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VI. LAW ON OTHER BUSINESS TRANSACTIONS

J. SOCIAL SECURITY LAW

(RA No. 11199)

J.1. DEFINITIONS

• SSS – The Social Security System

• Commission – The Social Security Commission

• Employer – Any person, natural or juridical, domestic or foreign, who carries on in the PH
any trade, business, industry, undertaking, or activity of any kind and uses the services of
another person who is under his orders as regards the employment, except the government and
any of its political subdivisions, branches or instrumentalities, including GOCCs: Provided,
That a self-employed person shall be both Ee and Er at the same time.

• Employee – Any person who performs services for an Er in which either or both mental or
physical efforts are used and who receives compensation for such services, where there is an
Er-Ee relationship: Provided, That a self-employed person shall be both Ee and Er at the same
time.

• Dependents
1) The legal spouse entitled by law to receive support from the member;
2) The legitimate, legitimated or legally adopted, and illegitimate child who is unmarried, not
gainfully employed, and has not reached 21 years of age, or if over 21 years of age, he is
congenitally or while still a minor has been permanently incapacitated and incapable of
self-support, physically or mentally: and
3) The parent who is receiving regular support from the member.

• Compensation – All actual remuneration for employment, including the mandated cost-of-
living allowance, as well as the cash value of any remuneration paid in any medium other than
cash except that part of the remuneration received during the month in excess of the maximum
salary credit.

• Monthly salary credit – The compensation base for contributions and benefits as indicated in
this Act: Provided, That in the computation of benefits, the maximum monthly salary credit to
be considered shall be ₱20,000.00, until adjusted as provided in Sec. 4(a)(9).

• Monthly – The period from one end of the last payroll period of the preceding month to the
end of the last payroll period of the current month if compensation is on hourly, daily or weekly
basis; if on any other basis, ‘monthly’ shall mean a period of 1 month.

• Contribution – The amount paid to the SSS by and on behalf of the members in accordance
with the schedule provided in this Act.

• Employment – Any service performed by an Ee for his Er except:

1) Services where there is Er-Ee relationship in accordance with existing labor laws, rules,
regulations and jurisprudence;
2) Service performed in the employ of the PH Government or instrumentality or agency
thereof;
3) Service performed in the employ of a foreign government or international organization, or
their wholly-owned instrumentality;
✓ Any foreign government, international organization or their wholly-owned
instrumentality employing workers in the PH or employing Filipinos outside of the
PHs, may enter into an agreement with the PH Government for the inclusion of
such Ees in the SSS except those already covered by their respective civil service
retirement systems.
✓ The terms of such agreement shall conform with the provisions of this Act on
coverage and amount of payment of contributions and benefits.
✓ The provisions of this Act shall be supplementary to any such agreement; and
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4) Such other services performed by temporary and other Ees which may be excluded by
regulation of the Commission. Ees of bona fide independent contractors shall not be
deemed Ees of the Er engaging the service of said contractors.

• Beneficiaries – The dependent spouse until he or she remarries, the dependent legitimate,
legitimated or legally adopted, and illegitimate children, who shall be the primary beneficiaries
of the member.
✓ Dependent illegitimate children shall be entitled to 50% of the share of the legitimate,
legitimated or legally adopted children.
✓ In the absence of the dependent legitimate, legitimated or legally adopted children of
the member, his/her dependent illegitimate children shall be entitled to 100% of the
benefits.
✓ In their absence, the dependent parents who shall be the secondary beneficiaries of the
member.
✓ In the absence of all the foregoing, any other person designated by the member as
his/her secondary beneficiary.

• Contingency – The retirement, death, disability, injury or sickness and maternity of the
member.

• Average monthly salary credit – The result obtained by dividing the sum of the last 60
monthly salary credits immediately preceding the semester of contingency by 60, or the result
obtained by dividing the sum of all the monthly salary credits paid prior to the semester of
contingency by the number of monthly contributions paid in the same period, whichever is
greater.
✓ The injury or sickness which caused the disability shall be deemed as the permanent
disability for the purpose of computing the average monthly salary credit.

• Average daily salary credit – The result obtained by dividing the sum of the 6 highest monthly
salary credits in the twelve-month period immediately preceding the semester of contingency
by 180.

• Semester – A period of 2 consecutive quarters ending in the quarter of contingency.

• Quarter – A period of 3 consecutive calendar months ending on the last day of March. June.
September and December.

