Republic Act No.

8282 May 01, 1997

AN ACT FURTHER STRENTHEN!N THE S"C!A# SECUR!T$ S$STEM THERE%$
AMEN&!N F"R TH!S 'UR'"SE, RE'U%#!C ACT N". 11(1, AS AMEN&E&,
"THER)!SE *N")N AS THE S"C!A# SECUR!T$ #A)
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled::
Sectio+ 1. Republic Act No. 1161, as amended, otherwise known as the "Social
Security Law", is hereby furtheramended to read as ollows:
"S!"#$%N 1. Short Title. & #his Act shall be known as the "AN
ACT FURTHER STRENGTHENING THE SOCIAL SECURITY SYSTEM
THEREBY AMENDING FOR THIS PURPOSE, REPUBLIC ACT NO. 1161,
AS AMENDED, OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW."
"S!". '. Declaration of Policy. & $t is the policy o the Republic o the
(hilippines to establish, de)elop, promote and perect a sound and )iable ta*&
e*empt social security ser)ice suitable to the needs o the people throu+hout
the (hilippines which shall promote social ,ustice and pro)ide meanin+ul
protection to members and their beneiciaries a+ainst the ha-ards o disability,
sickness, maternity, old a+e, death, and other contin+encies resultin+ in loss o
income or inancial burden. #owards this end, the State shall endea)or to
e*tend social security protection to workers and their beneiciaries.
"S!". .. Social Security System. & /a0 #o carry out the purposes o this Act, the
Social Security System, hereinater reerred to as 1SSS1, a corporate body, with
principal place o business in 2etro 2anila, (hilippines is hereby created. #he
SSS shall be directed and controlled by a Social Security "ommission,
hereinater reerred to as 1"ommission1, composed o the Secretary o Labor
and !mployment or his duly desi+nated undersecretary, the SSS president
and se)en /30 appointi)e members, three /.0 o whom shall represent the
workers1 +roup, at least one o whom shall be a woman4 three /.0, the
employers1 +roup, at least one /10 o whom shall be a woman4 and one /10, the
+eneral public whose representati)e shall ha)e ade5uate knowled+e and
e*perience re+ardin+ social security, to be appointed by the (resident o the
(hilippines. #he si* /60 members representin+ workers and employers shall be
chosen rom amon+ the nominees o workers1 and employers1 or+ani-ations,
respecti)ely. #he "hairman o the "ommission shall be desi+nated by the
(resident o the (hilippines rom amon+ its members. #he term o the
appointi)e members shall be three /.0 years: Provided, #hat the terms o the
irst si* /60 appointi)e members shall be one /10, two /'0 and three /.0 years or
e)ery two members, respecti)ely: Provided, further, #hat they shall continue to
hold oice until their successors shall ha)e been appointed and duly 5ualiied.
All )acancies, prior to the e*piration o the term, shall be illed or the une*pired
term only. #he appointi)e members o the "ommission shall recei)e at least
two thousand i)e hundred pesos /(',677.770 per diem or each meetin+
actually attended by them but not to e*ceed #en thousand pesos /(17,777.770
a month:: Provided, #hat members o the "ommission shall also recei)e a per
diem o at least #wo thousand i)e hundred pesos /(',677.770 but not to
e*ceed 8iteen thousand pesos /(16,777.770 a month: Provided , further, #hat
said members o the "ommission shall also recei)e reasonable transportation
and representation allowances as may be i*ed by the "ommission, but not to
e*ceed #en thousand pesos /(17,777.770 a month.
"/b0 #he +eneral conduct o the operations and mana+ement unctions o the
SSS shall be )ested in the SSS (resident who shall ser)e as the chie
e*ecuti)e oicer immediately responsible or carryin+ out the pro+ram o the
SSS and the policies o the "ommission. #he SSS (resident shall be a person
who has had pre)ious e*perience in the technical and administrati)e ields
related to the purposes o this Act. 9e shall be appointed by the (resident o
the (hilippines and shall recei)e salary to be i*ed by the "ommission with the
appro)al o the (resident o the (hilippines, payable rom the unds o the
SSS.
"/c0 #he "ommission, upon the recommendation o the SSS (resident, shall
appoint an actuary, and such other personnel as may be deemed necessary,
i* their reasonable compensation, allowances and other beneits, prescribe
their duties and establish such methods and procedures as may be necessary
to insure the eicient, honest and economical administration o the pro)isions
and purposes o this Act: Provided,however, #hat the personnel o the SSS
below the rank o :ice&(resident shall be appointed by the SSS
(resident: Provided, further, #hat the personnel appointed by the SSS
(resident, e*cept those below the rank o assistant mana+er, shall be sub,ect
to the conirmation by the "ommission: Provided, further, #hat the personnel o
the SSS shall be selected only rom ci)il ser)ice eli+ibles and be sub,ect to ci)il
ser)ice rules and re+ulations: Provided, finally, #hat the SSS shall be e*empt
rom the pro)isions o Republic Act No. 636; and Republic Act No. 3<.7.
"S!". <. Powers and Duties of the Commission and SSS. & /a0 #he
"ommission. & 8or the attainment o its main ob,ecti)es as set orth in Section
' hereo, the "ommission shall ha)e the ollowin+ powers and duties:
"/10 #o adopt, amend and rescind, sub,ect to the appro)al o the
(resident o the (hilippines, such rules and re+ulations as may be
necessary to carry out the pro)isions and purposes o this Act4
"/'0 #o establish a pro)ident und or the members which will consist
o )oluntary contributions o employers and=or employees, sel&
employed and )oluntary members and their earnin+s, or the payment
o beneits to such members or their beneiciaries, sub,ect to such
rules and re+ulations as it may promul+ate and appro)ed by the
(resident o the (hilippines4
"/.0 #o maintain a pro)ident und which consists o contributions
made by both the SSS and its oicials and employees and their
earnin+s, or the payment o beneits to such oicials and employees
or their heirs under such terms and conditions as it may prescribe4
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"/<0 #o appro)e restructurin+ proposals or the payment o due but
unremitted contributions and unpaid loan amorti-ations under such
terms and conditions as it may prescribe4
"/60 #o authori-e cooperati)es re+istered with the cooperati)e
de)elopment authority or associations re+istered with the appropriate
+o)ernment a+ency to act as collectin+ a+ents o the SSS with
respect to their members: Provided, #hat the SSS shall accredit the
cooperati)e or association: Provided,further, #hat the persons
authori-ed to collect are bonded4
"/60 #o compromise or release, in whole or in part, any interest,
penalty or any ci)il liability to SSS in connection with the in)estments
authori-ed under Section '6 hereo, under such terms and conditions
as it may prescribe and appro)ed by the (resident o the (hilippines4
and
"/30 #o appro)e, conirm, pass upon or re)iew any and all actions o
the SSS in the proper and necessary e*ercise o its powers and
duties hereinater enumerated.
"/b0 #he Social Security System. & Sub,ect to the pro)ision o Section our /<0,
para+raph se)en /30 hereo, the SSS shall ha)e the ollowin+ powers and
duties:
"/10 #o submit annually not later than April .7, a public report to the
(resident o the (hilippines and to the "on+ress o the (hilippines
co)erin+ its acti)ities in the administration and enorcement o this Act
durin+ the precedin+ year includin+ inormation and recommendations
on broad policies or the de)elopment and perection o the pro+ram
o the SSS4
"/'0 #o re5uire the actuary to submit a )aluation report on the SSS
beneit pro+ram e)ery our /<0 years, or more re5uently as may be
necessary, to undertake the necessary actuarial studies and
calculations concernin+ increases in beneits takin+ into account
inlation and the inancial stability o the SSS, and to pro)ide or
easible increases in beneits e)ery our /<0 years, includin+ the
addition o new ones, under such rules and re+ulations as the
"ommission may adopt, sub,ect to the appro)al o the (resident o
the (hilippines: Provided, #hat the actuarial soundness o the reser)e
und shall be +uaranteed: Provided, further, #hat such increases in
beneits shall not re5uire any increase in the rate o contribution4
"/.0 #o establish oices o the SSS to co)er as many pro)inces, cities
and con+ressional districts, whene)er and where)er it may be
e*pedient, necessary and easible, and to inspect or cause to be
inspected periodically such oices4
"/<0 #o enter into a+reements or contracts or such ser)ice and aid, as
may be needed or the proper, eicient and stable administration o
the SSS4
"/60 #o adopt, rom time to time, a bud+et o e*penditures includin+
salaries o personnel, a+ainst all unds a)ailable to the SSS under this
Act4
"/60 #o set up its accountin+ system and pro)ide the necessary
personnel thereor4
"/30 #o re5uire reports, compilations and analyses o statistical and
economic data and to make in)esti+ation as may be needed or the
proper administration and de)elopment o the SSS4
"/;0 #o ac5uire and dispose o property, real or personal, which may
be necessary or e*pedient or the attainment o the purposes o this
Act4
"/>0 #o ac5uire, recei)e, or hold, by way o purchase, e*propriation or
otherwise, public or pri)ate property or the purpose o undertakin+
housin+ pro,ects preerably or the beneit o low&income members
and or the maintenance o hospitals and institutions or the sick, a+ed
and disabled, as well as schools or the members and their immediate
amilies4
"/170 #o sue and be sued in court4 and
"/110 #o perorm such other corporate acts as it may deem
appropriate or the proper enorcement o this Act.
