REPUBLICACT NO.

8282
SocialSecurityLaw

Approved: 5/1/1997

Republic of the Philippines Congress of the Philippines Metro Manila Tenth Congress Second Regular Session Begun and held in Metro Manila, on Monday the twenty-second day of July, nineteen hundred and ninety six.

[REPUBLIC ACT NO. 8282]

AN ACT FURTHER STRENGTHENING THE SOCIAL SECURITY SYSTEM THEREBY AMENDING FOR THIS PURPOSEREPUBLICACTNO.1161,ASAMENDED,OTHERWISEKNOWNASTHESOCIALSECURITYLAW BeitenactedbytheSenateandHouseofRepresentativesofthePhilippinesinCongressassembled: SECTION 1. Republic Act No. 1161, otherwise known as the "Social Security Law," is hereby further amendedtoreadasfollows: "SEC.1.ShortTitle.ThisActshallbeknownastheSocialSecurityActof1997. "SEC.2.DeclarationofPolicy.ItisthepolicyoftheStatetoestablish,develop,promoteandperfecta soundandviabletaxexemptsocialsecuritysystemsuitabletotheneedsofthepeoplethroughoutthe Philippineswhichshallpromotesocialjusticeandprovidemeaningfulprotectiontomembersandtheir beneficiaries against the hazards of disability, sickness, maternity, old age, death, and other contingenciesresultinginlossofincomeorfinancialburden.Towardsthisend,theStateshallendeavor toextendsocialsecurityprotectiontoworkersandtheirbeneficiaries. "SEC. 3. Social Security System. (a) To carry out the purposes of this Act, the Social Security System, hereinafter referred to as "SSS", a corporate body, with principal place of business in Metro Manila, Philippines,isherebycreated.TheSSSshallbedirectedandcontrolledbyaSocialSecurityCommission, hereinafter referred to as "Commission", composed of the Secretary of Labor and Employment or his duly designated undersecretary, the SSS president and seven (7) appointive members, three (3) of whom shall represent the workers' group, at least one (1) of whom shall be a woman; three (3), the employers' group, at least one (1) of whom shall be a woman; and one (1), the general public whose representativeshallhaveadequateknowledgeandexperienceregardingsocialsecurity,tobeappointed bythePresidentofthePhilippines.Thesix(6)membersrepresentingworkersandemployersshallbe chosenfromamongthenomineesofworkers'andemployers'organizations,respectively.TheChairman

oftheCommissionshallbedesignatedbythePresidentofthePhilippinesfromamongitsmembers.The term of the appointive members shall be three (3) years: Provided, That the terms of the first six (6) appointive members shall be one (1), two (2) and three (3) years for every two (2) members, respectively:Provided,further,Thattheyshallcontinuetoholdofficeuntiltheirsuccessorsshallhave beenappointedanddulyqualified.Allvacancies,priortotheexpirationoftheterm,shallbefilledfor the unexpired term only. The appointive members of the Commission shall receive at least Two thousandfivehundredpesos(P2,500.00)perdiemforeachmeetingactuallyattendedbythem,butnot toexceedTenthousandpesos(P10,000.00)amonth:Provided,ThatmembersoftheCommissionwho hear and evaluate cases pending before the Commission shall also receive aper diem of at least Two thousand five hundred pesos (P2,500.00), but not to exceed Fifteen thousand pesos (P15,000.00) a month: Provided, further, That said members of the Commission shall also receive reasonable transportation and representation allowances as may be fixed by the Commission, but not to exceed Tenthousandpesos(P10,000.00)amonth. "(b)ThegeneralconductoftheoperationsandmanagementfunctionsoftheSSSshallbevestedinthe SSSPresidentwhoshallserveasthechiefexecutiveofficerimmediatelyresponsibleforcarryingoutthe programoftheSSSandthepoliciesoftheCommission.TheSSSPresidentshallbeapersonwhohashad previousexperienceintechnicalandadministrativefieldsrelatedtothepurposesofthisAct.Heshallbe appointedbythePresidentofthePhilippinesandshallreceiveasalarytobefixedbytheCommission withtheapprovalofthePresidentofthePhilippines,payablefromthefundsoftheSSS. "(c)TheCommission,upontherecommendationoftheSSSPresident,shallappointanactuaryandsuch otherpersonnelasmaybedeemednecessary;fixtheirreasonablecompensation,allowancesandother benefits; prescribe their duties and establish such methods and procedures as may be necessary to insure the efficient, honest and economical administration of the provisions and purposes of this Act: Provided,however,ThatthepersonneloftheSSSbelowtherankofVicePresidentshallbeappointedby theSSSPresident:Provided,further,ThatthepersonnelappointedbytheSSSPresident,exceptthose belowtherankofassistantmanager,shallbesubjecttotheconfirmationbytheCommission:Provided, further,ThatthepersonneloftheSSSshallbeselectedonlyfromcivilserviceeligiblesandbesubjectto civilservicerulesandregulations:Provided,finally,ThattheSSSshallbeexemptfromtheprovisionsof RepublicActNo.6758andRepublicActNo.7430. "SEC.4.PowersandDutiesoftheCommissionandSSS.(a)TheCommission.Fortheattainmentofits main objectives as set forth in Section 2 hereof, the Commission shall have the following powers and duties: "(1)Toadopt,amendandrescind,subjecttotheapprovalofthePresidentofthePhilippines,such rulesandregulationsasmaybenecessarytocarryouttheprovisionsandpurposesofthisAct; "(2)Toestablishaprovidentfundforthememberswhichwillconsistofvoluntarycontributionsof employers and/or employees, selfemployed and voluntary members and their earnings, for the

paymentofbenefitstosuchmembersortheirbeneficiaries,subjecttosuchrulesandregulationsasit maypromulgateandapprovedbythePresidentofthePhilippines; "(3) TomaintainaProvidentFundwhich consistsofcontributionsmadebyboththeSSSandits officialsandemployeesandtheirearnings,forthepaymentofbenefitstosuchofficialsandemployees ortheirheirsundersuchtermsandconditionsasitmayprescribe; "(4)Toapproverestructuringproposalsforthepaymentofduebutunremittedcontributionsand unpaidloanamortizationsundersuchtermsandconditionsasitmayprescribe; "(5) To authorize cooperatives registered with the cooperative development authority or associationsregisteredwith theappropriategovernmentagencytoactas collectingagentsoftheSSS with respect to their members: Provided, That the SSS shall accredit the cooperative or association: Provided,further,Thatthepersonsauthorizedtocollectarebonded; "(6)Tocompromiseorrelease,inwholeorinpart,anyinterest,penaltyoranycivilliabilitytoSSS in connection with the investments authorized under Section 26, hereof, under such terms and conditionsasitmayprescribeandapprovedbythePresidentofthePhilippines;and "(7) To approve, confirm, pass upon or review any and all actions of the SSS in the proper and necessaryexerciseofitspowersanddutieshereinafterenumerated. "(b)TheSocialSecuritySystem.SubjecttotheprovisionofSectionfour(4),paragraphseven(7) hereof,theSSSshallhavethefollowingpowersandduties: "(1)TosubmitannuallynotlaterthanApril30,apublicreporttothePresidentofthePhilippines andtotheCongressofthePhilippinescoveringitsactivitiesintheadministrationandenforcementof thisActduringtheprecedingyearincludinginformationandrecommendationsonbroadpoliciesforthe developmentandperfectionoftheprogramoftheSSS. "(2)TorequiretheactuarytosubmitavaluationreportontheSSSbenefitprogrameveryfour(4) years, or more frequently as may be necessary, to undertake the necessary actuarial studies and calculations concerning increases in benefits taking into account inflation and the financial stability of theSSS,andtoprovideforfeasibleincreasesinbenefitseveryfour(4)years,includingtheadditionof newones,undersuchrulesandregulationsastheCommissionmayadopt,subject totheapprovalof the President of the Philippines: Provided, That the actuarial soundness of the reserve fund shall be guaranteed:Provided,further,Thatsuchincreasesinbenefitsshallnotrequireanyincreaseintherate ofcontribution; "(3)ToestablishofficesoftheSSStocoverasmanyprovinces,citiesandcongressionaldistricts, whenever and wherever it may be expedient, necessary and feasible, and to inspect or cause to be inspectedperiodicallysuchoffices;