• Credited years of service

a) For a member covered prior to January 1985 minus the calendar year of coverage plus the
number of calendar years in which 6 or more contributions have been paid from January
1985 up to the calendar year containing the semester prior to the contingency.
b) For a member covered in or after 1985, the number of calendar years in which 6 or more
contributions have been paid from the year of coverage up to the calendar year containing
the semester prior to the contingency: Provided, That the Commission may provide for a
different number of contributions in a calendar year for it to be considered as a credited
year of service.

• Member – The worker who is covered under Sec.9, Sec. 9-A and Sec.9-B of this Act.

• Self-employed – Any person whose income is not derived from employment, as defined under
this Act, as well as those workers enumerated in Sec. 9-A hereof.

• Net earnings – Net income before income taxes plus non-cash charges such as depreciation
and depletion appearing in the regular financial statement of the issuing or assuming
institution.

• Fixed charges – Recurring expense such as amortization of debt discount and rentals for leased
properties, including interest on funded and unfunded debt. (s8)

J.2. SCOPE AND COVERAGE

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• (a) Compulsory coverage on (1) all Ees including kasambahays or domestic workers not over
60 years of age and (2) their Ers.
✓ Ee’s private benefit plans which are existing and in force at the time of compulsory
coverage shall be integrated with the plan of the SSS. It shall remain under the Er‘s
management and control unless there is an existing agreement to the contrary.

(b) Spouses who devote full time to managing the household and family affairs may be covered
on a voluntary basis. XPN: Engaged in other vocation or employment(s9)

• Compulsory Coverage of the Self-Employed

a) All seif-employed professionals;
b) Partners and single proprietors of businesses;
c) Actors and actresses, directors, scriptwriters and news correspondents;
d) Professional athletes, coaches, trainers and jockeys; and
e) Individual farmers and fishermen.

If realizes no income in any given month → not be required to pay contributions for that
month.
✓ Allowed to continue paying contributions under the same rules and regulations
applicable to separated Ee member.
✓ No retroactive payment of contributions shall be allowed other than prescribed under a
schedule as the Commission may specify.

• Compulsory Coverage of Overseas Filipino Workers (OFWs) –

a) Coverage in the SSS shall be compulsory upon all sea-based and land-based OFWs.
✓ Not over 60 years of age.
b) Manning agencies are agents of their principals and are considered as Ers of sea-based
OFWs.
c) Land-based OFWs are compulsory members of the SSS and considered in the same manner
as self-employed persons.
d) The DFA, the DOLE and all its agencies involved in deploying OFWs for employment
abroad are mandated to negotiate bilateral labor agreements with the OFWs’ host countries
e) The DFA, the DOLE and, the SSS shall ensure compulsory coverage of OFWs through
bilateral social security and labor agreements and other measures for enforcement.
f) Upon the termination of their employment overseas, OFWs may continue to pay
contributions on a voluntary basis to maintain their rights to full benefits.
g) Filipino permanent migrants, including Filipino immigrants, permanent residents and
naturalized citizens of their host countries may be covered by the SSS on a voluntary basis.

• Effective date of coverage

1) Er - 1st day of his operation
2) Ee - the day of his employment.
3) Self-employed person - upon registration with the SSS. (s10)

J.3. PENSION, RETIREMENT AND OTHER BENEFITS

• Monthly Pension
a) The monthly pension shall be the highest of the following amounts:
1) The sum of the following:
i. ₱300.00; plus
ii. 20% of the average monthly salary credit; plus
iii. 2% of the average monthly salary credit for each credited year of service in
excess of 10 years; or
2) 40% of the average monthly salary credit; or
3) ₱1,000.00

✓ Monthly pension shall in no case be paid for an aggregate amount of less than 60
months.

b) Minimum pension shall be:

1) ₱1,200.00 for members with 10 credited years of service and
2) ₱2,400.00 for members with 20 credited years of service
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c) Additional Benefit Allowance – an additional monthly benefit allowance amounting to

₱1,000.00 shall be given to all retirement, death, and disability pensioners receiving
monthly pensions in or after January 2017.

• Dependents’ Pension
✓ If payable on account of death, permanent total disability or retirement → 10% of the
monthly pension or ₱250.00, whichever is higher.
✓ Paid for each dependent child conceived on or before the date of the contingency but
not exceeding 5, beginning with the youngest and without substitution. (s12-A)
✓ Legitimate shall be preferred over illegitimate children.

