UNEMPLOYMENT INSURANCE

Unemployment insurance is an insurance against loss of wages during the time that an able-bodied worker is
involuntarily unemployed. The goal of such insurance is to provide a minimal livelihood to unemployed
workers until they are once again employed. Compulsory unemployment insurance makes such protection
legally obligatory for certain classes of workers under prescribed conditions. Voluntary unemployment
insurance is maintained by private organizations sanctioned, encouraged, or subsidized by the state.
Depending on the jurisdiction and the status of the person, those sums may be meager, covering only basic
needs (thus a form of basic welfare), or may compensate the lost pay somewhat proportionally to the previous
earned salary. They often are part of a larger social security scheme. Unemployment benefits are generally
given only to those registering as unemployed, and often on conditions ensuring that they seek work and do
not currently have a job.



Unemployment benefit for GSIS members

The unemployment benefit is paid when a permanent
government employee who has paid the required 12 months
integrated contributions under RA 8291 is involuntarily
separated from the service as a result of the abolition of his
office or position usually resulting from reorganization. The
benefit is in the form of monthly cash payments equivalent to
50% of the average monthly compensation (AMC). The duration
of the benefit depends on the length of service and ranges from
2 months to a maximum of 6 months.

The unemployment benefit shall be paid in accordance with
the following schedule:

1. If the contributions have been made for a period of 1
year but less than 3 years, the benefit duration is for 2
months.
2. If the contributions have been made for a period of 3 or
more years but less than 6 years, the benefit duration is
for 3 months.
3. If the contributions have been made for a period of 6
years or more but less than 9 years, the benefit
duration is for 4 months.
4. If the contributions have been made for a period of 9
years or more but less than 11 years, the benefit
duration is for 5 months.
5. If the contributions have been made for a period of 11
years or more but less than 15 years, the benefit
duration is for 6 months.





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Key points of the policy research done by ILS entitled: Exploring the Possibility of a Philippine Unemployment Insurance
Scheme
The Philippines does not have a program that will provide a worker with temporary income after an involuntary loss of
employment. Examining the existing unemployment insurance programs of other countries, the following are the key
features that can provide better understanding on the applicability of establishing unemployment insurance scheme in the
Philippines.

Insured persons: Qualifications must be met in order to avail the UI. Although there are variations in
the requirements, the basic criteria are: being unemployed, have paid the premiums, filed the
application accordingly and have met the eligibility requirements.
Unemployment benefits: There are two forms of benefits. The first one is financed by contributions
from the employers and employees, which is called unemployment insurance. The other form is that
of universally provided to the unemployed workers, which is called employment assistance.
Qualified claimants of benefits will receive periodical payments of a portion of his/her salary prior to
becoming unemployed for certain duration depending on how long the worker has been paying the
premium for unemployment insurance.
Contribution: In many countries, the scheme is funded through the contributions of the employer,
employee, and sometimes government. The government also takes charge in the administration and
implementation of insurance benefits, including the management of funds.
Linking Unemployment Insurance to Labor Policies: It must be of prime consideration that the unemployment insurance of
the country does not only provide for monetary need of the unemployed, it is imperative that the UI be able to aid
workers in seeking reemployment



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