 "(4) To enter into agreements or contracts for such service and aid, as may be needed for the proper,efficientandstableadministrationoftheSSS; "(5)Toadopt,fromtimetotime,abudgetofexpendituresincludingsalariesofpersonnel,against allfundsavailabletotheSSSunderthisAct; "(6)Tosetupitsaccountingsystemandprovidethenecessarypersonneltherefor; "(7)Torequirereports,compilationsandanalysesofstatisticalandeconomic dataandto make investigationasmaybeneededfortheproperadministrationanddevelopmentoftheSSS; "(8)Toacquireanddisposeofproperty,realorpersonal,whichmaybenecessaryorexpedientfor theattainmentofthepurposesofthisAct; "(9)Toacquire,receive,orhold,bywayofpurchase,expropriationorotherwise,publicorprivate property for the purpose of undertaking housing projects preferably for the benefit of lowincome membersandforthemaintenanceofhospitalsandinstitutionsforthesick,agedanddisabled,aswellas schoolsforthemembersandtheirimmediatefamilies; "(10)Tosueandbesuedincourt;and "(11) To perform such other corporate acts as it may deem appropriate for the proper enforcementofthisAct. "SEC. 5. Settlement of Disputes. (a) Any dispute arising under this Act with respect to coverage, benefits,contributionsandpenaltiesthereonoranyothermatterrelatedthereto,shallbecognizableby theCommission,andanycasefiledwithrespecttheretoshallbeheardbytheCommission,oranyofits members,orbyhearingofficersdulyauthorizedbytheCommissionanddecidedwithinthemandatory period of twenty (20) days after the submission of the evidence. The filing, determination and settlementofdisputesshallbegovernedbytherulesandregulationspromulgatedbytheCommission. "(b)AppealtoCourts.AnydecisionoftheCommission,intheabsenceofanappealtherefromas herein provided, shall become final and executory fifteen (15) days after the date of notification, and judicial review thereof shall be permitted only after any party claiming to be aggrieved thereby has exhaustedhisremediesbeforetheCommission.TheCommissionshallbedeemedtobeapartytoany judicial action involving any such decision, and may be represented by an attorney employed by the Commission,orwhenrequestedbytheCommission,bytheSolicitorGeneraloranypublicprosecutor. "(c)CourtReview.ThedecisionoftheCommissionuponanydisputedmattermaybereviewed bothuponthelawandthefactsbytheCourtofAppeals.Forthepurposeofsuchreviewtheprocedure concerningappealsfromtheRegionalTrialCourtshallbefollowedasfaraspracticableandconsistent

withthepurposesofthisAct.AppealfromadecisionoftheCommissionmustbetakenwithinfifteen (15)daysfromnotificationofsuchdecision.IfthedecisionoftheCommissioninvolvesonlyquestionsof law,thesameshallbereviewedbytheSupremeCourt.Noappealbondshallberequired.Thecaseshall beheardinasummarymanner,andshalltakeprecedenceoverallcases,exceptthatintheSupreme Court,criminalcaseswhereinlifeimprisonmentordeathhasbeenimposedbythetrialcourtshalltake precedence. No appeal shall act as supersedeas or a stay of the order of the Commission unless the Commissionitself,ortheCourtofAppealsortheSupremeCourt,shallsoorder. "(d)ExecutionofDecisions.TheCommissionmay,motupropriooronmotionofanyinterested party,issueawritofexecutiontoenforceanyofitsdecisionsorawards,afterithasbecomefinaland executory, in the same manner as the decision of the Regional Trial Court by directing the city or provincialsherifforthesheriffwhomitmayappointtoenforcesuchfinaldecisionorexecutesuchwrit; andanypersonwhoshallfailorrefusetocomplywithsuchdecision,awardorwrit,afterbeingrequired to do so shall, upon application by the Commission, pursuant to Rule 71 of the Rules of Court, be punishedforcontempt. "SEC. 6. Auditor and Counsel. (a) The Chairman of the Commission on Audit shall be the exofficio AuditoroftheSSS.Heorhisrepresentativeshallcheckandauditalltheaccounts,fundsandproperties of the SSS in the same manner and as frequently as the accounts, funds and properties of the governmentarecheckedandauditedunderexistinglaws;andheshallhave,asfaraspracticable,the samepowersanddutiesashehaswithrespecttothecheckingandauditingofpublicaccounts,funds andpropertiesingeneral. "(b) The Secretary of Justice shall be the exofficio counsel of the SSS. He or his representative shallactaslegaladviserandcounselthereof. "SEC.7.Oaths,Witnesses,andProductionofRecords.WhenauthorizedbytheCommission,an officialoremployeethereofshallhavethepowertoadministeroathandaffirmation,takedepositions, certify to official acts and issue subpoena and subpoena duces tecum to compel the attendance of witnessesandtheproductionofbooks,papers,correspondenceandotherrecordsdeemednecessaryas evidenceinconnectionwithanyquestionarisingunderthisAct.Anycaseofcontumacyshallbedealt withbytheCommissioninaccordancewithlaw. "SEC.8.TermsDefined.ForthepurposesofthisAct,thefollowingtermsshall,unlessthecontext indicatesotherwise,havethefollowingmeanings: "(a)SSSTheSocialSecuritySystemcreatedbythisAct. "(b)CommissionTheSocialSecurityCommissionashereincreated. "(c) Employer Any person, natural or juridical, domestic or foreign, who carries on it the Philippines any trade, business, industry, undertaking or activity of any kind and uses the services of

anotherpersonwhoisunderhisordersasregardstheemployment,excepttheGovernmentandanyof its political subdivisions, branches or instrumentalities, including corporations owned or controlled by the Government: Provided, That a selfemployed person shall be both employee and employer at the sametime. "(d) Employee Any person who performs services for an employer in which either or both mentalandphysicaleffortsareusedandwhoreceivescompensationforsuchservices,wherethereis anemployeremployeerelationship:Provided,Thataselfemployedpersonshallbebothemployeeand employeratthesametime. "(e)DependentsThedependentshallbethefollowing: "(1)Thelegalspouseentitledbylawtoreceivesupportfromthemember; "(2)Thelegitimate,legitimated,orlegallyadopted,andillegitimatechildwhoisunmarried,not gainfullyemployedandhasnotreachedtwentyoneyears(21)ofage,orifovertwentyone(21)years ofage,heiscongenitallyorwhilestillaminorhasbeenpermanentlyincapacitatedandincapableofself support,physicallyormentally;and "(3)Theparentwhoisreceivingregularsupportfromthemember. "(f) Compensation All actual remuneration for employment, including the mandated cost of living allowance, as well as the cash value of any remuneration paid in any medium other than cash exceptthatpartoftheremunerationreceivedduringthemonthinexcessofthemaximumsalarycredit asprovidedunderSectionEighteenofthisAct. "(g)MonthlysalarycreditThecompensationbaseforcontributionsandbenefitsasindicatedin thescheduleinSectionEighteenofthisAct. "(h)MonthlyTheperiodfromoneendofthelastpayrollperiodoftheprecedingmonthtothe endofthelastpayrollperiodofthecurrentmonthifcompensationisonhourly,dailyorweeklybasis;if onanyotherbasis,monthlyshallmeanaperiodofone(1)month. "(i)ContributionTheamountpaidtotheSSSbyandonbehalfofthememberinaccordance withSectionEighteenofthisAct. "(j)EmploymentAnyserviceperformedbyanemployeeforhisemployer,except "(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 employedwhensuchvesselisoutsidethePhilippines; "(3)ServiceperformedintheemployofthePhilippineGovernmentorinstrumentalityoragency thereof; "(4)Serviceperformedintheemployofaforeigngovernmentorinternationalorganization,or their whollyowned instrumentality: Provided, however, That this exemption notwithstanding, any foreign government, international organization or their whollyowned instrumentality employing workers in the Philippines or employing Filipinos outside of the Philippines, may enter into an agreementwiththePhilippineGovernmentfortheinclusionofsuchemployeesintheSSSexceptthose alreadycoveredbytheirrespectivecivilserviceretirementsystems:Provided,further,Thatthetermsof such agreement shall conform with the provisionsof this Act on coverage and amount of payment of contributions and benefits: Provided, finally, That the provisionsof this Act shall be supplementary to anysuchagreement;and "(5)Suchotherservicesperformedbytemporaryandotheremployeeswhichmaybeexcludedby regulation of the Commission. Employees of bona fide independent contractors shall not be deemed employeesoftheemployerengagingtheservicesofsaidcontractors. "(k) Beneficiaries The dependent spouse until he or she remarries, the dependent legitimate, legitimated or legally adopted, and illegitimate children, who shall be the primary beneficiaries of the member: Provided, That the dependent illegitimate children shall be entitled to fifty percent (50%) of the share of the legitimate, legitimated or legally adopted children: Provided, further, That in the absence of the dependent legitimate, legitimated or legally adopted children of the member, his/her dependentillegitimatechildrenshallbeentitledtoonehundredpercent(100%)ofthebenefits.Intheir absence, the dependent parents who shall be the secondary beneficiaries of the member. In the absence of all of the foregoing, any other person designated by the member as his/her secondary beneficiary. "(l) Contingency The retirement, death, disability, injury or sickness, and maternity of the member. "(m)AveragemonthlysalarycreditTheresultobtainedbydividingthesumofthelastsixty(60) monthly salary credits immediately preceding the semester of contingency by sixty (60), or the result obtainedbydividingthesumofallthemonthlysalarycreditspaidpriortothesemesterofcontingency bythenumberofmonthlycontributionspaidinthesameperiod,whicheverisgreater:Provided,That the injury or sickness which caused the disability shall be deemed as the permanent disability for the purposeofcomputingtheaveragemonthlysalarycredit.

