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Republic of the Philippines pare 10 JUL 208 Ds
HOUSE OF REPRESENTATIVES = TIME Bi ny
Quezon City, Metro Manila e, ty g
tee, e

‘TWENTIETH CONGRESS
First Regular Session

House Bit No. 1738

Introduced by Representative Ryan S. Recto

EXPLANATORY NOTE

This legislative measure seeks to expand the unemployment insurance or
involuntary separation benefits provided to members of the Social Security System
(SSS) by amending Republic Act No. 11199, otherwise known as the “Social Security
Act of 2018".

In recognition of the profound financial and psychological challenges
confronting individuals who lost their jobs unexpectedly, the proposed bill shall expand
such benefits by substantially increasing the monthly cash payments to one hundred
percent (100%), instead of the existing fifty percent (50%). The measure also extends
such provision from two (2) months to three (3) months as a way to provide for a more
realistic level of financial assistance.

While our country’s labor market continues to demonstrate resilience, the
overall unemployment rate as of May 2025 stands at 3.9%, according to the Philippine
Statistics Authority (PSA). This accounts for 2.03 million Filipinos without a job. This
reality underscores the great vulnerability of many citizens and their households to
various economic shocks. Job loss immediately causes a sharp decline in household
income and leads to reduced consumer spending. This contraction can affect various
sectors, thus slowing down economic activity. Not only that, but prolonged
unemployment increases the risk of poverty as it depletes savings.

The Social Security Act of 2018 introduced unemployment benefits as a safety
net for contributors who find themselves without a source of income. However, this
may prove to be insufficient to sustain individuals and their families should prolonged
periods of job searching occur. As seeking new gainful employment may take longer
than initially anticipated, the proposed changes could empower job seekers as they
no longer have to be burdened with the immediate and overwhelming financial strain
that often goes hand-in-hand with job loss.



This proposed measure is a clear reflection of the State's commitment to a
more robust social security system that truly serves the welfare of its people and
protects them in times when they are most vulnerable. Not only are we strengthening
the current mechanisms that we have today, but we are also fostering a more
trustworthy social security system that Filipinos can rely on.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

ran S. Recto
Representative
6" District, Batangas


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

House BILL No._1738

Introduced by Representative Ryan S. Recto

AN ACT
ENHANCING THE UNEMPLOYMENT INSURANCE OR INVOLUNTARY SEPARATION
BENEFITS, AMENDING FOR THE PURPOSE SECTION 14-B OF REPUBLIC ACT NO.
11199, OTHERWISE KNOWN AS THE “SOCIAL SECURITY ACT OF 2018”

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

Section 1. Short Title. - This Act shall be known as the “Enhanced
Unemployment Insurance Act”.

SEC. 2. Section 14-B of Republic Act No. 11199 is hereby amended to read as
follows:

"SEC. 14-B. Unemployment Insurance or Involuntary Separation
Benefits. - A member who is not over sixty (60) years of age who has paid
at least thirty-six (36) months contributions twelve (12) months of which
should be in the eighteen-month period immediately preceding the
involuntary unemployment or separation shall be paid benefits in the form
of monthly cash payments equivalent to [fifty—percent(50%)] ONE
HUNDRED PERCENT (100%) of the average monthly salary credit for a
maximum of [two-(2)] THREE (3) months: Provided, That an employee who
is involuntarily unemployed can only claim unemployment benefits once
every three (3) years: Provided, further, That in case of concurrence of two
or more compensable contingencies, only the highest benefit shall be paid,
subject to the rules and regulations that the Commission may prescribe.”

SEC. 3. Implementing Rules and Regulations (IRR). - The Social Security
Commission shall promulgate the necessary rules and regulations to implement this,
Act not later than ninety (90) days after its effectivity


SEC. 4. Repealing Clause. ~ All laws, acts, decrees, executive orders, issuances,
and rules and regulations or parts thereof which are contrary to and inconsistent with
this Act are hereby repealed, amended or modified accordingly.

SEC. 5. Effectivity. - This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in at least two (2) newspapers of
general circulation.

Approved,