LABOR

CODE OF
THE
PHILIPPINES
AND SSS
LAW
INTRODUCTION
 The Labor Code of the Philippines stands as the law governing
employment practices and labor relations in the Philippines.
 It prescribes the rules for hiring and termination of private
employees; the conditions of work including maximum work
hours and overtime; employee benefits such as holiday pay,
thirteenth month pay and retirement pay; and the guidelines in
the organization and membership in labor unions as well as in
collective bargaining.
CONSTITUTIONAL
PROVISIONS
 Freedom of speech, of expression, or of the press, or the right of the
people peaceably to assemble and petition the government for
redress of grievances.
 Right of public and private sector employees to form unions,
associations, or societies for purposes not contrary to law shall not
be abridged.
 Non-impairment of obligations of contracts.
 Right to speedy disposition of cases in judicial, quasi-judicial or
administrative bodies.
 Prohibition against involuntary servitude.
ART. 1700, CIVIL CODE
The relations between capital and labor are not merely
contractual. They are so impressed with public interest that
labor contracts must yield to the common good.
Therefore, such contracts are subject to the special laws on
labor unions, collective bargaining, strikes and lockouts,
closed shop, wages, working conditions, hours of labor and
similar subjects
DECLARATION OF POLICY
a) Full protection to labor;
b) Promotion of full employment;
c) Promotion of equal work opportunities
regardless of sex, race or creed;
DECLARATION OF POLICY
d) Regulation of the relations between workers and
employers;
e) Protection of the rights of workers to:
1. self-organization;
2. collective bargaining;
3. security of tenure; and
4. just and humane conditions of work.
CONSTRUCTION IN FAVOR
OF LABOR
 All doubts in the implementation and interpretation
of the provisions of this Code, including its
implementing rules and regulations, shall be
resolved in favor of labor.
 Same as Art. 1702 of the Civil Code.
NOTE

 The Labor Code is inapplicable to the Government,

except GOCCs without original charters.
TYPES OF
EMPLOYMENT
BUT FIRST… THE FOUR FOLD TEST
(a) The selection and engagement of the employee;
(b) The payment of wages;
(c) The power of dismissal; and
(d) The employer’s power to control the employee
with respect to the means and methods by which
the work is to be accomplished. It is the so-called
"control test" that is the most important element.
TYPES OF EMPLOYMENT
 Regular employment,
 Probationary employment,
 Seasonal employment,
 Casual employment,
 Project-based employment, and
 Fixed contract employment.
REGULAR
EMPLOYMENT
 Regular employees refer to those
who have been engaged to perform
activities which are usually
necessary or desirable in the usual
business or trade of the employer.
 The default employment is regular
employment.
 In the absence of any specific
agreement to the contrary, the
employer-employee relationship is
deemed to be regular in nature.
 By nature of work,
THREE
WAYS TO
BECOME A
By period of
REGULAR service,
EMPLOYEE
By probationary
employment
PROBATIONARY
EMPLOYMENT
 The 6-month period is mentioned in the law for
purposes of setting the standard period.
 The 6-month probationary period should be
reckoned “from the date of appointment up to the
same calendar date of the 6th month following.”
LABOR
STANDARDS
Book III
WHAT ARE LABOR
STANDARDS
These are the laws that governed the terms and
conditions of employment as well as the basic
rights of workers
WHO ARE COVERED BY
LABOR STANDARDS?
Employees in all establishments, whether
operated for profit or not, are covered by the
law on labor standards.
WHO ARE EXCLUDED?
1. Government employees;
2. Managerial employees;
3. Other officers or members of a managerial staff;
4. Workers paid by results;
5. Non-agricultural field personnel; and
6. Members of the family of the employer
COMPENSABLE HOURS OF
WORK
a. All time during which an employee is required to
be on duty or to be at the employer’s premises or
to be at a prescribed workplace; and
b. All time during which an employee is suffered or
permitted to work.
COMPENSABLE HOURS OF
WORK
“Fair day’s wage for a fair day’s labor,” remains the
basic factor in determining the employees’ wages and
backwages.
PRINCIPLES ON NORMAL
HOURS OF WORK
Eight (8) hours daily
Any work in excess of said eight (8) normal hours is
considered overtime work.
Normal working hours may be reduced, provided that no
corresponding reduction is made on the employee’s wage.
 meal breaks are excluded in the computation of eight
hours.
NIGHT SHIFT DIFFERENTIAL
PAY
Night shift differential is equivalent to 10% of
employee's regular wage for each hour of work
performed between 10:00 p.m. and 6:00 a.m. of the
following day.
HOW IS NIGHT SHIFT
DIFFERENTIAL PAY
COMPUTED?
Where night shift (10 p.m. to 6 a.m.) work is regular work:
a. On an ordinary day: Plus 10% of the basic
hourly rate or a total of 110% of the basic hourly
rate.
b. On a rest day, special day or regular holiday:
Plus 10% of the regular hourly rate on a rest day,
special day or regular holiday or a total of 110% of
the regular hourly rate.
HOW IS NIGHT SHIFT
DIFFERENTIAL PAY
COMPUTED?
Where night shift (10 p.m. to 6 a.m.) work is overtime work:

a. On an ordinary day: Plus 10% of the overtime

hourly rate on an ordinary day or a total of 110% of
the overtime hourly rate on an ordinary day.
b. On a rest day, special day or regular holiday: Plus
10% of the overtime hourly rate on a rest day or
special day or regular holiday.
HOW IS NIGHT SHIFT
DIFFERENTIAL PAY
COMPUTED?
For overtime work in the night shift:
a. On an ordinary day: Plus 10% of 125% of basic
hourly rate or a total of 110% of 125% of basic
hourly rate.
b. On a rest day, special day or regular holiday:
Plus 10% of 130% of regular hourly rate on said
days or a total of 110% of 130% of the applicable
regular hourly rate.
NIGHT SHIFT DIFFERENTIAL
PAY VS. OVERTIME PAY
When the work of an employee falls at night time, the
receipt of overtime pay shall not preclude the right to
receive night differential pay.
The reason is the payment of the night differential
pay is for the work done during the night; while the
payment of the overtime pay is for work in excess of
the regular eight (8) working hour.
NIGHT SHIFT DIFFERENTIAL
PAY VS. OVERTIME PAY
When the work of an employee falls at night time, the
receipt of overtime pay shall not preclude the right to
receive night differential pay.
The reason is the payment of the night differential
pay is for the work done during the night; while the
payment of the overtime pay is for work in excess of
the regular eight (8) working hour.
 How overtime is computed
Particulars Overtime Pay
For overtime work performed on an ORDINARY DAY plus 25% of the basic hourly rate.

For overtime work performed on a REST DAY OR ON A Plus 30% of the basic hourly rate which includes 30% additional
SPECIAL DAY compensation as provided in Article 93 [a] of the Labor Code.

For overtime work performed on a REST DAY WHICH Plus 30% of the basic hourly rate which includes 50% additional
FALLS ON A SPECIAL DAY compensation as provided in Article 93 [c] of the Labor Code.
For overtime work performed on a REGULAR HOLIDAY Plus 30% of the basic hourly rate which includes 100% additional
compensation as provided in Article 94 [b] of the Labor Code.