"(n) Average daily salary credit The result obtained by dividing the sum of the six (6) highest monthlysalarycreditsinthetwelvemonthperiodimmediatelyprecedingthesemesterofcontingency byonehundredeighty(180). "(o)SemesterAperiodoftwo(2)consecutivequartersendinginthequarterofcontingency. "(p)QuarterAperiodofthree(3)consecutivecalendarmonthsendingonthelastdayofMarch, June,SeptemberandDecember. "(q)CreditedYearsofServiceForamembercoveredpriortoJanuarynineteenhundredeighty five(1985) minusthecalendaryearofcoverageplusthenumberofcalendaryearsinwhichsix (6)or morecontributionshavebeenpaidfromJanuarynineteenhundredeightyfive(1985)uptothecalendar year containing the semester prior to the contingency. For a member covered in or after January nineteenhundredeightyfive(1985),thenumberofcalendaryearsinwhichsix(6)ormorecontributions havebeenpaidfromtheyearofcoverageuptothecalendaryearcontainingthesemesterpriortothe contingency: Provided,ThattheCommissionmayprovideforadifferent numberofcontributionsina calendaryearforittobeconsideredasacreditedyearofservice. "(r)MemberTheworkerwhoiscoveredunderSectionNineandSectionNineAofthisAct. "(s)SelfemployedAnypersonwhoseincomeisnotderivedfromemployment,asdefinedunder thisAct,aswellasthoseworkersenumeratedinSectionNineAhereof. "(t)Netearnings Netincome beforeincometaxes plus noncash chargessuchas depreciation anddepletionappearingintheregularfinancialstatementoftheissuingorassuminginstitution. "(u) Fixed charges Recurring expense such as amortization of debt discount and rentals for leasedproperties,includinginterestonfundedandunfundeddebt. "SEC.9.Coverage.(a)CoverageintheSSSshallbecompulsoryuponallemployeesnotoversixty(60) yearsofageandtheiremployers:Provided,Thatinthecaseofdomestichelpers,theirmonthlyincome shall not be less than One thousand pesos (P1,000.00) a month: Provided, further, That any benefit alreadyearnedbytheemployeesunderprivatebenefitplansexistingatthetimeoftheapprovalofthis Act shall not be discontinued, reduced or otherwise impaired: Provided, further, That private plans whichareexistingandinforceatthetimeofcompulsorycoverageshallbeintegratedwiththeplanof theSSSinsuchawaywheretheemployer'scontributiontohisprivateplanismorethanthatrequired ofhiminthisAct,heshallpaytotheSSSonlythecontributionrequiredofhimandheshallcontinuehis contribution to such private plan less his contribution to the SSS so that the employer's total contributiontohisbenefitplanandtotheSSSshallbethesameashiscontributiontohisprivatebenefit planbeforethecompulsorycoverage:Provided,further,Thatanychanges,adjustments,modifications, eliminations or improvements in the benefits to be available under the remaining private plan, which maybenecessarytoadoptbyreasonofthereducedcontributionstheretoasaresultoftheintegration,

shall be subject to agreements between the employers and employees concerned: Provided, further, Thattheprivatebenefitplanwhich theemployershallcontinueforhisemployeesshallremainunder the employer's management and control unless there is an existing agreement to the contrary: Provided,finally,ThatnothinginthisActshallbeconstruedasalimitationontherightofemployersand employeestoagreeonandadoptbenefitswhichareoverandabovethoseprovidedunderthisAct. "(b)Spouseswhodevotefulltimetomanagingthehouseholdandfamilyaffairs,unlesstheyare alsoengagedinothervocationoremploymentwhichissubjecttomandatorycoverage,maybecovered bytheSSSonavoluntarybasis. "(c)Filipinosrecruitedbyforeignbasedemployersforemploymentabroadmaybecoveredbythe SSSonavoluntarybasis. "SEC.9A.CompulsorycoverageoftheSelfemployed.CoverageintheSSSshallbecompulsory upon such selfemployed persons as may be determined by the Commission under such rules and regulationsasitmayprescribe,includingbutnotlimitedtothefollowing: 1.Allselfemployedprofessionals; 2.Partnersandsingleproprietorsofbusinesses; 3.Actorsandactresses,directors,scriptwritersandnewscorrespondentswhodonotfallwithin thedefinitionoftheterm"employee";inSec.8(d)ofthisAct; 4.Professionalathletes,coaches,trainersandjockeys;and 5.Individualfarmersandfishermen. "Unless otherwise specified herein, all provisions of this Act applicable to covered employees shallalsobeapplicabletothecoveredselfemployedpersons. "SEC.10.EffectiveDateofCoverage.Compulsorycoverageoftheemployershalltakeeffecton the first day of his operation and that of the employee on the first day of his employment: Provided, Thatthecompulsorycoverageoftheselfemployedpersonshalltakeeffectuponhisregistrationwith theSSS. "SEC. 11. Effect of Separation from Employment. When an employee under compulsory coverage is separated from employment, his employer's contribution on his account and his obligation to pay contributionsarisingfromthatemploymentshallceaseattheendofthemonthofseparation,butsaid employeeshallbecreditedwithallcontributionspaidonhisbehalfandentitledtobenefitsaccordingto theprovisionsofthisAct.Hemay,however,continuetopaythetotalcontributionstomaintainhisright tofullbenefit.

 "SEC. 11A. Effect of Interruption of Business or Professional Income. If the selfemployed memberrealizesnoincomeinanygivenmonth,heshallnotberequiredtopaycontributionsforthat month. He may, however, be allowed to continue paying contributions under the same rules and regulations applicable to a separated employee member: Provided, That no retroactive payment of contributionsshallbeallowedotherthanasprescribedunderSectionTwentytwoAhereof. "SEC. 12. Monthly Pension. (a) The monthly pension shall be the highest of the following amounts: "(1)Thesumofthefollowing: "(i)Threehundredpesos(P300.00);plus "(ii)Twentypercent(20%)oftheaveragemonthlysalarycredit;plus "(iii)Twopercent(2%)oftheaveragemonthlysalarycreditforeach creditedyearofservicein excessoften(10)years;or "(2)Fortypercent(40%)oftheaveragemonthlysalarycredit;or "(3)Onethousandpesos(P1,000.00):Provided,Thatthemonthlypensionshallinnocasebepaid foranaggregateamountoflessthansixty(60)months. "(b)Notwithstandingtheprecedingparagraph,theminimumpensionshallbeOnethousandtwo hundred pesos (P1,200.00) for members with at least ten (10) credited years of service and Two thousandfourhundredpesos(P2,400.00)forthosewithtwenty(20)creditedyearsofservice. "SEC. 12A. Dependents' Pension. Where monthly pension is payable on account of death, permanent total disability or retirement, dependents' pension equivalent to ten percent (10%) of the monthlypensionorTwohundredfiftypesos(P250.00),whicheverishigher,shallalsobepaidforeach dependent child conceived on or before the date of the contingency but not exceeding five (5), beginning with the youngest and without substitution: Provided, That where there are legitimate and illegitimatechildren,theformershallbepreferred. "SEC.12B.RetirementBenefits.(a)Amemberwhohaspaidatleastonehundredtwenty(120) monthlycontributionspriortothesemesterofretirementandwho(1)hasreachedtheageofsixty(60) yearsandisalreadyseparatedfromemploymentorhasceasedtobeselfemployedor(2)hasreached theageofsixtyfive(65)years,shallbeentitledforaslongashelivestothemonthlypension:Provided, Thatheshallhavetheoptiontoreceivehisfirsteighteen(18)monthlypensionsinlumpsumdiscounted atapreferentialrateofinteresttobedeterminedbytheSSS.