"S!". 6. Settlement of Disputes. & /a0 Any dispute arisin+ under this Act with
respect to co)era+e, beneits, contributions and penalties thereon or any other
matter related thereto, shall be co+ni-able by the "ommission, and any case
iled with respect thereto shall be heard by the "ommission, or any o its
members, or by hearin+ oicers duly authori-ed by the "ommission and
decided within twenty /'70 days ater the submission o the e)idence. #he
ilin+, determination and settlement o disputes shall be +o)erned by the rules
and re+ulations promul+ated by the "ommission.
"/b0 Appeal to "ourts. & Any decision o the "ommission, in the absence o an
appeal thererom as hereinProvided, shall become inal and e*ecutory iteen
/160 days ater the date o notiication, and ,udicial re)iew thereo shall be
permitted only ater any party claimin+ to be a++rie)ed thereby has e*hausted
his remedies beore the "ommission. #he "ommission shall be deemed to be
a party to any ,udicial action in)ol)in+ any such decision, and may be
represented by an attorney employed by the "ommission, or when re5uested
by the "ommission, by the Solicitor ?eneral or any public prosecutors.
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"/c0 "ourt Re)iew. & #he decision o the "ommission upon any disputed matter
may be re)iewed both upon the law and the acts by the "ourt o Appeals. 8or
the purpose o such re)iew, the procedure concernin+ appeals rom the
Re+ional #rial "ourt shall be ollowed as ar as practicable and consistent with
the purposes o this Act. Appeal rom a decision o the "ommission must be
taken within iteen /160 days rom notiication o such decision. $ the decision
o the "ommission in)ol)es only 5uestions o law, the same shall be re)iewed
by the Supreme "ourt. No appeal bond shall be re5uired. #he case shall be
heard in a summary manner, and shall take precedence o)er all cases, e*cept
that in the Supreme "ourt, criminal cases wherein lie imprisonment or death
has been imposed by the trial court shall take precedence. No appeal shall act
as a supersedeas or a stay o the order o the "ommission unless the
"ommission itsel, or the "ourt o Appeals or the Supreme "ourt, shall so
order.
"/d0 !*ecution o @ecisions. & #he "ommission may, motu proprio or on motion
o any interested party, issue a writ o e*ecution to enorce any o its decisions
or awards, ater it has become inal and e*ecutory, in the same manner as the
decision o the Re+ional #rial "ourt by directin+ the city or pro)incial sheri or
the sheri whom it may appoint to enorce such inal decision or e*ecute such
writ4 and any person who shall ail or reuse to comply with such decision,
award or writ, ater bein+ re5uired to do so shall, upon application by the
"ommission pursuant to Rule 31 o the Rules o "ourt, be punished or
contempt.
"S!". 6. uditor and Counsel. & /a0 #he "hairman o the "ommission on Audit
shall be the e*&oicio Auditor o the SSS. 9e or his representati)e shall check
and audit all the accounts, unds and properties o the SSS in the same
manner and as re5uently as the accounts, unds and properties o the
+o)ernment are checked and audited under e*istin+ laws, and he shall ha)e,
as ar as practicable, the same powers and duties as he has with respect to
the checkin+ and auditin+ o public accounts, unds and properties in +eneral.
"/b0 #he Secretary o Austice shall be the e*&oicio counsel o the SSS. 9e or
his representati)e shall act as le+al ad)iser and counsel thereo.
"S!". 3. !aths" #itnesses" and Production of Records. & Bhen authori-ed by
the "ommission, an oicial or employee thereo shall ha)e the power to
administer oath and airmation, take depositions, certiy to oicial acts, and
issue subpoena and subpoena duces tecum to compel the attendance o
witnesses and the production o books, papers, correspondence and other
records deemed necessary as e)idence in connection with any 5uestion
arisin+ under this Act. Any case o contumacy shall be dealt with by the
"ommission in accordance with law.
"S!". ;. Terms Defined. & 8or purposes o this Act, the ollowin+ terms shall,
unless the conte*t indicates otherwise, ha)e the ollowin+ meanin+s:
"/a0 SSS & #he Social Security System created by this Act.
"/b0 "ommission & #he Social Security "ommission as herein created.
"/c0 !mployer& Any person, natural or ,uridical, domestic or orei+n, who carries
on in the (hilippines any trade, business, industry, undertakin+, or acti)ity o
any kind and uses the ser)ices o another person who is under his orders as
re+ards the employment, e*cept the ?o)ernment and any o its political
subdi)isions, branches or instrumentalities, includin+ corporations owned or
controlled by the ?o)ernment: Provided, #hat a sel&employed person shall be
both employee and employer at the same time.
"/d0 !mployee & Any person who perorms ser)ices or an employer in which
either or both mental or physical eorts are used and who recei)es
compensation or such ser)ices, where there is an employer&employee
relationship: Provided, #hat a sel&employed person shall be both employee
and employer at the same time.
"/e0 @ependents & #he dependents shall be the ollowin+:
"/10 #he le+al spouse entitled by law to recei)e support rom the
member4
"/'0 #he le+itimate, le+itimated or le+ally adopted, and ille+itimate
child who is unmarried, not +ainully employed, and has not reached
twenty&one /'10 years o a+e, or i o)er twenty&one /'10 years o a+e,
he is con+enitally or while still a minor has been permanently
incapacitated and incapable o sel&support, physically or mentally4
and
"/.0 #he parent who is recei)in+ re+ular support rom the member.
"/0 "ompensation & All actual remuneration or employment, includin+ the
mandated cost&o&li)in+ allowance, as well as the cash )alue o any
remuneration paid in any medium other than cash e*cept that part o the
remuneration in e*cess o the ma*imum salary credit as Provided under
Section !i+hteen o this Act.
"/+0 2onthly salary credit & #he compensation base or contributions and
beneits as indicated in the schedule in Section !i+hteen o this Act.
"/h0 2onthly & #he period rom one end o the last payroll period o the
precedin+ month to the end o the last payroll period o the current month i
compensation is on hourly, daily or weekly basis4 i on any other basis,
1monthly1 shall mean a period o one /10 month.
"/i0 "ontribution & #he amount paid to the SSS by and on behal o the
members in accordance with Section !i+hteen o this Act.
3
"/,0 !mployment & Any ser)ice perormed by an employee or his employer
e*cept:
"/10 !mployment purely casual and not or the purpose o occupation
or business o the employer4
"/'0 Ser)ice perormed on or in connection with an alien )essel by an
employee i he is employed when such )essel is outside the
(hilippines4
"/.0 Ser)ice perormed in the employ o the (hilippine ?o)ernment or
instrumentality or a+ency thereo4
"/<0 Ser)ice perormed in the employ o a orei+n +o)ernment or
international or+ani-ation, or their wholly&owned
instrumentality: Provided, however, #hat this e*emption
notwithstandin+, any orei+n +o)ernment, international or+ani-ation or
their wholly&owned instrumentality employin+ workers in the
(hilippines or employin+ 8ilipinos outside o the (hilippines, may
enter into an a+reement with the (hilippine ?o)ernment or the
inclusion o such employees in the SSS e*cept those already co)ered
by their respecti)e ci)il ser)ice retirement systems: Provided, further,
#hat the terms o such a+reement shall conorm with the pro)isions o
this Act on co)era+e and amount o payment o contributions and
beneits: Provided, finally, #hat the pro)isions o this Act shall be
supplementary to any such a+reement4 and
"/60 Such other ser)ices perormed by temporary and other
employees which may be e*cluded by re+ulation o the "ommission.
!mployees o bona ide independent contractors shall not be deemed
employees o the employer en+a+in+ the ser)ice o said contractors.
"/k0 Ceneiciaries & #he dependent spouse until he or she remarries, the
dependent le+itimate, le+itimated or le+ally adopted, and ille+itimate children,
who shall be the primary beneiciaries o the member: Provided, #hat the
dependent ille+itimate children shall be entitled to ity percent /67D0 o the
share o the le+itimate, le+itimated or le+ally adopted
children: Provided, further, #hat in the absence o the dependent le+itimate,
le+itimated children o the member, his=her dependent ille+itimate children
shall be entitled to one hundred percent /177D0 o the beneits. $n their
absence, the dependent parents who shall be the secondary beneiciaries o
the member. $n the absence o all the ore+oin+, any other person desi+nated
by the member as his=her secondary beneiciary.
"/l0 "ontin+ency & #he retirement, death, disability, in,ury or sickness and
maternity o the member.
"/m0 A)era+e monthly salary credit & #he result obtained by di)idin+ the sum o
the last si*ty /670 monthly salary credits immediately precedin+ the semester o
contin+ency by si*ty /670, or the result obtained by di)idin+ the sum o all the
monthly salary credits paid prior to the semester o contin+ency by the number
o monthly contributions paid in the same period, whiche)er is
+reater: Provided, #hat the in,ury or sickness which caused the disability shall
be deemed as the permanent disability or the purpose o computin+ the
a)era+e monthly salary credit.
"/n0 A)era+e daily salary credit& #he result obtained by di)idin+ the sum o the
si* /60 hi+hest monthly salary credits in the twel)e&month period immediately
precedin+ the semester o contin+ency by one hundred ei+hty /1;70.
