More than 60,000 Filipinos in South Korea will soon enjoy the benefits of social security coverage and protection both from their host and mother countries following the signing of the bilateral agreement between the two countries on Nov. 25, 2019, state-run pension fund Social Security System said Friday.
Five agreements were signed during the sidelines of President Rodrigo Duterte’s visit to South Korea for the ASEAN-Republic of Korea Commemorative Summit, including the Social Security Agreement that will address social security coverage of Filipinos in South Korea and Koreans in the Philippines.
“After almost 15 years, we are very glad that we have finally secured an agreement with South Korea that will ensure the protection of social security rights for the benefit and welfare of the respective nationals of both countries,” SSS president and chief executive Aurora Ignacio said in a statement.
“The long wait is over, and we are now confident that we are nearing our goal to protect all Filipino workers inside and outside the Philippines from the hazards of the sudden loss of income due to unexpected contingencies,” Ignacio said.
Signed by Foreign Affairs Secretary Teodoro Locsin and Korean Foreign Minister Kang Kyung-wha, the renegotiated SSA addressed the concerns of overseas Filipino workers in Korea where their social security coverage will remain under Korea’s National Pension Service.
The renegotiated agreement also provides an option for OFWs to refund their NPS contributions at the end of their overseas employment contract under the same conditions given to Korean nationals.
“We listened to the calls of our OFWs before, that’s why this is allowed even if it is believed that the other option of leaving behind their contributions under the National Pension Act of Korea for future benefit entitlement is more beneficial,” said Ignacio.
“We want our OFWs to understand that we are very much willing to listen to their concerns and if we could make ways to meet their demands, we’ll do it. In the end, it is really their welfare that we care much about,” she added.
OFWs who will opt for the lump sum refund are encouraged to become active SSS members and pay their contributions on a voluntary basis to ensure their eligibility for SSS pension benefits in the future.
Similar to SSAs that the Philippines has with other countries, the provisions of the SSA with Korea are in line with the state’s policy to afford full protection to labor, local and overseas.
They are also enshrined in the Universal Declaration of Human Rights that every member of society has the right to social security.