R.a. 1161 as Amended R.a. 8282 (Social Security Act) - [PDF Document] (2023)

  • 7/28/2019 R.a. 1161 as Amended R.a. 8282 (Social SecurityAct)


    Republic of the Philippines

    Congress of the Philippines

    Metro Manila

    Tenth Congress

    public Act No. 8282 May 01, 1997




    it enacted by the Senate and House of Representatives of thePhilippines in Congress assembled::

    tion 1.Republic Act No. 1161,as amended, otherwise known as the"Social Security Law", is herebyfurtheramen

    d as follows:


    "SEC. 2.Declaration of Policy. - It is the policy of theRepublic of the Philippines to establish, develop

    promote and perfect a sound and viable tax-exempt socialsecurity service suitable to the needs of the pthroughout thePhilippines which shall promote social justice and providemeaningful protection to memand their beneficiaries against thehazards of disability, sickness, maternity, old age, death, andother

    contingencies resulting in loss of income or financial burden.Towards this end, the State shall endeavo

    extend social security protection to workers and theirbeneficiaries.

    "SEC. 3. Social Security System. - (a) To carry out the purposesof this Act, the Social Security System

    hereinafter referred to as 'SSS', a corporate body, withprincipal place of business in Metro Manila,Philippines is herebycreated. The SSS shall be directed and controlled by a SocialSecurity Commissio

    hereinafter referred to as 'Commission', composed of theSecretary of Labor and Employment or his dul

    designated undersecretary, the SSS president and seven (7)appointive members, three (3) of whom sha

    represent the workers' group, at least one of whom shall be awoman; three (3), the employers' group, atone (1) of whom shall bea woman; and one (1), the general public whose representative shallhave ade

    knowledge and experience regarding social security, to beappointed by the President of the Philippines

    six (6) members representing workers and employers shall bechosen from among the nominees of workand employers' organizations,respectively. The Chairman of the Commission shall be designated byth

    President of the Philippines from among its members. The term ofthe appointive members shall be thre

    years:Provided, That the terms of the first six (6) appointivemembers shall be one (1), two (2) and threyears for every twomembers, respectively:Provided,further, That they shall continue tohold office un

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    their successors shall have been appointed and duly qualified.All vacancies, prior to the expiration of th

    term, shall be filled for the unexpired term only. Theappointive members of the Commission shall rece

    least two thousand five hundred pesos (P2,500.00) per diem foreach meeting actually attended by themnot to exceed Ten thousandpesos (P10,000.00) a month::Provided, That members of theCommission

    also receive a per diem of at least Two thousand five hundredpesos (P2,500.00) but not to exceed Fifte

    thousand pesos (P15,000.00) a month:Provided,further, That saidmembers of the Commission shall areceive reasonable transportationand representation allowances as may be fixed by the Commission,buto exceed Ten thousand pesos (P10,000.00) a month.

    "(b) The general conduct of the operations and managementfunctions of the SSS shall be vested in the

    President who shall serve as the chief executive officerimmediately responsible for carrying out the pro

    of the SSS and the policies of the Commission. The SSS Presidentshall be a person who has had previo

    experience in the technical and administrative fields related tothe purposes of this Act. He shall be appby the President of thePhilippines and shall receive salary to be fixed by the Commissionwith the appr

    of the President of the Philippines, payable from the funds ofthe SSS.

    "(c) The Commission, upon the recommendation of the SSSPresident, shall appoint an actuary, and sucother personnel as maybe deemed necessary, fix their reasonable compensation, allowancesand other

    benefits, prescribe their duties and establish such methods andprocedures as may be necessary to insurefficient, honest andeconomical administration of the provisions and purposes of thisAct:Provided,

    however, That the personnel of the SSS below the rank ofVice-President shall be appointed by the SSS

    President:Provided,further, That the personnel appointed by theSSS President, except those below the

    of assistant manager, shall be subject to the confirmation bythe Commission:Provided,further, That thpersonnel of the SSS shallbe selected only from civil service eligibles and be subject tocivil service ru

    and regulations:Provided,finally, That the SSS shall be exemptfrom the provisions ofRepublic Act N

    6758andRepublic Act No. 7430.

    "SEC. 4.Powers and Duties of the Commission and SSS. - (a) TheCommission. - For the attainment ofmain objectives as set forth inSection 2 hereof, the Commission shall have the following powersand d

    "(1) To adopt, amend and rescind, subject to the approval of thePresident of the Philippines, suc

    rules and regulations as may be necessary to carry out theprovisions and purposes of this Act;

    "(2) To establish a provident fund for the members which willconsist of voluntary contributionsemployers and/or employees,self-employed and voluntary members and their earnings, for the

    payment of benefits to such members or their beneficiaries,subject to such rules and regulations

    may promulgate and approved by the President of thePhilippines;

    "(3) To maintain a provident fund which consists ofcontributions made by both the SSS and its

    officials and employees and their earnings, for the payment ofbenefits to such officials and

    employees or their heirs under such terms and conditions as itmay prescribe;

    "(4) To approve restructuring proposals for the payment of duebut unremitted contributions and

    unpaid loan amortizations under such terms and conditions as itmay prescribe;

    "(5) To authorize cooperatives registered with the cooperativedevelopment authority or associa

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    registered with the appropriate government agency to act ascollecting agents of the SSS with re

    to their members:Provided, That the SSS shall accredit thecooperative or association:Provided

    further, That the persons authorized to collect are bonded;

    "(6) To compromise or release, in whole or in part, anyinterest, penalty or any civil liability to S

    connection with the investments authorized under Section 26hereof, under such terms and condas it may prescribe and approvedby the President of the Philippines; and

    "(7) To approve, confirm, pass upon or review any and allactions of the SSS in the proper andnecessary exercise of itspowers and duties hereinafter enumerated.

    "(b) The Social Security System. - Subject to the provision ofSection four (4), paragraph seven (7) here

    the SSS shall have the following powers and duties:

    "(1) To submit annually not later than April 30, a public reportto the President of the Philippineto the Congress of thePhilippines covering its activities in the administration andenforcement o

    Act during the preceding year including information andrecommendations on broad policies fordevelopment and perfection ofthe program of the SSS;

    "(2) To require the actuary to submit a valuation report on theSSS benefit program every four (

    years, or more frequently as may be necessary, to undertake thenecessary actuarial studies andcalculations concerning increases inbenefits taking into account inflation and the financial stabi

    the SSS, and to provide for feasible increases in benefits everyfour (4) years, including the addi

    of new ones, under such rules and regulations as the Commissionmay adopt, subject to the appr

    of the President of the Philippines:Provided, That the actuarialsoundness of the reserve fund shguaranteed:Provided,further, Thatsuch increases in benefits shall not require any increase in th

    of contribution;

    "(3) To establish offices of the SSS to cover as many provinces,cities and congressional district

    whenever and wherever it may be expedient, necessary andfeasible, and to inspect or cause to binspected periodically suchoffices;

    "(4) To enter into agreements or contracts for such service andaid, as may be needed for the proefficient and stableadministration of the SSS;

    "(5) To adopt, from time to time, a budget of expendituresincluding salaries of personnel, again

    funds available to the SSS under this Act;

    "(6) To set up its accounting system and provide the necessarypersonnel therefor;

    "(7) To require reports, compilations and analyses ofstatistical and economic data and to make

    investigation as may be needed for the proper administration anddevelopment of the SSS;

    "(8) To acquire and dispose of property, real or personal, whichmay be necessary or expedient fattainment of the purposes of thisAct;

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    "(9) To acquire, receive, or hold, by way of purchase,expropriation or otherwise, public or priv

    property for the purpose of undertaking housing projectspreferably for the benefit of low-incom

    members and for the maintenance of hospitals and institutionsfor the sick, aged and disabled, asas schools for the members andtheir immediate families;

    "(10) To sue and be sued in court; and

    "(11) To perform such other corporate acts as it may deemappropriate for the proper enforceme

    this Act.