"/o0 Semester & A period o two /'0 consecuti)e 5uarters endin+ in the 5uarter
o contin+ency.
"/p0 Euarter & A period o three /.0 consecuti)e calendar months endin+ on the
last day o 2arch, Aune, September and @ecember.
"/50 "redited years o ser)ice & 8or a member co)ered prior to Aanuary
nineteen hundred and ei+hty i)e /1>;60 minus the calendar year o co)era+e
plus the number o calendar years in which si* /60 or more contributions ha)e
been paid rom Aanuary nineteen hundred and ei+hty i)e /1>;60 up to the
calendar year containin+ the semester prior to the contin+ency. 8or a member
co)ered in or ater Aanuary nineteen hundred and ei+hty i)e /1>;60, the
number o calendar years in which si* /60 or more contributions ha)e been
paid rom the year o co)era+e up to the calendar year containin+ the semester
prior to the contin+ency: Provided, #hat the "ommission may pro)ide or a
dierent number o contributions in a calendar year or it to be considered as a
credited year o ser)ice.
"/r0 2ember & #he worker who is co)ered under Section Nine and Section
Nine&A o this Act.
"/s0 Sel&employed & Any person whose income is not deri)ed rom
employment, as deined under this Act, as well as those workers enumerated
in Section Nine&A hereo.
"/t0 Net earnin+s & Net income beore income ta*es plus non&cash char+es
such as depreciation and depletion appearin+ in the re+ular inancial statement
o the issuin+ or assumin+ institution.
"/u0 8i*ed char+es & Recurrin+ e*pense such as amorti-ation o debt discount
or rentals or leased properties, includin+ interest on unded and ununded
debt.
"S!". >. Coverage. & /a0 "o)era+e in the SSS shall be compulsory upon all
employees not o)er si*ty /670 years o a+e and their employers: Provided, #hat
in the case o domestic helpers, their monthly income shall not be less than
%ne thousand pesos /(1,777.770 a month: Provided, further, #hat any beneit
already earned by the employees under pri)ate beneit plans e*istin+ at the
4
time o the appro)al o this Act shall not be discontinued, reduced or otherwise
impaired: Provided, further, #hat pri)ate plans which are e*istin+ and in orce
at the time o compulsory co)era+e shall be inte+rated with the plan o the SSS
in such a way where the employer1s contribution to his pri)ate plan is more
than that re5uired o him in this Act, he shall pay to the SSS only the
contribution re5uired o him and he shall continue his contribution to such
pri)ate plan less his contribution to the SSS so that the employer1s total
contribution to his beneit plan and to the SSS shall be the same as his
contribution to his pri)ate beneit plan beore the compulsory
co)era+e: Provided,further, #hat any chan+es, ad,ustments, modiications,
eliminations or impro)ements in the beneits to be a)ailable under the
remainin+ pri)ate plan, which may be necessary to adopt by reason o the
reduced contributions thereto as a result o the inte+ration, shall be sub,ect to
a+reements between the employers and employees
concerned: Provided, further, #hat the pri)ate beneit plan which the employer
shall continue or his employees shall remain under the employer1s
mana+ement and control unless there is an e*istin+ a+reement to the
contrary: Provided, finally, #hat nothin+ in this Act shall be construed as a
limitation on the ri+ht o employers and employees to a+ree on and adopt
beneits which are o)er and abo)e those Provided under this Act.
"/b0 Spouses who de)ote ull time to mana+in+ the household and amily
aairs, unless they are also en+a+ed in other )ocation or employment which is
sub,ect to mandatory co)era+e, may be co)ered by the SSS on a )oluntary
basis.
"/c0 8ilipinos recruited by orei+n&based employers or employment abroad
may be co)ered by the SSS on a )oluntary basis.
"S!". >&A. Compulsory Coverage of the Self$%mployed. & "o)era+e in the
SSS shall also be compulsory upon such sel&employed persons as may be
determined by the "ommission under such rules and re+ulations as it may
prescribe, includin+ but not limited to the ollowin+:
"1. All sel&employed proessionals4
"'. (artners and sin+le proprietors o businesses4
".. Actors and actresses, directors, scriptwriters and news
correspondents who do not all within the deinition o the term
"employee" in Section ; /d0 o this Act4
"<. (roessional athletes, coaches, trainers and ,ockeys4 and
"6. $ndi)idual armers and ishermen.
"Fnless otherwise speciied herein, all pro)isions o this Act applicable to
co)ered employees shall also be applicable to the co)ered sel&employed
persons.
"S!". 17. %ffective Date of Coverage. & "ompulsory co)era+e o the employer
shall take eect on the irst day o his operation and that o the employee on
the day o his employment: Provided, #hat the compulsory co)era+e o the
sel&employed person shall take eect upon his re+istration with the SSS.
"S!". 11. %ffect of Separation from %mployment. & Bhen an employee under
compulsory co)era+e is separated rom employment, his employer1s
contribution on his account and his obli+ation to pay contributions arisin+ rom
that employment shall cease at the end o the month o separation, but said
employee shall be credited with all contributions paid on his behal and entitled
to beneits accordin+ to the pro)isions o this Act. 9e may, howe)er, continue
to pay the total contributions to maintain his ri+ht to ull beneit.
"S!". 11&A. %ffect of &nterruption of Business or Professional &ncome. & $ the
sel&employed reali-es no income in any +i)en month, he shall not be re5uired
to pay contributions or that month. 9e may, howe)er, be allowed to continue
payin+ contributions under the same rules and re+ulations applicable to a
separated employee member: Provided, #hat no retroacti)e payment o
contributions shall be allowed other than as prescribed under Section #wenty&
two&A hereo.
"S!". 1'. 'onthly Pension. & /a0 #he monthly pension shall be the hi+hest o
the ollowin+ amounts:
"/10 #he sum o the ollowin+:
"/i0 #hree hundred pesos /(.77.774 plus
"/ii0 #wenty percent /'7D0 o the a)era+e monthly salary
credit4 plus
"/iii0 #wo percent /'D0 o the a)era+e monthly salary credit
or each credited year o ser)ice in e*cess o ten /170 years4
or
"/'0 8orth percent /<7D0 o the a)era+e monthly salary credit4 or
"/.0 %ne thousand pesos /(1,777.770: Provided, #hat the monthly
pension shall in no case be paid or an a++re+ate amount o less than
si*ty /670 months.
"/b0 Notwithstandin+ the precedin+ para+raph, the minimum pension shall be
%ne thousand two hundred pesos /(1,'77.770 or members with at least ten
/170 credited years o ser)ice and #wo thousand our hundred pesos
/(',<77.770 or those with twenty /'70 credited years o ser)ice.
"S!". 1'&A. Dependents( Pension. & Bhere monthly pension is payable on
account o death, permanent total disability or retirement, dependents1 pension
5
e5ui)alent to ten percent /17D0 o the monthly pension or #wo hundred ity
pesos /('67.770, whiche)er is hi+her, shall also be paid or each dependent
child concei)ed on or beore the date o the contin+ency but not e*ceedin+ i)e
/60, be+innin+ with the youn+est and without substitution: Provided, #hat where
there are le+itimate or ille+itimate children, the ormer shall be preerred.
S!". 1'&C. Retirement Benefits. & /a0 A member who has paid at least one
hundred twenty /1'70 monthly contributions prior to the semester o retirement
and who: /10 has reached the a+e o si*ty /670 years and is already separated
rom employment or has ceased to be sel&employed4 or /'0 has reached the
a+e o si*ty&i)e /660 years, shall be entitled or as lon+ as he li)es to the
monthly pension: Provided, #hat he shall ha)e the option to recei)e his irst
ei+hteen /1;0 monthly pensions in lump sum discounted at a preerential rate
o interest to be determined by the SSS.
"/b0 A co)ered member who is si*ty /670 years old at retirement and who does
not 5ualiy or pension beneits under para+raph /a0 abo)e, shall be entitled to
a lump sum beneit e5ual to the total contributions paid by him and on his
behal: Provided, #hat he is separated rom employment and is not continuin+
payment o contributions to the SSS on his own.
"/c0 #he monthly pension shall be suspended upon the reemployment or
resumption o sel&employment o a retired member who is less than si*ty&i)e
/660 years old. 9e shall a+ain be sub,ect to Section !i+hteen and his employer
to Section Nineteen o this Act.
"/d0 Fpon the death o the retired member, his primary beneiciaries as o the
date o his retirement shall be entitled to recei)e the monthly
pension: Provided, #hat i he has no primary beneiciaries and he dies within
si*ty /670 months rom the start o his monthly pension, his secondary
beneiciaries shall be entitled to a lump sum beneit e5ui)alent to the total
monthly pensions correspondin+ to the balance o the i)e&year +uaranteed
period, e*cludin+ the dependents1 pension.
"/e0 #he monthly pension o a member who retires ater reachin+ a+e si*ty /670
shall be the hi+her o either: /10 the monthly pension computed at the earliest
time he could ha)e retired had he been separated rom employment or ceased
to be sel&employed plus all ad,ustments thereto4 or /'0 the monthly pension
computed at the time when he actually retires.