• RETIREMENT Benefits
a) Monthly pension for as long as he lives:
1) Paid at least 120 monthly contributions prior to the semester of retirement and
2) Member who either:
i. 60 years old and separated from employment or has ceased to be self-
employed; or
ii. 65 years old

✓ With option to receive first 18 monthly pensions in lump sum discounted at a

preferential rate of interest.

b) 60 years old but does not qualify for monthly pension → a lump sum benefit equal to the
total contributions paid by him and on his behalf.

c) Monthly pension shall be suspended upon the reemployment or resumption of self-

employment of a retired member who is less than 65 years old.

d) Upon the death retired member’ death → primary beneficiaries shall be entitled to receive
the monthly pension. If no primary beneficiaries and death is within 60 months from the
start of monthly pension → secondary beneficiaries shall be entitled to a lump sum benefit
equivalent to the total monthly pensions corresponding to the balance of the 5-year
guaranteed period, excluding the dependents’ pension.

e) Amount of pension
1) the monthly pension computed at the earliest time he could have retired had he
been separated from employment or ceased to be self-employed plus all
adjustments thereto; or
2) the monthly pension computed at the time when he actually retires. (s12-B)

• DEATH Benefits
a) Paid at least 36 monthly contributions prior to the semester of death → primary
beneficiaries shall be entitled to the monthly pension. If no primary beneficiaries →
secondary beneficiaries shall be entitled to a lump sum benefit equivalent to 36 times the
monthly pension.
b) Not paid 36 monthly contributions → primary/secondary beneficiaries shall be entitled to
a (i) lump sum benefit equivalent to monthly pension times the # of monthly contributions
paid to the SSS or (ii) 12 times the monthly pension, whichever is higher. (s13)

• PERMANENT DISABILITY Benefits

a) Paid at least 36 monthly contributions prior to the semester of disability → entitled to the
monthly pension.
b) Not paid 36 monthly contributions → entitled to (i) a lump sum benefit equivalent to the
monthly pension times the number of monthly contributions paid to the SSS or (ii) 12 times
the monthly pension, whichever is higher.

A member who (1) has received a lump sum benefit; and (2) is reemployed or has resumed
self-employment not earlier than 1 year from the date of his disability → subject again to
compulsory coverage and considered a new member.

The monthly pension and dependents’ pension shall be suspended upon

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1) the reemployment or resumption of self-employment or

2) the recovery of the disabled member from his permanent total disability or
3) his failure to present himself for exam at least once a year upon notice by the SSS.

Upon the death of the permanent total disability pensioner → primary beneficiaries shall be
entitled to receive the monthly pension. If no primary beneficiaries and dies within 60 months
from the start of his monthly pension → secondary beneficiaries shall be entitled to a lump
sum benefit equivalent to the total monthly pensions corresponding to the balance of the 5-
year guaranteed period excluding the dependents’ pension.

Permanent TOTAL disability:

1) Complete loss of sight of both eyes;
2) Loss of two limbs at or above the ankle or wrists;
3) Permanent complete paralysis of two limbs;
4) Brain injury resulting to incurable imbecility or insanity; and
5) Such cases as determined and approved by the SSS.

Permanent PARTIAL disability and such disability occurs:

a) before 36 monthly contributions have been paid prior to the semester of disability → % of
the lump sum benefit described in the below with due regard to the degree of disability.
b) after 36 monthly contributions have been paid prior to the semester of disability → monthly
pension for permanent total disability payable not longer than the period designated in the
following schedule:
Complete and permanent loss of/use of Number of Months

One thumb 10

One index finger 8

One middle finger 6

One ring finger 5

One little finger 3

One big toe 6

One hand 39

One arm 50

One foot 31

One leg 46

One ear 10

Both ears 20

Hearing of one ear 10

Hearing of both ears 50

Sight of one eye 25

A member who is on partial disability pension retires or dies → disability pension shall cease.