"(b) A covered member who is sixty (60) years old at retirement and who does not qualify for pensionbenefitsunderparagraph(a)above,shallbeentitledtoalumpsumbenefitequaltothetotal contributionspaidbyhimandonhisbehalf:Provided,Thatheisseparatedfromemploymentandisnot continuingpaymentofcontributionstotheSSSonhisown. "(c) The monthly pension shall be suspended upon the reemployment or resumption of self employmentofaretiredmemberwhoislessthansixtyfive(65)yearsold.Heshallagainbesubjectto SectionEighteenandhisemployertoSectionNineteenofthisAct. "(d) Upon the death of the retired member, his primary beneficiaries as of the date of his retirement shall be entitled to receive the monthly pension: Provided, That if he has no primary beneficiariesandhedieswithinsixty(60)monthsfromthestartofhismonthlypension,hissecondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly pensions correspondingtothebalanceofthefiveyearguaranteedperiod,excludingthedependents'pension. "(e) The monthly pension of a member who retires after reaching age sixty (60) shall be the higher of either: (1) the monthly pension computed at the earliest time he could have retired had he beenseparatedfromemploymentorceasedtobeselfemployedplusalladjustmentsthereto;or(2)the monthlypensioncomputedatthetimewhenheactuallyretires. "SEC.13.DeathBenefits. Uponthedeathofa memberwhohaspaidatleastthirtysix (36) monthly contributionspriortothesemesterofdeath,hisprimarybeneficiariesshallbeentitledtothemonthly pension:Provided,Thatifhehasnoprimarybeneficiaries,hissecondarybeneficiariesshallbeentitled to a lump sum benefit equivalent to thirtysix (36) times the monthly pension. If he has not paid the requiredthirtysix(36)monthlycontributions,hisprimaryorsecondarybeneficiariesshallbeentitledto alumpsumbenefitequivalenttothemonthlypensiontimesthenumberofmonthlycontributionspaid totheSSSortwelve(12)timesthemonthlypension,whicheverishigher. "SEC.13A.PermanentDisabilityBenefits.(a)Uponthepermanenttotaldisabilityofamember whohaspaidatleastthirtysix(36)monthlycontributionspriortothesemesterofdisability,heshallbe entitledtothemonthlypension:Provided,Thatifhehasnotpaidtherequiredthirtysix(36)monthly contributions,heshallbeentitledtoalumpsumbenefitequivalenttothemonthlypensiontimesthe numberofmonthlycontributionspaidtotheSSSortwelve(12)timesthemonthlypension,whicheveris higher.Amemberwho(1)hasreceivedalumpsumbenefitand(2)isreemployedorhasresumedself employment not earlier than one (1) year from the date of his disability shall again be subject to compulsorycoverageandshallbeconsideredanewmember. "(b)Themonthlypensionanddependents'pensionshallbesuspendeduponthereemployment or resumption of selfemployment or the recovery of the disabled member from his permanent total disabilityorhisfailuretopresenthimselfforexaminationatleastonceayearuponnoticebytheSSS.

"(c) Upon the death of the permanent total disability pensioner, his primary beneficiaries as of the date of disability shall be entitled to receive the monthly pension: Provided, That if he has no primary beneficiaries and he dies within sixty (60) months from the start of his monthly pension, his secondarybeneficiariesshallbeentitledtoalumpsumbenefitequivalenttothetotalmonthlypensions correspondingtothebalanceofthefiveyearguaranteedperiodexcludingthedependents'pension. "(d)Thefollowingdisabilitiesshallbedeemedpermanenttotal: 1.Completelossofsightofbotheyes; 2.Lossoftwolimbsatorabovetheankleorwrists; 3.Permanentcompleteparalysisoftwolimbs; 4.Braininjuryresultingtoincurableimbecilityorinsanity;and 5.SuchcasesasdeterminedandapprovedbytheSSS. "(e)Ifthedisabilityispermanentpartial,andsuchdisabilityoccursbeforethirtysix(36)monthly contributionshavebeenpaidpriortothesemesterofdisability,thebenefitshallbesuchpercentageof thelumpsumbenefitdescribedintheprecedingparagraphwithdueregardtothedegreeofdisability astheCommissionmaydetermine. "(f) If the disability is permanent partial and such disability occurs after thirtysix (36) monthly contributions have been paid prior to the semester of disability, the benefit shall be the monthly pension for permanent total disability payable not longer than the period designated in the following schedule:
Complete And Permanent Loss Of Use Of One thumb One index finger One middle finger One ring finger One little finger One big toe One hand One arm One foot One leg One ear Number Of Months 10 8 6 5 3 6 39 50 31 46 10

Both ears Hearing of one ear Hearing of both ears Sight of one eye

20 10 50 25

"(g)Thepercentagedegreeofdisability,whichisequivalenttotheratiothatthedesignatednumberof months of compensability bears to seventyfive (75), rounded to the next higher integer, shall not be additive for distinct, separate and unrelated permanent partial disability, but shall be additive for deterioratingandrelatedpermanentpartialdisabilities,toamaximumofonehundredpercent(100%), inwhichcasethemembershallbedeemedaspermanentlytotallydisabled. "(h) In case of permanent partial disability, the monthly pension benefit shall be given in lump sumifitispayableforlessthantwelve(12)months. "(i) For the purpose of adjudicating retirement, death and permanent total disability pension benefits,contributionsshallbedeemedpaidforthemonthsduringwhichthememberreceivedpartial disabilitypension:Provided,Thatsuchcontributionsshallbebasedonhislastcontributionpriortohis disability. "(j)Shouldamemberwhoisonpartialdisabilitypensionretireordie,hisdisabilitypensionshall ceaseuponhisretirementordeath. "SEC.13B.FuneralBenefit.AfuneralgrantequivalenttoTwelvethousandpesos(P12,000.00)shallbe paid, in cash or in kind, to help defray the cost of funeral expenses upon the death of a member, includingpermanentlytotallydisabledmemberorretiree. "SEC.14.Sicknessbenefit.(a)Amemberwhohaspaidatleastthree(3)monthlycontributionsin the twelvemonth period immediately preceding the semester of sickness or injury and is confined thereforformorethanthree(3)daysinahospitalorelsewherewiththeapprovaloftheSSS,shall,for eachdayofcompensableconfinementorfractionthereof,bepaidbyhisemployer,ortheSSS,ifsuch personisunemployedorselfemployed,adailysicknessbenefitequivalenttoninetypercent(90%)of hisaveragedailysalarycredit,subjecttothefollowingconditions: "(1)Innocaseshallthedailysicknessbenefitbepaidlongerthanonehundredtwenty(120)days inone(1)calendaryear,norshallanyunusedportionoftheonehundredtwenty(120)daysofsickness benefit grantedunder thissectionbecarriedforwardandadded tothetotal numberofcompensable daysallowableinthesubsequentyear; "(2)Thedailysicknessbenefitshallnotbepaidformorethantwohundredforty(240)dayson accountofthesameconfinement;and

"(3) The employee member shall notify his employer of the fact of his sickness or injury within five(5)calendardaysafterthestartofhisconfinementunlesssuchconfinementisinahospitalorthe employee became sick or was injured while working or within the premises of the employer in which casenotificationtotheemployerisnotnecessary:Provided,Thatifthememberisunemployedorself employed,heshalldirectlynotifytheSSSofhisconfinementwithinfive(5)calendardaysafterthestart thereof unless such confinement is in a hospital in which case notification is also not necessary: Provided, further, That in cases where notification is necessary, the confinement shall be deemed to havestartednotearlierthanthefifthdayimmediatelyprecedingthedateofnotification. "(b) The compensable confinement shall begin on the first day of sickness, and the payment of suchallowancesshallbepromptlymadebytheemployereveryregularpaydayoronthefifteenthand last day of each month, and similarly in the case of direct payment by the SSS, for as long as such allowancesaredueandpayable:Provided,Thatsuchallowanceshallbeginonlyafterallsickleavesof absencewithfullpaytothecreditoftheemployeemembershallhavebeenexhausted. "(c)Onehundredpercent(100%)ofthedailybenefitsprovidedintheprecedingparagraphshall be reimbursed by the SSS to said employer upon receipt of satisfactory proof of such payment and legality thereof: Provided, That the employer has notified the SSS of the confinement within five (5) calendardaysafterreceiptofthenotificationfromtheemployeemember:Provided,further,Thatifthe notification to the SSS is made by the employer beyond five (5) calendar days after receipt of the notification from the employee member, said employer shall be reimbursed only for each day of confinementstartingfromthetenthcalendardayimmediatelyprecedingthedateofnotificationtothe SSS:Provided,finally,thattheSSSshallreimbursetheemployerorpaytheunemployedmemberonly for confinement within the oneyear period immediately preceding the date the claim for benefit or reimbursement is received by the SSS, except confinement in a hospital in which case the claim for benefitorreimbursementmustbefiledwithinone(1)yearfromthelastdayofconfinement. "(d)Wheretheemployeememberhasgiventherequirednotificationbuttheemployerfailsto notifytheSSSoftheconfinementortofiletheclaimforreimbursementwithintheperiodprescribedin thissectionresultinginthereductionofthebenefitordenialoftheclaimsuchemployershallhaveno righttorecoverthecorrespondingdailyallowanceheadvancedtotheemployeememberasrequiredin thisSection. "(e) The claim of reimbursement shall be adjudicated by the SSS within a period of two (2) monthsfromreceiptthereof:Provided,Thatshouldnopaymentbereceivedbytheemployerwithinone (1)monthaftertheperiodprescribedhereinforadjudicationthereimbursementshallthereafterearn simpleinterestofonepercent(1%)permonthuntilpaid. "(f)Theprovisionsregardingthenotificationrequiredofthememberandtheemployeraswellas the period within which the claim for benefit or reimbursement may be filed shall apply to all claims filedwiththeSSS.

