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entered into a Memorandum of Agreement (1988 MOA), stating that one of the
conditions of the Standard Employment Contract (SEC) of seafarers would be that sea
based OFWs shall be covered by the SSS.[3]
In 1995, the Court promulgated Sta. Rita v. Court of Appeals (Sta. Rita),[4] which
stated that R.A. No. 1161 does not exempt seafarers from coverage of the SSS law. It
was underscored therein that the SEC entered into by the seafarer and the manning
agencies, which imposes SSS coverage, is valid and binding.
In 1997, Congress enacted R.A. No. 8282 or the 1997 SSS Law. However, the said law
still did not consider the mandatory coverage of OFWs under the SSS. In 2006, the ILO
adopted the Maritime Labour Convention (2006 MLC) to establish the minimum working
living standards for all seafarers. It provides for the labor rights of a seafarer, including
social protection, and the implementation and enforcement of these rights.[5]
In 2010, the Philippines Overseas Employment Administration (POEA) amended the
SEC, declaring that the seafarer's SSS coverage is a duty of the principal, the employer,
the master, or the company.[6]
On February 7, 2019, Congress enacted R.A. No. 11199, which mandated compulsory
SSS coverage for OFWs. The purpose of the law is to provide OFWs with SSS benefits,
especially upon retirement. It also increased the rates of SSS contributions to provide
relief for the dwindling resources of the SSS. Sec. 9-B of R.A. No. 11199 covers the
compulsory coverage of OFWs, to wit:
SEC. 9-B. Compulsory Coverage of Overseas Filipino Workers (OFWs). —
(a) Coverage in the SSS shall be compulsory upon all sea-based and landbased OFWs as defined under Republic Act No. 8042, otherwise known as
the Migrant Workers and Overseas Filipinos Act of 1995, as amended by
Republic Act No. 10022: Provided, That they are not over sixty (60) years of
age.
All benefit provisions under this Act shall apply to all covered OFWs. The
benefits include, among others, retirement, death, disability, funeral,
sickness and maternity.
(b) Manning agencies are agents of their principals and are
considered as employers of sea-based OFWs.
For purposes of the implementation of this Act, any law to the
contrary notwithstanding manning agencies are jointly and severally
or solidarily liable with their principals with respect to the civil
liabilities incurred for any violation of this Act.
The persons having direct control, management or direction of the
manning agencies shall be held criminally liable for any act or
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