• FUNERAL Benefit → ₱12,000.00, in cash or in kind, to help defray the cost of funeral
expenses upon the death of a member. (s13-B)

• SICKNESS Benefit
a) (i) Paid at least 3 monthly contributions in the 12-month period immediately preceding the
semester of sickness or injury and (ii) is confined therefor for more than 3 days in a hospital
or elsewhere with the approval of the SSS → 90% of his average daily salary credit
1) DSB shall not be paid longer than 120 days in 1 CY, and any unused portion of
such shall not be carried forward and added to the total number of compensable
days allowable in the subsequent year;
2) DSB shall not be paid for more than 240 days on account of the same confinement;
3) Ee shall notify his Er of the fact of his sickness or injury within 5 CD after the
start of his confinement. XPN: Confinement is in a hospital or the Ee became sick
or was injured while working or within the premises of the Er
i. If unemployed or self-employed → directly notify the SSS of his
confinement within 5 CD after the start thereof. XPN: Confinement is in a
hospital
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ii. If notification is necessary, the confinement shall be deemed to have started

not earlier than the 5th day immediately preceding the date of notification.

b) Compensable confinement shall begin on the 1st day of sickness, and the payment of such
allowances shall be promptly made by the Er every regular payday or on the 15th and last
day of each month, and similarly in the case of direct payment by the SSS, for as long as
such allowances are due and payable.
✓ Such allowance shall begin only after all sick leaves of absence with full pay to the
credit of the Ee member shall have been exhausted.

c) 100% of the daily benefits shall be reimbursed by the SSS to said Er upon receipt of
satisfactory proof of such payment and legality thereof:
✓ Er has notified the SSS of the confinement within 5 CD after receipt of the notification
from the Ee member
✓ If the notification is made beyond 5 CD after receipt of the notification from the Ee
member → Er shall be reimbursed only for each day of confinement starting from the
10th calendar day immediately preceding the date of notification to the SSS.

d) If the Ee has given the required notification but the Er fails to notify the SSS → Er shall
have no right to recover the corresponding daily allowance he advanced to the Ee.

e) Claim of reimbursement shall be adjudicated by the SSS within a period of 2 months from
receipt thereof. If Er receives no payment within 1 month after said period → earn simple
interest of 1% per month until paid. (s14)

• MATERNITY LEAVE Benefit – A covered female workers in the government and the
private sector, regardless of civil status or the legitimacy of her child, shall be granted 105 days
maternity leave with full pay and an option to extend for an additional 30 days without pay,
which can be prenatal or postnatal.

• UNEMPLOYMENT, INSURANCE OR INVOLUNTARY SEPARATION Benefits: (1)

Not over 60 years of age; and (2) Paid at least 36 months contributions, 12 months of which
should be in the 18th-month period immediately preceding the involuntary unemployment or
separation → Monthly cash payments equivalent to 50% of the ave. monthly salary credit for
a max. of 2months.
✓ Ee who is involuntarily unemployed can only claim once every 3 years.
✓ In case of concurrence of 2 or more compensable contingencies, only the highest
benefit shall be paid. (s14-B)

• Non-Transferability of Benefits
1) SSS shall pay the retirement benefits on the day of contingency to qualified members who
have submitted the necessary documents at least 6 months before.
2) Beneficiary who is a national of a foreign country which does not extend benefits to a
Filipino beneficiary residing in the PH, or which is not recognized by the PH, → not
entitled to receive any SSS benefits. If the best interest of the SSS will be served, the
Commission may direct payments without regard to nationality or country of residence.
3) If the recipient is a minor or a person incapable of administering his own affairs →
Commission shall appoint a representative
✓ No appointment if the recipient is under the custody of or living with the parents or
spouse of the member.
✓ Such benefits are not transferable and no power of attorney or other document
executed by those entitled thereto in favor of any agent, attorney or any other person
for the collection thereof on their behalf shall be recognized. XPN: Physically
unable to collect personally such benefits
4) In case of death benefits and no beneficiary qualifies → benefits shall be paid to the legal
heirs in accordance with the law of succession. (s15)

J.4. EXEMPTIONS FROM TAX, LEGAL PROCESS AND LIEN

• Exemption from Tax, Legal Process and Lien

1) SSS and all its assets and properties, all contributions collected and all accruals thereto and
income or investment earnings therefrom
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2) All benefit payments made by the SSS

No tax measure of whatever nature enacted shall apply to the SSS, unless it expressly revokes
the declared policy granting tax-exemption to the SSS. Any tax assessment imposed against
the SSS shall be null and void. (s16)

• Fee of Agents, Attorneys, Etc.

