Emergency loan for the unemployed in Digido

Freelancers can’t get unemployment benefits from SSS, and getting loans from banks is difficult for them. Digido will give you a loan even if you are unemployed or a freelancer. You only need to provide proof of regular income.

Key takeaways:

  • Many Filipinos today work as freelancers and self-employed professionals.
  • They cannot get unemployment benefits from the SSS.
  • It is difficult for them to get loans from banks because they do not have a certificate of employment.
  • Any Filipino aged 21-70 with a working cell phone can get a Digido loan even if you are unemployed.
  • You only need to provide proof of regular income.

How to Claim SSS Unemployment Benefits in 2021

We all live, plan and nourish a dream of fruitful retirement based on our regular monthly income, primarily through employment. Employees worldwide watch management activities for cost optimization, productivity enhancement, and automation with a perceived threat to their job security.

Even though an individual employee can’t do anything about macroeconomic conditions such as inflation, the policymakers could mitigate them efficiently and protect employment until recently.

But, the pandemic COVID-19 brought unprecedented and unforeseen issues to the entire world.

The governments had to declare lockdowns or restrictions to save lives. The low patronage of customers forced many businesses to down their shutters, leaving their staff unemployed for an uncertain period.

It created a complicated situation for the governments. Even with depleted revenue, they have to continuously shell out massive money from the public coffer to equip the health system to combat the deadly virus. On the other hand, the livelihood of people is severely affected.

All over the world, governments are trying to overcome this troublesome period by providing various support and financial assistance to their affected citizens.

The Social Security Act of 2018, which provides unemployment insurance and involuntary separation benefits to an SSS member, is such an initiative from the Philippines government.

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About SSS Unemployment Benefits Program

Private sector employees, house helpers or kasambahays, self-employed or Overseas Filipino Workers are at the risk of a job loss at any time. To provide them with some financial safety, the government established the Social Security System (SSS) in 1957.

The law insists on mandatory registration of employees, employers, and self-employed persons with the SSS. Each member has to make a monthly contribution based on his or her monthly income.

The employer is duty-bound to bear a portion of his employee’s contribution to SSS, as long as he is employed.

The SSS uses the fund thus accumulated to protect the members and their dependents against the financial burdens of disability, sickness, retirement, maternity leave, death, funeral, and unemployment through the provision of various benefits and loans.

SSS Unemployment Insurance or Involuntary Separation Benefit is the cash benefit granted to SSS members who are involuntarily separated from employment from March 05, 2019.

The unemployment benefit is equivalent to 50% of the monthly salary for a maximum of 2 months and is a one-time payment.

For instance, if your monthly salary is PHP 18,000, your total unemployment benefit will be:

18,000×50%x2 = PHP 18,000.

To avail of the benefit, the member has to claim SSS Unemployment Benefits in 2021 within one year from the date of separation.

This benefit is not a loan. Hence, an existing loan with SSS won’t affect your eligibility for getting SSS benefits for the unemployed.

Limitations of unemployment benefits in 2021:

1. A member can avail of unemployment benefits only once every 3 years.
2. Suppose you are eligible for 2 or more contingency benefits within the same period. In that case, only the highest benefit will get approval.
3. In the event of overlapping benefits, legal disputes, fraud, misrepresentation, false claims, SSS will recover the money from the future benefits of the member.
4. The maximum amount a member can get as the unemployment benefit is PHP 20,000.

The SSS has already set aside a corpus fund of PHP 660 million for SSS unemployment insurance alone.

The SSS is confident about its financial reserves even in “a worst case scenario” where all its premium paying members of approximately 60,000 submit SSS unemployment benefits applications for the maximum benefit.

How to Apply for SSS Unemployment Benefit Online

During the pre-pandemic era, Filipinos used to perform all their SSS-related activities through nearby SSS branches.

Now, neither the branches nor the transportation facilities ensure continuous availability. Besides, flocking in the SSS office will increase the risks of infection as well.

So the SSS branch functionalities are switched to the online mode. Below are the steps to submit SSS unemployment benefits online application.

1. Log in to your My.SSS Account as a “Member”.

2. Then choose the tab “E-services” and then click “Apply for Unemployment Benefit”.

3. Complete the online filing form with the relevant details.

4. Confirm details such as mailing address, contact number, email address, bank details, employment category, date of separation, employer. Make sure that the details are complete and accurate.

5. Review the certifications and click “Submit.”

6. After that, wait for the email notification about the unemployment benefit claim application.

7. Reply to the mail with the attached scanned images of necessary documents such as the certification issued by DOLE or POLO.

8. You may also need to furnish other details such as “Notice of Termination” from your employer or “Affidavit of Termination from Employment.”
9. After that, SSS will acknowledge you about the reception of your application through an email.

10. You can check the status of your application by contacting the agency by sending an email to member_relations@sss.gov.ph by mentioning your SSS number and reference number of your application.

11. Usually, the processing time for unemployment benefits is 5 to 10 working days.

12. Once the application is approved, SSS will transfer the money through the specified channels such as your UMID-ATM card, digital wallets, or remittance transfer companies.

SSS Unemployment Benefits Requirements

Below are the SSS financial assistance requirements to avail of the unemployment benefit.

1. The age limit for the member at the time of separation is as follows:

Employment Type Age ( Years)
Regular members 60
Underground or surface mine worker 50
Racehorse jockey 55

2. There should be a paid contribution of at least 36 months. Of which, 12 months of the contributions should be in the 18 months immediately before the month of involuntary separation.