For overtime work performed on a REST DAY WHICH Plus 30% of the basic hourly rate which includes 160% additional
FALLS ON A REGULAR HOLIDAY compensation.
PREMIUM PAY VS.
OVERTIME PAY
“Premium pay” refers to the additional compensation required
by law for work performed within the eight (8) normal hours of
work on non-working days, such as rest days and regular and
special holidays.
Overtime pay” refers to the additional compensation for work
performed beyond the eight (8) normal hours of work on a given
day.
BUILT-IN OVERTIME PAY
In case the employment contract stipulates that the
compensation includes built-in overtime pay and the same is
duly approved by the DOLE, the non-payment by the employer
of any overtime pay for overtime work is justified and valid.
BUILT-IN OVERTIME PAY
In case the employment contract stipulates that the
compensation includes built-in overtime pay and the same is
duly approved by the DOLE, the non-payment by the employer
of any overtime pay for overtime work is justified and valid.
EXCEPTIONS
1. When the country is at war or when any other national or
local emergency has been declared by the
National Assembly or the Chief Executive;
2. When overtime work is necessary to prevent loss of life or
property or in case of imminent danger to public safety due to
actual or impending emergency in the locality caused by serious
accident, fire, floods, typhoons, earthquake, epidemic or other
disasters or calamities;
EXCEPTIONS
3. When there is urgent work to be performed on
machines, installations or equipment, or in order to
avoid serious loss or damage to the employer or some
other causes of similar nature;
4. When the work is necessary to prevent loss or
damage to perishable goods;
EXCEPTIONS
5. When the completion or continuation of work started before
the 8th hour is necessary to prevent serious obstruction or
prejudice to the business or operations of the employer; and
6. When overtime work is necessary to avail of favorable
weather or environmental conditions where performance or
quality of work is dependent thereon.
PREMIUM PAY
It refers to the additional compensation required by law
for work performed within the eight (8) normal hours of
work on non-working days, such as rest days and regular
and special holidays.
WHO IS COVERED BY THE HOLIDAY PAY RULE

Holiday pay is applicable to all employees.

EXEMPTED EMPLOYEES FROM THE HOLIDAY PAY
RULE
1. Government employees, except those GOCCs that do not have original
charter,
2. Those of retail and service establishments regularly employing less than ten
(10) workers;
3. Kasambahay and persons in the personal service of another;
4. Managerial employees, and
5. Officers or members of a managerial staff
6. Field personnel and other employees whose time and performance are
unsupervised by the employer, including those who are engaged on task or
contract basis, purely commission basis or those who are paid a fixed amount
for performing work irrespective of the time consumed in the performance
thereof.
 How is premium pay for REGULAR HOLIDAYS computed

Particulars Formula

If the employee did not work he/she shall be paid 100 percent of his/her
salary for that day.
If the employee worked, (Daily rate + COLA) x 200%
If the employee worked in excess of eight Hourly rate of the basic daily wage x 200% x
hours (overtime work), 130% x number of hours worked.
the employee worked during a regular (Daily rate + COLA) x
holiday that also falls on his/her rest day 200%] + (30% [Daily rate x 200%)].
If the employee worked in excess of eight (Hourly rate of the basic daily wage x 200% x
hours (overtime work) during a regular 130% x 130% x number of hours worked)
holiday that also falls on his/her rest day
 FOR SPECIAL (NON-WORKING) DAYS OR SPECIAL HOLIDAYS

Particulars Formula
If the employee did not work No work, no pay

If the employee worked, [(Daily rate x 130%) + COLA)

If the employee worked in excess of eight Hourly rate of the basic daily wage x 130% x
hours (overtime work), 130% x number of hours worked)
the employee worked during a regular [(Daily rate x 150%) + COLA]
holiday that also falls on his/her rest day
If the employee worked in excess of eight (Hourly rate of the basic daily wage x 150% x
hours (overtime work) during a regular 130% x number of hours worked)
holiday that also falls on his/her rest day
 Regular Holidays Special Holidays

Name Date Name Date

New Year’s Day January 1 Ninoy Aquino Day Monday nearest August 21

Maundy Thursday Movable Date All Saints’ Day November 1

Good Friday Movable Date Feast of Immaculate

Conception of Mary December 8
Araw ng Kagitingan April 9 Last Day of the Year

Labor Day May 1

Eid’l Fitr Movable Date

Eid’l Adha Movable Date

Independence Day June 12

National Heroes Day Last Monday of August

Bonifacio Day November 30

GUARANTEED PAID REGULAR
HOLIDAYS
12 paid regular holidays in a year.

The provision on holiday pay is mandatory.