"SEC. 14A. Maternity Leave Benefit. A female member who has paid at least three (3) monthly contributions in the twelvemonth period immediately preceding the semester of her childbirth or miscarriage shall be paid a daily maternity benefit equivalent to one hundred percent (100%) of her average daily salary credit for sixty (60) days or seventyeight (78) days in case of caesarean delivery, subjecttothefollowingconditions: "(a)Thattheemployeeshallhavenotifiedheremployerofherpregnancyandtheprobabledate of her childbirth, which notice shall be transmitted to the SSS in accordance with the rules and regulationsitmayprovide; "(b)Thefullpaymentshallbeadvancedbytheemployerwithinthirty(30)daysfromthefilingof thematernityleaveapplication; "(c)Thatpaymentofdailymaternitybenefitsshallbeabartotherecoveryofsicknessbenefits providedbythisActforthesameperiodforwhichdailymaternitybenefitshavebeenreceived; "(d)Thatthematernitybenefitsprovidedunderthissectionshallbepaidonlyforthefirstfour(4) deliveriesormiscarriages; "(e)ThattheSSSshallimmediatelyreimbursetheemployerofonehundredpercent(100%)ofthe amountofmaternitybenefitsadvancedtotheemployeebytheemployeruponreceiptofsatisfactory proofofsuchpaymentandlegalitythereof;and "(f) That if an employee member should give birth or suffer miscarriage without the required contributions having been remitted for her by her employer to the SSS, or without the latter having beenpreviouslynotifiedbytheemployerofthetimeofthepregnancy,theemployershallpaytothe SSS damages equivalent to the benefits which said employee member would otherwise have been entitledto. "SEC.15.NontransferabilityofBenefits.TheSSSshallpromptlypaythebenefitsprovidedforin this Act to such persons as may be entitled thereto in accordance with the provisions of this Act: Provided,ThattheSSSshallpaytheretirementbenefitsonthedayofcontingencytoqualifiedmembers whohavesubmittedthenecessarydocumentsatleastsix(6)monthsbefore:Provided,further,Thatthe beneficiary who is a national of a foreign country which does not extend benefits to a Filipino beneficiaryresidinginthePhilippines,orwhichisnotrecognizedbythePhilippines,shallnotbeentitled toreceiveanybenefitunderthisAct:Provided,further,Thatnotwithstandingtheforegoing,wherethe best interest of the SSS will be served, the Commission may direct payments without regard to nationality or country of residence: Provided, further, That if the recipient is a minor or a person incapable of administering his own affairs, the Commission shall appoint a representative under such terms and conditions as it may deem proper: Provided, further, That such appointment shall not be necessary in case the recipient is under the custody of or living with the parents or spouse of the memberinwhichcasethebenefitsshallbepaidtosuchparentsorspouse,asrepresentativepayeeof

therecipient.Suchbenefitsarenottransferableandnopowerofattorneyorotherdocumentexecuted bythoseentitledthereto,infavorofanyagent,attorneyoranyotherpersonforthecollectionthereof on their behalf shall be recognized, except when they are physically unable to collect personally such benefits:Provided,further,Thatincaseofdeathbenefits,ifnobeneficiaryqualifiesunderthisAct,said benefitsshallbepaidtothelegalheirsinaccordancewiththelawofsuccession. "SEC.16.ExemptionfromTax,LegalProcessandLien.Alllawstothecontrarynotwithstanding,theSSS and all its assets and properties, all contributions collected and all accruals thereto and income or investmentearningstherefrom,aswellasallsupplies,equipment,papersordocumentsshallbeexempt fromanytax,assessment,fee,charge,orcustomsorimportduty;andallbenefitpaymentsmadebythe 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, eitherbeforeorafterreceiptbythepersonorpersonsentitledthereto,excepttopayanydebtofthe member to the SSS. No tax measure of whatever nature enacted shall apply to the SSS, unless it expresslyrevokesthedeclaredpolicyoftheStateinSection2hereofgrantingtaxexemptiontotheSSS. AnytaxassessmentimposedagainsttheSSSshallbenullandvoid. "SEC. 17. Fee of Agents, Attorneys, etc. No agent, attorney or other person in charge of the preparation, filing or pursuing any claim for benefit under this Act shall demand or charge for his servicesanyfee,andanystipulationtothecontraryshallbenullandvoid.Theretentionordeductionof any amount from any benefit granted under this Act for the payment of fees for such services is prohibited:Provided,however,ThatanymemberofthePhilippineBarwhoappearsascounselinany caseheardbytheCommissionshallbeentitledtoattorney'sfeesnotexceedingtenpercent(10%)ofthe benefitsawardedbytheCommission,whichfeesshallnotbepayablebeforetheactualpaymentofthe benefits,andanystipulationtothecontraryshallbenullandvoid. "AnyviolationoftheprovisionsofthisSectionshallbepunished byafineofnotlessthanFive hundredpesos(P500.00)normorethanFivethousandpesos(P5,000.00),orimprisonmentfornotless thansix(6)monthsnormorethanone(1)year,orboth,atthediscretionofthecourt. "SEC. 18. Employee's Contribution. (a) Beginning as of the last day of the calendar month when an employee'scompulsorycoveragetakeseffectandeverymonththereafterduringhisemployment,the employer shall deduct and withhold from such employee's monthly salary, wage, compensation or earnings,theemployee'scontributioninanamountcorrespondingtohissalary,wage,compensationor earningsduringthemonthinaccordancewiththefollowingschedule:

 "Theforegoingscheduleofcontributionshallalsoapplytoselfemployedandvoluntarymembers. "ThemaximummonthlysalarycreditshallbeNinethousandpesos(P9,000.00)effectiveJanuary Nineteen hundred and ninety six (1996): Provided, That it shall be increased by One thousand pesos (P1,000.00) every year thereafter until it shall have reached Twelve thousand pesos (P12,000.00) by Nineteenhundredandninetynine(1999):Provided,further,Thattheminimumandmaximummonthly salary credits as well as the rate of contributions may be fixed from time to time by the Commission through rules and regulations taking into consideration actuarial calculations and rate of benefits, subjecttotheapprovalofthePresidentofthePhilippines. "SEC.19.Employer'sContributions.(a)beginningasofthelastdayofthemonthwhenanemployee's compulsory coverage takes effect and every month thereafter during his employment, his employer shallpay,withrespecttosuchcoveredemployee,theemployer'scontributioninaccordancewiththe schedule indicated in Section Eighteen of this Act. Notwithstanding any contract to the contrary, an employer shall not deduct, directly or indirectly, from the compensation of his employees covered by theSSSorotherwiserecoverfromthemtheemployer'scontributionswithrespecttosuchemployees. "(b) The remittance of such contributions by the employer shall be supported by a quarterly collectionlisttobesubmittedtotheSSSattheendofeachcalendarquarterindicatingthecorrectID number of the employer, the correct names and SSS numbers of the employees and the total contributionspaidfortheiraccountduringthequarter.

 "SEC.19A.ContributionoftheSelfemployedMember.ThecontributionstotheSSSoftheself employedmembershallbedeterminedinaccordancewithSectionEighteenofthisAct:Provided,That themonthlyearningsdeclaredbytheselfemployedmemberatthetimeofhisregistrationwiththeSSS shall be considered as his monthly compensation and he shall pay both the employer and employee contributions:Provided,further,ThatthecontributionsofselfemployedpersonsearningOnethousand pesos(P1,000.00)monthlyorbelowmaybereducedbytheCommission. "Themonthlyearningsdeclaredbytheselfemployedmemberatthetimeofhisregistrationshall remain the basis of his monthly salary credit, unless he makes another declaration of his monthly earnings,inwhichcasesuchlatestdeclarationbecomesthenewbasisofhismonthlysalarycredit. "SEC.20.GovernmentContribution.AsthecontributionoftheGovernmenttotheoperationof the SSS, Congress shall annually appropriate out of any funds in the National Treasury not otherwise appropriated,thenecessarysumorsumstomeettheestimatedexpensesoftheSSSforeachensuing year.Inadditiontothiscontribution,Congressshallappropriatefromtimetotimesuchsumorsumsas maybeneededtoassurethemaintenanceofanadequateworkingbalanceofthefundsoftheSSSas disclosedbysuitableperiodicactuarialstudiestobemadeoftheoperationsoftheSSS. "SEC.21.GovernmentGuarantee.ThebenefitsprescribedinthisActshallnotbediminishedand to guarantee said benefits the Government of the Republic of the Philippines accepts general responsibilityforthesolvencyoftheSSS. "SEC.22.RemittanceofContributions.(a)Thecontributionimposedintheprecedingsectionshallbe remittedtotheSSSwithinthefirstten(10)daysofeachcalendarmonthfollowingthemonthforwhich theyareapplicableorwithinsuchtimeastheCommissionmayprescribe.Everyemployerrequiredto deductandtoremitsuchcontributionsshallbeliablefortheirpaymentandifanycontributionisnot paidto theSSSasherein prescribed,heshallpaybesidesthecontributiona penaltythereonofthree percent (3%) per month from the date the contribution falls due until paid. If deemed expedient and advisablebytheCommission,thecollectionandremittanceofcontributionsshallbemadequarterlyor semiannually 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 advancebutnotdueshallbecreditedorrefundedtohisemployer. "(b)ThecontributionspayableunderthisActincaseswhereanemployerrefusesorneglectsto paythesameshallbecollectedbytheSSSinthesamemannerastaxesaremadecollectibleunderthe National Internal Revenue Code, as amended. Failure or refusal of the employer to pay or remit the contributionshereinprescribedshallnotprejudicetherightofthecoveredemployeetothebenefitsof thecoverage.

