The Lawphil Project - Arellano Law Foundation

REPUBLIC ACT No. 6713
CODE OF CONDUCT AND ETHICAL STANDARDS FOR PUBLIC OFFICIALS AND EMPLOYEES

REPUBLIC ACT No. 6713
AN ACT ESTABLISHING A CODE OF CONDUCT AND ETHICAL STANDARDS FOR PUBLIC OFFICIALS AND EMPLOYEES, TO
UPHOLD THE TIME-HONORED PRINCIPLE OF PUBLIC OFFICE BEING A PUBLIC TRUST, GRANTING INCENTIVES AND
REWARDS FOR EXEMPLARY SERVICE, ENUMERATING PROHIBITED ACTS AND TRANSACTIONS AND PROVIDING
PENALTIES FOR VIOLATIONS THEREOF AND FOR OTHER PURPOSES

Section 1. Title. - This Act shall be known as the "Code of Conduct and Ethical Standards for Public Officials and Employees."

Section 2. Declaration of Policies. - It is the policy of the State to promote a high standard of ethics in public service. Public officials and employees
shall at all times be accountable to the people and shall discharge their duties with utmost responsibility, integrity, competence, and loyalty, act with
patriotism and justice, lead modest lives, and uphold public interest over personal interest.

Section 3. Definition of Terms. - As used in this Act, the term:
(a) "Government" includes the National Government, the local governments, and all other instrumentalities, agencies or branches of the
Republic of the Philippines including government-owned or controlled corporations, and their subsidiaries.lawphi1.net
(b) "Public Officials" includes elective and appointive officials and employees, permanent or temporary, whether in the career or non-career
service, including military and police personnel, whether or not they receive compensation, regardless of amount.
(c) "Gift" refers to a thing or a right to dispose of gratuitously, or any act or liberality, in favor of another who accepts it, and shall include a
simulated sale or an ostensibly onerous disposition thereof. It shall not include an unsolicited gift of nominal or insignificant value not
given in anticipation of, or in exchange for, a favor from a public official or employee.
(d) "Receiving any gift" includes the act of accepting directly or indirectly, a gift from a person other than a member of his family or
relative as defined in this Act, even on the occasion of a family celebration or national festivity like Christmas, if the value of the gift is
neither nominal nor insignificant, or the gift is given in anticipation of, or in exchange for, a favor.
(e) "Loan" covers both simple loan and commodatum as well as guarantees, financing arrangements or accommodations intended to ensure
its approval.
(f) "Substantial stockholder" means any person who owns, directly or indirectly, shares of stock sufficient to elect a director of a
corporation. This term shall also apply to the parties to a voting trust.
(g) "Family of public officials or employees" means their spouses and unmarried children under eighteen (18) years of age.
(h) "Person" includes natural and juridical persons unless the context indicates otherwise.
(i) "Conflict of interest" arises when a public official or employee is a member of a board, an officer, or a substantial stockholder of a
private corporation or owner or has a substantial interest in a business, and the interest of such corporation or business, or his rights or
duties therein, may be opposed to or affected by the faithful performance of official duty.
(j) "Divestment" is the transfer of title or disposal of interest in property by voluntarily, completely and actually depriving or dispossessing
oneself of his right or title to it in favor of a person or persons other than his spouse and relatives as defined in this Act.
(k) "Relatives" refers to any and all persons related to a public official or employee within the fourth civil degree of consanguinity or
affinity, including bilas, inso and balae.

Section 4. Norms of Conduct of Public Officials and Employees. - (A) Every public official and employee shall observe the following as standards of
personal conduct in the discharge and execution of official duties:
(a) Commitment to public interest. - Public officials and employees shall always uphold the public interest over and above
personal interest. All government resources and powers of their respective offices must be employed and used efficiently,
effectively, honestly and economically, particularly to avoid wastage in public funds and revenues.
(b) Professionalism. - Public officials and employees shall perform and discharge their duties with the highest degree of
excellence, professionalism, intelligence and skill. They shall enter public service with utmost devotion and dedication to duty.
They shall endeavor to discourage wrong perceptions of their roles as dispensers or peddlers of undue patronage.
(c) Justness and sincerity. - Public officials and employees shall remain true to the people at all times. They must act with justness
and sincerity and shall not discriminate against anyone, especially the poor and the underprivileged. They shall at all times
respect the rights of others, and shall refrain from doing acts contrary to law, good morals, good customs, public policy, public
order, public safety and public interest. They shall not dispense or extend undue favors on account of their office to their relatives
whether by consanguinity or affinity except with respect to appointments of such relatives to positions considered strictly
confidential or as members of their personal staff whose terms are coterminous with theirs.
(d) Political neutrality. - Public officials and employees shall provide service to everyone without unfair discrimination and
regardless of party affiliation or preference.
(e) Responsiveness to the public. - Public officials and employees shall extend prompt, courteous, and adequate service to the
public. Unless otherwise provided by law or when required by the public interest, public officials and employees shall provide
information of their policies and procedures in clear and understandable language, ensure openness of information, public
consultations and hearings whenever appropriate, encourage suggestions, simplify and systematize policy, rules and procedures,
avoid red tape and develop an understanding and appreciation of the socio-economic conditions prevailing in the country,
especially in the depressed rural and urban areas.
(f) Nationalism and patriotism. - Public officials and employees shall at all times be loyal to the Republic and to the Filipino
people, promote the use of locally produced goods, resources and technology and encourage appreciation and pride of country
and people. They shall endeavor to maintain and defend Philippine sovereignty against foreign intrusion.
(g) Commitment to democracy. - Public officials and employees shall commit themselves to the democratic way of life and
values, maintain the principle of public accountability, and manifest by deeds the supremacy of civilian authority over the
military. They shall at all times uphold the Constitution and put loyalty to country above loyalty to persons or party.

(h) Simple living. - Public officials and employees and their families shall lead modest lives appropriate to their positions and
income. They shall not indulge in extravagant or ostentatious display of wealth in any form.
(B) The Civil Service Commission shall adopt positive measures to promote (1) observance of these standards including the dissemination
of information programs and workshops authorizing merit increases beyond regular progression steps, to a limited number of employees
recognized by their office colleagues to be outstanding in their observance of ethical standards; and (2) continuing research and
experimentation on measures which provide positive motivation to public officials and employees in raising the general level of observance
of these standards.

Section 5. Duties of Public Officials and Employees. - In the performance of their duties, all public officials and employees are under obligation
to:lawphi1.net
(a) Act promptly on letters and requests. - All public officials and employees shall, within fifteen (15) working days from receipt thereof,
respond to letters, telegrams or other means of communications sent by the public. The reply must contain the action taken on the request.
(b) Submit annual performance reports. - All heads or other responsible officers of offices and agencies of the government and of
government-owned or controlled corporations shall, within forty-five (45) working days from the end of the year, render a performance
report of the agency or office or corporation concerned. Such report shall be open and available to the public within regular office hours.
(c) Process documents and papers expeditiously. - All official papers and documents must be processed and completed within a reasonable
time from the preparation thereof and must contain, as far as practicable, not more than three (3) signatories therein. In the absence of duly
authorized signatories, the official next-in-rank or officer in charge shall sign for and in their behalf.
(d) Act immediately on the public's personal transactions. - All public officials and employees must attend to anyone who wants to avail
himself of the services of their offices and must, at all times, act promptly and expeditiously.
(e) Make documents accessible to the public. - All public documents must be made accessible to, and readily available for inspection by,
the public within reasonable working hours.

Section 6. System of Incentives and Rewards. - A system of annual incentives and rewards is hereby established in order to motivate and inspire
public servants to uphold the highest standards of ethics. For this purpose, a Committee on Awards to Outstanding Public Officials and Employees is
hereby created composed of the following: the Ombudsman and Chairman of the Civil Service Commission as Co-Chairmen, and the Chairman of
the Commission on Audit, and two government employees to be appointed by the President, as members.
It shall be the task of this Committee to conduct a periodic, continuing review of the performance of public officials and employees, in all the
branches and agencies of Government and establish a system of annual incentives and rewards to the end that due recognition is given to public
officials and employees of outstanding merit on the basis of the standards set forth in this Act.
The conferment of awards shall take into account, among other things, the following: the years of service and the quality and consistency of
performance, the obscurity of the position, the level of salary, the unique and exemplary quality of a certain achievement, and the risks or temptations
inherent in the work. Incentives and rewards to government officials and employees of the year to be announced in public ceremonies honoring them
may take the form of bonuses, citations, directorships in government-owned or controlled corporations, local and foreign scholarship grants, paid
vacations and the like. They shall likewise be automatically promoted to the next higher position with the commensurate salary suitable to their
qualifications. In case there is no next higher position or it is not vacant, said position shall be included in the budget of the office in the next General
Appropriations Act. The Committee on Awards shall adopt its own rules to govern the conduct of its activities.