WEEKLY REST DAY
Every employer, whether operating for profit or
not, as the duty to provide each of his
employees a rest period of not less than twenty-
four (24) consecutive hours after every six (6)
consecutive normal work days.
WEEKLY REST DAY
The employer shall determine and schedule the weekly rest
day of his employees subject to collective bargaining
agreement and to such rules and regulations as the Secretary
of Labor and Employment may provide. However, the
employer shall respect the preference of employees as to
their weekly rest day when such preference is based on
religious grounds.
EMERGENCY REST DAY
WORK
1. In case of actual or impending emergencies caused by serious
accident, fire, flood, typhoon, earthquake, epidemic or other disaster
or calamity to prevent loss of life and property, or imminent danger
to public safety;
2. In cases of urgent work to be performed on the machinery,
equipment, or installation, to avoid serious loss which the employer
would otherwise suffer;
3. In the event of abnormal pressure of work due to special
circumstances, where the employer cannot ordinarily be expected to
resort to other measures;
EMERGENCY REST DAY
WORK
3. To prevent loss or damage to perishable goods;
4. Where the nature of the work requires continuous
operations and the stoppage of work may result in
irreparable injury or loss to the employer; and
5. Under other circumstances analogous or similar to
the foregoing as determined by the Secretary of Labor
and Employment.
 Regular Holidays Special Holidays

Name Date Name Date

Christmas Day December 25

Rizal Day December 30

WHO ARE COVERED BY 13TH MONTH PAY

All rank-and-file employees.

Managerial employees are not covered.

MINIMUM PERIOD OF SERVICE
REQUIRED IN A CALENDAR YEAR TO
BE ENTITLED TO 13TH MONTH PAY
To be entitled to the 13th month pay benefit, it is
imposed as a minimum service requirement that the
employee should have worked for at least one (1)
month during a calendar year.
PAYMENT OF 13TH MONTH PAY

Not later than December 24 of every year.

EXCLUDED FROM THE COVERAGE
OF 13TH MONTH PAY
The Government, except those GOCCs without
original charters.
Employers already paying their employees 13th month
pay or more in a calendar year or its equivalent at the
time of the issuance of the Revised Guidelines.
Employers of those who are paid on purely
commission, boundary, or task basis, and those who are
paid a fixed amount for performing a specific work.
MINIMUM AMOUNT OF THE 13TH
MONTH PAY
The minimum 13th month pay should not be less than
one-twelfth (1/12) of the total basic salary earned by
an employee within a calendar year.

The basic salary of an employee for purposes of

computing the 13th month pay should include all
remunerations or earnings paid by the employer for
services rendered during normal working hours.
WHAT IS SERVICE INCENTIVE
LEAVE?
Every covered employee who has rendered at least
one (1) year of service is entitled to a yearly service
incentive leave of five (5) days with pay.
WHO CAN AVAIL OF MATERNITY
LEAVE?
All covered females, regardless of civil status,
employment status, and the legitimacy of her child, are
entitled to maternity leave.
BENEFITS OF MATERNITY LEAVE
Paid leave benefit granted to a qualified female worker
in both the public and private sector (which is
covered by the SSS, including those in the informal
economy),
 MISCARRIAGE AND
LIVE CHILDBIRTH, regardless EMERGENCY
Maternity Benefit
of the mode of delivery TERMINATION OF
PREGNANCY