"The right to institute the necessary action against the employer may be commenced within twenty(20)yearsfromthetimethedelinquencyisknownortheassessmentismadebytheSSS,orfrom thetimethebenefitaccrues,asthecasemaybe. "(c) Should any person, natural or juridical, defaults in any payment of contributions, the Commissionmayalsocollectthesameineitherofthefollowingways: "1.Byanactionincourt,whichshallhearanddisposeofthecaseinpreferencetoanyothercivil action;or "2.ByissuingawarranttotheSheriffofanyprovinceorcitycommandinghimtolevyuponand sell any real and personal property of the debtor. The Sheriff's sale by virtue of said warrant shall be governedbythesameprocedureprescribedforexecutionsagainstpropertyuponjudgmentsbyacourt ofrecord. "(d) The last complete record of monthly contributions paid by the employer or the average of themonthlycontributionspaidduringthepastthree(3)yearsasofthedateoffilingoftheactionfor collectionshallbepresumedtobethemonthlycontributionspayablebyandduefromtheemployerto theSSSforeachoftheunpaidmonth,unlesscontradictedandovercomebyotherevidence:Provided, ThattheSSSshallnotbebarredfromdeterminingandcollectingthetrueandcorrectcontributionsdue the SSS even after full payment pursuant to this paragraph, nor shall the employer be relieved of his liabilityunderSectionTwentyeightofthisAct. "SEC. 22A. Remittance of Contributions of Selfemployed Members. Selfemployed members shallremittheirmonthlycontributionsquarterlyonsuchdatesandschedulesastheCommissionmay specifythroughrulesandregulations:Provided,Thatnoretroactivepaymentofcontributionsshallbe allowed,exceptasprovidedinthisSection. "SEC. 23. Method of Collection and Payment. The SSS shall require a complete and proper collection and payment of contributions and proper identification of the employer and the employee. Paymentmaybemadeincash,checks,stamps,coupons,tickets,orotherreasonabledevicesthatthe Commissionmayadopt. "SEC.24.EmploymentRecordsandReports.(a)EachemployershallimmediatelyreporttotheSSSthe names,ages,civilstatus,occupations,salariesanddependentsofallhisemployeeswhoaresubjectto compulsory coverage: Provided, That if an employee subject to compulsory coverage should die or become sick or disabled or reach the age of sixty (60) without the SSS having previously received any reportorwrittencommunicationabouthimfromhisemployer,thesaidemployershallpaytotheSSS damagesequivalenttothebenefitstowhichsaidemployeememberwouldhavebeenentitledhadhis namebeenreportedontimebytheemployertotheSSS,exceptthatincaseofpensionbenefits,the employershallbeliabletopaytheSSSdamagesequivalenttotheaccumulatedpensiondueasofthe

date of settlement of the claim or to the five (5) years' pension, whichever is higher, including dependents'pension:Provided,further,Thatifthecontingencyoccurswithinthirty(30)daysfromthe dateofemployment,theemployershallberelievedofhisliabilityfordamages:Provided,further,That anypersonorentityengagingtheservicesofanindependentcontractorshallbesubsidiarilyliablewith suchcontractorforanycivilliabilityincurredbythelatterunderthisact:Provided,finally,Thatthesame person or entity engaging the services of an independent contractor shall require such contractor to postasuretybondtoguaranteethepaymentoftheworker'sbenefits. "(b)Shouldtheemployermisrepresentthetruedateofemploymentoftheemployeememberor remit to the SSS contributions which are less than those required in this Act or fail to remit any contribution due prior to the date of contingency, resulting in a reduction of benefits such employer shallpaytotheSSSdamagesequivalenttothedifferencebetweentheamountofbenefittowhichthe employeememberofhisbeneficiaryisentitledhadthepropercontributionsbeenremittedtotheSSS and the amount payable on the basis of the contributions actually remitted: Provided, That if the employeememberorhisbeneficiaryisentitledtopensionbenefits,thedamagesshallbeequivalentto theaccumulatedpensiondueasofthedateofsettlementoftheclaimortothefive(5)years'pension, whicheverishigher,includingdependents'pension. "In addition to the liability mentioned in the preceding paragraphs (a) and (b) hereof, the employer shall also be liable for the payment of the corresponding unremitted contributions and penaltiesthereon. "(c)TherecordsandreportsdulyaccomplishedandsubmittedtotheSSSbytheemployerorthe member,asthecasemaybe,shallbekeptconfidentialbytheSSSexceptincompliancewithasubpoena ducestecumissuedbytheCourts,shallnotbedivulgedwithouttheconsentoftheSSSPresidentorany officialoftheSSSdulyauthorizedbyhim,shallbepresumedcorrectastothedataandothermatters statedtherein,unlessthenecessarycorrectionstosuchrecordsandreportshavebeenproperlymade bythepartiesconcernedbeforetherighttothebenefitbeingclaimedaccrues,andshallbemadethe basis for the adjudication of the claim. If as a result of such adjudication the SSS in good faith pays a monthlypensiontoabeneficiarywhoisinferiorinrighttoanotherbeneficiaryorwithwhomanother beneficiaryisentitledtoshare,suchpaymentsshalldischargetheSSSfromliabilityunlessanduntilsuch otherbeneficiarynotifiestheSSSofhisclaimpriortothepayments. "(d) Every employer shall keep true and accurate work records for such period and containing such information as the Commission may prescribe, in addition to an 'Annual Register of New and SeparatedEmployees'whichshallbesecuredfromtheSSSwhereintheemployershallenteronthefirst day of employment or on the effective date of separation, the names of the persons employed or separatedfromemployment,theirSSSnumbers,andsuchotherdatathattheCommissionmayrequire andsaidannualregistershallbesubmittedtotheSSSinthemonthofJanuaryofeachyear.Suchrecords shallbeopenforinspectionbytheSSSoritsauthorizedrepresentativesquarterlyorasoftenastheSSS mayrequire.

"TheSSSmayalsorequireeachemployertosubmit,withrespecttothepersonsinhisemploy, reportsneededfortheeffectiveadministrationofthisAct. "(e)Eachemployershallrequire,asaconditiontoemployment,thepresentationofaregistration numbersecuredbytheprospectiveemployeefromtheSSSinaccordancewithsuchprocedureasthe SSS may adopt: Provided, That in case of employees who have earlier been assigned registration numbersbyvirtueofapreviousemployment,suchnumbersoriginallyassignedtothemshouldbeused forpurposesofthisSection:Provided,further,ThattheissuanceofsuchregistrationnumbersbytheSSS shallnotexempttheemployerfromcomplyingwiththeprovisionsofparagraph(a)ofthisSection. "(f) Notwithstanding any law to the contrary, microfilm, or nonerasable optical disk and other similararchivalmediacopiesoforiginalSSSrecordsandreports,orcopiesofsuchrecordsandreports, dulycertifiedbytheofficialcustodianthereof,shallhavethesameevidentiaryvalueastheoriginalsand beadmissibleasevidenceinalllegalproceedings. "(g) Notwithstanding any law to the contrary, local government units shall, prior to issuing any annualbusinesslicenseorpermit,requiresubmissionofcertificateofSSScoverageandcompliancewith theprovisionsofthisAct:Provided,ThatthecertificationorclearanceshallbeissuedbytheSSSwithin five(5)workingdaysfromreceiptoftherequest. "SEC. 24A. Report and Registration of the Selfemployed Member. Each covered selfemployed member shall, within thirty (30) days from the first day he started the practice of his profession or business operations, register and report to the SSS his name, age, civil status, occupation, average monthlynetincomeandhisdependents. "SEC.25.DepositandDisbursements.AllmoneypaidtoorcollectedbytheSSSeveryyearunder this Act, and all accruals thereto, shall be deposited, administered and disbursed in the same manner and under the same conditions and requirements as provided by law for other public special funds: Provided, That not more than twelve (12%) percent of the total yearly contributions plus three (3%) percent of other revenues shall be disbursed for administrative and operational expenses such as salaries and wages, supplies and materials, depreciation, and the maintenance of offices of the SSS: Provided,further,Thatiftheexpensesinanyyeararelessthanthemaximumamountpermissible,the differenceshallnotbeavailedofasadditionalexpensesinthefollowingyears. "SEC.26.InvestmentofReserveFunds.AllrevenuesoftheSSSthatarenotneededtomeetthe current administrative and operational expenses incidental to the carrying out of this Act shall be accumulatedinafundtobeknownasthe"ReserveFund."SuchportionsoftheReserveFundasarenot needed to meet the current benefit obligations thereof shall be known as the "Investment Reserve Fund" which the Commission shall manage and invest with the skill, care, prudence and diligence necessary under the circumstances then prevailing that a prudent man acting in like capacity and familiarwithsuchmatterswouldexerciseintheconductofanenterpriseofalikecharacterandwith similaraims.Pursuantthereto,andinlinewiththebasicprinciplesofsafety,goodyieldandliquidity,the