a) No agent, attorney or other person in charge of the preparation, filing or pursuing any claim
shall demand or charge for his services any fee, and any stipulation to the contrary shall be
null and void.
b) Retention or deduction of any amount from any benefit granted for the payment of fees for
such services is prohibited.
c) Any member of the Philippine Bar who appears as counsel in any case heard by the
Commission shall be entitled to attorney‘s fees not exceeding 10% of the benefits awarded
by the Commission, which fees shall not be payable before the actual payment of the
benefits, and any stipulation to the contrary shall be null and void.
Any violation of the provisions shall be punished by a Fine: ₱500-₱5,000, or imprisonment:
6mos-1yr, or both, at the discretion of the court. (s16)

J.5. EMPLOYEE’S AND EMPLOYER’S CONTRIBUTIONS

• Employee’s Contributions – Beginning on the last day of the calendar month when an Ee’s
compulsory coverage takes effect and every month thereafter during his employment, the Er
shall deduct and withhold from such Ee’s monthly salary, the Ee’s contribution in an amount
corresponding to his salary during the month in accordance with the monthly salary credits,
the schedule and the rate of contributions. (s18)

• Employer’s Contributions
a) Beginning on the last day of the month when an Ee’s compulsory coverage takes effect and
every month thereafter during his employment, his Er shall pay, with respect to such
covered Ee, the Er’s contribution in accordance with the schedule provided in this Act.
✓ Er shall not deduct, directly or indirectly, from the compensation of his Ees covered
by the SSS or otherwise recover from them the Er’s contributions with respect to
such Ees.
b) Remittance of such contributions by the Er shall be supported by a quarterly collection list
to be submitted to the SSS at the end of each calendar quarter indicating the correct ID
number of the Er, the correct names and the SSS numbers of the Ees and the total
contributions paid for their account during the quarter. (s19)

J.6. CONTRIBUTIONS FROM SELF-EMPLOYED MEMBER

• Contributions of the Self-Employed Member

a) The contributions to the SSS of the self-employed member shall be determined in
accordance with the schedule provided.
b) The monthly earnings declared by the self-employed member at the time of his registration
with the SSS shall be considered as his monthly compensation and he shall pay both the Er
and the Ee contributions.
c) The contributions of self-employed persons earning ₱1,000.00 monthly or below may be
reduced by the Commission.
d) The monthly earnings declared by the self-employed member at the time of his registration
shall remain the basis of his monthly salary credit, unless he makes another declaration of
his monthly earnings, in which case such latest declaration becomes the new basis of his
monthly salary credit. (s19)

J.7. REMITTANCE OF CONTRIBUTIONS

• Remittance of Contributions
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a) The contribution shall be remitted to the SSS within the first 10 days of each calendar
month following the month for which they are applicable or within such time as the
Commission may prescribe.
✓ Every Er required to deduct and to remit such contributions shall be liable for their
payment and if any contribution is not paid to the SSS, the delinquent Er shall pay
besides the contribution a penalty thereon of 2% per month from the date the
contribution falls due until paid.
✓ If deemed expedient and advisable by the Commission, the collection and
remittance of contributions shall be made quarterly or semi-annually in advance,
the contributions payable by the Ees to be advanced by their respective Er.
✓ Upon separation of an Ee, any contribution so paid in advance but not due shall be
credited or refunded to his Er.

b) The contributions payable in cases where an Er refuses or neglects to pay the same shall
be collected by the SSS in the same manner as taxes are made collectible.
✓ Failure or refusal of the Er to pay or remit the contributions shall not prejudice the
right of the covered Ee to the benefits of the coverage.
✓ The right to institute the necessary action against the Er may be commenced within
20 years from the time the delinquency is known or the assessment is made by the
SSS, or from the time the benefit accrues, as the ease may be.

c) Should any person, natural or juridical, defaults in any payment of contributions, the
Commission may also collect the same in either of the following ways:
1) By an action in court, which shall hear and dispose of the case in preference to
any other civil action; or
2) By issuing a warrant to the Sheriff of any province or city commanding him to
levy upon and sell any real and personal property of the debtor. The Sheriffs sale
by virtue of said warrant shall be governed by the same procedure prescribed for
executions against property upon judgments by a court of record.

d) The last complete record of monthly contributions paid by the Er or the average of the
monthly contributions paid during the past 3 years as of the date of filing of the action for
collection shall be presumed to be the monthly contributions payable by and due from the
Er to the SSS for each of the unpaid month, unless contradicted and overcome by other
evidence. (s22)

• Remittance of Contributions of Self-Employed Member – Self-employed members shall

remit their monthly contributions quarterly on such dates and schedules as the Commission
may specify through rules and regulations. (s22-A)
✓ No retroactive payment of contributions shall be allowed, except those provided.