"S!". 1.. Death Benefits. & Fpon the death o a member who has paid at least
thirty&si* /.60 monthly contributions prior to the semester o death, his primary
beneiciaries shall be entitled to the monthly pension: Provided, #hat i he has
no primary beneiciaries, his secondary beneiciaries shall be entitled to a lump
sum beneit e5ui)alent to thirty&si* /.60 times the monthly pension. $ he has
not paid the re5uired thirty&si* /.60 monthly contributions, his primary or
secondary beneiciaries shall be entitled to a lump sum beneit e5ui)alent to
the monthly pension times the number o monthly contributions paid to the
SSS or twel)e /1'0 times the monthly pension, whiche)er is hi+her.
"S!". 1.&A. Permanent Disability Benefits. & /a0 Fpon the permanent total
disability o a member who has paid at least thirty&si* /.60 monthly
contributions prior to the semester o disability, he shall be entitled to the
monthly pension: Provided, #hat i he has not paid the re5uired thirty&si* /.60
monthly contributions, he shall be entitled to a lump sum beneit e5ui)alent to
the monthly pension times the number o monthly contributions paid to the
SSS or twel)e /1'0 times the monthly pension, whiche)er is hi+her. A member
who /10 has recei)ed a lump sum beneit4 and /'0 is reemployed or has
resumed sel&employment not earlier than one /10 year rom the date o his
disability shall a+ain be sub,ect to compulsory co)era+e and shall be
considered a new member.
"/b0 #he monthly pension and dependents1 pension shall be suspended upon
the reemployment or resumption o sel&employment or the reco)ery o the
disabled member rom his permanent total disability or his ailure to present
himsel or e*amination at least once a year upon notice by the SSS.
"/c0 Fpon the death o the permanent total disability pensioner, his primary
beneiciaries as o the date o disability shall be entitled to recei)e the monthly
pension: Provided, #hat i he has no primary beneiciaries and he dies within
si*ty /670 months rom the start o his monthly pension, his secondary
beneiciaries shall be entitled to a lump sum beneit e5ui)alent to the total
monthly pensions correspondin+ to the balance o the i)e&year +uaranteed
period e*cludin+ the dependents1 pension.
"/d0 #he ollowin+ disabilities shall be deemed permanent total:
"1. "omplete loss o si+ht o both eyes4
"'. Loss o two limbs at or abo)e the ankle or wrists4
".. (ermanent complete paralysis o two limbs4
"<. Crain in,ury resultin+ to incurable imbecility or insanity4 and
"6. Such cases as determined and appro)ed by the SSS.
"/e0 $ the disability is permanent partial, and such disability occurs beore
thirty&si* /.60 monthly contributions ha)e been paid prior to the semester o
disability, the beneit shall be such percenta+e o the lump sum beneit
described in the precedin+ para+raph with due re+ard to the de+ree o
disability as the "ommission may determine.
"/0 $ the disability is permanent total and such disability occurs ater thirty&si*
/.60 monthly contributions ha)e been paid prior to the semester o disability,
the beneit shall be the monthly pension or permanent total disability payable
not lon+er than the period desi+nated in the ollowin+ schedule:
6
"omplete and permanent loss
o use o
Number o
2onths
%ne thumb 17
%ne inde* in+er ;
%ne middle in+er 6
%ne ri+ht in+er 6
%ne little in+er .
%ne bi+ toe 6
%ne hand .>
%ne arm 67
%ne oot .1
%ne le+ <6
%ne ear 17
Coth ears '7
9earin+ o one ear 17
9earin+ o both ears 67
Si+ht o one eye '6
"/+0 #he percenta+e de+ree o disability which is e5ui)alent to the ratio that the
desi+nated number o months o compensability bears to se)enty&i)e /360,
rounded to the ne*t hi+her inte+er, shall not be additi)e or distinct, separate
and unrelated permanent partial disabilities, but shall be additi)e or
deterioratin+ and related permanent partial disabilities to a ma*imum o one
hundred percent /177D0, in which case, the member shall be deemed as
permanently totally disabled.
"/h0 $n case o permanent partial disability, the monthly pension beneit shall be
+i)en in lump sum i it is payable or less than twel)e /1'0 months.
"/i0 8or the purpose o ad,udicatin+ retirement, death and permanent total
disability pension beneits, contributions shall be deemed paid or the months
durin+ which the member recei)ed partial disability pension: Provided, #hat
such contributions shall be based on his last contribution prior to his disability.
"/,0 Should a member who is on partial disability pension retire or die, his
disability pension shall cease upon his retirement or death.
"S!". 1.&C. )uneral Benefit. & A uneral +rant e5ui)alent to #wel)e thousand
pesos /(1',777.770 shall be paid, in cash or in kind, to help deray the cost o
uneral e*penses upon the death o a member, includin+ permanently totally
disabled member or retiree.
"S!". 1<. Sic*ness Benefit. & /a0 A member who has paid at least three /.0
monthly contributions in the twel)e&month period immediately precedin+ the
semester o sickness or in,ury and is conined thereor or more than three /.0
days in a hospital or elsewhere with the appro)al o the SSS, shall, or each
day o compensable coninement or a raction thereo, be paid by his
employer, or the SSS, i such person is unemployed or sel&employed, a daily
sickness beneit e5ui)alent to ninety percent />7D0 o his a)era+e daily salary
credit, sub,ect to the ollowin+ conditions:
"/10 $n no case shall the daily sickness beneit be paid lon+er than one hundred
twenty /1'70 days in one /10 calendar year, nor shall any unused portion o the
one hundred twenty /1'70 days o sickness beneit +ranted under this section
be carried orward and added to the total number o compensable days
allowable in the subse5uent year4
"/'0 #he daily sickness beneit shall not be paid or more than two hundred
orty /'<70 days on account o the same coninement4 and
"/.0 #he employee member shall notiy his employer o the act o his sickness
or in,ury within i)e /60 calendar days ater the start o his coninement unless
such coninement is in a hospital or the employee became sick or was in,ured
while workin+ or within the premises o the employer in which case, notiication
to the employer is necessary: Provided, #hat i the member is unemployed or
sel&employed, he shall directly notiy the SSS o his coninement within i)e /60
calendar days ater the start thereo unless such coninement is in a hospital in
which case notiication is also not necessary: Provided, further, #hat in cases
where notiication is necessary, the coninement shall be deemed to ha)e
started not earlier than the ith day immediately precedin+ the date o
notiication.
"/b0 #he compensable coninement shall be+in on the irst day o sickness, and
the payment o such allowances shall be promptly made by the employer e)ery
re+ular payday or on the iteenth and last day o each month, and similarly in
the case o direct payment by the SSS, or as lon+ as such allowances are due
and payable: Provided, #hat such allowance shall be+in only ater all sick
lea)es o absence with ull pay to the credit o the employee member shall
ha)e been e*hausted.
"/c0 %ne hundred percent /177D0 o the daily beneits Provided in the
precedin+ para+raph shall be reimbursed by the SSS to said employer upon
receipt o satisactory proo o such payment and le+ality thereo: Provided,
#hat the employer has notiied the SSS o the coninement within i)e /60
calendar days ater receipt o the notiication rom the employee
member: Provided, further, #hat i the notiication to the SSS is made by the
employer beyond i)e /60 calendar days ater receipt o the notiication rom the
employee member, said employer shall be reimbursed only or each day o
coninement startin+ rom the tenth calendar day immediately precedin+ the
date o notiication to the SSS: Provided, finally, #hat the SSS shall reimburse
the employer or pay the unemployed member only or coninement within the
one&year period immediately precedin+ the date the claim or beneit or
7
reimbursement is recei)ed by the SSS, e*cept coninement in a hospital in
which case the claim or beneit or reimbursement must be iled within one /10
year rom the last day o coninement.
"/d0 Bhere the employee member has +i)en the re5uired notiication but the
employer ails to notiy the SSS o the coninement or to ile the claim or
reimbursement within the period prescribed in this section resultin+ in the
reduction o the beneit or denial o the claim, such employer shall ha)e no
ri+ht to reco)er the correspondin+ daily allowance he ad)anced to the
employee member as re5uired in this section.
"/e0#he claim o reimbursement shall be ad,udicated by the SSS within a
period o two /'0 months rom receipt thereo: Provided, #hat should no
payment be recei)ed by the employer within one /10 month ater the period
prescribed herein or ad,udication, the reimbursement shall thereater earn
simple interest o one percent /1D0 per month until paid.
"/0 #he pro)isions re+ardin+ the notiication re5uired o the member and the
employer as well as the period within which the claim or beneit or
reimbursement may be iled shall apply to all claims iled with the SSS.