Commissionshallinvestthefundstoearnanannualincomenotlessthantheaverageratesoftreasury billsoranyotheracceptablemarketyieldindicatorinanyorallofthefollowing: "(a)Inbonds,securities,promissorynotesorotherevidenceofindebtednessoftheGovernmentofthe Philippines,orinbonds,securities,promissorynotesorotherevidenceofindebtednesstowhichthefull faith,creditandunconditionalguaranteeoftheGovernmentofthePhilippinesispledged; "(b)Inbonds,securities,promissorynotesorotherevidenceofindebtednessoftheGovernment ofthePhilippinesoranyofitsagenciesorinstrumentalitiestofinancedomesticinfrastructureprojects such as roads, bridges, ports, telecommunications, and other similar projects: Provided, That the instruments issued by an agency or instrumentality of the government shall be guaranteed by the GovernmentofthePhilippinesoranygovernmentfinancialinstitutionoracceptablemultilateralagency: Provided, further, That the SSS shall have priority over the revenues of the projects: Provided, finally, Thatsuchinvestmentsshallnotexceedthirtypercent(30%)oftheInvestmentReserveFund; "(c) In bonds, securities, promissory notes or other evidence of indebtedness of government financial institutions or government corporations with acceptable credit or guarantee: Provided, That suchinvestmentsshallnotexceedthirtypercent(30%)oftheInvestmentReserveFund; "(d) In bonds, securities, deposits, promissory notes or other evidence of indebtedness of any bank doing business in the Philippines and in good standing with the Bangko Sentral ng Pilipinas to finance loans to private corporations doing business in the Philippines, including schools, hospitals, smallandmediumscaleindustries,cooperativesandnongovernmentalorganizations,inwhichcasethe collateralsorsecuritiesshallbeassignedtotheSSS,undersuchtermsandconditionsasthecommission may prescribe: Provided, That in the case of bank deposits, they shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank, whichever is smaller: Provided,further,Thatsaidbankshallfirsthavebeendesignatedasadepositoryforthispurposebythe Monetary Board of the Bangko Sentral ng Pilipinas: Provided, finally, That such investments shall not exceedfortypercent(40%)oftheInvestmentReserveFund; "(e)Inbonds,securities,promissorynotesorotherevidenceofindebtednessofshelteragencies of the National Government or financial intermediaries to finance housing loans of members; and in longterm direct individual or group housing loans giving priority to the lowincome groups, up to a maximum of ninety percent (90%) of the appraised 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, calamityandemergencyloans:Provided,Thatnotmorethanthirtyfivepercent(35%)oftheInvestment ReserveFundatanytimeshallbeinvestedforhousingpurposes:Provided,further,Thatnotmorethan tenpercent(10%)oftheInvestmentReserveFundshallbeinvestedinshortandmediumtermloans;

"(f) In bonds, securities, promissory notes or other evidence of indebtedness of educational or medicalinstitutionstofinancetheconstruction,improvementandmaintenanceofschoolsandhospitals andtheirequipmentandfacilities:Provided,Thatsuchinvestmentsshallnotexceedtenpercent(10%) oftheInvestmentReserveFund; "(g) In real estate property, including shares of stocks involving real estate property, and investments secured by first mortgages on real estate or other collaterals acceptable to the SSS: Provided,thatsuchprojectsandinvestmentsshall,inthedeterminationoftheCommission,redoundto thebenefitoftheSSS,itsmembers,aswellasthegeneralpublic:Provided,further,Thatinvestmentin real estate property, including shares of stocks involving real estate property shall not exceed five percent (5%) of the Investment Reserve Fund: Provided, finally, That investments in other income earningprojectsandinvestmentssecuredbyfirstmortgagesorothercollateralsshallnotexceedtwenty fivepercent(25%)oftheInvestmentReserveFund; "(h)Inbonds,debentures,securities,promissorynotesorotherevidenceofindebtednessofanyprime corporation or multilateral institution to finance domestic projects: Provided, That the issuing or assuming entity or its predecessors shall not have defaulted in the payment of interest on any of its securitiesandthatduringeachofanythree(3)includingthelasttwo(2)ofthefive(5)fiscalyearsnext preceding the date of acquisition by the SSS of such bonds, debentures or other evidence of indebtedness,thenetearningsoftheissuingorassuminginstitutionavailableforitsfixed charges,as definedinthisAct,shallhavebeennotlessthanoneandonequartertimesthetotalofitsfixedcharges for such year: Provided, further, That such investments shall not exceed thirty percent (30%) of the InvestmentReserveFund; "(i)Inpreferredorcommonsharesofstockslistedorabouttobelistedinthestockexchangeor optionsorwarrantstosuchstocksor,subjecttopriorapprovaloftheBangkoSentralngPilipinas,such otherriskmanagementinstrumentsofanyprimeorsolventcorporationorfinancialinstitutioncreated orexistingunderthelawsofthePhilippineswithproventrackrecordofprofitabilityoverthelastthree (3)yearsandpaymentofdividendsatleastonceoverthesameperiod:Provided,Thatsuchinvestments shallnotexceedthirtypercent(30%)oftheInvestmentReserveFund; "(j)Indomesticorforeignmutualfundsinexistenceforatleastthree(3)yearsandpaymentof dividendsatleastonceoverthesameperiod:Provided,Thatsuchinvestmentsshallnotexceedtwenty percent (20%) of the Investment Reserve Fund: Provided, further, That investments in foreign mutual fundsshallnotexceedonepercent(1%)oftheInvestmentReserveFundinthefirstyearwhichshallbe increasedbyonepercent(1%)foreachsucceedingyear,butinnocaseshallitexceedsevenandone halfpercent(7.5%)oftheInvestmentReserveFund; "(k) In foreign currency deposits or triple "A" foreign currencydenominated debts, prime and nonspeculativeequities,andotherBangkoSentralngPilipinasapprovedfinancialinstrumentsorother assets issued in accordance with existing laws of the countries where such financial instruments are issued: Provided, That these instruments or assets are listed in bourses of the respective countries

wheretheseinstrumentsorassetsareissued:Provided,further,Thattheissuingcompanyhasproven trackrecordofprofitabilityoverthelastthree(3)yearsandarecordofregulardividendpayoutover the same period: Provided, finally, That such investments shall not exceed one percent (1%) of the Investment Reserve Fund in the first year which shall be increased by one percent (1%) for each succeeding year, but in no case shall it exceed seven and onehalf percent (7.5%) of the Investment ReserveFund; "(l) In loans secured by such collaterals like cash, government securities or guarantees of multilateral institutions: Provided, That such investments shall not exceed thirty percent (30%) of the InvestmentReserveFund;and "(m) In other Bangko Sentral ng Pilipinas approved investment instruments with the same intrinsic quality as those enumerated in paragraphs (a) to (l) hereof, subject to the policies and guidelineswhichthecommissionmayformulate. "NoportionoftheInvestmentReserveFundorincomethereofshallaccruetothegeneralfundof theNationalGovernmentortoanyofitsagenciesorinstrumentalities,includinggovernmentownedor controlled corporations, except as may be allowed under this Act: Provided, that no portion of the InvestmentReserveFundshallbeinvestedforanypurposeorinanyinstrument,institutionorindustry overandabovetheprescribedcumulativeceilingsasfollows: 40%inprivatesecurities 35%inhousing 30%inrealestaterelatedinvestments 10%inshortandmediumtermmemberloans 30%ingovernmentfinancialinstitutionsandcorporations 30%ininfrastructureprojects 15%inanyparticularindustry 7.5%inforeigncurrencydenominatedinvestments "SEC.26A.FundManagers.Aspartofitsinvestmentoperations,theSSSmayappointlocalor,inthe absence thereof, foreign fund managers to manage the Investment Reserve Fund, as it may deem appropriate. "SEC.26B.MortgagorInsuranceAccount.(a)Aspartofitsinvestmentoperations,theSSSshallactas insurerofallorpartofitsinterestonSSSpropertiesmortgagedtotheSSS,orlivesofmortgagorswhose propertiesaremortgagedtotheSSS.Forthispurpose,theSSSshallestablishaseparateaccounttobe knownasthe"Mortgagors'InsuranceAccount."AllamountsreceivedbytheSSSinconnectionwiththe aforesaid insurance operations shall be placed in the Mortgagors' Insurance Account. The assets and liabilities of the Mortgagors' Insurance Account shall at all times be clearly identifiable and distinguishable from the assets and liabilities in all other accounts of the SSS. Notwithstanding any provision of law to the contrary, the assets held in the Mortgagors' Insurance Account shall not be

