Direct Request (CEACR) - adopted 2001, published 90th ILC session (2002)

Equality of Treatment (Social Security) Convention, 1962 (No. 118) - Philippines (Ratification: 1994)

The Committee notes the detailed information contained in the Government’s report, in particular as to the questions raised by the Committee in its direct request. In this respect, the Committee would like to draw the Government’s attention to the following points.

1. Article 3 of the Convention (in conjunction with Article 10). (a) With respect to the clause contained in section 15 of the Social Security Act of 1997 (Act No. 8282) which stipulates that "nationals of a foreign country which does not extend benefits to a Filipino beneficiary resident in the Philippines shall not be entitled to receive any benefit under this Act", the Government refers to the following clause contained in this section which states that "notwithstanding the foregoing, where the best interest of the Social Security System (SSS) will be served, the Commission may direct payments without regard to nationality or country of residence". The Committee takes note of this information. It also notes that, according to the Government, the first clause has never been applied in practice.

The Committee, however, points out that Article 3, paragraph 3, of the Convention authorizes such a "retorsion clause" only under much stricter conditions than the abovementioned section of the Social Security Act. Under the Convention, a Member need not apply the principle of equality in respect of the benefits of a specified branch of social security to the nationals of another Member which has legislation relating to that branch but does not grant equality of treatment in respect thereof to the nationals of the first Member.

Article 3 of the Convention does not authorize the refusal of payment for the mere reason that a country has not been recognized by the Philippines; and does not authorize the refusal of payment of a benefit to foreign nationals residing in the Philippines simply because it does not provide its benefits to Filipino beneficiaries residing there. The Committee therefore requests the Government to indicate in its next report what measures have been taken or are envisaged to bring this clause fully into conformity with Article 3, paragraph 3, of the Convention.

(b) With respect to its request regarding section 2(b) of the National Health Insurance Act of 1995 (Act No. 7875) which extends compulsory coverage to Filipino citizens only, the Committee took note with interest of the proposal made by the Philippine Health Insurance Corporation (PHIC) to "allow foreigners to enrol as members in the National Health Insurance subject to the appropriate guidelines that will be issued on this matter".

The Committee understands that this proposal aims to offer foreigners the possibility of voluntary affiliation. Such a solution, however, would mean that they still are not put on an equal footing with Filipino citizens who are compulsorily covered. Article 3  of the Convention requires equality of treatment both as regards coverage and as regards the right to benefits. The Committee therefore hopes that the Government will be in a position to ensure that foreign nationals from countries which have also ratified the Convention, as well as refugees and stateless persons, are not treated differently than Filipinos as regards both access to insurance and entitlements to benefits. It would furthermore like to request the Government to supply a copy of any guidelines concerning the access of foreign nationals to health insurance in the Philippines.

2. Article 5 (branches (d), (e) and (g)). With regard to the provision of benefit of pensions to beneficiaries resident outside the territory of the Philippines, the Government had referred in its report to the MAGIMPOK Programme of the SSS. The Committee would like the Government to provide detailed information on this programme and to indicate in particular whether beneficiaries abroad are entitled to receive the pensions of the SSS without any additional financial costs involved.

3. Articles 7 and 8. The Committee has noted that a new social security agreement had been concluded with the Netherlands and that the SSS "aggressively pursues the conclusion of social security bilateral or multilateral agreement with ILO member countries" irrespective of whether they have ratified the Convention or not. It would like the Government to supply a copy of the agreement with the Netherlands in its next report and to keep it informed of any further developments in this respect.

4. Article 11. The Committee notes the information provided on the application of this provision of the Convention.