Period of maternity leave 105 days of paid leave 60 days of paid leave

For female worker qualified Additional fifteen (15) days of None

as a solo parent under R.A. paid leave
No. 8972, or the "Solo
Parents' Welfare Act of
2000"
EXTENDED MATERNITY Available only in case of live None
LEAVE: childbirth
An option to extend for an
additional thirty (30) days
without pay
FREQUENCY OF GRANT In every instance of live In every instance of
childbirth, regardless of pregnancy, miscarriage or
frequency emergency termination of
pregnancy, regardless of
frequency
ALLOCATION OF A female worker entitled to Not available
MATERNITY maternity leave benefits may, at
LEAVE CREDITS to the her option, allocate up to seven
child's father or alternate (7) days of said benefits to the
caregiver child's father or alternate
caregiver
IS AN UNMARRIED WOMAN
COVERED BY MATERNITY LEAVE?
Yes. If a woman is pregnant, she is entitled to
maternity leave regardless of whether she is married,
or unmarried.
WHAT IS PATERNITY LEAVE?
Paternity leave covers a married male employee
allowing him not to report for work for seven (7)
calendar days but continues to earn the compensation
therefor, on the condition that his spouse has
delivered a child or suffered miscarriage for purposes
of enabling him to effectively lend support to his wife
in her period of recovery and/or in the nursing of the
newly-born child.
HOW MANY COVERED
DELIVERIES?
Every married male employee whether in the public or
private sector, is entitled to paternity leave of leave of
seven (7) calendar days with full pay for the first four
(4) deliveries of the legitimate spouse with whom he is
cohabiting.

Paternity leave can also be granted to an employee

before or during delivery, provided that the total number
of days should not exceed seven (7) calendar days for
each delivery.
WHAT IS A SOLO PARENT LEAVE?
A leave benefit granted to a male or female solo
parent to enable him/her to perform parental duties
and responsibilities where his/her physical presence is
required.
COVERAGE
The solo parent leave shall not be more than seven (7)
working days every year to a solo parent who has
rendered service of at least one (1) year, to enable
him/her to perform parental duties and responsibilities
where his/her physical presence is required. This leave
shall be non-cumulative.
SSS
LAW
R.A. No. 11199
COVERED EMPLOYERS
a. An employer or any person who uses the services of another
person in business, trade, industry or any undertaking.

b. A social, civic, professional, charitable and other non-profit

organizations which hire the services of employees are
considered “employers.”

c. A foreign government, international organization or its wholly-

owned instrumentality such as an embassy in the Philippines, may
enter into an administrative agreement with the SSS for the
coverage of its Filipino employees.
COMPULSORY EMPLOYEES
a. A private employee, whether permanent, temporary or provisional, who
is not over 60 years old.
b. A domestic worker or kasambahay who has rendered at least one (1)
month of service.
c. A Filipino seafarer upon the signing of the standard contract of
employment between the seafarer and the manning agency which,
together with the foreign ship owner, act as employers.
d. An employee of a foreign government, international organization or their
wholly-owned instrumentality based in the Philippines, which entered
into an administrative agreement with the SSS for the coverage of its
Filipino workers.
e. The parent, spouse or child below 21 years old of the owner of a single
proprietorship business.
SELF-EMPLOYED PERSONS
A self-employed person is covered under the SSS
Law.

The law provides that a self-employed person,

regardless of trade, business or occupation, with an
income of at least P1,000 a month and not over 60
years old, should register with the SSS.
SELF-EMPLOYED PERSONS
(a) All self-employed professionals;
(b)Partners and single proprietors of businesses;
(c) Actors and actresses, directors, scriptwriters and
news correspondents who do not fall within the
definition of the term "employee" in Section 8(d) of this
Act;
(d) Professional athletes, coaches, trainers and jockeys;
and
(e) Individual farmers and fishermen.
VOLUNTARILY COVERED
1. Separated members
2. OFWs
3. Non-working spouses of SSS members
EFFECTIVE DATE OF COVERAGE
Compulsory coverage

For employer Compulsory coverage of the employer shall take

effect on the first day of his operation or on the
first day he hires employee/s. The employer is
given only 30 days from the date of employment
of employee to report the person for coverage to
the SSS.

For employee Compulsory coverage of the employee shall take

effect on the first day of his employment.