3. The member has not received an unemployment benefit within the last 3 years

4. The reason for the involuntary separation should be due to authorized causes such as redundancy, installation of labor-saving devices, downsizing, closure of the company, calamity, recession, etc.

Ideally, SSS accepts the certificate of separation from employment only if the involuntary separation is due to no fault of employees.

Still, suppose an employee quits the job due to violations of the Labor Code of the Philippines, such as insult, mental torture, inhuman treatment, etc. In that case, he or she is eligible for the benefit.

FAQ

  • How do I claim SSS unemployment after approval?
    To submit their benefit application online, members should log in to My. SSS account and click “apply for unemployment benefit claim” under the E-Services tab.
  • Who can avail SSS unemployment benefits?
    To be eligible for the claim, an SSS member should not be over 60 years old at the time of the termination; not over 50, if an underground or surface mineworker; and not over 55, if a racehorse jockey.
  • How long is the processing of SSS unemployment benefit?
    You'll receive the cash benefit after 5-10 working days from the date of application.

Documentary Requirements

1. The applicant should furnish an original copy and photocopy of at least one of the valid primary IDs.

2. If no primary ID is available, the applicant should submit an original and photocopy of any 2 ID cards / documents, both with signatures and at least one with a photo.

3. DOLE (Department of Labor and Employment) certification establishing the nature and date of the involuntary separation.

4. Notice of termination or affidavit of termination of employment.

5. Details of UMID card enrolled as an ATM, UBP (Union Bank of the Philippines) Quick Card, or SSS-enrolled Bank Accounts.

 Who Are NOT Qualified to Get SSS Unemployment Benefits in 2021

Since the benefit is reserved only for involuntarily separated employees, contract workers, voluntary members, or those who resign from the employment are not qualified.

The employee can’t apply for the unemployment benefit if the termination was on the grounds of disciplinary action or performance issues such as serious misconduct, willful disobedience, inefficiency, fraud, etc.

If an employee challenges his termination in court, the benefit approval will be subject to the outcome of pending litigation.

SSS Loan for Unemployed Member

The unemployment benefit doesn’t hinder a member from securing a loan from SSS even if he is unemployed.

Since voluntary members are ineligible for unemployment benefits, they can also take a loan from their contributions in the SSS account.

The SSS requirements for an unemployed loan can vary. SSS salary loan gives a loan up to one month of salary for a member with 36 posted contributions. 6 of the contributions should fall within the last 12 months.

Maternity benefit provides daily cash allowance for its female members who cannot work due to childbirth, miscarriage, or emergency termination of pregnancy.

Any female member who has paid at least 3 contributions within the 12 months immediately before the semester of her childbirth, miscarriage, or termination of pregnancy is eligible for the benefit.

In the case of employed members, the employer has to notify SSS about the pregnancy.

To avail SSS maternity benefits for the unemployed, the member has to fulfill the SSS maternity requirements for the unemployed. To do so they need to submit the maternity notification form, proof of pregnancy, and other claim documents on the SSS portal for Claim SSS Unemployment Benefits.

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Unemployed Loan at Digido

A significant portion of Filipinos now work as freelancers, call centre executives, and self-employed professionals.

Since they are voluntary members, they can’t get SSS unemployment benefits. Getting loans from banks or lenders is almost impossible due to their strict adherence to a certificate of employment for loan approval.

All operations are performed online - you don't have to leave your house
In only 4 minutes you can receive up to 5000 pesos in your bank account
We don't require guarantors representation, documentation, or guarantee deposits.
The service is fully automated

Digido offers a wide range of financial products, including 0% loans, with minimal formalities and maximum certainty.

Any Filipino within the age group of 21-70 years with a working mobile connection can get loans from us, even if you are unemployed. As long as you can provide proof of regular income, we don’t bother about your employment status and can issue you loans.

Unlike our off-the-shelf loans, each Digido loan for the unemployed can vary in its amount and loan conditions based on various eligibility factors.

Digido offers a fully automated loan processing system. That assures you the 24/7 availability of an online interface for loan applications with minimal inconvenience or human interference. The loan evaluation and approval take only a few minutes, and the money reaches your account within a couple of hours.

Digido is a state-licensed and legit online lender; we adhere to the laws without any compromise. Our transparency, work ethics, customer-centric approaches, and innovative solutions make Digido the fastest-growing financial institution in the Philippines.

Conclusion

A crisis opens up new opportunities and brings drastic changes in perceptions. However, the change won’t be instantaneous. Banks or traditional lenders will continue to follow the conventional notions of banking or lending for some more time.

Digido, with its business acumen and technological adaptations, enables Filipinos to dream big and achieve their dreams even during the testing times of pandemics. And now you know how to claim SSS unemployment benefits.

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Digido Reviews

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Written by: Sean Martin D. Plantado

Author pages:
Sean Martin Plantado is the head of Customer Care Dept. and Online Sales Dept. of Digido Finance Corp. creating articles, blogs, and other learning mediums that helps Filipinos struggling on their financial literacy. Sean also loves Cycling, Photography, Cinematography, Online gaming, Fine Arts, and dreams of becoming a Doctor of Veterinary Medicine.

Reviewed by: Rafael Hular

Author pages:
Rafael “Raffy” L. Hular is, the Finance and Accounting Manager. of Digido Finance Corp., monitoring and controlling the flow of cash that comes in and out of the company to meet the company’s business needs, preparing the financial reports and analysis of income and expenses, and monitoring tax compliance.  Raffy loves reading Japanese comics called manga and watching Japanese animated cartoon series. He dreams of establishing his own Accounting and Auditing Firm and teaching in a University.