Definition
An SE person is one engaged in any trade, business, or occupation, who has no ER other than himself, whose income is derived from his/her physical and mental efforts and not from employment, and who is not over 60 years old (if initial coverage).
Included, but not limited to, are the following SE individuals:
- All self-employed professionals
- Partners and single proprietors of business
- Actors and actresses, directors, scriptwriters, and news correspondents who do not fall within the definition of the term “employee” in Section 8 (d) of the Social Security Act of 2018
- Professional athletes, coaches, trainers
- Individual farmers, and fishermen
- Workers in the informal sector such as market and ambulant vendors, watch-your-car boys, transport workers, and those similarly situated
- Contractual and job order personnel engaged by the government through a Contract of Service and who are not coverable under the GSIS Law
- Any other SE person as determined by the SSC under such rules and regulations that it may prescribe
An SE person who is not over 60 years old (up to 60th birthday) is still subject to mandatory coverage, if for initial membership. In the same manner, an existing member (who already has an SS Number and at least one month contribution) who becomes an SE person after his/her 60th birthday but before the 65th birthday is still subject to mandatory coverage.
Starting September 2020, all SE members are covered under the Employees’ Compensation Program (ECP), which is designed to provide a package of benefits and services to public and private workers and/or their dependents in the event of work-connected sickness or injury resulting to disability or death. Coverage of SE members starts upon registration and payment of Social Security (SS) and Employees’ Compensation (EC) contributions and date of coverage shall be the first contribution payment.
Registration
A prospective Self-Employed member who will register and secure an SS Number and submit this with the required identifying ID cards and/or supporting documents.
A Self-Employed person with a previously assigned SS number shall register with SSS as self-employed member and may need to submit Member Data Change Request (MDCR) form to change membership type to SE (if current membership type is other than SE).
See Become an SSS member > Managing your Membership Details
For a Self-Employed member, SSS coverage starts on the month and year of first monthly contribution payment, provided that it is not earlier than the declared “Start of Profession/Business” during application. Monthly earnings declared should be based on actual earnings.
If the Self-Employed Member has hired employee/s, he/she should also register as an employer and secure an Employer Number.
Changes in member’s data should be reported immediately to the nearest SSS Office by accomplishing Member’s Data Amendment Form (SS Form E-4) with the required supporting documents. The member should present the original/certified true copy and submit the photocopy to SSS. Simple corrections may be done through your My.SSS Account.
See Become an SSS member > Managing your Membership Details
Effects of non-reporting and non-remittance of contribution
An SE person who fails or refuses to register with the SSS may be fined and/or imprisoned. However, in the event the SE member does not realize earnings in a month, payment of SSS contribution is no longer required.
An SE person who failed to register as an SE member, but has already paid SE contributions, shall be required to submit the following for the approval of his/her late registration as an SE member:
- Member Data Change Request Form (SSS Form E-4) indicating the year of the first SE contribution as the ‘Start of Business’; and
- Affidavit declaring the source of income and indicating the year of the first SE contribution as the start of self-employment.
An SE who fails to remit contributions after membership is approved may only pay the monthly contributions prospectively. The months without posted contributions shall already be considered as “gaps” and back-payment to fill those gaps (i.e., retroactive payment of contributions) is not allowed.
NOTE:
- The self-employed becomes a member when at least one contribution, corresponding to the approved amount in the registration form, has been paid.
- Membership with the SSS is for life for the covered self-employed member. However, a member who ceased to be self-employed has the option to continue paying SSS contributions as a voluntary member to maintain the right to the full benefits being provided by the SSS.
- A covered self-employed member may change his/her membership type to voluntary without need to present supporting documents. Upon generation of PRN through the My.SSS facility, he/she should choose “Voluntary” in the membership type portion, which shall be deemed as member’s declaration that he/she has ceased to be employed and/or that he/she did not have any income or earnings as a self-employed for the period for which the voluntary contributions were paid.
- Even when there are periods when no contributions are remitted, the benefits and loan privileges provided by the SSS can still be availed of, as long as the self-employed member meets the qualifying conditions for entitlement thereto.
- The recipient of a lump sum benefit for total permanent disability who is re-employed or has resumed self-employment not earlier than one year from date of disability, shall again be subject to compulsory coverage and shall be considered a new member, provided that the member is not over 60 years of age at the time of re-employment or resumption of self-employment.
Contribution and Payment
The amount of monthly contribution to be paid by self-employed members is always based on the latest Schedule of Contributions issued by the SSS.
Reminders:
- The monthly earnings declared by a self-employed member in his/her registration form (Personal Record Form or Member Data Change Request Form) shall be the basis of MSC and the corresponding amount of monthly contribution.
- The self-employed member is not required to present proof of declared monthly earnings.
- A self-employed member is allowed to change his/her MSC to an MSC higher or lower than the one indicated in his/her registration form (Personal Record Form or Member Data Change Request Form), depending on actual earnings, without having to present proof thereof.
- A self-employed member who is below 55 years old is allowed to change his/her MSC without limit in frequency and in number of salary brackets in a given calendar year. However, in no case shall it be lower than the prevailing minimum MSC for self-employed members. Submission of written request or declaration of earnings is not required.
- On the other hand, a self-employed member who is 55 years old and above is allowed to increase his/her MSC only once in a given calendar year and by one (1) salary bracket only from the last posted MSC, whether proof of earnings is presented or not.
- The only exception to the above case is when the self-employed member is already contributing at the maximum MSC and a higher maximum MSC is implemented under a new Schedule of Contributions. In that case, he/she will be allowed to increase his/her MSC to the new maximum MSC, provided that his/her last posted MSC corresponds to the maximum MSC under the immediately preceding Schedule of Contributions.
- No limit in frequency and amount shall be imposed in case of decrease in MSC, but in no case shall it be lower than the prevailing minimum MSC.
Self-employed members may pay their contributions through any of the following channels:
- SSS Branches with Tellering Facilities
- SSS-accredited banks (over-the-counter and partner bank’s website and mobile app)
- SSS non-bank collecting partners (over-the-counter and collecting partner’s website and mobile app)
- SSS Mobile App
Self-employed members may pay their contributions monthly or quarterly, through the mandatory use of Payment Reference Number (PRN) that can be generated from the My.SSS facility.
Deadline of payments for contributions will be the last day of the month following the applicable month. If the deadline falls on Saturday, Sunday or a national holiday, payment may be made on the next working day.
See list of Payment Channels
See Pay Contributions and Loans