    "SEC. 5. Settlement of Disputes. - (a) Any dispute arising underthis Act with respect to coverage, benecontributions and penaltiesthereon or any other matter related thereto, shall be cognizable bythe

    Commission, and any case filed with respect thereto shall beheard by the Commission, or any of its

    members, or by hearing officers duly authorized by theCommission and decided within twenty (20) da

    after the submission of the evidence. The filing, determinationand settlement of disputes shall be goverby the rules andregulations promulgated by the Commission.

    "(b) Appeal to Courts. - Any decision of the Commission, in theabsence of an appeal therefrom as hereProvided, shall become finaland executory fifteen (15) days after the date of notification, andjudicial r

    thereof shall be permitted only after any party claiming to beaggrieved thereby has exhausted his reme

    before the Commission. The Commission shall be deemed to be aparty to any judicial action involvingsuch decision, and may berepresented by an attorney employed by the Commission, or whenrequestedthe Commission, by the Solicitor General or any publicprosecutors.

    "(c) Court Review. - The decision of the Commission upon anydisputed matter may be reviewed both uthe law and the facts by theCourt of Appeals. For the purpose of such review, the procedureconcerning

    appeals from the Regional Trial Court shall be followed as faras practicable and consistent with the pur

    of this Act. Appeal from a decision of the Commission must betaken within fifteen (15) days fromnotification of such decision.If the decision of the Commission involves only questions of law,the sam

    shall be reviewed by the Supreme Court. No appeal bond shall berequired. The case shall be heard in a

    summary manner, and shall take precedence over all cases, exceptthat in the Supreme Court, criminal cwherein life imprisonment ordeath has been imposed by the trial court shall take precedence. Noappea

    act as a supersedeas or a stay of the order of the Commissionunless the Commission itself, or the Court

    Appeals or the Supreme Court, shall so order.

    "(d) Execution of Decisions. - The Commission may, motu proprioor on motion of any interested party

    a writ of execution to enforce any of its decisions or awards,after it has become final and executory, in

    same manner as the decision of the Regional Trial Court bydirecting the city or provincial sheriff or thesheriff whom it mayappoint to enforce such final decision or execute such writ; andany person who sh

    fail or refuse to comply with such decision, award or writ,after being required to do so shall, upon

    application by the Commission pursuant to Rule 71 of the Rulesof Court, be punished for contempt.

    "SEC. 6.Auditor and Counsel. - (a) The Chairman of theCommission on Audit shall be the ex-officio

    Auditor of the SSS. He or his representative shall check andaudit all the accounts, funds and propertiesSSS in the same mannerand as frequently as the accounts, funds and properties of thegovernment are

    checked and audited under existing laws, and he shall have, asfar as practicable, the same powers and d

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    as he has with respect to the checking and auditing of publicaccounts, funds and properties in general.

    "(b) The Secretary of Justice shall be the ex-officio counsel ofthe SSS. He or his representative shall aclegal adviser and counselthereof.

    "SEC. 7. Oaths, Witnesses, and Production of Records. - Whenauthorized by the Commission, an officemployee thereof shall havethe power to administer oath and affirmation, take depositions,certify to of

    acts, and issue subpoena and subpoena duces tecum to compel theattendance of witnesses and the prod

    of books, papers, correspondence and other records deemednecessary as evidence in connection with aquestion arising underthis Act. Any case of contumacy shall be dealt with by theCommission in accord

    with law.

    "SEC. 8. Terms Defined. - For purposes of this Act, thefollowing terms shall, unless the context indicat

    otherwise, have the following meanings:

    "(a) SSS - The Social Security System created by this Act.

    "(b) Commission - The Social Security Commission as hereincreated.

    "(c) Employer- Any person, natural or juridical, domestic orforeign, who carries on in the Philippines atrade, business,industry, undertaking, or activity of any kind and uses theservices of another person wh

    under his orders as regards the employment, except theGovernment and any of its political subdivision

    branches or instrumentalities, including corporations owned orcontrolled by the Government:Provideda self-employed person shallbe both employee and employer at the same time.

    "(d) Employee - Any person who performs services for an employerin which either or both mental or

    physical efforts are used and who receives compensation for suchservices, where there is an employer-

    employee relationship:Provided, That a self-employed personshall be both employee and employer at same time.

    "(e) Dependents - The dependents shall be the following:

    "(1) The legal spouse entitled by law to receive support fromthe member;

    "(2) The legitimate, legitimated or legally adopted, andillegitimate child who is unmarried, notgainfully employed, and hasnot 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 beenpermanently incapacitated and

    incapable of self-support, physically or mentally; and

    "(3) The parent who is receiving regular support from themember.

    "(f) Compensation - All actual remuneration for employment,including the mandated cost-of-living

    allowance, as well as the cash value of any remuneration paid inany medium other than cash except tha

    of the remuneration in excess of the maximum salary creditasProvidedunder Section Eighteen of this

    "(g) Monthly salary credit - The compensation base forcontributions and benefits as indicated in the sc

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    (Video) SOCIAL SECURITY SYSTEM LAW (R.A. 8282 as amended) SOCIAL SECURITY ACT OF 2018 (R.A. 11199)


    in Section Eighteen of this Act.

    "(h) Monthly - The period from one end of the last payrollperiod of the preceding month to the end of tlast payroll period ofthe current month if compensation is on hourly, daily or weeklybasis; if on any ot

    basis, 'monthly' shall mean a period of one (1) month.

    "(i) Contribution - The amount paid to the SSS by and on behalfof the members in accordance with Sec

    Eighteen of this Act.

    "(j) Employment - Any service performed by an employee for hisemployer except:

    "(1) Employment purely casual and not for the purpose ofoccupation or business of the employ

    "(2) Service performed on or in connection with an alien vesselby an employee if he is employewhen such vessel is outside thePhilippines;

    "(3) Service performed in the employ of the PhilippineGovernment or instrumentality or agencythereof;

    "(4) Service performed in the employ of a foreign government orinternational organization, or t

    wholly-owned instrumentality:Provided, however, That thisexemption notwithstanding, any fo

    government, international organization or their wholly-ownedinstrumentality employing worke

    the Philippines or employing Filipinos outside of thePhilippines, may enter into an agreement wthe Philippine Governmentfor the inclusion of such employees in the SSS except thosealready

    covered by their respective civil service retirementsystems:Provided,further, That the terms ofagreement shall conformwith the provisions of this Act on coverage and amount of paymentof

    contributions and benefits:Provided,finally, That the provisionsof this Act shall be supplemen

    any such agreement; and

    "(5) Such other services performed by temporary and otheremployees which may be excluded b

    regulation of the Commission. Employees of bona fide independentcontractors shall not be dee

    employees of the employer engaging the service of saidcontractors.

    "(k) Beneficiaries - The dependent spouse until he or sheremarries, the dependent legitimate, legitimate

    legally adopted, and illegitimate children, who shall be theprimary beneficiaries of the member:ProvidThat the dependentillegitimate children shall be entitled to fifty percent (50%) ofthe share of the legiti

    legitimated or legally adopted children:Provided,further, Thatin the absence of the dependent legitim

    legitimated children of the member, his/her dependentillegitimate children shall be entitled to one hund

    percent (100%) of the benefits. In their absence, the dependentparents who shall be the secondarybeneficiaries of the member. Inthe absence of all the foregoing, any other person designated bythe mem

    as his/her secondary beneficiary.

    "(l) Contingency - The retirement, death, disability, injury orsickness and maternity of the member.

    "(m) Average monthly salary credit - The result obtained bydividing the sum of the last sixty (60) mon

    salary credits immediately preceding the semester of contingencyby sixty (60), or the result obtained by

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    dividing the sum of all the monthly salary credits paid prior tothe semester of contingency by the numb

    monthly contributions paid in the same period, whichever isgreater:Provided, That the injury or sickne

    which caused the disability shall be deemed as the permanentdisability for the purpose of computing thaverage monthly salarycredit.

    "(n) Average daily salary credit- The result obtained bydividing the sum of the six (6) highest monthlycredits in thetwelve-month period immediately preceding the semester ofcontingency by one hundred


    "(o) Semester - A period of two (2) consecutive quarters endingin the quarter of contingency.

    "(p) Quarter - A period of three (3) consecutive calendar monthsending on the last day of March, June,

    September and December.