J.8. METHOD OF COLLECTION AND PAYMENT

• The SSS shall require a complete and proper collection and payment of contributions and
proper identification of the Er and the Ee. Payment may be made in cash, checks, stamps,
coupons, tickets, or other reasonable devices that the Commission may adopt. (s23)

J.9. EMPLOYMENT RECORDS AND REPORTS

• Employment Records and Reports

a) Each Er shall immediately report to the SSS the names, ages, civil status, occupations,
salaries and dependents of all his Ees who are subject to compulsory coverage.
✓ If an Ee subject to compulsory coverage should die or become sick or disabled or
reach the age of 60 without the SSS having previously received any report or written
communication about him from his Er, the said Er shall pay to the SSS damages
equivalent to the benefits to which said Ee member would have been entitled had
his name been reported on time by the Er to the SSS.
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✓ In case of pension benefits, the Er shall be liable to pay the SSS damages equivalent
to (1) the accumulated pension due as of the date of settlement of the claim or to
(2) the 5 years’ pension, whichever is higher, including dependents’ pension.
✓ If the contingency occurs within 30 days from the date of employment, the Er shall
be relieved of his liability for damages.
✓ Any person or entity engaging the services of an independent contractor shall be
subsidiarily liable with such contractor for any civil liability incurred by the latter
under this Act.
✓ The same person or entity engaging the services of an independent contractor shall
require such contractor to post a surety bond to guarantee the payment of the
worker’s benefits.

b) If the Er misrepresent the true date of employment of the Ee member or remit to the SSS
contributions which are less than those required in this Act or fail to remit any contribution
due prior to the date of contingency, resulting in a reduction of benefits, such Er shall pay
to the SSS damages equivalent to the difference between the amount of benefit to which
the Ee member or his beneficiary is entitled had the proper contributions been remitted to
the SSS and the amount payable on the basis of contributions actually remitted
✓ If the Ee member or his beneficiary is entitled to pension benefits, the damages
shall be equivalent to the accumulated pension due as of the date of settlement of
the claim or to the 5 years’ pension, whichever is higher, including dependents’
pension.
✓ The Er shall also be liable for the payment of the corresponding unremitted
contributions and penalties thereon.

c) The records and reports duly accomplished and submitted to the SSS by the Er or the
member shall be kept confidential by the SSS except in compliance with a subpoena duces
tecum issued by the courts:
1) shall not be divulged without the consent of the SSS President or any official of the
SSS duly authorized by him,
2) shall be presumed correct as to the data and other matters stated therein, unless the
necessary corrections to such records and reports have been properly made by the
parties concerned before the right to the benefit being claimed accrues, and
3) shall be made the basis for the adjudication of the claim.

✓ If as a result of such adjudication the SSS in GF pays a monthly pension to a

beneficiary who is inferior in right to another beneficiary or with whom another
beneficiary is entitled to share, such payments shall discharge the SSS from liability
unless and until such other beneficiary notifies the SSS of his claim prior to the
payments.

d) Every Er shall keep true and accurate work records for such period and containing such
information as the Commission may prescribe, in addition to an "Annual Register of New
and Separated Employees" which shall be secured from the SSS wherein the Er shall enter
on the first day of employment or on the effective date of separation, the names of the
persons employed or separated from employment, their SSS numbers, and such other data
that the Commission may require and said annual register shall be submitted to the SSS in
the month of January of each year. Such records shall be open for inspection by the SSS or
its authorized representatives quarterly or as often as the SSS may require.