For self-employed The compulsory coverage of the self-employed

person shall take effect upon his registration
with the SSS or upon payment of the first valid
contribution, in case of initial coverage.
EFFECTIVE DATE OF COVERAGE
Voluntary coverage

For an OFW Upon first payment of

contribution, in case of initial
coverage.
For a non-working spouse upon first payment of
contribution.
For a separated member on the month he/she resumed
payment of contribution.
EXCLUDED EMPLOYER
The Government, including GOCCs with original
charter.
EXCLUDED EMPLOYEE
1. Employment purely casual and not for the purpose of occupation
or business of the employer;
2. Service performed on or in connection with an alien vessel by an
employee if he is employed when such vessel is outside the
Philippines;
3. Service performed in the employ of the Philippine Government
or instrumentality or agency thereof;
4. Service performed in the employ of the Philippine Government
or instrumentality or agency thereof;
5. Such other services performed by temporary and other
employees which may be excluded by regulation of the Social
Security Commission.
PRIMARY BENEFICIARIES
1. The dependent spouse until he or she remarries; and
2. The dependent legitimate, legitimated or legally adopted, and
illegitimate children, subject to the following conditions:
(1) The share of the dependent illegitimate children shall be
fifty percent (50%) of the share of the legitimate, legitimated or
legally adopted children in the basic pension;
(2) In the absence of the dependent legitimate, legitimated or
legally adopted children of the member, his/her dependent
illegitimate children shall be entitled to one hundred percent (100%)
of the benefits.
SECONDARY BENEFICIARIES
1. The dependent parents; and
2. In the absence of dependent parents, any other person
designated by the member.
DEPENDENTS UNDER THE SSS
LAW
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 twenty-one (21) years of age, or if over twenty-one (21)
years of age, he is congenitally or while still a minor has been
permanently incapacitated and incapable of self-support,
physically and mentally; and
3. The parent who is receiving regular support from the member.
CLASSIFICATION OF BENEFITS
1) Social security benefits, and
2) Employees’ compensation benefits.
SOCIAL SECURITY BENEFITS
1) Maternity leave,
2) Sickness,
3) Permanent partial disability,
4) Permanent total disability,
5) Unemployment, insurance, or involuntary separation,
6) Retirement,
7) Death benefit, and
8) Funeral
MATERNITY LEAVE
1) Female member; and
2) Paid at least three (3) monthly contributions in the twelve-month
(12) period immediately preceding the semester of her childbirth,
miscarriage, or emergency termination of pregnancy;
3) She must notify the employer that she will avail of the benefit.
MATERNITY LEAVE
Daily Maternity Benefit equivalent to one hundred percent (100%) of her
average daily salary credit for one hundred five (105) days for childbirth,
regardless of the type of delivery, or sixty (60) days for miscarriage or
emergency termination of pregnancy.
SICKNESS BENEFIT
1) Benefit shall begin only after all sick leaves and other paid absences
have been exhausted;
2) Benefit is paid for not longer than one hundred twenty (120) days in
one (1) calendar year. Further, any unused portion cannot be carried
over to the next calendar year;
3) Benefit shall not be paid for more than two hundred forth (240)
days on account of the same confinement; and
4) For employed members, that employer has been notified within five
(5) calendar days after the start of confinement. For unemployed,
voluntary, and self-employed members, that SSS has been directly
notified within five (5) calendar days after the start of confinement.
SICKNESS BENEFIT
Daily Sickness Benefit which is equivalent to 90% of
his average daily salary credit.
SICKNESS BENEFIT
Daily Sickness Benefit which is equivalent to 90% of
his average daily salary credit.
PERMANENT DISABILITY
BENEFITS
1. A 36 monthly contributions prior to the semester of
disability,
2. In case the permanently disabled member dies, he/she is
given the same treatment as a retiree dying,
3. For permanent partial disability, the pension is not lifetime. It
shall be paid in lump sum if the period is less than 12
months.
4. For multiple partial disabilities, they shall be additive when
related or deteriorating - the percentage shall be equal to the
number of months the partial disability is entitled to, divided
by 75 months.
PERMANENT DISABILITY
BENEFITS
1. A 36 monthly contributions prior to the semester of
disability,
2. In case the permanently disabled member dies, he/she is
given the same treatment as a retiree dying,
3. For permanent partial disability, the pension is not lifetime. It
shall be paid in lump sum if the period is less than 12
months.
4. For multiple partial disabilities, they shall be additive when
related or deteriorating - the percentage shall be equal to the
number of months the partial disability is entitled to, divided
by 75 months.
.