    "(q) Credited years of service - For a member covered prior toJanuary nineteen hundred and eighty five(1985) minus the calendaryear of coverage plus the number of calendar years in which six (6)or more

    contributions have been paid from January nineteen hundred andeighty five (1985) up to the calendar ycontaining the semesterprior to the contingency. For a member covered in or after Januarynineteen hunand eighty five (1985), the number of calendar years inwhich six (6) or more contributions have been p

    from the year of coverage up to the calendar year containing thesemester prior to the contingency:Pro

    That the Commission may provide for a different number ofcontributions in a calendar year for it to beconsidered as acredited year of service.

    "(r) Member - The worker who is covered under Section Nine andSection Nine-A of this Act.

    "(s) Self-employed - Any person whose income is not derived fromemployment, as defined under this

    as well as those workers enumerated in Section Nine-Ahereof.

    "(t) Net earnings - Net income before income taxes plus non-cashcharges such as depreciation and dep

    appearing in the regular financial statement of the issuing orassuming institution.

    "(u) Fixed charges - Recurring expense such as amortization ofdebt discount or rentals for leased prope

    including interest on funded and unfunded debt.

    "SEC. 9. Coverage. - (a) Coverage in the SSS shall be compulsoryupon all employees not over sixty (6years of age and theiremployers:Provided, That in the case of domestic helpers, theirmonthly income

    not be less than One thousand pesos (P1,000.00) amonth:Provided,further, That any benefit already e

    by the employees under private benefit plans existing at thetime of the approval of this Act shall not be

    discontinued, reduced or otherwise impaired:Provided,further,That private plans which are existing anforce at the time ofcompulsory coverage shall be integrated with the plan of the SSS insuch a way whe

    employer's contribution to his private plan is more than thatrequired of him in this Act, he shall pay to t

    SSS only the contribution required of him and he shall continuehis contribution to such private plan lescontribution to the SSS sothat the employer's total contribution to his benefit plan and tothe SSS shall

    same as his contribution to his private benefit plan before thecompulsory coverage:Provided,further,

    any changes, adjustments, modifications, eliminations orimprovements in the benefits to be available u

    the remaining private plan, which may be necessary to adopt byreason of the reduced contributions the

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    a result of the integration, shall be subject to agreementsbetween the employers and employees concern

    Provided,further, That the private benefit plan which theemployer shall continue for his employees sha

    remain under the employer's management and control unless thereis an existing agreement to the contr

    Provided,finally, That nothing in this Act shall be construed asa limitation on the right of employers an

    employees to agree on and adopt benefits which are over andabove thoseProvidedunder this Act.

    "(b) Spouses who devote full time to managing the household andfamily affairs, unless they are also en

    in other vocation or employment which is subject to mandatorycoverage, may be covered by the SSS o

    voluntary basis.

    "(c) Filipinos recruited by foreign-based employers foremployment abroad may be covered by the SSS

    voluntary basis.

    "SEC. 9-A. Compulsory Coverage of the Self-Employed. - Coveragein the SSS shall also be compulsor

    upon such self-employed persons as may be determined by theCommission under such rules and regulaas it may prescribe,including but not limited to the following:

    "1. All self-employed professionals;

    "2. Partners and single proprietors of businesses;

    "3. Actors and actresses, directors, scriptwriters and newscorrespondents who do not fall within

    definition of the term "employee" in Section 8 (d) of thisAct;

    "4. Professional athletes, coaches, trainers and jockeys;and

    "5. Individual farmers and fishermen.

    "Unless otherwise specified herein, all provisions of this Actapplicable to covered employees shall alsoapplicable to the coveredself-employed persons.

    "SEC. 10.Effective Date of Coverage. - Compulsory coverage ofthe employer shall take effect on the f

    day of his operation and that of the employee on the day of hisemployment:Provided, That the compu

    coverage of the self-employed person shall take effect upon hisregistration with the SSS.

    "SEC. 11.Effect of Separation from Employment. - When anemployee under compulsory coverage is

    separated from employment, his employer's contribution on hisaccount and his obligation to pay

    contributions arising from that employment shall cease at theend of the month of separation, but said

    employee shall be credited with all contributions paid on hisbehalf and entitled to benefits according toprovisions of this Act.He may, however, continue to pay the total contributions tomaintain his right to


    "SEC. 11-A.Effect of Interruption of Business or ProfessionalIncome. - If the self-employed realizes n

    income in any given month, he shall not be required to paycontributions for that month. He may, howebe allowed to continuepaying contributions under the same rules and regulationsapplicable to a separa

    employee member:Provided, That no retroactive payment ofcontributions shall be allowed other than a

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    prescribed under Section Twenty-two-A hereof.

    "SEC. 12.Monthly Pension. - (a) The monthly pension shall be thehighest of the following amounts:

    "(1) The sum of the following:

    "(i) Three hundred pesos (P300.00; plus

    "(ii) Twenty percent (20%) of the average monthly salary credit;plus

    "(iii) Two percent (2%) of the average monthly salary credit foreach credited year of ser

    in excess of ten (10) years; or

    "(2) Forth percent (40%) of the average monthly salary credit;or

    "(3) One thousand pesos (P1,000.00):Provided, That the monthlypension shall in no case be pa

    an aggregate amount of less than sixty (60) months.

    "(b) Notwithstanding the preceding paragraph, the minimumpension shall be One thousand two hundrepesos (P1,200.00) formembers with at least ten (10) credited years of service and Twothousand four

    hundred pesos (P2,400.00) for those with twenty (20) creditedyears of service.

    "SEC. 12-A.Dependents' Pension. - Where monthly pension ispayable on account of death, permanent

    disability or retirement, dependents' pension equivalent to tenpercent (10%) of the monthly pension or

    hundred fifty pesos (P250.00), whichever is higher, shall alsobe paid for each dependent child conceiveor before the date of thecontingency but not exceeding five (5), beginning with the youngestand witho

    substitution:Provided, That where there are legitimate orillegitimate children, the former shall be prefe

    SEC. 12-B.Retirement Benefits. - (a) A member who has paid atleast one hundred twenty (120) month

    contributions prior to the semester of retirement and who: (1)has reached the age of sixty (60) years an

    already separated from employment or has ceased to beself-employed; or (2) has reached the age of sixfive (65) years,shall be entitled for as long as he lives to the monthlypension:Provided, That he shall h

    the option to receive his first eighteen (18) monthly pensionsin lump sum discounted at a preferential r

    interest to be determined by the SSS.

    "(b) A covered member who is sixty (60) years old at retirementand who does not qualify for pension

    benefits under paragraph (a) above, shall be entitled to a lumpsum benefit equal to the total contributio

    paid by him and on his behalf:Provided, That he is separatedfrom employment and is not continuing

    payment of contributions to the SSS on his own.

    "(c) The monthly pension shall be suspended upon thereemployment or resumption of self-employmen

    retired member who is less than sixty-five (65) years old. Heshall again be subject to Section Eighteen

    his employer to Section Nineteen of this Act.

    "(d) Upon the death of the retired member, his primarybeneficiaries as of the date of his retirement sha

    entitled to receive the monthly pension:Provided, That if he hasno primary beneficiaries and he dies w

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    sixty (60) months from the start of his monthly pension, hissecondary beneficiaries shall be entitled to

    lump sum benefit equivalent to the total monthly pensionscorresponding to the balance of the five-year

    guaranteed period, excluding the dependents' pension.

    "(e) The monthly pension of a member who retires after reachingage sixty (60) shall be the higher of ei

    (1) the monthly pension computed at the earliest time he couldhave retired had he been separated fromemployment or ceased to beself-employed plus all adjustments thereto; or (2) the monthlypension com

    at the time when he actually retires.

    "SEC. 13.Death Benefits. - Upon the death of a member who haspaid at least thirty-six (36) monthly

    contributions prior to the semester of death, his primarybeneficiaries shall be entitled to the monthly pe

    Provided, That if he has no primary beneficiaries, his secondarybeneficiaries shall be entitled to a lump

    benefit equivalent to thirty-six (36) times the monthly pension.If he has not paid the required thirty-sixmonthly contributions,his primary or secondary beneficiaries shall be entitled to a lumpsum benefit

    equivalent to the monthly pension times the number of monthlycontributions paid to the SSS or twelve

    times the monthly pension, whichever is higher.

