Every company or business hits critical moments—whether securing a loan, expanding into a new market, finalizing a major deal, or even rebranding—where one document can make all the difference: a Certificate of Good Standing.
In the Philippines, this certificate, which comes available under different names, can be obtained from key government regulatory bodies and agencies to confirm your business compliance with all regulations. Thus, you can also think of it as a quiet “green light,” signaling that your business is ready to make the big moves.
While we have previously covered the importance of securing the certificate, this provides a practical guide on how to obtain one from a social security agency—the SSS Clearance Certificate—and explores its various purposes. Read on and tell us in the comments how we can assist you with the requirements and process.
What is an SSS Clearance Certificate?
An SSS Clearance Certificate, also known as an SSS Compliance Certificate or Certificate of SSS Coverage and Compliance, is an official document issued by the Social Security System (SSS) to confirm that an employer-member is in good standing with the agency. It certifies that the company or business is:
- Duly registered as an employer with the SSS
- Up-to-date with the remittance of SSS employer and employee contributions, employee loan repayments, and other financial obligations
- Compliant with other SSS rules and regulations
An SSS Clearance Certificate confirms that an employer-member is in good standing with the Social Security System (SSS).
Legal Basis for the Issuance of SSS Clearance Certificate
The Social Security Act of 2018 (R.A. 11199), which repealed R.A. 1161, as amended by R.A. 8282, rationalized and expanded the powers and duties of the Social Security Commission to ensure the long-term viability of the Social Security System.
Its landmark provisions include the grant of unemployment or involuntary separation benefits, the mandatory coverage of Overseas Filipino Workers (OFWs), the establishment of a provident fund exclusive to SSS members, the condonation of penalties on delinquent contributions, and the legislated adjustments in membership premium and monthly salary credits.
Section 24 (g) of the Act provides that “Notwithstanding any law to the contrary, local government units shall, prior to issuing any annual business license or permit, require submission of a certificate of SSS coverage and compliance with the provisions of this Act: Provided, That the certification or clearance shall be issued by the SSS within five (5) working days from receipt of the request.”
Purposes of SSS Clearance Certificate
An SSS Clearance Certificate serves several important purposes, not just for your company or business but also for your employees:
Proof of Good Standing and Compliance
Primarily, an SSS Clearance Certificate serves as an official proof that your company, as an employer, complies with the SSS law and other regulations and does not have any unfulfilled obligations to the SSS and your employees as far as social security is concerned.
Business Permit Renewal Requirement
While the law mandates an SSS Clearance Certificate for business permit renewal, the requirement may vary across local government units (LGUs) and their ordinances. Some LGUs have repealed this requirement, citing joint memorandum circulars that standardize clearance and business permit processing across agencies involved.
Employee Welfare Protection
An SSS Clearance Certificate ensures that your employees’ SSS contributions are up-to-date, providing them with access to various benefits (e.g., sickness, maternity, retirement, etc.) under the program and safeguarding their overall welfare.
Facilitating Legal Requirements
In certain legal matters, such as business ownership transfers, mergers, or audits, the SSS Clearance Certificate serves as evidence that your business is in good legal standing with respect to social security compliance.
Annual Performance Evaluation and Other Purposes
Other government agencies, government-owned corporations, and private entities, including subsidiaries and branches, require an SSS Clearance Certificate for annual compliance reports, performance evaluations, or eligibility for incentives and bonuses.
SSS Clearance Certificate Requirements
You may confirm the documentary requirements for an SSS Clearance Certificate with the SSS branch that services your account, but generally, these include the following;
- Request Letter
- Copy of Previous SSS Compliance Certificate (if available)
- R3 Contribution Collection List (for the past three months)
- Payment Reference Numbers (PRNs) and Official Receipts (for the past three months)
- Payroll Register (i.e., a list of all employees along with their SSS contributions for the past three months)
Comprehensive, Efficient, and Compliant
Let us handle your compliance needs with government agencies (e.g., SEC, BIR, etc.) so you can focus on growing your business without the worry of penalties or interruptions.
How to Get an SSS Clearance Certificate (Step-By-Step Guide)
As of now, SSS Clearance Certificate applications cannot be processed online, so you will need to visit your SSS servicing branch. Below is a step-by-step guide:
1. Visit Your SSS Servicing Branch.
You need to visit the SSS branch that services your account and approach your SSS Account Officer to request the clearance certificate. Your SSS Account Officer will guide you through the documentation and process.
2. Submit the Documentary Requirements.
You will need to submit a request letter addressed to the SSS Branch Head and through your SSS Account Officer, together with all other required supporting documents. Indicate in your letter the details of your company’s SSS employer registration (i.e., company name, employer ID number, and registered address) and the purpose of the certificate request.
3. Wait for the Processing of Your Request.
After submitting the necessary documents, your request will go through processing and record verification. Depending on the workload and efficiency of your SSS servicing branch, this may take a few days. Thus, it is best to ask about the estimated timeline for the release of the clearance certificate.
4. Claim Your SSS Clearance Certificate.
On the date of the scheduled release of the clearance certificate, you need to visit the SSS branch again to claim it. Your SSS Account Officer may also notify you via email or SMS once it is available. Generally, the clearance certificate is valid for 45-90 days from the issuance date.
… and you might just need our assistance.
At FilePino, we ensure our team stays updated with the latest rules and regulations governing business compliance across various government agencies. We also leverage our extensive experience and expertise in navigating the intricacies of transactions.
Need help with obtaining an SSS Clearance Certificate? Set up a consultation with FilePino today! Call us at (02) 8478-5826 (landline) and 0917 892 2337 (mobile) or send an email to info@filepino.com.