Section 7. Prohibited Acts and Transactions. - In addition to acts and omissions of public officials and employees now prescribed in the Constitution
and existing laws, the following shall constitute prohibited acts and transactions of any public official and employee and are hereby declared to be
unlawful:
(a) Financial and material interest. - Public officials and employees shall not, directly or indirectly, have any financial or material interest in
any transaction requiring the approval of their office.
(b) Outside employment and other activities related thereto. - Public officials and employees during their incumbency shall not:
(1) Own, control, manage or accept employment as officer, employee, consultant, counsel, broker, agent, trustee or nominee in
any private enterprise regulated, supervised or licensed by their office unless expressly allowed by law;
(2) Engage in the private practice of their profession unless authorized by the Constitution or law, provided, that such practice
will not conflict or tend to conflict with their official functions; or
(3) Recommend any person to any position in a private enterprise which has a regular or pending official transaction with their
office.
These prohibitions shall continue to apply for a period of one (1) year after resignation, retirement, or separation from public office, except
in the case of subparagraph (b) (2) above, but the professional concerned cannot practice his profession in connection with any matter
before the office he used to be with, in which case the one-year prohibition shall likewise apply.
(c) Disclosure and/or misuse of confidential information. - Public officials and employees shall not use or divulge, confidential or classified
information officially known to them by reason of their office and not made available to the public, either:
(1) To further their private interests, or give undue advantage to anyone; or
(2) To prejudice the public interest.
(d) Solicitation or acceptance of gifts. - Public officials and employees shall not solicit or accept, directly or indirectly, any gift, gratuity,
favor, entertainment, loan or anything of monetary value from any person in the course of their official duties or in connection with any
operation being regulated by, or any transaction which may be affected by the functions of their office.
As to gifts or grants from foreign governments, the Congress consents to:
(i) The acceptance and retention by a public official or employee of a gift of nominal value tendered and received as a souvenir or
mark of courtesy;
(ii) The acceptance by a public official or employee of a gift in the nature of a scholarship or fellowship grant or medical
treatment; or
(iii) The acceptance by a public official or employee of travel grants or expenses for travel taking place entirely outside the
Philippine (such as allowances, transportation, food, and lodging) of more than nominal value if such acceptance is appropriate or
consistent with the interests of the Philippines, and permitted by the head of office, branch or agency to which he belongs.

The Ombudsman shall prescribe such regulations as may be necessary to carry out the purpose of this subsection, including pertinent
reporting and disclosure requirements.
Nothing in this Act shall be construed to restrict or prohibit any educational, scientific or cultural exchange programs subject to national
security requirements.

Section 8. Statements and Disclosure. - Public officials and employees have an obligation to accomplish and submit declarations under oath of, and
the public has the right to know, their assets, liabilities, net worth and financial and business interests including those of their spouses and of
unmarried children under eighteen (18) years of age living in their households.
(A) Statements of Assets and Liabilities and Financial Disclosure. - All public officials and employees, except those who serve in an
honorary capacity, laborers and casual or temporary workers, shall file under oath their Statement of Assets, Liabilities and Net Worth and a
Disclosure of Business Interests and Financial Connections and those of their spouses and unmarried children under eighteen (18) years of
age living in their households.
The two documents shall contain information on the following:
(a) real property, its improvements, acquisition costs, assessed value and current fair market value;
(b) personal property and acquisition cost;
(c) all other assets such as investments, cash on hand or in banks, stocks, bonds, and the like;
(d) liabilities, and;
(e) all business interests and financial connections.
The documents must be filed:
(a) within thirty (30) days after assumption of office;
(b) on or before April 30, of every year thereafter; and
(c) within thirty (30) days after separation from the service.
All public officials and employees required under this section to file the aforestated documents shall also execute, within thirty (30) days
from the date of their assumption of office, the necessary authority in favor of the Ombudsman to obtain from all appropriate government
agencies, including the Bureau of Internal Revenue, such documents as may show their assets, liabilities, net worth, and also their business
interests and financial connections in previous years, including, if possible, the year when they first assumed any office in the Government.
Husband and wife who are both public officials or employees may file the required statements jointly or separately.
The Statements of Assets, Liabilities and Net Worth and the Disclosure of Business Interests and Financial Connections shall be filed by:
(1) Constitutional and national elective officials, with the national office of the Ombudsman;
(2) Senators and Congressmen, with the Secretaries of the Senate and the House of Representatives, respectively; Justices, with
the Clerk of Court of the Supreme Court; Judges, with the Court Administrator; and all national executive officials with the
Office of the President.
(3) Regional and local officials and employees, with the Deputy Ombudsman in their respective regions;
(4) Officers of the armed forces from the rank of colonel or naval captain, with the Office of the President, and those below said
ranks, with the Deputy Ombudsman in their respective regions; and
(5) All other public officials and employees, defined in Republic Act No. 3019, as amended, with the Civil Service Commission.
(B) Identification and disclosure of relatives. - It shall be the duty of every public official or employee to identify and disclose, to the best of his
knowledge and information, his relatives in the Government in the form, manner and frequency prescribed by the Civil Service Commission.
(C) Accessibility of documents. - (1) Any and all statements filed under this Act, shall be made available for inspection at reasonable hours.
(2) Such statements shall be made available for copying or reproduction after ten (10) working days from the time they are filed as required
by law.
(3) Any person requesting a copy of a statement shall be required to pay a reasonable fee to cover the cost of reproduction and mailing of
such statement, as well as the cost of certification.
(4) Any statement filed under this Act shall be available to the public for a period of ten (10) years after receipt of the statement. After such
period, the statement may be destroyed unless needed in an ongoing investigation.
(D) Prohibited acts. - It shall be unlawful for any person to obtain or use any statement filed under this Act for:
(a) any purpose contrary to morals or public policy; or
(b) any commercial purpose other than by news and communications media for dissemination to the general public.

Section 9. Divestment. - A public official or employee shall avoid conflicts of interest at all times. When a conflict of interest arises, he shall resign
from his position in any private business enterprise within thirty (30) days from his assumption of office and/or divest himself of his shareholdings or
interest within sixty (60) days from such assumption.
The same rule shall apply where the public official or employee is a partner in a partnership.
The requirement of divestment shall not apply to those who serve the Government in an honorary capacity nor to laborers and casual or temporary
workers.

Section 10. Review and Compliance Procedure. - (a) The designated Committees of both Houses of the Congress shall establish procedures for the
review of statements to determine whether said statements which have been submitted on time, are complete, and are in proper form. In the event a
determination is made that a statement is not so filed, the appropriate Committee shall so inform the reporting individual and direct him to take the
necessary corrective action.
(b) In order to carry out their responsibilities under this Act, the designated Committees of both Houses of Congress shall have the power
within their respective jurisdictions, to render any opinion interpreting this Act, in writing, to persons covered by this Act, subject in each
instance to the approval by affirmative vote of the majority of the particular House concerned.
The individual to whom an opinion is rendered, and any other individual involved in a similar factual situation, and who, after issuance of
the opinion acts in good faith in accordance with it shall not be subject to any sanction provided in this Act.
(c) The heads of other offices shall perform the duties stated in subsections (a) and (b) hereof insofar as their respective offices are
concerned, subject to the approval of the Secretary of Justice, in the case of the Executive Department and the Chief Justice of the Supreme
Court, in the case of the Judicial Department.

Section 11. Penalties. - (a) Any public official or employee, regardless of whether or not he holds office or employment in a casual, temporary,
holdover, permanent or regular capacity, committing any violation of this Act shall be punished with a fine not exceeding the equivalent of six (6)
months' salary or suspension not exceeding one (1) year, or removal depending on the gravity of the offense after due notice and hearing by the
appropriate body or agency. If the violation is punishable by a heavier penalty under another law, he shall be prosecuted under the latter statute.
Violations of Sections 7, 8 or 9 of this Act shall be punishable with imprisonment not exceeding five (5) years, or a fine not exceeding five thousand
pesos (P5,000), or both, and, in the discretion of the court of competent jurisdiction, disqualification to hold public office.
(b) Any violation hereof proven in a proper administrative proceeding shall be sufficient cause for removal or dismissal of a public official
or employee, even if no criminal prosecution is instituted against him.
(c) Private individuals who participate in conspiracy as co-principals, accomplices or accessories, with public officials or employees, in
violation of this Act, shall be subject to the same penal liabilities as the public officials or employees and shall be tried jointly with them.
(d) The official or employee concerned may bring an action against any person who obtains or uses a report for any purpose prohibited by
Section 8 (D) of this Act. The Court in which such action is brought may assess against such person a penalty in any amount not to exceed
twenty-five thousand pesos (P25,000). If another sanction hereunder or under any other law is heavier, the latter shall apply.

Section 12. Promulgation of Rules and Regulations, Administration and Enforcement of this Act. - The Civil Service Commission shall have the
primary responsibility for the administration and enforcement of this Act. It shall transmit all cases for prosecution arising from violations of this Act
to the proper authorities for appropriate action: Provided, however, That it may institute such administrative actions and disciplinary measures as may
be warranted in accordance with law. Nothing in this provision shall be construed as a deprivation of the right of each House of Congress to
discipline its Members for disorderly behavior.
The Civil Service Commission is hereby authorized to promulgate rules and regulations necessary to carry out the provisions of this Act, including
guidelines for individuals who render free voluntary service to the Government. The Ombudsman shall likewise take steps to protect citizens who
denounce acts or omissions of public officials and employees which are in violation of this Act.

Section 13. Provisions for More Stringent Standards. - Nothing in this Act shall be construed to derogate from any law, or any regulation prescribed
by any body or agency, which provides for more stringent standards for its official and employees.

Section 14. Appropriations. - The sum necessary for the effective implementation of this Act shall be taken from the appropriations of the Civil
Service Commission. Thereafter, such sum as may be needed for its continued implementation shall be included in the annual General Appropriations
Act.

Section 15. Separability Clause. - If any provision of this Act or the application of such provision to any person or circumstance is declared invalid,
the remainder of the Act or the application of such provision to other persons or circumstances shall not be affected by such declaration.

Section 16. Repealing Clause. - All laws, decrees and orders or parts thereof inconsistent herewith, are deemed repealed or modified accordingly,
unless the same provide for a heavier penalty.