    "SEC. 13-A.Permanent Disability Benefits. - (a) Upon thepermanent total disability of a member who

    paid at least thirty-six (36) monthly contributions prior to thesemester of disability, he shall be entitledmonthlypension:Provided, That if he has not paid the required thirty-six(36) monthly contributions, h

    be entitled to a lump sum benefit equivalent to the monthlypension times the number of monthly

    contributions paid to the SSS or twelve (12) times the monthlypension, whichever is higher. A member(1) has received a lump sumbenefit; and (2) is reemployed or has resumed self-employment notearlier

    one (1) year from the date of his disability shall again besubject to compulsory coverage and shall be

    considered a new member.

    "(b) The monthly pension and dependents' pension shall besuspended upon the reemployment or resum

    (Video) 2022 01 15 agra lecture 6 social security act of 2018

    of self-employment or the recovery of the disabled member fromhis permanent total disability or his fato present himself forexamination at least once a year upon notice by the SSS.

    "(c) Upon the death of the permanent total disability pensioner,his primary beneficiaries as of the date odisability shall beentitled to receive the monthly pension:Provided, That if he has noprimary beneficia

    and he dies within sixty (60) months from the start of hismonthly pension, his secondary beneficiaries

    be entitled to a lump sum benefit equivalent to the totalmonthly pensions corresponding to the balance five-year guaranteedperiod excluding the dependents' pension.

    "(d) The following disabilities shall be deemed permanenttotal:

    "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

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    "5. Such cases as determined and approved by the SSS.

    "(e) If the disability is permanent partial, and such disabilityoccurs before thirty-six (36) monthlycontributions have been paidprior to the semester of disability, the benefit shall be suchpercentage of t

    lump sum benefit described in the preceding paragraph with dueregard to the degree of disability as the

    Commission may determine.

    "(f) If the disability is permanent total and such disabilityoccurs after thirty-six (36) monthly contributi

    have been paid prior to the semester of disability, the benefitshall be the monthly pension for permanendisability payable notlonger than the period designated in the following schedule:

    Complete and permanent

    loss of use of

    Number of


    One thumb 10

    One index finger 8

    One middle finger 6One right 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

    "(g) The percentage degree of disability which is equivalent tothe ratio that the designated number of mof compensability bears toseventy-five (75), rounded to the next higher integer, shall not beadditive fodistinct, separate and unrelated permanent partialdisabilities, but shall be additive for deteriorating and

    related permanent partial disabilities to a maximum of onehundred percent (100%), in which case, the

    member shall be deemed as permanently totally disabled.

    "(h) In case of permanent partial disability, the monthlypension benefit shall be given in lump sum if it

    payable for less than twelve (12) months.

    "(i) For the purpose of adjudicating retirement, death andpermanent total disability pension benefits,

    contributions shall be deemed paid for the months during whichthe member received partial disabilitypension:Provided, That suchcontributions shall be based on his last contribution prior to hisdisability.

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    "(j) Should a member who is on partial disability pension retireor die, his disability pension shall cease

    his retirement or death.

    "SEC. 13-B.Funeral Benefit. - A funeral grant equivalent toTwelve thousand pesos (P12,000.00) shall

    paid, in cash or in kind, to help defray the cost of funeralexpenses upon the death of a member, includi

    permanently totally disabled member or retiree.

    "SEC. 14. Sickness Benefit. - (a) A member who has paid at leastthree (3) monthly contributions in the

    twelve-month period immediately preceding the semester ofsickness or injury and is confined therefor more than three (3)days in a hospital or elsewhere with the approval of the SSS,shall, for each day of

    compensable confinement or a fraction thereof, be paid by hisemployer, or the SSS, if such person is

    unemployed or self-employed, a daily sickness benefit equivalentto ninety percent (90%) of his averag

    daily salary credit, subject to the following conditions:

    "(1) In no case shall the daily sickness benefit be paid longerthan one hundred twenty (120) days in oncalendar year, nor shallany unused portion of the one hundred twenty (120) days of sicknessbenefit gr

    under this section be carried forward and added to the totalnumber of compensable days allowable in thsubsequent year;

    "(2) The daily sickness benefit shall not be paid for more thantwo hundred forty (240) days on account

    same confinement; and

    "(3) The employee member shall notify his employer of the factof his sickness or injury within five (5)

    calendar days after the start of his confinement unless suchconfinement is in a hospital or the employee

    became sick or was injured while working or within the premisesof the employer in which case, notificto the employer isnecessary:Provided, That if the member is unemployed orself-employed, he shall d

    notify the SSS of his confinement within five (5) calendar daysafter the start thereof unless such confin

    is in a hospital in which case notification is also notnecessary:Provided,further, That in cases wherenotification isnecessary, the confinement shall be deemed to have started notearlier than the fifth day

    immediately preceding the date of notification.

    "(b) The compensable confinement shall begin on the first day ofsickness, and the payment of such

    allowances shall be promptly made by the employer every regularpayday or on the fifteenth and last da

    each month, and similarly in the case of direct payment by theSSS, for as long as such allowances are dand payable:Provided, Thatsuch allowance shall begin only after all sick leaves of absencewith full pa

    the credit of the employee member shall have been exhausted.

    "(c) One hundred percent (100%) of the daily benefitsProvidedinthe preceding paragraph shall be

    reimbursed by the SSS to said employer upon receipt ofsatisfactory proof of such payment and legality

    thereof:Provided, That the employer has notified the SSS of theconfinement within five (5) calendar d

    after receipt of the notification from the employeemember:Provided,further, That if the notification toSSS is made bythe employer beyond five (5) calendar days after receipt of thenotification from the

    employee member, said employer shall be reimbursed only for eachday of confinement starting from th

    tenth calendar day immediately preceding the date ofnotification to the SSS:Provided,finally, That theshall reimbursethe employer or pay the unemployed member only for confinementwithin the one-year

    period immediately preceding the date the claim for benefit orreimbursement is received by the SSS, e

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    confinement in a hospital in which case the claim for benefit orreimbursement must be filed within one

    year from the last day of confinement.

    "(d) Where the employee member has given the requirednotification but the employer fails to notify th

    of the confinement or to file the claim for reimbursement withinthe period prescribed in this section res

    in the reduction of the benefit or denial of the claim, suchemployer shall have no right to recover thecorresponding dailyallowance he advanced to the employee member as required in thissection.

    "(e)The claim of reimbursement shall be adjudicated by the SSSwithin a period of two (2) months fromreceipt thereof:Provided,That should no payment be received by the employer within one (1)month af

    the period prescribed herein for adjudication, the reimbursementshall thereafter earn simple interest of

    percent (1%) per month until paid.

    "(f) The provisions regarding the notification required of themember and the employer as well as the p

    within which the claim for benefit or reimbursement may be filedshall apply to all claims filed with the

    "SEC. 14-A.Maternity Leave Benefit. - A female member who haspaid at least three (3) monthlycontributions in the twelve-monthperiod immediately preceding the semester of her childbirth ormiscashall be paid a daily maternity benefit equivalent to onehundred percent (100%) of her average daily sa

    credit for sixty (60) days or seventy-eight (78) days in case ofcaesarian delivery, subject to the followin


    "(a) That the employee shall have notified her employer of herpregnancy and the probable date of her

    childbirth, which notice shall be transmitted to the SSS inaccordance with the rules and regulations it m


    "(b) The full payment shall be advanced by the employer withinthirty (30) days from the filing of the

    maternity leave application;

    "(c) That payment of daily maternity benefits shall be a bar tothe recovery of sickness benefitsProvidethis Act for the sameperiod for which daily maternity benefits have been received;

    "(d) That the maternity benefitsProvidedunder this section shallbe paid only for the first four (4) delivor miscarriages;

    "(e) That the SSS shall immediately reimburse the employer ofone hundred percent (100%) of the amo

    maternity benefits advanced to the employee by the employer uponreceipt of satisfactory proof of such

    payment and legality thereof; and

    "(f) That if an employee member should give birth or suffermiscarriage without the required contributi

    having been remitted for her by her employer to the SSS, orwithout the latter having been previously n

    by the employer of the time of the pregnancy, the employer shallpay to the SSS damages equivalent to benefits which said employeemember would otherwise have been entitled to.