"S!". 1<&A. 'aternity +eave Benefit. & A emale member who has paid at least
three /.0 monthly contributions in the twel)e&month period immediately
precedin+ the semester o her childbirth or miscarria+e shall be paid a daily
maternity beneit e5ui)alent to one hundred percent /177D0 o her a)era+e
daily salary credit or si*ty /670 days or se)enty&ei+ht /3;0 days in case o
caesarian deli)ery, sub,ect to the ollowin+ conditions:
"/a0 #hat the employee shall ha)e notiied her employer o her pre+nancy and
the probable date o her childbirth, which notice shall be transmitted to the SSS
in accordance with the rules and re+ulations it may pro)ide4
"/b0 #he ull payment shall be ad)anced by the employer within thirty /.70 days
rom the ilin+ o the maternity lea)e application4
"/c0 #hat payment o daily maternity beneits shall be a bar to the reco)ery o
sickness beneits Provided by this Act or the same period or which daily
maternity beneits ha)e been recei)ed4
"/d0 #hat the maternity beneits Provided under this section shall be paid only
or the irst our /<0 deli)eries or miscarria+es4
"/e0 #hat the SSS shall immediately reimburse the employer o one hundred
percent /177D0 o the amount o maternity beneits ad)anced to the employee
by the employer upon receipt o satisactory proo o such payment and le+ality
thereo4 and
"/0 #hat i an employee member should +i)e birth or suer miscarria+e without
the re5uired contributions ha)in+ been remitted or her by her employer to the
SSS, or without the latter ha)in+ been pre)iously notiied by the employer o
the time o the pre+nancy, the employer shall pay to the SSS dama+es
e5ui)alent to the beneits which said employee member would otherwise ha)e
been entitled to.
"S!". 16. ,on$Transferability of Benefits. & #he SSS shall promptly pay the
beneits Provided in this Act to such persons as may be entitled thereto in
accordance with the pro)isions o this Act: Provided, #hat the SSS shall pay
the retirement beneits on the day o contin+ency to 5ualiied members who
ha)e submitted the necessary documents at least si* /60 months
beore: Provided, further, #hat the beneiciary who is a national o a orei+n
country which does not e*tend beneits to a 8ilipino beneiciary residin+ in the
(hilippines, or which is not reco+ni-ed by the (hilippines, shall not be entitled
to recei)e any beneit under this Act: Provided, further, #hat notwithstandin+
the ore+oin+, where the best interest o the SSS will be ser)ed, the
"ommission may direct payments without re+ard to nationality or country o
residence: Provided,further, #hat i the recipient is a minor or a person
incapable o administerin+ his own aairs, the "ommission shall appoint a
representati)e under such terms and conditions as it may deem
proper:Provided, further, #hat such appointment shall not be necessary in case
the recipient is under the custody o or li)in+ with the parents or spouse o the
member in which case the beneits shall be paid to such parents or spouse, as
representati)e payee o the recipient. Such beneits are not transerable and
no power o attorney or other document e*ecuted by those entitled thereto in
a)or o any a+ent, attorney or any other person or the collection thereo on
their behal shall be reco+ni-ed, e*cept when they are physically unable to
collect personally such beneits: Provided, further, #hat in case o death
beneits, i no beneiciary 5ualiies under this Act, said beneits shall be paid to
the le+al heirs in accordance with the law o succession.
"S!". 16. %-emption from Ta-" +egal Process and +ien. && All laws to the
contrary notwithstandin+, the SSS and all its assets and properties, all
contributions collected and all accruals thereto and income or in)estment
earnin+s thererom as well as all supplies, e5uipment, papers or documents
shall be e*empt rom any ta*, assessment, ee, char+e, or customs or import
duty4 and all beneit payments made by the SSS shall likewise be e*empt rom
all kinds o ta*es, ees or char+es, and shall not liable to attachments,
+arnishments, le)y or sei-ure by or under any le+al or e5uitable process
whatsoe)er, either beore or ater receipt by the person or persons entitled
thereto, e*cept to pay any debt o the member to the SSS. No ta* measure o
whate)er nature enacted shall apply to the SSS, unless it e*pressly re)okes
the declared policy o the State in Section ' hereo +rantin+ ta*&e*emption to
the SSS. Any ta* assessment imposed a+ainst the SSS shall be null and )oid.
/As amended by Sec. >, (.@. No. '<, S. 1>3'4 and Sec. 1<, (. @. No. 3.6, S.
1>360.
"S!". 13. )ee of gents" ttorneys" %tc. & No a+ent, attorney or other person
in char+e o the preparation, ilin+ or pursuin+ any claim or beneit under this
Act shall demand or char+e or his ser)ices any ee, and any stipulation to the
8
contrary shall be null and )oid. #he retention or deduction o any amount rom
any beneit +ranted under this Act or the payment o ees or such ser)ices is
prohibited: Provided, however, #hat any member o the (hilippine Car who
appears as counsel in any case heard by the "ommission shall be entitled to
attorneys1 ees not e*ceedin+ ten percent /17D0 o the beneits awarded by the
"ommission, which ees shall not be payable beore the actual payment o the
beneits, and any stipulation to the contrary shall be null and )oid.
"Any )iolation o the pro)isions o this Section shall be punished by a ine o
not less than 8i)e hundred pesos /(677.770 nor more than 8i)e thousand
pesos /(6,777.770, or imprisonment or not less than si* /60 months nor more
than one /10 year, or both, at the discretion o the court.
"S!". 1;. %mployee(s Contributions. & /a0 Ce+innin+ as o the last day o the
calendar month when an employee1s compulsory co)era+e takes eect and
e)ery month thereater durin+ his employment, the employer shall deduct and
withhold rom such employee1s monthly salary, wa+e, compensation or
earnin+s, the employee1s contribution in an amount correspondin+ to his
salary, wa+e, compensation or earnin+s durin+ the month in accordance with
the ollowin+ schedule:
SALARG
CRA"H!#
RAN?! %8
"%2(!NSA#$%N
2%N#9LG
SALARG
"R!@$#
!2(L%G!R
$ 1,777.77 & 1,'<>.>> 1777
$$ 1,'67.77 & 1,3<>.>> 1677
$$$ 1,367.77 & ','<>.>> '777
$: ','67.77 & ',3<>.>> '677
: ',367.77 & .,'<>.>> .777
:$ .,'67.77 & .,3<>.>> .677
:$$ .,367.77 & <,'<>.>> <777
:$$$ <,'67.77 & <,3<>.>> <677
$I <,367.77 & 6,'<>.>> 6777
I 6,'67.77 & 6,3<>.>> 6677
I$ 6,367.77 & 6,'<>.>> 6777
I$$ 6,'67.77 & 6,3<>.>> 6677
I$$$ 6,367.77 & 3,'<>.>> 3777
I$: 3,'67.77 & 3,3<>.>> 3677
I: 3,367.77 & ;.'<>.>> ;777
I:$ ;,'67.77 & ;,3<>.>> ;677
I:$$ ;,367.77 & %:!R >777
"#he ore+oin+ schedule o contribution shall also apply to sel&employed and
)oluntary members.
"#he ma*imum monthly salary credit shall be Nine thousand pesos
/(>,777.770 eecti)e Aanuary Nineteen hundred and ninety si*
/1>>604 Provided, #hat it shall be increased by %ne thousand pesos
/(1,777.770 e)ery year thereater until it shall ha)e reached #wel)e thousand
pesos /(1',777.770 by Nineteen hundred and ninety nine
/1>>>0: Provided, further, #hat the minimum and ma*imum monthly salary
credits as well as the rate o contributions may be i*ed rom time to time by
the "ommission throu+h rules and re+ulations takin+ into consideration
actuarial calculations and rate o beneits, sub,ect to the appro)al o the
(resident o the (hilippines.
"S!". 1>. %mployer(s Contributions. & /a0 Ce+innin+ as o the last day o the
month when an employee1s compulsory co)era+e takes eect and e)ery
month thereater durin+ his employment, his employer shall pay, with respect
to such co)ered employee, the employer1s contribution in accordance with the
schedule indicated in Section !i+hteen o this Act. Notwithstandin+ any
contract to the contrary, an employer shall not deduct, directly or indirectly,
rom the compensation o his employees co)ered by the SSS or otherwise
reco)er rom them the employer1s contributions with respect to such
employees.
"/b0 #he remittance o such contributions by the employer shall be supported
by a 5uarterly collection list to be submitted to the SSS at the end o each
calendar 5uarter indicatin+ the correct $@ number o the employer, the correct
names and the SSS numbers o the employees and the total contributions paid
or their account durin+ the 5uarter.
"S!". 1>&A. "ontributions o the Sel&!mployed 2ember. & #he contributions to
the SSS o the sel&employed member shall be determined in accordance with
Section !i+hteen o this Act: Provided, #hat the monthly earnin+s declared by
the sel&employed member at the time o his re+istration with the SSS shall be
considered as his monthly compensation and he shall pay both the employer
and the employee contributions: Provided, further, #hat the contributions o
sel&employed persons earnin+ %ne thousand pesos /(1,777.770 monthly or
below may be reduced by the "ommission.
"#he monthly earnin+s declared by the sel&employed member at the time o
his re+istration shall remain the basis o his monthly salary credit, unless he
makes another declaration o his monthly earnin+s, in which case such latest
declaration becomes the new basis o his monthly salary credit.
"S!". '7. .overnment Contribution. & As the contribution o the ?o)ernment to
the operation o the SSS, "on+ress shall annually appropriate out o any unds
in the National #reasury not otherwise appropriated, the necessary sum or
sums to meet the estimated e*penses o the SSS or each ensuin+ year. $n
addition to this contribution, "on+ress shall appropriate rom time to time such
sum or sums as may be needed to assure the maintenance o an ade5uate
workin+ balance o the unds o the SSS as disclosed by suitable periodic
actuarial studies to be made o the operations o the SSS.
9
"S!". '1. .overnment .uarantee. && #he beneits prescribed in this Act shall
not be diminished and to +uarantee said beneits the ?o)ernment o the
Republic o the (hilippines accepts +eneral responsibility or the sol)ency o
the SSS.
