Social Protection Gaps in the Philippines Informal Sector: A Study on SSS and Philhealth

Date

6-2025

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Ma. Nova R. Nguyen

Committee Member

Jhoana V. Alcalde, Gideon P. Carnaje, Maria Angeles O. Catelo

Request Access

For non-UP researchers, requests for access to this material may be directed to the CEM Library at cemlibrary.uplb@up.edu.ph or to the UKDR administrator at uscs-mainlib.uplb@up.edu.ph

Abstract

The informal sector plays a vital role in the national economy by generating employment, income, and output, accounting for an estimated 38% to 63% of the country’s labor force. However, despite its economic and social contributions, informal sector workers remain largely excluded from formal social protection systems, particularly the Social Security System (SSS) and the Philippine Health Insurance Corporation (PhilHealth). This study examined the challenges that limit social protection coverage for informal sector workers and proposes policy interventions grounded in economic theory and literature review. To achieve this, a comprehensive review of relevant literature concerning the informal sector and its social protection gaps was conducted. A combination of academic studies, policy reports, and institutional publications was collected, organized, and synthesized. The study found that limited awareness, administrative burdens, and unaffordable contribution rates impede SSS enrollment. At the same time, PhilHealth’s Individually Paying Program (IPP) suffers from inadequate healthcare infrastructure and low perceived service quality. Additionally, data collection gaps and weak enforcement mechanisms aggravate exclusion. The study recommends improved data systems, universal and subsidized protection schemes, decentralized registration processes, and the institutionalization of the Magna Carta for Workers in the Informal Economy (MACWIE). These efforts, along with strong government and community engagement, are essential to ensuring inclusive, equitable, and sustainable social protection for all workers.

Language

English

LC Subject

Informal sector (Economics)—Philippines, Social security

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2025 E2 E26

Notes

Viewing access to electronic resources is restricted solely to UP Gmail accounts. Any access and share requests from external organizations and personal email accounts will be promptly declined.

Document Type

Thesis

Link to Full Text

Share

COinS