Section 17. Effectivity. - This Act shall take effect after thirty (30) days following the completion of its publication in the Official Gazette or in two
(2) national newspapers of general circulation.
Approved, February 20, 1989.

E. including guidance counselors. no teacher shall be transferred without his consent from one station to another. . A copy of the Code shall be furnished each teacher: Provided. 3. in any level of instruction. the school superintendent may appoint. and all other persons performing supervisory and/or administrative functions in all schools. in writing. master's degree with a specific area of specialization. at least three copies of the same Code shall be deposited with the office of the school principal or head teacher where they may be accessible for use by the teachers. it being recognized that advance in education depends on the qualifications and ability of the teaching staff and that education is an essential factor in the economic growth of the nation as a productive investment of vital importance. and d. such transfer may be effected by the school superintendent who shall previously notify the teacher concerned of the transfer and the reason or reasons therefor. That where. Sec. That should teacher-applicants. teachers appointed on a provisional status for lack of necessary civil service eligibility shall be extended permanent appointment for the position he is holding after having rendered at least ten years of continuous. No publicity shall be given to any disciplinary action being taken against a teacher during the pendency of his case. That effective upon the approval of this Act. other than vocational. 6. If the teacher believes there is no justification for the transfer. however. under a temporary status. Recruitment and Qualification. the right to appeal to clearly designated authorities. RECRUITMENT AND CAREER Sec. no probationary period preceding regular appointment shall be imposed if the teacher possesses the appropriate civil service eligibility: Provided. or a Bachelor's degree in Arts or Science with at least eighteen professional units in Education. the right to full access to the evidence in the case. school librarians. That in the absence of applicants who possess the minimum educational qualifications as hereinabove provided. their living and working conditions. be required to take competitive examinations. (d) For teachers of courses on the collegiate level. Necessary transfer expenses of the teacher and his family shall be paid for by the Government if his transfer is finally approved. Sec. Except for cause and as herein otherwise provided. 7. Bachelor's degree in Elementary Education (B. their terms of employment and career prospects in order that they may compare favorably with existing opportunities in other walks of life. however. (b) For teachers of the secondary schools. and other school employees. his transfer shall be held in abeyance: Provided.REPUBLIC ACT NO. 2. efficient and faithful service in such position. attract and retain in the teaching profession more people with the proper qualifications. due to the exigencies of the service. That the results of the examinations shall be made public and every applicant shall be furnished with his score and rank in said examinations. When recruitment takes place after adequate training and professional preparation in any school recognized by the Government. Bachelor's degree in Education or its equivalent with a major and a minor. 1966 THE MAGNA CARTA FOR PUBLIC SCHOOL TEACHERS I. Tenure of Office. Where the exigencies of the service require the transfer of a teacher from one station to another. Declaration of Policy. This Act shall be known as the "Magna Carta for Public School Teachers" and shall apply to all public school teachers except those in the professorial staff of state colleges and universities. however. II. on full-time basis. Sec. b. 8. Sec. 4. but shall not include school nurses. industrial arts or vocational instructors. As used in this Act. Code of Professional Conduct for Teachers.ED. whether they possess the minimum educational qualifications or not. 5. 4670 June 18. Title Definition. Every teacher shall enjoy equitable safeguards at each stage of any disciplinary procedure and shall have: a. Consent for Transfer Transportation Expenses. colleges and universities operated by the Government or its political subdivisions. Probationary Period.). Sec. adequate time being given to the teacher for the preparation of his defense. Pending his appeal and the decision thereon.S. the Secretary of Education shall formulate and prepare a Code of Professional Conduct for Public School Teachers. school dentists. That no transfers whatever shall be made three months before any local or national election. it is necessary to employ as teacher a person who possesses the minimum educational qualifications herein above set forth but lacks the appropriate civil service eligibility. however. such person shall be appointed on a provisional status and shall undergo a period of probation for not less than one year from and after the date of his provisional appointment. Provided. Sec. he may appeal his case to the Director of Public Schools or the Director of Vocational Education. 1. c. the following shall constitute the minimum educational qualifications for teacher-applicants: (a) For teachers in the kindergarten and elementary grades. Subject to the provisions of Section three hereof. further. as the case may be. It is hereby declared to be the policy of this Act to promote and improve the social and economic status of public school teachers. the term "teacher" shall mean all persons engaged in classroom teaching. Safeguards in Disciplinary Procedure. Bachelor's degree in the field of specialization with at least eighteen professional units in education. school physicians. applicants who do not meet the minimum qualifications: Provided. further. (c) For teachers of secondary vocational and two years technical courses. Within six months from the approval of this Act. Stability on employment and security of tenure shall be assured the teachers as provided under existing laws. DECLARATION OF POLICY COVERAGE Sec. the right to be informed. finally. Recruitment policy with respect to the selection and appointment of teachers shall be clearly defined by the Department of Education: Provided. the right to defend himself and to be defended by a representative of his choice and/or by his organization. of the charges. That where this is not possible by reason of inadequate fiscal resources of the Department of Education. preference in making appointments shall be in the order of their respective ranks in said competitive examinations: And provided.

14. IV. 12. at the very least. Teacher's salaries shall correspond to the following criteria: (a) they shall compare favorably with those paid in other occupations requiring equivalent or similar qualifications. That where the exigencies of the service so require. The progression from the minimum to the maximum of the salary scale shall not extend over a period of ten years. In the case of other teachers or school officials not engaged in actual classroom instruction. at least annually. The committee shall submit its findings and recommendations to the Director of Public Schools within thirty days from the termination of the hearings: Provided. in its absence. and (2) premiums properly due on insurance policies. or in the termination of services.Sec. however. shall not be less than those provided for teachers of the National Government. That the general salary scale shall be such that the relation between the lowest and highest salaries paid in the profession will be of reasonable order. Criteria for Salaries. any teacher may be required to render more than six hours but not exceeding eight hours of actual classroom teaching a day upon payment of additional compensation at the same rate as his regular remuneration plus at least twenty-five per cent of his basic pay. 9. Sec. provincial. Narrowing of the salary scale shall be achieved by raising the lower end of the salary scales relative to the upper end. co-curricula and out of school activities and any other activities outside of what is defined as normal duties of any teacher shall be paid an additional compensation of at least twenty-five per cent of his regular remuneration after the teacher has completed at least six hours of actual classroom teaching a day. Education authorities shall refuse to allow the rendition of services of teachers for other government agencies without the assurance that the teachers shall be paid the remuneration provided for under this section. Sec. That upon written authority executed by the teacher concerned. 11. Sec. municipal or provincial government. 19. The Secretary of Education shall. Whenever possible. however. any work performed in excess of eight hours a day shall be paid an additional compensation of at least twenty-five per cent of their regular remuneration. shall be considered deductible. for the purposes of calculating the cost-of-living allowances of teachers under its employ. keep pace with the rise in the cost of living by the payment of a cost-of- living allowance which shall automatically follow changes in a cost-of-living index. particularly with regard to teaching and classroom methods. In areas in which teachers are exposed to hardship such as difficulty in commuting to the place of work or other hazards peculiar to the place of employment. upon approval of the President of the Philippines. Compulsory medical examination shall be provided free of charge for all teachers before they take up teaching. Sec. and shall be repeated not less than once a year during the teacher's professional life. Equality in Salary Scales. Provided. Sec. No person shall make any deduction whatsoever from the salaries of teachers except under specific authority of law authorizing such deductions: Provided. a representative of the local or. Teaching Hours. or during its exercise. however. municipal district. 16. Academic Freedom. training and abilities. recommend to Congress. all the members of the committee shall be appointed by the Secretary of Education. which shall be so scheduled as to give him time for the preparation and correction of exercises and other work incidental to his normal teaching duties: Provided. however. Deductions Prohibited. granted automatically after three years: Provided. . be binding on the city. That such checks or treasury warrants shall be cashable in any national. 15. Administrative charges against a teacher shall be heard initially by a committee composed of the corresponding School Superintendent of the Division or a duly authorized representative who should at least have the rank of a division supervisor. The determination of the cost-of-living allowances by the Secretary of Education shall. Any teacher engaged in actual classroom instruction shall not be required to render more than six hours of actual classroom teaching a day. Salary scales of teachers shall provide for a gradual progression from a minimum to a maximum salary by means of regular increments. There shall be no discrimination whatsoever in entrance to the teaching profession. The salary scales of teachers whose salaries are appropriated by a city. 18. however. HOURS OF WORK AND REMUNERATION Sec. city or municipal treasurer's office or any banking institutions operating under the laws of the Republic of the Philippines. 13. Sec. the appropriation of the necessary funds for the cost-of-living allowances of teachers employed by the National Government. 22. any existing provincial or national teacher's organization and a supervisor of the Division. Teacher's salaries shall. and (c) they shall be properly graded so as to recognize the fact that certain positions require higher qualifications and greater responsibility than others: Provided. as determined by the Secretary of Education. III. both of whom are public school teachers. Salaries of teachers shall be paid in legal tender of the Philippines or its equivalent in checks or treasury warrants. as chairman. where the teacher belongs. That the efficiency rating of the teacher concerned is at least satisfactory. (b) they shall be such as to insure teachers a reasonable standard of life for themselves and their families. Married Teachers. Cost of Living Allowance. or provincial government. Sec. Sec. Sec. The agencies utilizing the services of teachers shall pay the additional compensation required under this section. Where medical examination show that medical treatment and/or hospitalization is necessary. 17. Salaries to be Paid in Legal Tender. (1) lawful dues and fees owing to the Philippine Public School Teachers Association. in consultation with the proper government entities. Additional Compensation. 10. Sec. Administrative Charges. 20. Salary Scale. No Discrimination. Medical Examination and Treatment. to be employed in the same locality. municipal. Sec. same shall be provided free by the government entity paying the salary of the teachers. based on other than professional consideration. the last two to be designated by the Director of Public Schools. Special Hardship Allowances. HEALTH MEASURES AND INJURY BENEFITS Sec. Teachers shall enjoy academic freedom in the discharge of their professional duties. That where the school superintendent is the complainant or an interested party. Notwithstanding any provision of existing law to the contrary. 21. the proper authorities shall take all steps to enable married couples. they shall be compensated special hardship allowances equivalent to at least twenty-five per cent of their monthly salary.

