The Supreme Court has ruled that land-based overseas Filipino workers no longer need to pay Social Security System (SSS) contributions before obtaining their Overseas Employment Certificates (OECs).
Without this certificate, Filipino workers who want to work abroad cannot leave the Philippines.
In a decision released on Nov. 5, 2024, the court struck down Rule 14, Section 7(iii) of the Implementing Rules and Regulations (IRR) of the Social Security Act of 2018.
This rule required workers in countries without labor agreements with the Philippines to pay both employer and employee shares, totaling P2,400 per month, before getting an OEC. Meanwhile, sea-based OFWs pay only up to P800 monthly.
Petitioners, including Migrante International, argued that the rule was unfair and violated workers’ constitutional rights to travel and due process.
They also pointed out that many foreign employers do not pay their share of SSS contributions, forcing workers to cover the full amount.
The Supreme Court ruled that making SSS payments a condition for OEC issuance was “unduly oppressive, unreasonable, and repugnant to the Constitution.” The court stated that the rule focused more on enforcing collections than protecting workers.
With this ruling, the SSS, POEA, and DOLE are permanently barred from requiring advance SSS payments for OECs. However, other provisions of the Social Security Act challenged in the case were upheld.
Migrante International called the decision a “partial victory.”
Deputy Secretary General Josie Pingkihan said, “This successful decision from the Supreme Court is a result of the collective action of our fellow migrants against state extortion.”