"S!". ''. Remittance of Contributions. && /a0 #he contributions imposed in the
precedin+ Section shall be remitted to the SSS within the irst ten /170 days o
each calendar month ollowin+ the month or which they are applicable or
within such time as the "ommission may prescribe. !)ery employer re5uired
to deduct and to remit such contributions shall be liable or their payment and i
any contribution is not paid to the SSS as herein prescribed, he shall pay
besides the contribution a penalty thereon o three percent /.D0 per month
rom the date the contribution alls due until paid. $ deemed e*pedient and
ad)isable by the "ommission, the collection and remittance o contributions
shall be made 5uarterly or semi&annually in ad)ance, the contributions payable
by the employees to be ad)anced by their respecti)e employers: Provided,
#hat upon separation o an employee, any contribution so paid in ad)ance but
not due shall be credited or reunded to his employer.
"/b0 #he contributions payable under this Act in cases where an employer
reuses or ne+lects to pay the same shall be collected by the SSS in the same
manner as ta*es are made collectible under the National $nternal Re)enue
"ode, as amended. 8ailure or reusal o the employer to pay or remit the
contributions herein prescribed shall not pre,udice the ri+ht o the co)ered
employee to the beneits o the co)era+e.
"#he ri+ht to institute the necessary action a+ainst the employer may be
commenced within twenty /'70 years rom the time the delin5uency is known or
the assessment is made by the SSS, or rom the time the beneit accrues, as
the case may be.
"/c0 Should any person, natural or ,uridical, deault in any payment o
contributions, the "ommission may also collect the same in either o the
ollowin+ ways:
"1. Cy an action in court, which shall hear and dispose o the case in
preerence to any other ci)il action4 or
"'. Cy issuin+ a warrant to the Sheri o any pro)ince or city
commandin+ him to le)y upon and sell any real and personal property
o the debtor. #he Sheri1s sale by )irtue o said warrant shall be
+o)erned by the same procedure prescribed or e*ecutions a+ainst
property upon ,ud+ments by a court o record.
"/d0 #he last complete record o monthly contributions paid by the employer or
the a)era+e o the monthly contributions paid durin+ the past three /.0 years as
o the date o ilin+ o the action or collection shall be presumed to be the
monthly contributions payable by and due rom the employer to the SSS or
each o the unpaid month, unless contradicted and o)ercome by other
e)idence: Provided, #hat the SSS shall not be barred rom determinin+ and
collectin+ the true and correct contributions due the SSS e)en ater ull
payment pursuant to this para+raph, nor shall the employer be relie)ed o his
liability under Section #wenty&ei+ht o this Act.
"S!". ''&A. Remittance of Contributions of Self$%mployed 'ember. & Sel&
employed members shall remit their monthly contributions 5uarterly on such
dates and schedules as the "ommission may speciy throu+h rules and
re+ulations: Provided, #hat no retroacti)e payment o contributions shall be
allowed, e*cept asProvided in this Section.
"S!". '.. 'ethod of Collection and Payment. & #he SSS shall re5uire a
complete and proper collection and payment o contributions and proper
identiication o the employer and the employee. (ayment may be made in
cash, checks, stamps, coupons, tickets, or other reasonable de)ices that the
"ommission may adopt.
"S!". '<. %mployment Records and Reports. & /a0 !ach employer shall
immediately report to the SSS the names, a+es, ci)il status, occupations,
salaries and dependents o all his employees who are sub,ect to compulsory
co)era+e: Provided, #hat i an employee sub,ect to compulsory co)era+e
should die or become sick or disabled or reach the a+e o si*ty /670 without the
SSS ha)in+ pre)iously recei)ed any report or written communication about him
rom his employer, the said employer shall pay to the SSS dama+es e5ui)alent
to the beneits to which said employee member would ha)e been entitled had
his name been reported on time by the employer to the SSS, e*cept that in
case o pension beneits, the employer shall be liable to pay the SSS dama+es
e5ui)alent to the accumulated pension due as o the date o settlement o the
claim or to the i)e /60 years1 pension, includin+ dependents1
pension: Provided, further, #hat i the contin+ency occurs within thirty /.70
days rom the date o employment, the employer shall be relie)ed o his liability
or dama+es: Provided, further, #hat any person or entity en+a+in+ the
ser)ices o an independent contractor shall be subsidiarily liable with such
contractor or any ci)il liability incurred by the latter under this
Act: Provided, finally, #hat the same person or entity en+a+in+ the ser)ices o
an independent contractor shall re5uire such contractor to post a surety bond
to +uarantee the payment o the worker1s beneits.
"/b0 Should the employer misrepresent the true date o employment o the
employee member or remit to the SSS contributions which are less than those
re5uired in this Act or ail to remit any contribution due prior to the date o
contin+ency, resultin+ in a reduction o beneits, the employer shall pay to the
SSS dama+es e5ui)alent to the dierence between the amount o beneit to
which the employee member or his beneiciary is entitled had the proper
contributions been remitted to the SSS and the amount payable on the basis o
contributions actually remitted: Provided, #hat i the employee member or his
beneiciary is entitled to pension beneits, dama+es shall be e5ui)alent to the
accumulated pension due as o the date o settlement o the claim or to the i)e
/60 years1 pension, whiche)er is hi+her, includin+ dependents1 pension.
10
"$n addition to the liability mentioned in the precedin+ para+raphs /a0 and /b0
hereo, the employer shall also be liable or the correspondin+ unremitted
contributions and penalties thereon.
"/c0 #he records and reports duly accomplished and submitted to the SSS by
the employer or the member, as the case may be, shall be kept conidential by
the SSS e*cept in compliance with a subpoena duces tecum issued by the
"ourt, shall not be di)ul+ed without the consent o the SSS (resident or any
oicial o the SSS duly authori-ed by him, shall be presumed correct as to the
data and other matters stated therein, unless the necessary corrections to
such records and reports ha)e been properly made by the parties concerned
beore the ri+ht to the beneit bein+ claimed accrues, and shall be made the
basis or the ad,udication o the claim. $ as a result o such ad,udication the
SSS in +ood aith pays a monthly pension to a beneiciary who is inerior in
ri+ht to another beneiciary or with whom another beneiciary is entitled to
share, such payments shall dischar+e the SSS rom liability unless and until
such other beneiciary notiies the SSS o his claim prior to the payments.
"/d0 !)ery employer shall keep true and accurate work records or such period
and containin+ such inormation as the "ommission may prescribe, in addition
to an "Annual Re+ister o New and Separated !mployees" which shall be
secured rom the SSS wherein the employer shall enter on the irst day o
employment or on the eecti)e date o separation, the names o the persons
employed or separated rom employment, their SSS numbers, and such other
data that the "ommission may re5uire and said annual re+ister shall be
submitted to the SSS in the month o Aanuary o each year. Such records shall
be open or inspection by the SSS or its authori-ed representati)es 5uarterly or
as oten as the SSS may re5uire.
"#he SSS may also re5uire each employer to submit, with respect to the
persons in his employ, reports needed or the eecti)e administration o this
Act.
"/e0 !ach employer shall re5uire, as a condition to employment, the
presentation o a re+istration number secured by the prospecti)e employee
rom the SSS in accordance with such procedure as the SSS may
adopt: Provided, #hat in case o employees who ha)e been assi+ned
re+istration numbers by )irtue o a pre)ious employment, such numbers
ori+inally assi+ned to them should be used or purposes o this
Section: Provided, further, #hat the issuance o such re+istration numbers by
the SSS shall not e*empt the employer rom complyin+ with the pro)isions o
para+raph /a0 o this Section.
"/0 Notwithstandin+ any law to the contrary, microilm, or non&erasable optical
disk and other similar archi)al media copies o ori+inal SSS records and
reports, duly certiied by the oicial custodian thereo, shall ha)e the same
e)identiary )alue as the ori+inals and be admissible as e)idence in all le+al
proceedin+s.
"/+0 Notwithstandin+ any law to the contrary, local +o)ernment units shall, prior
to issuin+ any annual business license or permit, re5uire submission o
certiicate o SSS co)era+e and compliance with the pro)isions o this
Act: Provided, #hat the certiication or clearance shall be issued by the SSS
within i)e /60 workin+ days rom receipt o the re5uest.
"S!". '<&A. Report and Registration of the Self$%mployed 'ember. & !ach
co)ered sel&employed person shall, within thirty /.70 days rom the irst day he
started the practice o his proession or business operations re+ister and report
to the SSS his name, a+e, ci)il status, and occupation, a)era+e monthly net
income and his dependents.
"S!". '6. Deposits and Disbursements. & All money paid to or collected by the
SSS e)ery year under this Act, and all accruals thereto shall be deposited,
administered and disbursed in the same manner and under the same
conditions and re5uirements as Provided by law or other public special
unds: Provided, #hat not more than twel)e percent /1'D0 o the total yearly
contributions plus three percent /.D0 o other re)enues shall be disbursed or
operational e*penses such as salaries and wa+es, supplies and materials,
depreciation and the maintenance o oices o the SSS: Provided, further, #hat
i the e*penses in any year are less than the ma*imum amount permissible,
the dierence shall not be a)ailed o as additional e*penses in the ollowin+
years.