Study leave of more than one year may be permitted by the Secretary of Education but without compensation. An indefinite sick leave of absence shall be granted to teachers when the nature of the illness demands a long treatment that will exceed one year at the least. within school hours. Sec. in the discretion of the court. In addition to the leave privileges now enjoyed by teachers in the public schools. 24. The effects of the physical and nervous strain on the teacher's health shall be recognized as a compensable occupational disease in accordance with existing laws. That no teacher shall be allowed to accumulate more than one year study leave. Sec. further. 30. In all cases. Budgetary Estimates. Such leave shall be granted in accordance with a schedule set by the Department of Education. amended or modified accordingly.In regions where there is scarcity of medical facilities. the remainder of this Act or any provisions not affected thereby shall remain in force and in effect. 31. whether local or national to further and defend their interests. VI. If any provision of this Act is declared invalid. Public school teachers shall have the right to freely and without previous authorization both to establish and to join organizations of their choosing. the study leave period shall be counted for seniority and pension purposes. Teachers shall be protected against the consequences of employment injuries in accordance with existing laws. 27. 32. they shall be entitled to study leave not exceeding one school year after seven years of service. Freedom to Organize. 25. be punished by a fine of not less than one hundred pesos nor more than one thousand pesos. Study Leave. 35. V. 33. the court shall order his dismissal from the Government service. Rules and regulations issued pursuant to this Section shall take effect thirty days after publication in a newspaper of general circulation and by such other means as the Secretary of Education deems reasonably sufficient to give interested parties general notice of such issuance. Rules and Regulations. or shall relinquish membership in an organization. however. Public school teachers having fulfilled the age and service requirements of the applicable retirement laws shall be given one range salary raise upon retirement. 23. VII. It shall be unlawful for any person to commit any acts of discrimination against teachers which are calculated to (a) make the employment of a teacher subject to the condition that he shall not join an organization. Indefinite Leave. The Secretary of Education shall formulate and prepare the necessary rules and regulations to implement the provisions of this Act. executive orders and their implementing rules inconsistent with the provisions of this Act are hereby repealed. Sec. (b) to cause the dismissal of or otherwise prejudice a teacher by reason of his membership in an organization or because of participation in organization activities outside school hours. 28. 29. the teachers shall be entitled to at least sixty per cent of their monthly salary: Provided. This Act shall take effect upon its approval. The compensation allowed for one year study leave as herein provided shall be subject to the condition that the teacher takes the regular study load and passes at least seventy-five per cent of his courses. Sec. A person who shall willfully interfere with. and (c) to prevent him from carrying out the duties laid upon him by his position in the organization. National Teacher's Organizations. Sec. Approved: June 18. teachers may obtain elsewhere the necessary medical care with the right to be reimbursed for their traveling expenses by the government entity concerned in the first paragraph of this Section. restrain or coerce any teacher in the exercise of his rights guaranteed by this Act or who shall in any other manner commit any act to defeat any of the provisions of this Act shall. If the offender is a public official. Penal Provision. and in the formulation of national policies governing the social security of the teachers. Sec. Repealing Clause. Sec. 1966 . Salary Increase upon Retirement. 34. Sec. The Secretary of Education shall submit to Congress annually the necessary budgetary estimates to implement the provisions of the Act concerning the benefits herein granted to public school teachers under the employ of the National Government. Compensation For Injuries. which shall be the basis of the computation of the lump sum of the retirement pay and the monthly benefits thereafter. TEACHER'S ORGANIZATION Sec. Sec. All Acts or parts of Acts. upon conviction. That no compensation shall be due the teacher after the first year of such leave. or with the consent of the proper school authorities. or to penalize him for an action undertaken in that capacity. LEAVE AND RETIREMENT BENEFITS Sec. Sec. During the period of such leave. The rights established in the immediately preceding Section shall be exercised without any interference or coercion. 26. ADMINISTRATION AND ENFORCEMENT Sec. Discrimination Against Teachers Prohibited. unless he needs an additional semester to finish his thesis for a graduate study in education or allied courses: Provided. National teachers' organizations shall be consulted in the formulation of national educational policies and professional standards. or by imprisonment. Separability Clause.

and other fees prescribed by the Commission. administer and enforce rules and regulations necessary for carrying out the provisions of this Act in accordance with the charter of the Professional Regulation Commission. Sec. one (1) member for two (2) years. Sec. rules and regulations to take effect sixty (60) days after its publication in the Official Gazette or in any newspaper of general circulation. . Sec. (d) Prescribe and collect examination and other fees as it may deem proper. Creation and Composition of the Board. (i) Look into the conditions affecting the practice of the teaching profession and whenever necessary. the State shall ensure and promote quality education by proper supervision and regulation of the licensure examination and professionalization of the practice of the teaching profession. — This Act shall be known as the "Philippine Teachers Professionalization Act of 1994. Term of Office. development and professionalization of teachers and the teaching profession. proctors. That the first appointees to the Board under this Act shall hold office according to the following terms: one (1) member shall serve for one (1) year. 4. dates. or revoke the certificate of registration for the practice of the teaching profession. including industrial arts or vocational teachers and all other persons performing supervisory and/or administrative functions in all schools in the aforesaid levels and qualified to practice teaching under this Act. (g) Supervise and regulate the registration. who duly possess all the qualifications prescribed in Section 8 of this Act. Appointment to fill an unexpired term shall be considered an appointment to a complete term. Duties and Function of the Board. — The Board shall have the following duties and functions: (a) Promulgate." Sec. adopt such measures as may be deemed proper for the enhancement and maintenance of high professional and ethical standards of the profession. 7. duties and functions as the Board may deem necessary for the practice of the teaching profession and the upgrading. the following terms shall mean: (a) "Teaching" — refers to the profession concerned primarily with classroom instruction. use buildings and facilities of public or private schools for examination purposes. hereinafter called the Board. That the members of the first Board appointed under this Act shall be automatically registered as professional teachers and issued with the certificate of registration and professional license upon payment of the fees for examination. The chairman and the voice-chairman of the Board shall be appointed from these five (5) members by the President: Provided. to issue subpoena and subpoena duces tecum to secure the appearance of witnesses and the production of documents in connection therewith. composed of five (5) members who shall be appointed by the President of the Philippines from among the recommendees chosen by the Commission.The recommendees shall be chosen from the list of nominees selected by the accredited association of teachers. Culture and Sports.Towards this end. and places of examination. (b) "Teachers" — refers to all persons engaged in teaching at the elementary and secondary levels. Short Title. — This Act has the herein objectives: (a) The promotion. Vacancies shall be served for the unexpired term only. hereinafter referred to as the Commission. Objectives. ARTICLE II BOARD FOR PROFESSIONAL TEACHERS Sec. licensure and practice of professional teachers in the Philippines. — The State recognizes the vital role of teachers in nation-building and development through a responsible and literate citizenry. appoint supervisors. vice-chairman. (f) Administer oaths in connection with the administration of this Act. registration. (d) "Commission" — refers to the Professional Regulation Commission. (h) Adopt an official seal of the Board. enhancement. (k) Investigate such violations of this Act. faculty and facilities for the elementary and secondary levels. the chairman. and other personnel as needed who shall be entitled to a daily allowance to be fixed by the Board for every examination day actually attended. 3. and (l) Discharge such other powers. (e) Prescribe and/or adopt a code of ethical and professional standards for the practice of the teaching profession. — For purposes of this Act. and (b) The supervision and regulation of the licensure examination. — There is hereby created under this Act a Board for Professional Teachers. Sec. Definition of Terms. whether on full-time or part- time basis. (j) Ensure that all educational institutions offering elementary and secondary education comply with the essential requirements for curricula. (c) Issue. Such ethical standards. a collegial body under the general supervision and administrative control of the Professional Regulation Commission. suspend. and one (1) member for three (3) years. — The members of the Board shall hold office for a term of three (3) years from the date they assume office: Provided. ARTICLE I TITLE SECTION 1. 7836 Philippine Teachers Professionalization Act of 1994 AN ACT TO STRENGTHEN THE REGULATION AND SUPERVISION OF THE PRACTICE OF TEACHING IN THE PHILIPPINES AND PRESCRIBING A LICENSURE EXAMINATION FOR TEACHERS AND FOR OTHER PURPOSES. No person who has served for two (2) consecutive terms shall be eligible for reappointment. whether on part- time or full-time basis in the private or public schools. 5. and for this purpose. development and growth of education in the Philippines. 6. the rules and the code of ethical and professional standards for professional teachers as it may come to the knowledge of the Board. (c) "Board" — refers to the Board for Professional Teachers duly established and constituted under this Act. at the elementary and secondary levels in accordance with the curriculum prescribed by the Department of Education. 2. (b) Determine and fix the frequency. Statement of Policy. Republic Act No.