DEEMED PERMANENT TOTAL

(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
.

DEEMED PERMANENT PARTIAL

1. one thumb
2. one little finger
3. one big toe
4. one leg
5. one index
6. finger
7. hearing of one ear
8. one hand
9. one ear
10. one arm
11. hearing of both ears
12. one ring finger
13. both ears
14. one foot
15. sight of one eye
.

UNEMPLOYMENT INSURANCE
1. Member is 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.
.

UNEMPLOYMENT INSURANCE
BENEFITS
Monthly cash payments equivalent to 50% of the average
monthly salary credit for a maximum of 2 months.
.

RETIREMENT BENEFITS
1. A member who is 60 years old, separated from
employment or ceased to be self-employed, and has paid at
least 120 monthly contributions prior to the semester of
retirement.
2. A member who is 65 years old whether employed or not
and has paid at least 120 monthly contributions prior to the
semester of retirement.
.

RETIREMENT BENEFITS
1. Installments
2. Lump-sum
.

DEATH BENEFITS
36 monthly contributions prior to the semester of death
.

DEATH BENEFITS
1. Monthly pension to primary beneficiaries, or
2. If no primary beneficiaries, lump sum equivalent to 36
times the monthly pension to secondary beneficiaries
.

IF INELIGIBLE/HAS NOT PAID 36

MONTHLY CONTRIBUTIONS
A lump sum benefit which shall be that which is higher
between the ff. will be given to the beneficiaries:

a. (monthly pension) x 12, or

b. (monthly pension) x (# of monthly contributions)

.

FUNERAL BENEFITS
A funeral grant equivalent to Twelve thousand pesos (₱12,000.00) shall
be paid, in cash or in kind, to help defray the cost of funeral expenses
upon the death of a member, including permanently totally disabled
member or retiree.
EXEMPTION FROM TAX, LEGAL
PROCESS, AND LIEN
All laws to the contrary notwithstanding, the SSS and all its assets
and properties, all contributions collected and all accruals x x x shall
be exempt from any tax, assessment, fee, charge, or customs or
import duty; and all benefit payments made by the SSS shall likewise
be exempt from all kinds of taxes, fees or charges, and shall not be
liable to attachments, garnishments, levy or seizure by or under any
legal or equitable process whatsoever, either before or after receipt
by the person or persons entitled thereto, except to pay any debt of
the member to the SSS.
 Contributions

Employee Beginning on the last day of the calendar month when an employee’s compulsory coverage takes
effect and every month thereafter during his employment
Employer Beginning on the last day of the month when an employee’s compulsory coverage takes effect and
every month thereafter during his employment, his employer shall pay, with respect to such covered
employee, the employer’s contribution in accordance with the schedule provided in this Act.
Notwithstanding any contract to the contrary, an employer shall not deduct, directly or indirectly,
from the compensation of his employees covered by the SSS or otherwise recover from them the
employer’s contributions with respect to such employees.
Self- - The contributions to the SSS of the self-employed member shall be determined in accordance with
employed the schedule provided in this Act.

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 employer and the
employee contributions

That the contributions of self-employed persons earning One thousand pesos (₱1,000.00) monthly
or below may be reduced by the Commission.
 Remittance

Employer First ten (10) days of each calendar month following the month for which they are applicable or within such
time as the Commission may prescribe.

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 employees to be advanced by their
respective employers, provided that upon separation of an employee, any contribution so paid in advance but not
due shall be credited or refunded to his employer.

Self-employed Self-employed members shall remit their monthly contributions quarterly on such dates and schedules as the
Commission may specify through rules and regulations, provided that no retroactive payment of contributions
shall be allowed, except as provided in this Section.
EFFECT IF THE EMPLOYER
FAILED TO REMIT THE
CONTRIBUTION
He shall be liable for violation of the SSS Law,
regardless of whether or not he is in good faith.
PAYMENT
Payment may be made in cash, checks, stamps, coupons, tickets, or
other reasonable devices that the Commission may adopt.