chargeablewiththeliabilitiesarisingoutofanyotherbusinesstheSSSmayconductbutshallbeheld andappliedexclusivelyforthebenefitoftheownersorbeneficiariesoftheinsurancecontractsissued bytheSSSunderthisparagraph. "(b)TheSSSmayinsureanyofitsinterestorpartthereofwithanyprivatecompanyorreinsurer. TheInsuranceCommissionoritsauthorizedrepresentativesshallmakeanexaminationintothefinancial condition and methods of transacting business of the SSS at least once in two (2) years, but such examinationshallbelimitedtotheinsuranceoperationoftheSSSasauthorizedunderthisparagraph and shall not embrace the other operations of the SSS; and the report of said examination shall be submittedtotheCommissionandacopythereofshallbefurnishedtheOfficeofthePresidentofthe Philippines within a reasonable time after the close of the examination: Provided, that for each examination,theSSSshallpaytotheInsuranceCommissionanamountequaltotheactualexpensesof the Insurance Commission in the conduct of the examination, including the salaries of the examiners andoftheactuaryoftheInsuranceCommissionwhohavebeenassignedtomakesuchexaminationfor theactualtimespentinsaidexamination:Provided,further,Thatthegenerallawoninsuranceandthe rules and regulations promulgated thereunder shall have suppletory application insofar as it is not in conflictwiththisActanditsrulesandregulations. "SEC. 27. Records and Reports. The SSS President shall keep and cause to keep records of operationsofthefundsoftheSSSandofdisbursementsthereofandallaccountsofpaymentsmadeout ofsaidfunds.DuringthemonthofJanuaryeachyear,theSSSPresidentshallprepareforsubmissionto thePresidentofthePhilippinesandtotheCongressofthePhilippinesareportofoperationsoftheSSS duringtheprecedingyear,includingstatisticaldata onthenumberofpersonscoveredandbenefited, theiroccupationsandemploymentstatus,thedurationandamountofbenefitspaid,thefinancesofthe SSSatthecloseofthesaidyear,andrecommendations.Heshallalsocausetobepublishedintwo(2) newspapers of general circulation in the Philippines a synopsis of the annual report, showing in particularthestatusofthefinancesoftheSSSandthebenefitsadministered. "SEC.28.PenalClause.(a)Whoever,forthepurposeofcausinganypaymenttobemadeunderthis Act,orunderanagreementthereunder,wherenoneisauthorizedtobepaid,shallmakeorcausetobe madefalsestatementorrepresentationastoanycompensationpaidorreceived,orwhoevermakesor causestobemadeanyfalsestatementofamaterialfactinanyclaimforanybenefitpayableunderthis Act,orapplicationforloanwiththeSSS,orwhoevermakesorcausestobemadeanyfalsestatement, representation, affidavit or document in connection with such claim or loan,shall suffer the penalties providedforinArticleOnehundredseventytwooftheRevisedPenalCode. "(b) Whoever shall obtain or receive any money or check under this Act or any agreement thereunder, without being entitled thereto with intent to defraud any member, employer or the SSS, shall be fined not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00)andimprisonedfornotlessthansix(6)yearsandone(1)daynormorethantwelve(12) years.

"(c)Whoeverbuys,sells,offersforsale,uses,transfersortakesorgivesinexchange,orpledges orgivesinpledge,exceptasauthorizedinthisActorinregulationsmadepursuantthereto,anystamp, coupon, ticket, book or other device, prescribed pursuant to Section Twentythree hereof by the Commissionforthecollectionorpaymentofcontributionsrequiredherein,shallbefinednotlessthan Fivethousandpesos(P5,000.00)normorethantwentythousandpesos(P20,000.00),orimprisonedfor notlessthansix(6)yearsandone(1)daynormorethantwelve(12)years,orboth,atthediscretionof thecourt. "(d) Whoever, with intent to defraud, alters, forges, makes or counterfeits any stamp, coupon, ticket, book or other device prescribed by the Commission for the collection or payment of any contribution requiredherein,oruses, sells,lends,orhasinhis possessionanysuchaltered,forgedor counterfeitedmaterials,ormakes,uses,sellsorhasinhispossessionanysuchaltered,forgedmaterial inimitationofthematerialusedinthemanufactureofsuchstamp,coupon,ticket,bookorotherdevice, shall be fined not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00), or imprisoned for not less than six (6) years and one (1) day nor more than twelve (12) years,orboth,atthediscretionofthecourt. "(e) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulationspromulgatedbytheCommission,shallbepunishedbyafineofnotlessthanFivethousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00), or imprisonment for not less thansix(6)yearsandone(1)daynormorethantwelve(12)yearsorboth,atthediscretionofthecourt: Provided,Thatwheretheviolationconsistsinfailureorrefusaltoregisteremployeesorhimself,incase ofthecoveredselfemployed,ortodeductcontributionsfromtheemployees'compensationandremit the same to the SSS, the penalty shall be a fine of not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) and imprisonment for not less than six (6) years and one(1)daynormorethantwelve(12)years. "(f) If the act or omission penalized by this Act be committed by an association, partnership, corporation or any other institution, its managing head, directors or partners shall be liable to the penaltiesprovidedinthisActfortheoffense. "(g) Any employee of the SSS who receives or keeps funds or property belonging, payable or deliverable to the SSS and who shall appropriate the same, or shall take or misappropriate, or shall consentorthroughabandonmentornegligenceshallpermitanyotherpersontotakesuchpropertyor funds, wholly or partially, or shall otherwise be guilty of misappropriation of such funds or property, shallsufferthepenaltiesprovidedinArticleThreeHundredFifteenoftheRevisedPenalCode. "(h)Anyemployerwhoafterdeductingthemonthlycontributionorloanamortizationsfromhis employee'scompensation,failstoremitthesaiddeductionstotheSSSwithinthirty(30)daysfromthe date they became due shall be presumed to have misappropriated such contributions or loan amortizations and shall suffer the penalties provided in Article Three Hundred Fifteen of the Revised PenalCode.

 "(i)CriminalactionarisingfromaviolationoftheprovisionsofthisActmaybecommencedbythe SSSortheemployeeconcernedeitherunderthisActorinappropriatecasesundertheRevisedPenal Code:Provided,ThatsuchcriminalactionmaybefiledbytheSSSinthecityormunicipalitywherethe SSSofficeislocatediftheviolationwascommittedwithinitsterritorialjurisdictionorinMetroManila, attheoptionoftheSSS. "SEC. 29. Government Aid. The establishment of the SSS shall not disqualify the members and employersfromreceivingsuchgovernmentassistance,financialorotherwise,asmaybeprovided. "SEC.30.TransitoryClause.Anyemployerwhoisdelinquentorhasnotremittedallcontributionsdue and payable to the SSS may, within six (6) months from the effectivity of this Act, remit said contributions or submit a proposal to pay the same in installments within a period of not more than twelve(12)monthsfromtheeffectivityofthisActwithoutincurringtheprescribedpenalty,subjectto the implementing rules and regulations which the Commission may prescribe: Provided, That the employersubmitsthecorrespondingcollectionliststogetherwiththeremittanceorproposaltopayin installments: Provided, further, That in case the employer fails to remit contributions within the six monthgraceperiodordefaultsinthepaymentofanyamortizationprovidedintheapprovedproposal, theprescribedpenaltyshallbeimposedfromthetimethecontributionsfirstbecamedueasprovidedin Section22(a)hereof." SEC.2.SeparabilityClause.IfanyprovisionofthisActisdeclaredinvalid,theotherprovisionsnot affectedtherebyshallremainvalid. SEC.3.RepealingClause.Alllaws,proclamations,executiveorders,rulesandregulationsorparts thereofinconsistentwiththisActareherebyrepealed,modifiedoramendedaccordingly:Provided,That nopersonshallbedeemedtobevestedwithanypropertyorotherrightbyvirtueoftheenactmentor operationofthisAct. SEC.4.EffectivityClause.ThisActshalltakeeffectfifteen(15)daysafteritscompletepublication intheOfficialGazetteorinatleasttwo(2)nationalnewspapersofgeneralcirculationwhichevercomes earlier.

 Approved, (Sgd.) (Sgd.) ERNESTOM.MACEDA JOSEDEVENECIA,JR. PresidentoftheSenate SpeakeroftheHouse ofRepresentatives ThisAct,whichisaconsolidationofSenateBillNo.1663andHouseBillNo.7758wasfinallypassed bytheSenateandtheHouseofRepresentativesonApril30,1997. (Sgd.) (Sgd.) LORENZOE.LEYNES,JR. ROBERTOP.NAZARENO SecretaryoftheSenate SecretaryGeneral HouseofRepresentatives Approved:May01,1997 (Sgd.) FIDELV.RAMOS PresidentofthePhilippines