commission or toleration of irregularities in the examination. with at least eighteen (18) units in professional education. including equitable representation of the different fields of specialization. recognized and/or accredited by the Philippine government. he shall have complied with the following requirements: (a) A citizen of the Philippines or an alien whose country has reciprocity with the Philippines in the practice of the teaching profession. college or university recognized by the government and possesses the minimum educational qualifications. Supervision of the Board and Custodian of its Records. (3) For teachers in the secondary grades. A valid certificate of registration and a valid professional license from the Commission are required before any person is allowed to practice as a professional teacher in the Philippines. a bachelor's degree in early childhood education (BECED) or its equivalent. (c) In good health and of good reputation with high moral values. report the ratings obtained by each candidate to the Professional Regulation Commission for approval and appropriate action. 9. 8. examination papers and results. In the course of investigation. that. (2) For teachers in the elementary grades. and (f) Not be an official or member of the faculty of. — The examinations for the elementary and secondary school teachers shall be separate. and members of the Board shall receive compensation comparable to the compensation received by existing regulatory boards under the Professional Regulation Commission. The examination for teachers in the secondary level shall consist of three (3) parts. including applications for examination. and possessed of high moral values in his personal as well as professional conduct and has not been convicted of any offense involving moral turpitude. Sec. Registration and License Required. unethical. . — The chairman or any member of the Board may be removed by the President of the Philippines upon recommendation of the Commission for neglect of duty. through its chairman. (b) Be at least thirty-five (35) years of age. — Each Board member must at the time of his appointment: (a) Be a citizen and resident of the Philippines. unprofessional. nor have pecuniary interest in any university. and neither connected with a review center or with any group or association where review classes or lectures in preparation for the licensure examination are offered or conducted. college. Provided. school. Removal of a Board Member. shall provide the secretariat and other support services to implement effectively the provisions of this Act. Examination. Sec. 14. — The chairman. — The Professional Regulation Commission. Qualification Requirements of Applicants. of proven integrity. immoral or dishonorable conduct. — The Board shall be under the supervision and control of the Commission. save those members who shall compose the first Board for Professional Teachers. Sec. within one hundred twenty (120) days after the examination. (e) A graduate of a school. and field of specialization. general education. however. school. Secretariat and Support Services. the President may preventively suspend the respondent. The examination for teachers in the elementary level shall consist of two (2) parts. a bachelor's degree in the field of specialization or its equivalent. 13. a bachelor's degree in education or its equivalent with a major and minor. — Except as otherwise specifically allowed under the provisions of this Act. Report of the Results of the Examination. ARTICLE III EXAMINATION AND REGISTRATION Sec. incompetence. after having been given the opportunity to defend himself in a proper administrative investigation. (b) At least eighteen (18) years of age. the membership to the Board shall be evenly distributed to cover all levels of education. — No applicant shall be admitted to take the examination unless. or a bachelor's degree in arts and sciences with at least ten (10) units in professional education. namely: professional education. (d) Has not been convicted by final judgment by a court for an offense involving moral turpitude. (e) Has been a professional teacher in the active practice of the teaching profession for at least ten (10) years in the elementary and secondary level. (c) Be a holder of the degree of Bachelor of Arts or Bachelor of Science in Education and preferably a holder of a master's or doctorate degree in education. administrative cases and investigative cases and investigations involving professional teachers shall be kept by the Commission. computed on the basis of the number of examinees/candidates. or institution conferring a bachelor's degree in education or its equivalents for at least three (3) years prior to his appointment. except as otherwise allowed under this Act. Sec. on the date of filing of the application. 11. from a university. as follows: (1) For teachers in preschool. a bachelor's degree in elementary education (BSEED) or its equivalent. 10. vice-chairman. and (4) For teachers of vocational and two-year technical courses. all applicants for registration as professional teachers shall be required to undergo a written examination which shall be given at least once a year in such places and dates as the Board may determine upon approval by the Commission. Scope of Examination. 12. or their equivalents. minutes of deliberation. 15.The chairman or any member shall take his oath of office prior to the performance of his duties. (d) Be a professional teacher with a valid certificate of registration and valid professional license. All records. academy or institute duly constituted. 16. Qualification of Board Members. Sec. Compensation of the Board. Sec. Sec. Sec. — The Board shall. namely: professional education and general education. college.

This license shall serve as evidence that the licensee can lawfully practice his profession until the expiration of its validity. Oath Before Practice. 21. Upon registration with the Board. 24. workshops. Sec. Periodic Merit Examination of Teachers. 25. (g) Violation of any of the provisions of this Act. (b) Immoral. Failure of any permanent teacher to pass the merit examination shall not. to suspend or revoke the certificate of registration of any registrant. Sec. Incentives. teachers may take an oral and written examination at least once in five (5) years as basis for merit promotion.Sec. write a book or books and create works of artistic merit. Issuance of Certificate of Registration and Professional License. — Every registrant shall be required to take his professional oath before practicing as a professional teacher. (e) The use of or perpetration of any fraud or deceit in obtaining a certificate of registration. then he or she shall be required to take a DECS accredited refresher course or program before being allowed to retake the examination. That the laws of such state or country grant the same privilege to Filipino professional teachers on the same basis as the subject or citizens of such foreign country or state. to reprimand or to cancel the temporary/special permit of a holder thereof who is exempt from registration. no fee shall be required. Every registrant who has satisfactorily met all the requirements specified in this Act shall. the Department of Education. (c) Declaration by a court of competent jurisdiction for being mentally unsound or insane. — To encourage continuing professional growth and development and to provide additional basis for merit promotion. Those who have been registered with the Board but are not members of the said integrated organization shall be allowed to register as members of the said integrated organization within three (3) years after the effectivity of this Act. and the code of ethical and professional standards for professional teachers. Similar incentives shall be given to teachers who make inventions. Membership in the integrated organization shall not be a bar to membership in other associations of the teaching profession. — No teacher of a foreign nationality shall be admitted to the examination. stamped with the official seal. 23. and Cancellation of Temporary or Special Permit. 17. in addition to their performance rating. for any of the following causes: (a) Conviction for any criminal offense by a court of competent jurisdiction. or be given a certificate of registration or be entitled to any of the rights and privileges provided under this Act. and other data which in the opinion of the Board may appear pertinent shall be maintained. — If a teacher fails to pass the merit examination. — The teaching profession shall be integrated into one national organization which shall be recognized by the Board and the Commission as the one and only integrated and accredited association of professional teachers. 19. that the requirements of certification of teachers with said foreign state or country are substantially the same as those required and contemplated under this Act: Provided. 20. and (h) Unjustified or willful failure to attend seminars. Failure to Pass the Merit Examination. gross negligence or serious ignorance of the practice of the teaching profession. every professional teacher shall be encouraged to become a member of the integrated national organization. unprofessional or dishonorable conduct. Revocation of the Certificate of Registration. (d) Malpractice. as evidence that the person named therein is entitled to practice the profession with all the rights and privileges appurtenant thereto. The decision of the Board to revoke or suspend a certificate may be appealed to the regional trial court of the place where the Board holds office within fifteen (15) days from receipt of the said decision or of the denial of the motion for reconsideration filed in due time. and the integrated and accredited organization of professional teachers. suspended and/or revoked in accordance with law. Sec. Roster of Professional Teachers. (f) Chronic inebriety or habitual use of drugs. Should he or she fail to pass the merit examination for the second time. 22. A professional license signed by the chairman of the Commission and bearing the registration number and date of issuance thereof and the month of expiry or renewability shall likewise be issued to every registrant who has paid the annual registration fees for three (3) consecutive years. the rules and regulations and other policies of the Board and the Commission. after due notice and hearing. — Teachers who pass the merit examination shall: (a) Be awarded a diploma of merit by the Board. Sec. The certificate shall remain in full force and effect until withdrawn. he or she shall be allowed to take the examination for a second time. Sec. further. vice-chairman. date of registration or issuance of certificate. (c) Be placed in the priority list for government scholarship. . unless the country or state of which he is a subject permits Filipino professional teachers to practice within its territorial limits on the same basis as subjects or citizens of said country or state: Provided. The professional teachers shall receive the benefits and privileges appurtenant to their membership in the said integrated and accredited organization of professional teachers only upon payment of the required membership fees and dues. and members of the Board. Copies of the roster shall be provided by the Commission to the Board. In taking this examination. Sec. however. gross incompetence. conferences and the like or the continuing education program prescribed by the Board and the Commission. — The registration of a professional teacher commences from the date his name is enrolled in the roster of professional teachers. Sec. be used as a ground for his/her dismissal or demotion. Registration by Reciprocity. (b) Earn merit points for purposes of promotion in salary or to a higher position or grade level. — A roster of professional teachers containing the names and addresses of professional teachers. Culture and Sports. develop new methods of teaching. 18. upon payment of the registration fee. Integration of the Teaching Profession. — The Board shall have the power. be issued a certificate of registration as a professional teacher bearing the full name of the registrant with serial number and date of issuance signed by the chairman of the Commission and the chairman. Sec. professional license or special/temporary permit. and (d) Enjoy such other benefits as may be promulgated by the Board. Suspension from the Practice of the Teaching Profession.

