you health insurance coverage for inpatient care, emergency hospitalization, outpatient treatment, surgeries, and other medical procedures. Finally, Pag-IBIG allows you to contribute to its MP2 savings account on top of the regular savings account, which earns you dividends and makes you eligible for housing loans.

Eligibility for Voluntary Membership

For SSS

If you’re a Filipino aged 18 to 60 years, you can apply as a voluntary member, provided that you’re a self-employed individual, a non-working spouse, or an Overseas Filipino Worker (OFW). Also, if you were previously employed with a Social Security (SS) number, you can opt to continue making monthly payments as a voluntary member under the separated worker category.

For PhilHealth

Migrant workers, informal sector workers, self-earning individuals, Filipinos with dual citizenship, naturalized Filipinos, and citizens of other countries working and residing in the Philippines are all welcome to become voluntary members.

Also, if you belong to an indigent family certified by the National Household Targeting System (NHTS), you’ll automatically become eligible for coverage and won’t need to make monthly contributions.

Seniors who are 60 years old and above are also automatically covered by PhilHealth. This means that they are no longer required to pay monthly premiums in accordance with the Expanded Senior Act or RA 10645.

For Pag-IBIG

Membership is available to all Filipinos whether locally employed, self-employed, or OFWs. However, to avail of its more popular MP2 savings, you’ll need to maintain a Pag-IBIG membership number which is the same account number for regular savings (P1).

Benefits of Voluntary Contributions

For SSS

SSS provides benefits for sickness, maternity, disability, retirement, death, and funeral. You’ll need to complete a certain number of contributions and submit an application for any of these financial coverages before you can receive the proceeds.

For PhilHealth

PhilHealth offers access to a wide range of healthcare services, including hospitalization and outpatient care. Depending on the service or treatment that you availed, you will be covered a portion of the doctor’s fees including miscellaneous medical bills. You only need to provide your PhilHealth number to the cashier before billing.

For Pag-IBIG

Pag-IBIG allows you to access housing loans, provident savings, and calamity loans. You must apply for any of these benefits before the proceeds are deposited to your UMID card.

How to Register as a Voluntary Member

SSS

1. Prepare the necessary documents including valid IDs and proof of income.
2. Fill out the SSS Form R-1 (Self-Employed Data Record) and submit it to the nearest SSS branch.
3. Wait for your SSS number and start paying your contributions.

Unfortunately, even if you opt to register online via SSS.gov.ph, you’ll still be required to make a personal appearance to submit documentary requirements that verify your identity and source of income. If you still wish to avoid the hassle of filling out forms on-site, you can click the “No SS number yet? Get it here!" and provide details in the online form. After you’ve reviewed the information for possible mistakes, click “Generate SS number”, which will display your SS number along with the option to print your slip for a personal appointment at your designated SSS branch.

Until you make an appearance, your membership status will be marked “Temporary.” The status will only change to “Permanent” once you fulfilled the documentary requirements.

PhilHealth

1. Complete the PhilHealth Member Registration Form (PMRF) and submit it along with the required documents to any PhilHealth office or online.
2. Wait until you are provided with or shown your Member Data Record. Your PhilHealth Card will also be presented to you if you choose the in-person application.
3. Pay the initial premium to activate your membership.

Pag-IBIG

1. Accomplish the Member’s Data Form (MDF) and submit it with the requirements to any Pag-IBIG branch. Good news: New members may opt to process their registration via the Pag-IBIG Fund Online Registration System, which will generate a membership form you’ll need to fill out online.
2. Start paying your contributions to activate your membership.

Payment of Contributions

Unlike employed contributions, you can pay your premiums monthly, quarterly, semi-annually, or annually. Payment can be made through over-the-counter transactions at SSS, PhilHealth, and Pag-IBIG branches, accredited banks, and payment centers, or online through the agencies’ respective portals.

Deadlines for Payment

Take note that payments cannot be retroactive. For example, if you missed the contribution deadline for June, the next payment will be reflected in your account as payment for July and so forth. Still, if you hate missing deadlines, you can choose to pay in advance for months remaining in your contribution table.

• For SSS: Your payment will be based on the last digit of your SSS number.
• For PhilHealth: Before the last day of the month for monthly payments or the last day of the quarter for quarterly payments.
• For Pag-IBIG: On or before the 10th day of the month following the month of coverage.

Additional Tips

• Always keep a record of your payments and transaction numbers. Cases like delayed posting of contributions may occasionally happen to you, which the agency will need to confirm from their end.
• Regularly check your contributions through the agencies' online portals to ensure that payments are posted. Doing so will keep you on track and avoid missed payments that can’t be paid for in succeeding months.
• Update your membership information as necessary, especially if there are changes in your income. SSS and PhilHealth are particularly strict with income changes, as these will be the basis for the amount of benefits you’ll be able to receive.