    "SEC. 15.Non-Transferability of Benefits. - The SSS shallpromptly pay the benefitsProvidedin this A

    such persons as may be entitled thereto in accordance with theprovisions of this Act: Provided, That th

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    shall pay the retirement benefits on the day of contingency toqualified members who have submitted th

    necessary documents at least six (6) monthsbefore:Provided,further, That the beneficiary who is a nat

    of a foreign country which does not extend benefits to aFilipino beneficiary residing in the Philippineswhich is notrecognized by the Philippines, shall not be entitled to receive anybenefit under this Act:

    Provided,further, That notwithstanding the foregoing, where thebest interest of the SSS will be served

    Commission may direct payments without regard to nationality orcountry of residence:Provided,furthThat if the recipient is a minoror a person incapable of administering his own affairs, theCommission sappoint a representative under such terms andconditions as it may deem proper:Provided,further, Tha

    appointment shall not be necessary in case the recipient isunder the custody of or living with the parent

    spouse of the member in which case the benefits shall be paid tosuch parents or spouse, as representativpayee of the recipient.Such benefits are not transferable and no power of attorney orother document

    executed by those entitled thereto in favor of any agent,attorney or any other person for the collection t

    on their behalf shall be recognized, except when they arephysically unable to collect personally such

    benefits:Provided,further, That in case of death benefits, if nobeneficiary qualifies under this Act, saidbenefits shall be paid tothe legal heirs in accordance with the law of succession.

    "SEC. 16.Exemption from Tax, Legal Process and Lien. -- All lawsto the contrary notwithstanding, theand all its assets andproperties, all contributions collected and all accruals theretoand income or invest

    earnings therefrom as well as all supplies, equipment, papers ordocuments shall be exempt from any taassessment, fee, charge, orcustoms or import duty; and all benefit payments made by the SSSshall likebe exempt from all kinds of taxes, fees or charges, andshall not liable to attachments, garnishments, lev

    seizure by or under any legal or equitable process whatsoever,either before or after receipt by the perso

    persons entitled thereto, except to pay any debt of the memberto the SSS. No tax measure of whatever enacted shall apply to theSSS, unless it expressly revokes the declared policy of the Statein Section 2 h

    granting tax-exemption to the SSS. Any tax assessment imposedagainst the SSS shall be null and void.

    amended by Sec. 9,P.D. No. 24, S. 1972;and Sec. 14,P. D. No.735,S. 1975).

    "SEC. 17.Fee of Agents, Attorneys, Etc. - No agent, attorney orother person in charge of the preparatio

    filing or pursuing any claim for benefit under this Act shalldemand or charge for his services any fee, a

    any stipulation to the contrary shall be null and void. Theretention or deduction of any amount from anbenefit granted underthis Act for the payment of fees for such services isprohibited:Provided, howeve

    That any member of the Philippine Bar who appears as counsel inany case heard by the Commission sh

    entitled to attorneys' fees not exceeding ten percent (10%) ofthe benefits awarded by the Commission, fees shall not be payablebefore the actual payment of the benefits, and any stipulation tothe contrary s

    null and void.

    "Any violation of the provisions of this Section shall bepunished by a fine of not less than Five hundred

    pesos (P500.00) nor more than Five thousand pesos (P5,000.00),or imprisonment for not less than six (

    months nor more than one (1) year, or both, at the discretion ofthe court.

    "SEC. 18.Employee's Contributions. - (a) Beginning as of thelast day of the calendar month when an

    employee's compulsory coverage takes effect and every monththereafter during his employment, the

    employer shall deduct and withhold from such employee's monthlysalary, wage, compensation or earnthe employee's contribution in anamount corresponding to his salary, wage, compensation or earningsd

    the month in accordance with the following schedule:

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    I 1,000.00 - 1,249.99 1000 50.70 33.30 84.00

    (Video) The new sss contribution Table/RA11199

    II 1,250.00 - 1,749.99 1500 76.00 50.00 126.00

    III 1,750.00 - 2,249.99 2000 101.30 66.70 168.00

    IV 2,250.00 - 2,749.99 2500 126.70 83.30 210.00

    V 2,750.00 - 3,249.99 3000 152.00 100.00 252.00

    VI 3,250.00 - 3,749.99 3500 177.30 116.70 294.00

    VII 3,750.00 - 4,249.99 4000 202.70 133.30 336.00

    VIII 4,250.00 - 4,749.99 4500 228.00 150.00 378.00

    IX 4,750.00 - 5,249.99 5000 253.30 166.70 420.00

    X 5,250.00 - 5,749.99 5500 278.70 183.70 462.40

    XI 5,750.00 - 6,249.99 6000 304.00 200.00 504.00

    XII 6,250.00 - 6,749.99 6500 329.30 216.78 546.00

    XIII 6,750.00 - 7,249.99 7000 354.70 233.30 588.00

    XIV 7,250.00 - 7,749.99 7500 380.00 250.00 630.00

    XV 7,750.00 - 8.249.99 8000 403.30 266.70 672.00

    XVI 8,250.00 - 8,749.99 8500 430.70 283.30 714.00

    XVII 8,750.00 - OVER 9000 456.00 300.00 756.00

    "The foregoing schedule of contribution shall also apply toself-employed and voluntary members.

    "The maximum monthly salary credit shall be Nine thousand pesos(P9,000.00) effective January Ninet

    hundred and ninety six (1996);Provided, That it shall beincreased by One thousand pesos (P1,000.00)

    year thereafter until it shall have reached Twelve thousandpesos (P12,000.00) by Nineteen hundred andninety nine(1999):Provided,further, That the minimum and maximum monthlysalary credits as well

    rate of contributions may be fixed from time to time by theCommission through rules and regulations t

    into consideration actuarial calculations and rate of benefits,subject to the approval of the President of


    "SEC. 19.Employer's Contributions. - (a) Beginning as of thelast day of the month when an employeecompulsory coverage takeseffect and every month thereafter during his employment, hisemployer shal

    with respect to such covered employee, the employer'scontribution in accordance with the schedule ind

    in Section Eighteen of this Act. Notwithstanding any contract tothe contrary, an employer shall not ded

    directly or indirectly, from the compensation of his employeescovered by the SSS or otherwise recoverthem the employer'scontributions with respect to such employees.

    "(b) The remittance of such contributions by the employer shallbe supported by a quarterly collection lbe submitted to the SSS atthe end of each calendar quarter indicating the correct ID numberof the emp

    the correct names and the SSS numbers of the employees and thetotal contributions paid for their accou

    during the quarter.

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    "SEC. 19-A. Contributions of the Self-Employed Member. - Thecontributions to the SSS of the self-

    employed member shall be determined in accordance with SectionEighteen of this Act:Provided, That

    monthly earnings declared by the self-employed member at thetime of his registration with the SSS shaconsidered as his monthlycompensation and he shall pay both the employer and the employeecontribu

    Provided,further, That the contributions of self-employedpersons earning One thousand pesos (P1,000

    monthly or below may be reduced by the Commission.

    "The monthly earnings declared by the self-employed member atthe time of his registration shall rema

    basis of his monthly salary credit, unless he makes anotherdeclaration of his monthly earnings, in whicsuch latest declarationbecomes the new basis of his monthly salary credit.

    "SEC. 20. Government Contribution. - As the contribution of theGovernment to the operation of the SS

    Congress shall annually appropriate out of any funds in theNational Treasury not otherwise appropriatenecessary sum or sums tomeet the estimated expenses of the SSS for each ensuing year. Inaddition to t

    contribution, Congress shall appropriate from time to time suchsum or sums as may be needed to assur

    maintenance of an adequate working balance of the funds of theSSS as disclosed by suitable periodic

    actuarial studies to be made of the operations of the SSS.

    "SEC. 21. Government Guarantee. -- The benefits prescribed inthis Act shall not be diminished and toguarantee said benefits theGovernment of the Republic of the Philippines accepts generalresponsibility

    the solvency of the SSS.