(d) Any person who impersonates any registrant of the same or different name.000. Transitory Provision. or (b) A registered professional teacher with the National Board for Teachers under the Department of Education. — The Board shall formulate and adopt the necessary guidelines for the effective implementation of the provisions of this Act within sixty (60) days of its approval. Sec. (f) Any person who. 29. 34. Upon approval of the application and payment of the prescribed fees. Arts. whether in the preschool. and (g) Any person who violates or who abets the violation of any of the provisions of this Act. That those who have failed the licensure examination for professional teachers shall be eligible as para-teachers and as such. Sec. and a holder of a valid certificate of registration and a valid professional license or a holder of a valid special/temporary permit. uses or advertises any title or description tending to convey or conveys the impression that he is a teacher without holding a valid certificate.00) or imprisonment of nor less than six (6) months nor more than five (5) years. 27. further. for any reason. 6713. however. Repealing Clause. That those incumbent teachers who are not qualified to register without examination under this Act or who. who at the time of the approval of this Act. and the Committees on Civil Service and Professional Regulation of the Senate and House of Representatives. and Culture. copies of the implementing rules and guidelines within thirty (30) days after its promulgation. shall be given (5) years temporary certificates from the time the Board for Professional Teachers is organized within which to qualify as required by this Act and be included in the roster of professionals. and shall be assigned by the Department of Education. 31. Implementing Guidelines. any section or provision of this Act or the application of such section or provision to any person or circumstance is declared unconstitutional or invalid. in connection with his name. (c) Any person who gives any false. shall also apply to any school official who shall cause or be responsible for the commission of any of the above-enumerated acts. Culture and Sports for the year 1995. Sec. rules and regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly. 33. presidential decrees. — The following shall be punishable by a fine of not less than Five thousand pesos (P5. were unable to register within the two-year period shall be issued a five-year temporary or special permit from the time the Board is organized within which to register after passing the examination and complying with the requirements provided this Act and be included in the roster of professional teachers: Provided. — Except as otherwise allowed under this Act. (b) Any person who represents or attempts to use as his own certificate of registration that of another. Sec. — If. Sec. or fraudulent evidence of any kind to the Board or any member thereof in obtaining a certificate of registration as teacher. elementary or secondary level. Any violation of this section shall render the official/s concerned liable under Republic Act No. is: (a) A holder of a certificate of eligibility as a teacher issued by the Civil Service Commission and the Department of Education. Registration and Exception. or both. 32. That they shall be given two (2) years from the organization of the Board for professional teachers within which to register and be included in the roster of professional teachers: Provided. Culture and Sports (DECS) to schools as it may determine under the circumstances.Sec. Effectivity Clause. Penal Provisions. Appropriations. furthermore. The Board shall submit to both Committees on Education. shall be issued by the Board a special or temporary permit. otherwise assumes. — Two (2) years after the effectivity of this Act. — This Act shall take effect after fifteen (15) days following its complete publication in the Official Gazette or in two (2) newspapers of general circulation. otherwise known as the "Code of Conduct and Ethical Standards for Public Officials and Employees" and other pertinent administrative and/or penal laws. no person shall engage in teaching and/or act as a professional teacher as defined in this Act. to wit: (1) An elementary or secondary teacher for five (5) years in good standing and a holder of Bachelor of Science in Education or its equivalent. Separability Clause. 1006. or (c) Not qualified under paragraphs one and two but with any of the following qualifications. That the Professional Board Examination for Teachers (PBET) shall still be administered by the Civil Service Commission and the Department of Education. ARTICLE IV PROVISIONS RELATIVE TO THE PRACTICE OF THE TEACHING PROFESSION Sec. Approved: December 16. no other section or provision of this Act shall be affected thereby.000. — All incumbent teachers in both the public and private sector not otherwise certified as professional teachers by virtue of this Act. or (2) An elementary or secondary teacher for three (3) years in good standing and a holder of a master's degree in education or its equivalent. Sec. The penalty of fine or imprisonment or both. Culture and Sports (DECS) pursuant to Presidential Decree No. (e) Any person who uses a revoked or suspended certificate of registration. 28. 1994 . albeit qualified. Inhibition Against the Practice of the Teaching Profession. no person shall practice or offer to practice the teaching profession in the Philippines or be appointed as teacher to any position calling for a teaching position without having previously obtained a valid certificate of registration and a valid professional license from the Commission. at the discretion of the court: (a) Any person who practices the teaching profession in the Philippines without being certified in accordance with the provisions of this Act. Provided. Culture and Sports. — All laws. 30. the certificate of registration and professional license as a professional teacher shall be issued without examination as required in this Act to a qualified applicant. Provided. — Such sums as may be necessary to carry out the provisions of this Act shall be included in the 1996 General Appropriations Act and thereafter. 26. executive orders.cralaw Sec. as provided in this section. unless he is a duly registered professional teacher.00) nor more than Twenty thousand pesos (P20.

and who are committed to their continuing professional growth and obligation to help their students grow as responsible individuals and citizens of the Philippines and of the world. and (j) such other criteria as may be established and operationalized by the Teacher Education Council. Sec. (b) Organize and coordinate collaborative research on identified areas for systematic investigation in teacher education as basis for improving teacher education/training programs. that has established and continues to maintain a good record in teacher education (in terms of number of graduates and their performance in the government examination for teachers and their professional achievement). formal and non-formal. The Teacher Education Centers of Excellence shall form a national network which in turn shall network with elementary schools. Graduates of education who have passed the government examination for teachers although not actually employed as such. APPROPRIATING FUNDS THEREFOR. AND FOR OTHER PURPOSES. 3. are hereby included in this definition. (c) Serve as teacher resource center for curricular/instructional materials development. and community service. of teachers and top-notch educators. 2. Sec. — As used in this Act: (a) "Teacher" shall mean all persons engaged in the classroom teaching of any subject. high schools and/or parts thereof for laboratory purposes. vision and goals of the institution and education. in-service education. The centers of excellence may exist by themselves or within a university or college. (b) well-settled students. Culture and Sports as ex officio chairman. at the elementary and secondary levels of instruction including persons performing guidance and counseling. SECTION 1. Definition of Terms. — It is the declared policy of the State to protect and protect and promote the right of all citizens to quality education at all levels and shall take appropriate steps to make such education accessible to all. . — There shall be a Teacher Education Council composed of eleven (11) members with the Secretary of Education. professionally qualified and experienced faculty dedicated to the Philosophy. Any center of excellence that is established shall be maintained for at least five (5) years before any proposal or review is made to transfer it elsewhere. research and study facilities. school or agency. training. and three (3) other ex officio members. this Act aims to provide and ensure quality education by strengthening the education and training of teachers nationwide through a national system of excellence for teacher education. certain centers of excellence for teacher education at the provincial level may later be identified and developed. functional. (e) Provide professional assistance to Teacher Education Institutions (TEIs) that have expressed the need for such assistance. institute. Sec. (f) Encourage mutual support among TEIs in the region for upgrading their programs. assessed and adjudged by the Council. school dentists. research. and (g) Facilitate and help expedite accreditation among TEIs. and quality programs in teacher education. (d) competent administrative and support staff. and other school administrative support employees. and the Chairman of the Professional Regulations Commission (PRC). in various areas of specialization. one or more centers of excellence for teacher education based on criteria listed hereunder. Our vision is a teacher education system whose mission is to educate and train teachers of unquestionable integrity and competence. The criteria for identifying schools and colleges as centers of excellence shall include the following: (a) highly educated. — There shall be identified. school administrators. Should the need arise. (e) well-planned and relevant instructional programs. commitment and dedication in education. (h) relevant extension service and outreach programs. effective and innovative delivery of relevant. namely: a Commissioner of the Commission on Higher Education (CHED). instructional supervision in all public or private education institutions. (c) adequate library. These centers of excellence shall be initially chosen from among existing public and private educational institutions by the Teacher Education Council created under this Act. 4. (d) Serve as the center mode for networking specific data. research and community service. (c) "Excellence" pertains to the efficient. Creation of the Teacher Education Council. (g) adequate student services. — The objectives and functions of a center of excellence shall be to: (a) Experiment and try out relevant and innovative pre-service teacher education/training programs. established and developed in strategic places in each of the regions of the country. including practical/vocational arts. 5. Thus. (b) "Teacher education" shall mean the pre-service education. but shall not include school nurses. 7784 AN ACT TO STRENGTHEN TEACHER EDUCATION IN THE PHILIPPINES BY ESTABLISHING CENTERS OF EXCELLENCE. whose graduates are models of integrity. school physicians. (f) adequate student development programs. Declaration of Policy. designated. a representative of the National Commission on Culture and Arts (NCAA). (d) "Center of excellence" shall be a public or private college. Sec. CREATING A TEACHER EDUCATION COUNCIL FOR THE PURPOSE. and graduate education of teachers. mission. (i) percentage of graduates who become teachers. Teacher Education Centers of Excellence. engaged in the pre-service and continuing education. It is likewise universally recognized that the teacher is the key to the effectiveness of the teaching-learning process by drawing out and nurturing the best in the learner as a human being and a worthy member of society. Objectives and Functions of a Center of Excellence.CENTREX Republic Act No.