The SSS may also require each Er to submit, with respect to the persons in his employ,
reports needed for the effective administration of this Act.

e) Each Er shall require, as a condition to employment, the presentation of a registration

number secured by the prospective Ee from the SSS in accordance with such procedure as
the SSS may adopt.
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✓ In case of Ees who have earlier been assigned registration numbers by virtue of a
previous employment, such numbers originally assigned to them should be used for
purposes of this Section.
✓ The issuance of such registration numbers by the SSS shall not exempt the Er from
complying with the provisions of par. (a) of this Section.

f) Notwithstanding any law to the contrary, microfilm, or non-erasable optical disk and other
similar archival media copies of original SSS records and reports, or copies of such records
and reports duly certified by the official custodian thereof, shall have the same evidentiary
value as the originals and be admissible as evidence in all legal proceedings.

g) Notwithstanding any law to the contrary, LGUs shall, prior to issuing any annual business
license or permit, require submission of 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 5 working days from receipt of the request. (s24)

• Report and Registration of the Self-Employed Member - Each covered self-employed

member shall, within 30 days from the first day he started the practice of his profession or
business operations, register and report to the SSS his name, age, civil status, and occupation,
average monthly net income and his dependents. (s24-A)

If after said period of 30 days, he should die or become sick, or disabled or reach the age of 60
without the SSS having previously received such report, the SSS shall not pay him the
corresponding benefit.

J.10. PENAL CLAUSES

Offense Penalty
a) Makes or causes to be made false statement or Fine: not more than P5,000; and
representation as to any compensation paid or Imprisonment: Prision Correctional
received for the purpose of causing any payment to in its med and max periods
be made under this Act or under an agreement
thereunder, where none is authorized to be paid; (Art. 172, RPC – Falsification by
b) Makes or causes to be made any false statement of a private individuals and use of
material fact in any claim for any benefit payable falsified documents)
under this Act, or application for loan with the SSS;
or
c) Makes or causes to be made any false statement,
representation, affidavit or document in connection
with such claim or loan
Obtain or receive any money or check under this Act or Fine: P5,000 – P20,000; and
any agreement thereunder, without being entitled thereto Imprisonment: 6 years and 1 day to
with intent to defraud any member, Er or the SSS 12 years
Buys, sells, offers for sale, uses, transfers or takes or Fine: P5,000 – P20,000; and
gives in exchange, or pledges or gives in pledge, except Imprisonment: 6 years and 1 day to
as authorized in this Act or in regulations made pursuant 12 years;
thereto, any stamp, coupon, ticket, book or other device, or BOTH, at the discretion of the
prescribed pursuant to Sec. 23 hereof by the Commission court
for the collection or payment of contributions
With intent to defraud, alters, forges, makes or Fine: P5,000 – P20,000; and
counterfeits any stamp, coupon, ticket, book or other Imprisonment: 6 years and 1 day to
device prescribed by the Commission for the collection 12 years;
or payment of any contribution required herein, or uses, or BOTH, at the discretion of the
sells, lends, or has in his possession any such altered, court
forged or counterfeited materials, or makes, uses, sells or
has in his possession any such altered, forged, material in
imitation of the material used in the manufacture of such
stamp, coupon, ticket, book or other device
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Fails or refuses to comply with the provisions of this Act Fine: P5,000 – P20,000; and
or with the rules and regulations promulgated by the Imprisonment: 6 years and 1 day to
Commission 12 years;
or BOTH, at the discretion of the
court

Where the violation consists in failure or refusal to Fine: P5,000 – P20,000; and
register Ees or himself, in case of the covered self- Imprisonment: 6 years and 1 day to
employed or to deduct contributions from the Ees’ 12 years
compensation and remit the same to the SSS

• Juridical persons – If the act or omission penalized by this Act be committed by an

association, partnership, corporation or any other institution, its managing head, directors or
partners shall be liable.

• Malversation of public funds – Any Ee of the SSS who receives or keeps funds or property
belonging, payable or deliverable to the SSS and who shall appropriate the same, or shall take
or misappropriate, or shall consent, or through abandonment or negligence, shall permit any
other person to take such property or funds, wholly or partially, or shall otherwise be guilty of
misappropriation of such funds or property, shall suffer the penalties provided in Art.217 of
the RPC.

• Employer’s failure to remit – Any Er who, after deducting the monthly contributions or loan
amortizations from his Ee’s compensation, fails to remit the said deduction to the SSS within
30 days from the date they became due, shall be presumed to have misappropriated such
contributions or loan amortizations and shall suffer the penalties provided in Art. 315 of the
RPC.

• Commencement of criminal actions – Criminal action arising from a violation of the

provisions of this Act may be commenced by the SSS or the Ee concerned either under this
Act or in appropriate cases under the RPC
✓ Such criminal action may be filed by the SSS in the city or municipality where the SSS
office is located, if the violation was committed within its territorial jurisdiction or in
Metro Manila, at the option of the SSS. (s28)