    "SEC. 22.Remittance of Contributions. -- (a) The contributionsimposed in the preceding Section shall

    remitted to the SSS within the first ten (10) days of eachcalendar month following the month for which

    are applicable or within such time as the Commission mayprescribe. Every employer required to deducto remit suchcontributions shall be liable for their payment and if anycontribution is not paid to the SS

    herein prescribed, he shall pay besides the contribution apenalty thereon of three percent (3%) per mon

    from the date the contribution falls due until paid. If deemedexpedient and advisable by the Commissiocollection and remittanceof contributions shall be made quarterly or semi-annually inadvance, thecontributions payable by the employees to be advancedby their respective employers:Provided, That u

    separation of an employee, any contribution so paid in advancebut not due shall be credited or refunded

    his employer.

    "(b) The contributions payable under this Act in cases where anemployer refuses or neglects to pay theshall be collected by theSSS in the same manner as taxes are made collectible under theNational Intern

    Revenue Code, as amended. Failure or refusal of the employer topay or remit the contributions herein

    prescribed shall not prejudice the right of the covered employeeto the benefits of the coverage.

    "The right to institute the necessary action against theemployer may be commenced within twenty (20)

    from the time the delinquency is known or the assessment is madeby the SSS, or from the time the ben

    accrues, as the case may be.

    "(c) Should any person, natural or juridical, default in anypayment of contributions, the Commission m

    also collect the same in either of the following ways:

    "1. By an action in court, which shall hear and dispose of thecase in preference to any other civ

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    action; or

    "2. By issuing a warrant to the Sheriff of any province or citycommanding him to levy upon andany real and personal property ofthe debtor. The Sheriff's sale by virtue of said warrant shallbe

    governed by the same procedure prescribed for executions againstproperty upon judgments by a

    of record.

    "(d) The last complete record of monthly contributions paid bythe employer or the average of the mont

    contributions paid during the past three (3) years as of thedate of filing of the action for collection shalpresumed to be themonthly contributions payable by and due from the employer to theSSS for each of

    unpaid month, unless contradicted and overcome by otherevidence:Provided, That the SSS shall not b

    barred from determining and collecting the true and correctcontributions due the SSS even after full pa

    pursuant to this paragraph, nor shall the employer be relievedof his liability under Section Twenty-eighthis Act.

    "SEC. 22-A.Remittance of Contributions of Self-Employed Member.- Self-employed members shall re

    their monthly contributions quarterly on such dates andschedules as the Commission may specify throurules andregulations:Provided, That no retroactive payment of contributionsshall be allowed, except a

    Providedin this Section.

    "SEC. 23.Method of Collection and Payment. - The SSS shallrequire a complete and proper collectionpayment of contributionsand proper identification of the employer and the employee. Paymentmay be in cash, checks, stamps, coupons, tickets, or otherreasonable devices that the Commission may adopt.

    "SEC. 24.Employment Records and Reports. - (a) Each employershall immediately report to the SSS tnames, ages, civil status,occupations, salaries and dependents of all his employees who aresubject to

    compulsory coverage:Provided, That if an employee subject tocompulsory coverage should die or bec

    sick or disabled or reach the age of sixty (60) without the SSShaving previously received any report orwritten communication abouthim from his employer, the said employer shall pay to the SSSdamages

    equivalent to the benefits to which said employee member wouldhave been entitled had his name been

    reported on time by the employer to the SSS, except that in caseof pension benefits, the employer shallliable to pay the SSSdamages equivalent to the accumulated pension due as of the date ofsettlement of

    claim or to the five (5) years' pension, including dependents'pension:Provided,further, That if the

    contingency occurs within thirty (30) days from the date ofemployment, the employer shall be relievedliability fordamages:Provided,further, That any person or entity engaging theservices of an independ

    contractor shall be subsidiarily liable with such contractor forany civil liability incurred by the latter un

    this Act:Provided,finally, That the same person or entityengaging the services of an independent cont

    shall require such contractor to post a surety bond to guaranteethe payment of the worker's benefits.

    "(b) Should the employer misrepresent the true date ofemployment of the employee member or remit t

    SSS contributions which are less than those required in this Actor fail to remit any contribution due prithe date of contingency,resulting in a reduction of benefits, the employer shall pay to theSSS damages

    equivalent to the difference between the amount of benefit towhich the employee member or his benefi

    is entitled had the proper contributions been remitted to theSSS and the amount payable on the basis ofcontributions actuallyremitted:Provided, That if the employee member or his beneficiaryis entitled to

    pension benefits, damages shall be equivalent to the accumulatedpension due as of the date of settleme

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    the claim or to the five (5) years' pension, whichever ishigher, including dependents' pension.

    "In addition to the liability mentioned in the precedingparagraphs (a) and (b) hereof, the employer shalbe liable for thecorresponding unremitted contributions and penalties thereon.

    "(c) The records and reports duly accomplished and submitted tothe SSS by the employer or the membthe case may be, shall be keptconfidential by the SSS except in compliance with a subpoena ducestecu

    issued by the Court, shall not be divulged without the consentof the SSS President or any official of the

    duly authorized by him, shall be presumed correct as to the dataand other matters stated therein, unlessnecessary corrections tosuch records and reports have been properly made by the partiesconcerned bef

    the right to the benefit being claimed accrues, and shall bemade the basis for the adjudication of the cla

    as a result of such adjudication the SSS in good faith pays amonthly pension to a beneficiary who is inf

    in right to another beneficiary or with whom another beneficiaryis entitled to share, such payments shadischarge the SSS fromliability unless and until such other beneficiary notifies the SSSof his claim pri

    the payments.

    "(d) Every employer shall keep true and accurate work recordsfor such period and containing suchinformation as the Commissionmay prescribe, in addition to an "Annual Register of New andSeparate

    Employees" which shall be secured from the SSS wherein theemployer shall enter on the first day ofemployment or on theeffective date of separation, the names of the persons employed orseparated from

    employment, their SSS numbers, and such other data that theCommission may require and said annual

    register shall be submitted to the SSS in the month of Januaryof each year. Such records shall be open inspection by the SSS orits authorized representatives quarterly or as often as the SSS mayrequire.

    "The SSS may also require each employer to submit, with respectto the persons in his employ, reportsneeded for the effectiveadministration of this Act.

    "(e) Each employer shall require, as a condition to employment,the presentation of a registration numbsecured by the prospectiveemployee from the SSS in accordance with such procedure as the SSSmay a

    Provided, That in case of employees who have been assignedregistration numbers by virtue of a previo

    employment, such numbers originally assigned to them should beused for purposes of this Section:Provided,further, That theissuance of such registration numbers by the SSS shall not exemptthe empl

    from complying with the provisions of paragraph (a) of thisSection.

    "(f) Notwithstanding any law to the contrary, microfilm, ornon-erasable optical disk and other similar

    archival media copies of original SSS records and reports, dulycertified by the official custodian thereo

    shall have the same evidentiary value as the originals and beadmissible as evidence in all legal proceed

    "(g) Notwithstanding any law to the contrary, local governmentunits shall, prior to issuing any annual

    business license or permit, require submission of certificate ofSSS coverage and compliance with the

    provisions of this Act:Provided, That the certification orclearance shall be issued by the SSS within fivworking days fromreceipt of the request.

    "SEC. 24-A.Report and Registration of the Self-Employed Member.- Each covered self-employed pers

    shall, within thirty (30) days from the first day he started thepractice of his profession or business oper

    register and report to the SSS his name, age, civil status, andoccupation, average monthly net income a

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    "SEC. 25.Deposits and Disbursements. - All money paid to orcollected by the SSS every year under thAct, and all accrualsthereto shall be deposited, administered and disbursed in the samemanner and und

    same conditions and requirements asProvidedby law for otherpublic special funds: Provided, That no

    than twelve percent (12%) of the total yearly contributions plusthree percent (3%) of other revenues shdisbursed for operationalexpenses such as salaries and wages, supplies and materials,depreciation and

    maintenance of offices of the SSS:Provided,further, That if theexpenses in any year are less than the

    maximum amount permissible, the difference shall not be availedof as additional expenses in the followyears.