— This Act shall take effect upon its approval. or government corporation. enhance and strengthen teacher education. 10. for the initial organizational and developmental activities of the Centers and the Council: Provided. nationally or internationally. 11. Sec. Congress. nongovernmental organizations. 8. The Council shall meet at least four (4) times a year and hold such other meetings at the call of the chairman or a majority of its members. that shall assist the Council in executing its policies and programs and provide the necessary administrative support therefore. student associations. The other officers of the Council shall be elected by the members from among the regular members. and one (1) from Mindanao who shall take into account the views of the parents-teachers and community associations. to pursue teacher education.The seven (7) regular members of the Council who shall be appointed by the President of the Republic of the Philippines are: (a) Three (3) representatives of centers of teacher education: one (1) from Luzon. local government unit and other concerned agencies for assistance in areas falling within their mandate. Approved: August 4. Sec. for greater efficiency and economy in the use of resources. rules or regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly. Effectivity Clause. The members of the Council shall be serve without any compensation but shall be reimbursed for actual and necessary expenses incurred by them in carrying out their duties under this Act. bureau. (c) One (1) representative of mathematics teachers. All regular members of the Council shall hold office for a period of three (3) years. and people organizations concerned with basic education. 12. office.000.chan robles virtual law library Sec. — The Teacher Education Council created under this Act shall promulgate the implementing rules and regulations sixty (60) days from the approval of this Act. subsidies. (c) Initiate a periodic review of curricula and programs for teacher education and training through participatory methods. loan programs. Sec. 13. (d) One (1) representative of social studies teachers. 7. 9. (i) To recommend appropriate measures to the President. Sec. and provincial levels. Sec. That not more than five percent (5%) shall be devoted to Council's expenses. — The sum of One hundred million pesos (P100. Criteria for the Selection of Regular Council Members. Thereafter. Sec. (d) To adopt an adequate and effective system of incentives such as scholarship grants. Sec. (b) Expertise and experience in teacher education. — The criteria for the selection of the regular Council members are as follows: (a) Integrity. — The Council shall have the following powers and functions: (a) To identify and designate among existing private and public schools. regional. public or private. and (j) To call upon any department. programs. (e) To encourage the establishment of consortia and other cooperative arrangements among teacher education schools. (b) One (1) representative of science teachers. one (1) from the Visayas. programs and projects required in attaining the purposes of this Act. — Local government units shall include in their plans. Active Participation of Local Government Units. Secretariat. re-training orientation and teacher development. Appropriation. and projects the development and improvement of teacher education through the centers of excellence in their respective regions. (g) To direct the conduct of relevant studies as may be needed in the formulation of policies and in the planning and successful implementation of plans.000) is hereby authorized to be appropriated from the income of duty- free shops or otherwise known as the Trust Liability Account of the Department of Tourism. however. 6. presidential decrees. and (d) Willingness to serve. and (e) One (1) representative of language teachers. such as self-assessment by institutions. in-service training. Repealing Clause. in order to attract and encourage outstanding high school graduates whether from public or private schools. (b) To formulate policies and standards that shall strengthen and improve the system of teacher education in all existing public and private schools. (h) To review existing and recommend new legislation and policies of the government in order to improve teacher education and promote the welfare of teachers. (f) Design collaborative programs or projects that will enhance pre-service teacher training. Implementing Rules and Guidelines. (c) Recognized as an expert. and heads of other government offices and agencies to improve. stipends and other similar benefits and incentives. Powers and Functions of the Council. such amount as may be included in the annual budget of the Department of Education. 1994 . at the national. Culture and Sports. — The Council shall organize and appoint a secretariat headed by an executive director. teacher education institutions as Centers of Excellence for Teacher Education. — All laws.

last Sunday of August (National Heroes Day). logo and insignia). The flag shall be hoisted to the gaff at the aftermast when the ship is at sea. and local government offices. the term: a) "Military" shall mean all branches of the Armed Forces of the Philippines including the Philippine National Police. Short title. fitting respect and affection for the national flag and anthem. government-owned corporations and local government units are enjoined to observe flag day with appropriate ceremonies. Aguinaldo Shrine in Kawit. and the red field to the right (left of the observer) in time of war. and l) "Institute" shall mean the National Historical Institute. Socio-civic groups. in front of the following: at Malacañang Palace. November 30 (Bonifacio Day). i) "National Anthem" shall mean the Philippine National Anthem. d) "Fly" shall mean the part of the flag outside the hoist or length. COAT-OF-ARMS AND OTHER HERALDIC ITEMS AND DEVICES OF THE PHILIPPINES SECTION 1. That they observe flag-raising ceremonies in accordance with the rules and regulations to be issued by the Office of the President." SECTION 2. The flag shall be permanently hoisted. The flag shall be displayed in all public buildings. . the anthem.Reverence and respect shall at all times be accorded the flag. SECTION 10. and other government-owned structures where the President resides. white and red with an eight-rayed golden-yellow sun and three five-pointed stars. and institutions of learning every day throughout the year. Definition of terms. the Rizal Monument in Luneta. All government agencies and instrumentalities. Hoisting and Display of the National Flag SECTION 5. . . SECTION 9. Bulacan. May 28 (National Flag Day) to June 12 (Independence Day). The flag. e) "Symbol" shall mean any conventional sign which reveals man's achievement and heroism (for orders and decorations). public plazas. j) "Official Residences" shall mean Malacañang. Declaration of policy. and the proper use of the national motto. SECTION 3.Whenever used in this Act. SECTION 7. The flag shall be properly illuminated at night. The flag shall be flown on merchant ships of Philippine registry of more than one thousand (1000) gross tons and on all naval vessels. unless stated otherwise. ANTHEM. and on such other days as may be declared by the President and/or local chief executives. k) "Places of Frivolity" shall mean places of hilarity marked by or providing boisterous merriment or recreation. Libingan ng mga Bayani. May 1 (Labor Day). authority and a sign of dignity (for coat-of-arms. day and night throughout the year. h) "Inclement Weather" shall mean that a typhoon signal is raised in the locality. shall have its blue field on top in time of peace and the red field on top in time of war. SECTION 6. Barasoain Shrine in Malolos. B. as consecrated and honored by the people. Cavite. and other national symbols which embody the national ideals and traditions and which express the principles of sovereignty and national solidarity. c) "Flag" shall mean the Philippine National Flag. CHAPTER I THE NATIONAL FLAG A. the Tomb of the Unknown Soldier. The heraldic items and devices shall seek to manifest the national virtues and to inculcate in the minds and hearts of our people a just pride in their native land. 8491 AN ACT PRESCRIBING THE CODE OF THE NATIONAL FLAG. Musoleo de los Beteranos dela Revolucion. the Congress of the Philippines building. . The flag shall also be displayed in private buildings and residences or raised in the open on flag-staffs in front of said buildings every April 9 (Araw ng Kagitingan). The flag may also be displayed throughout the year in private buildings or offices or raised in the open on flag-staffs in front of private buildings: Provided. and other structures occupied by the Philippine Consulate or Embassies abroad. the flag shall be displayed on the flag-staff at the stern when the ship is at anchor. SECTION 8. Manila. On board naval vessels. REPUBLIC ACT NO. and December 30 (Rizal Day). the Bureau of Jail Management and Penology. coat-of-arms and other heraldic items and devices. b) "Festoon" shall mean to hang in a curved shape between two points as a decoration. non-government organizations and the private sector are exhorted to cooperate in making the celebrations a success. if flown from a flagpole. f) "Half-Mast" shall mean lowering the flag to one-half the distance between the top and bottom of the staff. Supreme Court building. MOTTO. official residences. The flag of the Philippines shall be blue.This Act shall be known as the "Flag and Heraldic Code of the Philippines. g) "Hoist" shall mean the part of the flag nearest the staff or the canvass to which the halyard is attached. and the Bureau of Fire Protection. Design of the National Flag SECTION 4. all International Ports of Entry and all other places as may be designated by the Institute. identification. the blue field shall be to the right (left of the observer) in time of peace. if in a hanging position.

If already raised. the flag shall be at the left (facing the stage) or the left of the office upon entering. if both are national flags. flood. SECTION 13. shall remain flying throughout the day. The Office of the President upon the recommendation of the Institute shall issue rules and regulations for the proper conduct of the flag ceremony. while those in military. security guard. the flag shall be raised briskly. SECTION 14. canopy. It shall be solemnly burned to avoid misuse or desecration. If planted on the ground. When the Philippine flag is flown with another flag. After being lowered. everyone in the premises shall come to attention. and f) Hanging in a vertical position across a street. It shall be on the mast at the start of official office hours. A flag worn out through wear and tear. If the other flag is not a national flag. c) From a staff projecting upward from the window sill. the flagpole shall be on top of its roof or anchored on a sill projecting at an angle upward. The flag shall never touch anything beneath it. The flag shall not be raised when the weather is inclement. The assembly shall sing the Philippine national anthem. water or other objects. the flags. If on a stage or platform or government office. SECTION 22. The observance of the flag ceremony in official or civic gatherings shall be simple and dignified and shall include the playing or singing of the anthem in its original Filipino lyrics and march tempo. SECTION 12.The flagpole staff must be straight and slightly tapering at the top. it may be flown in the same lineyard as the Philippine flag but below the latter and it cannot be of greater size than the Philippine flag. SECTION 20. The flag may be displayed: a) Inside or outside a building or on stationary flagpoles. if available. At the moment the first note of the anthem is heard. The flag shall be replaced immediately when it begins to show signs of wear and tear. the assembly shall stand in formation facing the flag. d) In a suspended position from a rope extending from a building to pole erected away from the building. SECTION 11. scouting. the flagpole shall be at a prominent place and shall be of such height as would give the flag commanding position in relation to the buildings in the vicinity. The ceremony shall be simple and dignified and shall include the playing or singing of the Philippine National Anthem. The flag shall be raised at sunrise and lowered at sunset. accompanied by a band. the Philippine flag shall be in the middle of the line. SECTION 15. SECTION 16. those with hats shall uncover. the flag shall be handled and folded solemnly as part of the ceremony. If attached to a building. or pointing north if the road is heading east or west. e) Flat against the wall vertically with the sun and stars on top. must be flown on separate staffs of the same height and shall be of equal size. the flag shall not be lowered. The flag shall be hoisted to the top briskly and lowered ceremoniously. it shall be placed at the left of the observer as one enters the room. If the flag is displayed indoors on a flagpole. and citizens military training uniforms shall give the salute prescribed by their regulations. The same procedure shall be observed when the flag is passing in review or in parade. When displayed with another flag. balcony or facade of a building. During the flag-raising ceremony. and at the first note. which salute shall be completed upon the last note of the anthem. the Philippine flag shall be in front of the center of the line. During the flag lowering. The Philippine flag shall be hoisted first and lowered last. SECTION 21. the Philippine flag shall be on the right of the other flag. When carried in a parade with flags which are not national flags. with the blue field pointing east. Conduct of Flag Raising Ceremony SECTION 18. which shall be at a prominent place or a commanding position in relation to the surrounding buildings. the flag shall be lowered solemnly and slowly so that the flag shall be down the mast at the sound of the . SECTION 17. b) From the top of a flagpole. All government offices and educational institutions shall henceforth observe the flag-raising ceremony every Monday morning and the flag lowering ceremony every Friday afternoon. All persons present shall place their right palms over their chests. if the road is heading south or north. C. such as the ground. If there is a line of other flags. shall not be thrown away. SECTION 19. moving vehicles shall stop.