"S!". '6. &nvestment of Reserve )unds. & All re)enues o the SSS that are not
needed to meet the current administrati)e and operational e*penses incidental
to the carryin+ out o this Act shall be accumulated in a und to be known as
the "Reser)e 8und." Such portions o the Reser)e 8und as are not needed to
meet the current beneit obli+ations thereo shall be known as the "$n)estment
Reser)e 8und" which the "ommission shall mana+e and in)est with the skill,
care, prudence and dili+ence necessary under the circumstances then
pre)ailin+ that a prudent man actin+ in like capacity and amiliar with such
matters would e*ercise in the conduct o an enterprise o a like character and
with similar aims. (ursuant thereto, and in line with the basic principles o
saety, +ood yield and li5uidity, the "ommission shall in)est the unds to earn
an annual income not less than the a)era+e rates o treasury bills or any other
acceptable market yield indicator in any or in all o the ollowin+:
"/a0 $n bonds, securities, promissory notes or other e)idence o indebtedness
o the ?o)ernment o the (hilippines, or in bonds, securities, promissory notes
or other e)idence o indebtedness to which the ull aith, credit and
unconditional +uarantee o the ?o)ernment o the (hilippines is pled+ed4
"/b0 $n bonds, securities, promissory notes or other e)idence o indebtedness
o the ?o)ernment o the (hilippines, or any a+encies or instrumentalities to
inance domestic inrastructure pro,ects such as roads, brid+es, ports,
telecommunications, and other similar pro,ects: Provided, #hat the instruments
issued by an a+ency or instrumentality o the +o)ernment shall be +uaranteed
by the ?o)ernment o the (hilippines or any +o)ernment inancial institution or
acceptable multilateral a+ency: Provided, further, #hat the SSS shall ha)e
11
priority o)er the re)enues o the pro,ects: Provided, finally, #hat such
in)estments shall not e*ceed thirty percent /.7D0 o the $n)estment Reser)e
8und4
"/c0 $n bonds, securities, promissory notes or other e)idence o indebtedness
o +o)ernment inancial institutions or +o)ernment corporations with
acceptable credit or +uarantee: Provided, #hat such in)estments shall not
e*ceed thirty percent /.7D0 o the $n)estment Reser)e 8und4
"/d0 $n bonds, securities, promissory notes or other e)idence o indebtedness
o any bank doin+ business in the (hilippines and in +ood standin+ with the
Can+ko Sentral n+ (ilipinas to inance loans to pri)ate corporations doin+
business in the (hilippines, includin+ schools, hospitals, small&and&medium
scale industries, cooperati)es and non&+o)ernmental or+ani-ations, in which
case the collaterals or securities shall be assi+ned to the SSS under such
terms and conditions as the "ommission may prescribe: Provided, #hat in the
case o bank deposits, they shall not e*ceed at any time the unimpaired capital
and surplus or total pri)ate deposits o the depository bank, whiche)er is
smaller: Provided, further, #hat said bank shall irst ha)e been desi+nated as a
depository or this purpose by the 2onetary Coard o the Can+ko Sentral n+
(ilipinas: Provided, finally, #hat such in)estments shall not e*ceed orty
percent /<7D0 o the $n)estment Reser)e 8und4
"/e0 $n bonds, securities, promissory notes or other e)idence o indebtedness
o shelter a+encies o the National ?o)ernment or inancial intermediaries to
inance housin+ loans o members4 and in lon+&term direct indi)idual or +roup
housin+ loans +i)in+ priority to the low&income +roups, up to a ma*imum o
ninety percent />7D0 o the appraised )alue o the properties to be mort+a+ed
by the borrowers4 and
"$n short and medium term loans to members such as salary, educational,
li)elihood, marital, calamity and emer+ency loans: Provided, #hat not more
than thirty i)e percent /.6D0 o the $n)estment Reser)e 8und at any time shall
be in)ested or housin+ purposes: Provided, further, #hat not more than ten
percent /17D0 o the $n)estment Reser)e 8und shall be in)ested in short and
medium term loans4
"/0 $n bonds, securities, promissory notes or other e)idence o indebtedness o
educational or medical institutions to inance the construction, impro)ement
and maintenance o schools and hospitals and their e5uipment and
acilities: Provided, #hat such in)estments shall not e*ceed ten percent /17D0
o the $n)estment Reser)e 8und4
"/+0 $n real estate property, includin+ shares o stocks in)ol)in+ real estate
property, and in)estment secured by irst mort+a+es on real estate or other
collaterals acceptable to the SSS: Provided, #hat such pro,ects and
in)estments shall, in the determination o the "ommission, redound to the
beneit o the SSS, its members, as well as the +eneral
public: Provided, further, #hat in)estment in real estate property, includin+
shares o stocks in)ol)in+ real estate property shall not e*ceed i)e percent
/6D0 o the $n)estment Reser)e 8und: Provided, finally, #hat in)estments in
other income earnin+ pro,ects and in)estments secured by irst mort+a+es or
other collaterals shall not e*ceed twenty i)e percent /'6D0 o the $n)estment
Reser)e 8und4
"/h0 $n bonds, debentures, securities, promissory notes or other e)idence o
indebtedness o any prime corporation or multilateral institutions to inance
domestic pro,ects: Provided, #hat the issuin+ or assumin+ entity or its
predecessors shall not ha)e deaulted in the payment o interest on any o its
securities and that durin+ each o any three /.0 includin+ the last two /'0 o the
i)e /60 iscal years ne*t precedin+ the date o ac5uisition by the SSS o such
bonds, debentures or other e)idence o indebtedness, the net earnin+s o the
issuin+ or assumin+ institution a)ailable or its i*ed char+es, as deined in this
Act, shall ha)e been not less than one and one&5uarter times the total o its
i*ed char+es or such year: Provided, further, #hat such in)estments shall not
e*ceed thirty percent /.7D0 o the $n)estment Reser)e 8und4
"/i0 $n preerred or common shares o stocks listed or about to be listed in the
stock e*chan+e or options or warrants to such stocks or, sub,ect to prior
appro)al o the Can+ko Sentral n+ (ilipinas, such other risk mana+ement
instruments o any prime or sol)ent corporation or inancial institution created
or e*istin+ under the laws o the (hilippines with pro)en track record o
proitability o)er the last three /.0 years and payment o di)idends at least once
o)er the same period: Provided, #hat such in)estments shall not e*ceed thirty
percent /.7D0 o the $n)estment Reser)e 8und4
"/,0 $n domestic or orei+n mutual unds in e*istence or at least three /.0
years4 Provided, #hat such in)estments shall not e*ceed twenty percent /'7D0
o the $n)estment Reser)e 8und: Provided, further, #hat in)estments in orei+n
mutual unds shall not e*ceed one percent /1D0 o the $n)estment Reser)e
8und in the irst year which shall be increased by one percent /1D0 or each
succeedin+ year, but in no case shall it e*ceed se)en and one&hal percent
/3.6D0 o the $n)estment Reser)e 8und4
"/k0 $n orei+n currency deposits or triple "A" orei+n currency denominated
debts, prime and non&speculati)e e5uities, and other Can+ko Sentral n+
(ilipinas appro)ed inancial instruments or other assets issued in accordance
with the e*istin+ laws o the countries where such inancial instruments are
issued:Provided, #hat these instruments or assets are listed in bourses o the
respecti)e countries where these instruments or assets are
issued: Provided, further, #hat the issuin+ company has pro)en track o record
o proitability o)er the last three /.0 years and a record o re+ular di)idend
pay&out o)er the same period:Provided, finally, #hat such in)estments shall not
e*ceed one percent /1D0 o the $n)estment Reser)e 8und in the irst year
which shall be increased by one percent /1D0 or each succeedin+ year, but in
no case shall it e*ceed se)en and one&hal percent /3.6D0 o the $n)estment
Reser)e 8und4
12
"/l0 $n loans secured by such collaterals like cash, +o)ernment securities or
+uarantees o multilateral institutions: Provided, #hat such in)estments shall
not e*ceed thirty percent /.7D0 o the $n)estment Reser)e 8und4 and
"/m0 $n other Can+ko Sentral n+ (ilipinas appro)ed in)estment instruments
with the same intrinsic 5uality as those enumerated in para+raphs /a0 to /l0
hereo, sub,ect to the policies and +uidelines which the "ommission may
ormulate.
"No portion o the $n)estment Reser)e 8und or income thereo shall accrue to
the +eneral und o the National ?o)ernment or to any o its a+encies or
instrumentalities, includin+ +o)ernment&owned or controlled corporations,
e*cept as may be allowed under this Act: Provided, #hat no portion o the
$n)estment Reser)e 8und shall be in)ested or any purpose or in any
instrument, institution or industry o)er and abo)e the prescribed cumulati)e
ceilin+s as ollows:
<7D in pri)ate securities
.6D in housin+
.7D in real estate related in)estments
17D in short and medium&term member loans
.7D in +o)ernment inancial institutions and corporations
.7D in inrastructure pro,ects
16D in any particular industry
3.6D in orei+n&currency denominated in)estments
"S!". '6&A. 8und 2ana+ers. & As part o its in)estment operations, the SSS
may appoint local or, in the absence thereo, orei+n und mana+ers to mana+e
the $n)estment Reser)e 8und, as it may deem appropriate.