    "SEC. 26.Investment of Reserve Funds. - All revenues of the SSSthat are not needed to meet the curren

    administrative and operational expenses incidental to thecarrying out of this Act shall be accumulated ifund to be known asthe "Reserve Fund." Such portions of the Reserve Fund as are notneeded to meet t

    current benefit obligations thereof shall be known as the"Investment Reserve Fund" which the Commi

    shall manage and invest with the skill, care, prudence anddiligence necessary under the circumstances

    prevailing that a prudent man acting in like capacity andfamiliar with such matters would exercise in thconduct of anenterprise of a like character and with similar aims. Pursuantthereto, and in line with the

    principles of safety, good yield and liquidity, the Commissionshall invest the funds to earn an annual innot less than theaverage rates of treasury bills or any other acceptable marketyield indicator in any or i

    of the following:

    "(a) In bonds, securities, promissory notes or other evidence ofindebtedness of the Government of the

    Philippines, or in bonds, securities, promissory notes or otherevidence of indebtedness to which the ful

    credit and unconditional guarantee of the Government of thePhilippines is pledged;

    "(b) In bonds, securities, promissory notes or other evidence ofindebtedness of the Government of the

    Philippines, or any agencies or instrumentalities to financedomestic infrastructure projects such as roadbridges, ports,telecommunications, and other similar projects:Provided, That theinstruments issued byagency or instrumentality of the governmentshall be guaranteed by the Government of the Philippines

    government financial institution or acceptable multilateralagency:Provided,further, That the SSS shal

    priority over the revenues of the projects:Provided,finally,That such investments shall not exceed thirpercent (30%) of theInvestment Reserve Fund;

    "(c) In bonds, securities, promissory notes or other evidence ofindebtedness of government financial

    (Video) SSS Benefits for Filipinos presented by the Philippine Consulate LA #sss #socialsecurity #ofw

    institutions or government corporations with acceptable creditor guarantee:Provided, That such invest

    shall not exceed thirty percent (30%) of the Investment ReserveFund;

    "(d) In bonds, securities, promissory notes or other evidence ofindebtedness of any bank doing busines

    the Philippines and in good standing with the Bangko Sentral ngPilipinas to finance loans to private

    corporations doing business in the Philippines, includingschools, hospitals, small-and-medium scaleindustries, cooperativesand non-governmental organizations, in which case the collateralsor securities

    be assigned to the SSS under such terms and conditions as theCommission may prescribe:Provided, T

    the case of bank deposits, they shall not exceed at any time theunimpaired capital and surplus or total pdeposits of the depositorybank, whichever is smaller:Provided,further, That said bank shallfirst have

    designated as a depository for this purpose by the MonetaryBoard of the Bangko Sentral ng Pilipinas:

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    Provided,finally, That such investments shall not exceed fortypercent (40%) of the Investment Reserv


    "(e) In bonds, securities, promissory notes or other evidence ofindebtedness of shelter agencies of the

    National Government or financial intermediaries to financehousing loans of members; and in long-term

    direct individual or group housing loans giving priority to thelow-income groups, up to a maximum of percent (90%) of theappraised value of the properties to be mortgaged by the borrowers;and

    "In short and medium term loans to members such as salary,educational, livelihood, marital, calamity aemergencyloans:Provided, That not more than thirty five percent (35%) of theInvestment Reserve Fun

    any time shall be invested for housingpurposes:Provided,further, That not more than ten percent (10%

    the Investment Reserve Fund shall be invested in short andmedium term loans;

    "(f) In bonds, securities, promissory notes or other evidence ofindebtedness of educational or medical

    institutions to finance the construction, improvement andmaintenance of schools and hospitals and theiequipment andfacilities:Provided, That such investments shall not exceed tenpercent (10%) of the

    Investment Reserve Fund;

    "(g) In real estate property, including shares of stocksinvolving real estate property, and investment sec

    by first mortgages on real estate or other collateralsacceptable to the SSS:Provided, That such projects

    investments shall, in the determination of the Commission,redound to the benefit of the SSS, its membwell as the generalpublic:Provided,further, That investment in real estate property,including shares ostocks involving real estate property shall notexceed five percent (5%) of the Investment Reserve Fund

    Provided,finally, That investments in other income earningprojects and investments secured by first

    mortgages or other collaterals shall not exceed twenty fivepercent (25%) of the Investment Reserve Fu

    "(h) In bonds, debentures, securities, promissory notes or otherevidence of indebtedness of any prime

    corporation or multilateral institutions to finance domesticprojects:Provided, That the issuing or assumentity or itspredecessors shall not have defaulted in the payment of interest onany of its securities and

    during each of any three (3) including the last two (2) of thefive (5) fiscal years next preceding the date

    acquisition by the SSS of such bonds, debentures or otherevidence of indebtedness, the net earnings ofissuing or assuminginstitution available for its fixed charges, as defined in thisAct, shall have been not

    than one and one-quarter times the total of its fixed chargesfor such year:Provided,further, That such

    investments shall not exceed thirty percent (30%) of theInvestment Reserve Fund;

    "(i) In preferred or common shares of stocks listed or about tobe listed in the stock exchange or options

    warrants to such stocks or, subject to prior approval of theBangko Sentral ng Pilipinas, such other risk

    management instruments of any prime or solvent corporation orfinancial institution created or existing the laws of thePhilippines with proven track record of profitability over the lastthree (3) years and pay

    of dividends at least once over the same period:Provided, Thatsuch investments shall not exceed thirty

    percent (30%) of the Investment Reserve Fund;

    "(j) In domestic or foreign mutual funds in existence for atleast three (3) years;Provided, That such

    investments shall not exceed twenty percent (20%) of theInvestment Reserve Fund:Provided,further, investments in foreignmutual funds shall not exceed one percent (1%) of the InvestmentReserve Fund

    first year which shall be increased by one percent (1%) for eachsucceeding year, but in no case shall it

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    exceed seven and one-half percent (7.5%) of the InvestmentReserve Fund;

    "(k) In foreign currency deposits or triple "A" foreign currencydenominated debts, prime and non-speculative equities, and otherBangko Sentral ng Pilipinas approved financial instruments or otherasse

    issued in accordance with the existing laws of the countrieswhere such financial instruments are issued

    Provided, That these instruments or assets are listed in boursesof the respective countries where theseinstruments or assets areissued:Provided,further, That the issuing company has proven trackof record

    profitability over the last three (3) years and a record ofregular dividend pay-out over the same period:

    Provided,finally, That such investments shall not exceed onepercent (1%) of the Investment Reserve Fin the first year whichshall be increased by one percent (1%) for each succeeding year,but in no case s

    exceed seven and one-half percent (7.5%) of the InvestmentReserve Fund;

    "(l) In loans secured by such collaterals like cash, governmentsecurities or guarantees of multilateralinstitutions:Provided, Thatsuch investments shall not exceed thirty percent (30%) of theInvestment R

    Fund; and

    "(m) In other Bangko Sentral ng Pilipinas approved investmentinstruments with the same intrinsic qualthose enumerated inparagraphs (a) to (l) hereof, subject to the policies andguidelines which the Comm

    may formulate.

    "No portion of the Investment Reserve Fund or income thereofshall accrue to the general fund of theNational Government or toany of its agencies or instrumentalities, includinggovernment-owned orcontrolled corporations, except as may beallowed under this Act: Provided, That no portion of the

    Investment Reserve Fund shall be invested for any purpose or inany instrument, institution or industry

    and above the prescribed cumulative ceilings as follows:

    40% in private securities

    35% in housing

    30% in real estate related investments

    10% in short and medium-term member loans

    30% in government financial institutions and corporations

    30% in infrastructure projects

    15% in any particular industry

    7.5% in foreign-currency denominated investments

    "SEC. 26-A. Fund Managers. - As part of its investmentoperations, the SSS may appoint local or, in thabsence thereof,foreign fund managers to manage the Investment Reserve Fund, as itmay deem approp

    "SEC. 26-B. Mortgagor Insurance Account. - (a) As part of itsinvestment operations, the SSS shall act

  • 7/28/2019 R.a. 1161 as Amended R.a. 8282 (Social SecurityAct)


    insurer of all or part of its interest on SSS propertiesmortgaged to the SSS, or lives of mortgagors whos

    properties are mortgaged to the SSS. For this purpose, the SSSshall establish a separate account to be k

    as the "Mortgagors' Insurance Account." All amounts received bythe SSS in connection with the aforesinsurance operations shall beplaced in the Mortgagors' Insurance Account. The assets andliabilities of

    Mortgagors' Insurance Account shall at all times be clearlyidentifiable and distinguishable from the ass

    and liabilities in all other accounts of the SSS.Notwithstanding any provision of law to the contrary, thassets heldin the Mortgagors' Insurance Account shall not be chargeable withthe liabilities arising out other business the SSS may conduct butshall be held and applied exclusively for the benefit of theown

    beneficiaries of the insurance contracts issued by the SSS underthis paragraph.

