MANILA: Under the bilateral agreement signed by the Philippines and Denmark, Filipinos working in the European country will be entitled to social-security benefits under the same conditions applicable to Danish nationals.
The agreement, which was ratified in 2015 and already in effect, will benefit Filipino and Danish nationals with current or previous work in the Philippines and Denmark who have been covered by social-security legislation in either or both countries, Business Mirror quoted Social Security System (SSS) International Affairs Department Manager Roberto B. Bautista as saying.
“The agreement is in line with the International Convention 118 on equality of treatment. We want to ensure that the covered Filipino workers will receive social-security benefits during times of contingencies, regardless of whether they choose to stay here or in Denmark,” Bautista reportedly said.
Among the key features of the agreement is the “totalization” provision, which allows the consolidation of contribution periods, excluding those that overlap, under Philippine and Danish legislation for the benefit of a worker who fails to meet the minimum qualifying period for pension entitlement in either or both the countries, the report said.
Citing as an example, under the Philippine Social Security Law, a member must have at least 120 monthly contributions to qualify for retirement pension. Without the agreement, the member with only 100 monthly contributions will only receive a lump-sum amount, consisting of total contributions paid, plus interest.
“But with the totalization provision of the agreement, if the member has at least 20 monthly contributions or creditable periods under Danish legislation, the member will qualify for a prorated SSS retirement, disability, death or survivorship pension. However, a minimum of 12 monthly contributions is required to apply the totalization provision,” Bautista reportedly said.
As for the country of Denmark, for a Filipino worker to be entitled to the country’s social pension under the same conditions as Danish nationals, a total period of work of at least 12 months is required under the country’s legislation, said the news portal.
“The amount of benefit paid by each country will be proportional to the worker’s creditable periods or actual contributions. However, there will be no need to apply the totalization provision if the worker meets the minimum qualifying period or number of contributions needed for pension eligibility under social-security legislation in either or both countries,” he was quoted as saying.
Under the bilateral agreement, the workers’ paid contributions and period of work in both countries will reportedly determine the amount and type of their retirement, disability, death or survivorship benefit as provided by applicable social-security legislations of the two countries.
The Philippine agencies involved in the agreement’s implementation include the SSS and the Government Service Insurance System (GSIS), while their Danish counterparts are the Pensionsstyrelsen and the Denmark Pension Agency, the report said.
Covered workers can file their claims in any of the designated Philippine and Danish agencies. Filipino workers residing in Denmark no longer need to go to the Philippines to file their SSS or GSIS claim, since they can do so in any of the Danish liaison agencies, it highlighted.
The bilateral agreement also reportedly provides for the export of benefits, meaning eligible workers and beneficiaries will receive their corresponding social-security claims, regardless of whether they decide to reside in either the Philippines or Denmark.
“We encourage SSS members to continue paying their SSS contributions, even while employed in Denmark. That way, they will be able to meet the required contributions for both countries, which may allow them to receive social-security benefits from two pension systems,” he added.
The Philippines also has existing bilateral agreements with Austria, United Kingdom and Northern Ireland, Spain, France, Canada, Quebec, Switzerland and Belgium. Agreements with Germany, Sweden, Luxembourg and Japan have been concluded and signed and are currently undergoing the ratification process, as mandated under the constitution, reported Business Mirror.
“As the Philippines is among the top labor-sending countries, the government continues to pursue other agreements with countries that host overseas Filipinos workers to guarantee that they will be accorded much-needed social-security protection,” Bautista reportedly said.