"S!". '6&C. 2ort+a+or $nsurance Account. & /a0 As part o its in)estment
operations, the SSS shall act as insurer o all or part o its interest on SSS
properties mort+a+ed to the SSS, or li)es o mort+a+ors whose properties are
mort+a+ed to the SSS. 8or this purpose, the SSS shall establish a separate
account to be known as the "2ort+a+ors1 $nsurance Account." All amounts
recei)ed by the SSS in connection with the aoresaid insurance operations
shall be placed in the 2ort+a+ors1 $nsurance Account. #he assets and liabilities
o the 2ort+a+ors1 $nsurance Account shall at all times be clearly identiiable
and distin+uishable rom the assets and liabilities in all other accounts o the
SSS. Notwithstandin+ any pro)ision o law to the contrary, the assets held in
the 2ort+a+ors1 $nsurance Account shall not be char+eable with the liabilities
arisin+ out o any other business the SSS may conduct but shall be held and
applied e*clusi)ely or the beneit o the owners or beneiciaries o the
insurance contracts issued by the SSS under this para+raph.
"/b0 #he SSS may insure any o its interest or part thereo with any pri)ate
company or reinsurer. #he $nsurance "ommission or its authori-ed
representati)es shall make an e*amination into the inancial condition and
methods o transactin+ business o the SSS at least once in two /'0 years, but
such e*amination shall be limited to the insurance operation o the SSS as
authori-ed under this para+raph and shall not embrace the other operations o
the SSS4 and the report o said e*amination shall be submitted to the
"ommission and a copy thereo shall be urnished the %ice o the (resident
o the (hilippines within a reasonable time ater the close o the
e*amination: Provided, #hat or each e*amination, the SSS shall pay to the
$nsurance "ommission an amount e5ual to the actual e*pense o the
$nsurance "ommission in the conduct o e*amination, includin+ the salaries o
the e*aminers and o the actuary o the $nsurance "ommission who ha)e been
assi+ned to make such e*amination or the actual time spent in said
e*amination: Provided, further, #hat the +eneral law on insurance and the
rules and re+ulations promul+ated thereunder shall ha)e suppletory application
insoar as it is not in conlict with this Act and its rules and re+ulations.
"S!". '3. Records and Reports. & #he SSS (resident shall keep and cause to
keep records o operations o the unds o the SSS and o disbursements
thereo and all accounts o payments made out o said unds. @urin+ the month
o Aanuary o each year, the SSS (resident shall prepare or submission to the
(resident o the (hilippines and to "on+ress o the (hilippines a report o
operations o the SSS durin+ the precedin+ year, includin+ statistical data on
the number o persons co)ered and beneited, their occupations and
employment status, the duration and amount o beneits paid, the inances o
the SSS at the close o the said year, and recommendations. 9e shall also
cause to be published in two /'0 newspapers o +eneral circulation in the
(hilippines a synopsis o the annual report, showin+ in particular the status o
the inances o the SSS and the beneits administered.
"S!". ';. Penal Clause. & /a0 Bhoe)er, or the purpose o causin+ any
payment to be made under this Act, or under an a+reement thereunder, where
none is authori-ed to be paid, shall make or cause to be made alse statement
or representation as to any compensation paid or recei)ed or whoe)er makes
or causes to be made any alse statement o a material act in any claim or
any beneit payable under this Act, or application or loan with the SSS, or
whoe)er makes or causes to be made any alse statement, representation,
aida)it or document in connection with such claim or loan, shall suer the
penaltiesProvided or in Article %ne hundred se)enty&two o the Re)ised (enal
"ode.
"/b0 Bhoe)er shall obtain or recei)e any money or check under this Act or any
a+reement thereunder, without bein+ entitled thereto with intent to deraud any
member, employer or the SSS, shall be ined not less than 8i)e thousand
13
pesos /(6,777.770 nor more than #wenty thousand pesos /('7,777.770 and
imprisoned or not less than si* /60 years and one /10 day nor more than twel)e
/1'0 years.
"/c0 Bhoe)er buys, sells, oers or sale, uses, transers or takes or +i)es in
e*chan+e, or pled+es or +i)es in pled+e, e*cept as authori-ed in this Act or in
re+ulations made pursuant thereto, any stamp, coupon, ticket, book or other
de)ice, prescribed pursuant to Section #wenty&three hereo by the
"ommission or the collection or payment o contributions re5uired herein,
shall be ined not less than 8i)e thousand pesos /(6,777.770 nor more than
#wenty thousand pesos /('7,777.770, or imprisoned or not less than si* /60
years and one /10 day nor more than twel)e /1'0 years, or both, at the
discretion o the court.
"/d0 Bhoe)er, with intent to deraud, alters, or+es, makes or countereits any
stamp, coupon, ticket, book or other de)ice prescribed by the "ommission or
the collection or payment o any contribution re5uired herein, or uses, sells,
lends, or has in his possession any such altered, or+ed or countereited
materials, or makes, uses, sells or has in his possession any such altered,
or+ed, material in imitation o the material used in the manuacture o such
stamp, coupon, ticket, book or other de)ice, shall be ined not less than 8i)e
thousand pesos /(6,777.770 non more than #wenty thousand pesos
/('7,777.770 or imprisoned or not less than si* years /60 and one /10 day nor
more than twel)e /1'0 years, or both, at the discretion o the court.
"/e0 Bhoe)er ails or reuses to comply with the pro)isions o this Act or with
the rules and re+ulations promul+ated by the "ommission, shall be punished
by a ine o not less than 8i)e thousand pesos /(6,777.770 nor more than
#wenty thousand pesos /('7,777.770, or imprisonment or not less than si* /60
years and one /10 day nor more than twel)e /1'0 years, or both, at the
discretion o the court: Provided, #hat where the )iolation consists in ailure or
reusal to re+ister employees or himsel, in case o the co)ered sel&employed
or to deduct contributions rom the employees1 compensation and remit the
same to the SSS, the penalty shall be a ine o not less 8i)e thousand pesos
/(6,777.770 nor more than #wenty thousand pesos /('7,777.770 and
imprisonment or not less than si* /60 years and one /10 day nor more than
twel)e /1'0 years.
"/0 $ the act or omission penali-ed by this Act be committed by an association,
partnership, corporation or any other institution, its mana+in+ head, directors or
partners shall be liable or the penalties Provided in this Act or the oense.
"/+0 Any employee o the SSS who recei)es or keeps unds or property
belon+in+, payable or deli)erable to the SSS and who shall appropriate the
same, or shall take or misappropriate, or shall consent, or throu+h
abandonment or ne+li+ence, shall permit any other person to take such
property or unds, wholly or partially, or shall otherwise be +uilty o
misappropriation o such unds or property, shall suer the
penaltiesProvided in Article #wo hundred se)enteen o the Re)ised (enal
"ode.
"/h0 Any employer who, ater deductin+ the monthly contributions or loan
amorti-ations rom his employee1s compensation, ails to remit the said
deduction to the SSS within thirty /.70 days rom the date they became due,
shall be presumed to ha)e misappropriated such contributions or loan
amorti-ations and shall suer the penalties Provided in Article #hree hundred
iteen o the Re)ised (enal "ode.
"/i0 "riminal action arisin+ rom a )iolation o the pro)isions o this Act may be
commenced by the SSS or the employee concerned either under this Act or in
appropriate cases under the Re)ised (enal "ode: Provided, #hat such
criminal action may be iled by the SSS in the city or municipality where the
SSS oice is located, i the )iolation was committed within its territorial
,urisdiction or in 2etro 2anila, at the option o the SSS.
"S!". '>. .overnment id. & #he establishment o the SSS shall not dis5ualiy
the members and employers rom recei)in+ such +o)ernment assistance,
inancial or otherwise, as may be Provided.
"S!". .7. Transitory Clause. & Any employer who is delin5uent or has not
remitted all contributions due and payable to the SSS may, within si* /60
months rom the eecti)ity o this Act, remit said contributions or submit a
proposal to pay the same in installment within a period o not more than twel)e
/1'0 months rom the eecti)ity o this Act without incurrin+ the prescribed
penalty, sub,ect to the implementin+ rules and re+ulations which the
"ommission may prescribe: Provided, #hat the employer submits the
correspondin+ collection lists to+ether with the remittance or proposal to pay in
installments: Provided, further, #hat in case the employer ails to remit
contributions within the si*&month +race period or deaults in the payment o
any amorti-ation Provided the appro)ed proposal, the prescribed penalty shall
be imposed rom the time the contributions irst became due as Provided in
Section '' /a0 hereo."
Sectio+ 2. Separab!"# C!a$%e. & $ any pro)ision o this Act is declared in)alid, the
other pro)isions not aected thereby shall remain )alid.
Sectio+ ,. Repea!&' C!a$%e. & All laws, proclamations, e*ecuti)e orders, rules and
re+ulations or parts thereo inconsistent with this Act are hereby repealed, modiied or
amended accordin+ly: Provided, #hat no person shall be deemed to be )ested with any
property or other ri+ht by )irtue o the enactment or operation o this Act.
Sectio+ -. E((e)"*"# C!a$%e. & #his Act shall take eect iteen /160 days ater its
complete publication in the %icial ?a-ette or in at least two /'0 national newspapers o
+eneral circulation whiche)er comes earlier.
Appro)ed: May 01, 1997
14