    "(b) The SSS may insure any of its interest or part thereof withany private company or reinsurer. The

    Insurance Commission or its authorized representatives shallmake an examination into the financial

    condition and methods of transacting business of the SSS atleast once in two (2) years, but such examinshall be limited to theinsurance operation of the SSS as authorized under this paragraphand shall not

    embrace the other operations of the SSS; and the report of saidexamination shall be submitted to the

    Commission and a copy thereof shall be furnished the Office ofthe President of the Philippines within

    reasonable time after the close of the examination:Provided,That for each examination, the SSS shall pthe Insurance Commissionan amount equal to the actual expense of the Insurance Commissionin the

    conduct of examination, including the salaries of the examinersand of the actuary of the InsuranceCommission who have beenassigned to make such examination for the actual time spent in saidexaminProvided,further, That the general law on insurance and therules and regulations promulgated thereun

    shall have suppletory application insofar as it is not inconflict with this Act and its rules and regulation

    "SEC. 27.Records and Reports. - The SSS President shall keep andcause to keep records of operations

    the funds of the SSS and of disbursements thereof and allaccounts of payments made out of said funds.

    During the month of January of each year, the SSS Presidentshall prepare for submission to the Presidethe Philippines and toCongress of the Philippines a report of operations of the SSSduring the precedin

    year, including statistical data on the number of personscovered and benefited, their occupations and

    employment status, the duration and amount of benefits paid, thefinances of the SSS at the close of the

    year, and recommendations. He shall also cause to be publishedin two (2) newspapers of general circulin the Philippines asynopsis of the annual report, showing in particular the status ofthe finances of the

    and the benefits administered.

    "SEC. 28.Penal Clause. - (a) Whoever, for the purpose of causingany payment to be made under this A

    under an agreement thereunder, where none is authorized to bepaid, shall make or cause to be made fal

    statement or representation as to any compensation paid orreceived or whoever makes or causes to be many false statement of amaterial fact in any claim for any benefit payable under this Act,or application

    loan with the SSS, or whoever makes or causes to be made anyfalse statement, representation, affidavit

    document in connection with such claim or loan, shall suffer thepenaltiesProvidedfor in Article One

    hundred seventy-two of the Revised Penal Code.

    "(b) Whoever shall obtain or receive any money or check underthis Act or any agreement thereunder,

    without being entitled thereto with intent to defraud anymember, employer or the SSS, shall be fined nthan Five thousandpesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00)and imprison

    not less than six (6) years and one (1) day nor more than twelve(12) years.

  • 7/28/2019 R.a. 1161 as Amended R.a. 8282 (Social SecurityAct)


    "(c) Whoever buys, sells, offers for sale, uses, transfers ortakes or gives in exchange, or pledges or giv

    pledge, except as authorized in this Act or in regulations madepursuant thereto, any stamp, coupon, tick

    book or other device, prescribed pursuant to SectionTwenty-three hereof by the Commission for thecollection or paymentof contributions required herein, shall be fined not less than Fivethousand pesos

    (P5,000.00) nor more than Twenty thousand pesos (P20,000.00), orimprisoned for not less than six (6)

    and one (1) day nor more than twelve (12) years, or both, at thediscretion of the court.

    "(d) Whoever, with intent to defraud, alters, forges, makes orcounterfeits any stamp, coupon, ticket, bo

    other device prescribed by the Commission for the collection orpayment of any contribution required hor uses, sells, lends, or hasin his possession any such altered, forged or counterfeitedmaterials, or mak

    uses, sells or has in his possession any such altered, forged,material in imitation of the material used in

    manufacture of such stamp, coupon, ticket, book or other device,shall be fined not less than Five thous

    pesos (P5,000.00) non more than Twenty thousand pesos(P20,000.00) or imprisoned for not less than syears (6) and one (1)day nor more than twelve (12) years, or both, at the discretion ofthe court.

    "(e) Whoever fails or refuses to comply with the provisions ofthis Act or with the rules and regulations

    promulgated by the Commission, shall be punished by a fine ofnot less than Five thousand pesos (P5,0nor more than Twentythousand pesos (P20,000.00), or imprisonment for not less than six(6) years and

    (1) day nor more than twelve (12) years, or both, at thediscretion of the court:Provided, That where thviolation consistsin failure or refusal to register employees or himself, in case ofthe covered self-empl

    or to deduct contributions from the employees' compensation andremit the same to the SSS, the penalty

    be a fine of not less Five thousand pesos (P5,000.00) nor morethan Twenty thousand pesos (P20,000.0

    imprisonment for not less than six (6) years and one (1) day normore than twelve (12) years.

    "(f) If the act or omission penalized by this Act be committedby an association, partnership, corporatio

    any other institution, its managing head, directors or partnersshall be liable for the penalties ProvidediAct for the offense.

    "(g) Any employee of the SSS who receives or keeps funds orproperty belonging, payable or deliverabthe SSS and who shallappropriate the same, or shall take or misappropriate, or shallconsent, or through

    abandonment or negligence, shall permit any other person to takesuch property or funds, wholly or par

    or shall otherwise be guilty of misappropriation of such fundsor property, shall suffer the penaltiesProin Article Two hundredseventeen of the Revised Penal Code.

    "(h) Any employer who, after deducting the monthly contributionsor loan amortizations from his empl

    compensation, fails to remit the said deduction to the SSSwithin thirty (30) days from the date they bec

    due, shall be presumed to have misappropriated suchcontributions or loan amortizations and shall suffe

    penaltiesProvidedin Article Three hundred fifteen of the RevisedPenal Code.

    "(i) Criminal action arising from a violation of the provisionsof this Act may be commenced by the SSS

    the employee concerned either under this Act or in appropriatecases under the Revised Penal Code:Provided, That such criminalaction may be filed by the SSS in the city or municipality wherethe SSS o

    is located, if the violation was committed within itsterritorial jurisdiction or in Metro Manila, at the opt

    the SSS.

    "SEC. 29. Government Aid. - The establishment of the SSS shallnot disqualify the members and emplo

  • 7/28/2019 R.a. 1161 as Amended R.a. 8282 (Social SecurityAct)


    from receiving such government assistance, financial orotherwise, as may beProvided.

    "SEC. 30. Transitory Clause. - Any employer who is delinquent orhas not remitted all contributions dupayable to the SSS may, withinsix (6) months from the effectivity of this Act, remit saidcontributions

    submit a proposal to pay the same in installment within a periodof not more than twelve (12) months fr

    the effectivity of this Act without incurring the prescribedpenalty, subject to the implementing rules anregulations which theCommission may prescribe:Provided, That the employer submits thecorrespond

    collection lists together with the remittance or proposal to payin installments:Provided,further, That in

    the employer fails to remit contributions within the six-monthgrace period or defaults in the payment oamortizationProvidedtheapproved proposal, the prescribed penalty shall be imposed from thetime the

    contributions first became due asProvidedin Section 22 (a)hereof."

    tion 2.Separability Clause. - If any provision of this Act isdeclared invalid, the other provisions not affected therell remainvalid.

    tion 3. Repealing Clause.- All laws, proclamations, executiveorders, rules and regulations or parts thereof incons

    h this Act are hereby repealed, modified or amended accordingly:Provided, That no person shall be deemed to be vh any property orother right by virtue of the enactment or operation of thisAct.

    tion 4. E ffectivity Clause.- This Act shall take effect fifteen(15) days after its complete publication in the Officialzette or inat least two (2) national newspapers of general circulationwhichever comes earlier.

    proved: May 01, 1997

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