The technical specifications shall be as follows: The blue color shall bear Cable No. for ten (10) days. for seven (7) days. the Chief Justice.last note of the anthem. during which period all offices. Cable No. Specifications of the National Flag SECTION 27. The period from May 28 to June 12 of each year is declared as Flag Days. The flag may be used to cover the caskets of the honored dead of the military. white. In such cases. agencies and instrumentalities of government. the length of the flag. H. business establishments. national artists. craftsmanship and material requirements of the Government. which shall stamp its approval or disapproval on the canvass reinforcement of the flag sample submitted. Cable No. Pledge to the Flag SECTION 25. D. and such other persons as may be determined by the Institute. The flag shall be flown at half-mast on all the buildings and places where the decedent was holding office. color. 1. veterans of previous wars. 80068. the red color. on the day of death until the day of interment of an incumbent member of the Supreme Court. Those in the assembly shall observe the same deportment or shall observe the same behavior as for the flag-raising ceremony. G. The laboratory test results shall be submitted by the said office to the Institute. The flag shall not be lowered to the grave or allowed to touch the ground. institutions of learning and private homes are enjoined to display the flag. color and craftsmanship specifications by the Institute. The flag shall have the following proportions. the white color. and the golden yellow. including the canvas submitted. the following standards and procedures shall be observed: a) All requisitions for the purchase of the Philippine National Flag must be based on strict compliance with the design. E. The width of the flag. 1. through its Heraldry and Display Section. Cable No. the President of the Senate and the Speaker of the House of Representatives. The flag when flown at half-mast shall be first hoisted to the peak for a moment then lowered to the half-mast position. Flag Days SECTION 26. SECTION 29. The samples shall be sent annually to the ITDI/PTRI by the manufacturer. b) All submitted samples of flags by accredited suppliers offered for purchase for government use shall be evaluated as to design. 2. and the sides of the white triangle. for any period less than seven (7) days. b) The Vice-President. All deliveries of the flags requisitioned by the government shall be inspected by the requisitioning agency's internal inspector and by the Commission on Audit (COA) using the flag stamped approved by the Institute as reference. SECTION 30. The flag shall again be raised to the peak before it is lowered for the day. 80108. katarungan at kalayaan Na pinakikilos ng sambayanang Maka-Diyos Maka-tao Makakalikasan at Makabansa. but shall be folded solemnly and handed over to the heirs of the deceased. conforms to government requirement as to quality of the material. Half-Mast SECTION 23. as may be determined by the local government unit concerned. Individuals whose faith or religious beliefs prohibit them from making such pledge must nonetheless show full respect when the pledge is being rendered by standing at attention. not by the flag supplier. red and golden yellow colors. In order to establish uniform criteria in the making of our national flag and to guarantee its durability by the use of quality materials. and of civilians who have rendered distinguished service to the nation. The flag shall be flown at half-mast as a sign of mourning on all the buildings and places where it is displayed. Casket SECTION 24. 80001. the flag shall be placed such that the white triangle shall be at the head and the blue portion shall cover the right side of the caskets. the Senate or the House of Representatives. F. The samples shall be sent to the Institute by the requisitioning office. on the day of official announcement of the death of any of the following officials: a) The President or a former President. 80173. SECTION 28. the Cabinet. The following shall be the Pledge of Allegiance to the Philippine flag: Ako ay Pilipino Buong katapatang nanunumpa Sa watawat ng Pilipinas At sa bansang kanyang sinasagisag Na may dangal. as provided for in this Act. and c) The Industrial Technology Development Institute (ITDI) or the Philippine Textile Research Institute (PTRI) of the Department of Science and Technology (DOST) shall evaluate the quality of material of all flag samples and certify whether the fabric for the blue. Such pledge shall be recited while standing with the right hand with palm open raised shoulder high. and c) Other persons to be determined by the Institute. .

All government agencies and instrumentalities shall ensure that the requirements under this Act with respect to the standards. 5. side. Lupang Hinirang. advertisement. Under any painting or picture. Sa dagat at bundok. and j) To display the flag in front of buildings or offices occupied by aliens. design. and other articles of merchandise. Sa manlulupig. It shall be prohibited: a) To mutilate. 2. cushions. display or be part of any advertisement or infomercial. gambling joints and places of vice or where frivolity prevails. figure. In discotheques. h) To display in public any foreign flag. SECTION 37. SECTION 32. Lupa ng araw ng luwalhati't pagsinta. the ITDI/PTRI shall prepare guidelines to be approved by the Office of the President. All departments. walls. night and day clubs. or for industrial. drawings. Perlas ng Silanganan Alab ng puso. 3. casinos. and 6. d) To display the flag: 1. Kailan pa ma'y di magdidilim. The National Anthem is entitled Lupang Hinirang. back and top of motor vehicles. As covering for ceilings. except in embassies and other diplomatic establishments. agencies. cockpits. . i) To use. paint or attach representation of the flag on handkerchiefs. and instrumentalities of the government. f) To add any word. At awit sa paglayang minamahal. the Institute. Horizontally face-up. Below any platform. As a staff or whip. Di ka pasisiil. As a pennant in the hood. statues or other objects. As a drapery. tablecloth. napkins. COA. festoon. c) To use the flag: 1. Sa simoy at sa langit mong bughaw. trample on or cast contempt or commit any act or omission casting dishonor or ridicule upon the flag or over its surface. offices. In carrying out its responsibilities under Section 4 hereof. or 4. picture. As trademarks. For unveiling monuments or statues. shall include in their annual budgets the necessary outlay for the purchase of the national flag. defile. g) To print. The National Anthem shall always be sung in the national language within or without the country. shall be in accordance with the musical arrangement and composition of Julian Felipe. or imprint of any nature on the flag. requisitions and delivery of the national flag are strictly complied with. I. SECTION 33. local government units. b) To dip the flag to any person or object by way of compliment or salute. deface. May dilag ang tula. Buhay ay langit sa piling mo. Ang mamatay ng dahil sa iyo.SECTION 31. e) To wear the flag in whole or in part as a costume or uniform. Prohibited Acts SECTION 34. 3. government-owned or controlled corporations. and in offices of international organizations. whether played or sung. Ang bituin at araw niya. commercial or agricultural labels or designs. Sa Dibdib mo'y buhay. It shall always be hoisted aloft and be allowed to fall freely. Aming ligaya na pag may mang-aapi. including barangays. 4. 2. The following shall be the lyrics of the National Anthem: Bayang magiliw. CHAPTER II THE NATIONAL ANTHEM SECTION 35. The rendition of the National Anthem. SECTION 36. mark. Ang kislap ng watawat mo'y Tagumpay na nagniningning. Duyan ka ng magiting.

all persons shall execute a salute by placing their right palms over their left chests. SECTION 49. When the National Anthem is played at a public gathering. as adopted by law. d) Before the initial and last screening of films and before the opening of theater performances. piano or band scores of the National Anthem. The National Coat-of-Arms shall have: Paleways of two (2) pieces. CHAPTER III THE NATIONAL MOTTO SECTION 40. The Department of Education. CHAPTER V THE GREAT SEAL SECTION 42. and performed during the flag ceremony conducted in accordance with the rules and regulations issued by the Office of the President. Any government entity. SECTION 46. azure and gules. and banners. Failure to observe the rules shall be a ground for administrative discipline. and e) Other occasions as may be allowed by the Institute. administrative seals. and any violation of the corresponding rules and regulations issued by the Office of the President. they shall make available the vocal. citizens military training and security guard uniforms shall give the salute prescribed by their regulations. The President shall have custody of the Great Seal. As a sign of respect. The Great Seal shall also bear the National Motto. c) During the "signing off" and "signing on" of radio broadcasting and television stations. if there is one displayed. including the military. privately-owned entities or offices displaying the national flag and government institutions of learning are hereby directed to comply strictly with the rules prescribed for the rendition of the anthem. No government official or employee shall accept any order or decoration from any foreign government without the consent of Congress. as may be authorized by Congress or the Office of the President. and if there is none. a chief argent studded with three (3) mullets equidistant from each other. whether by a band or by singing or both. may adopt appropriate coat-of-arms. shall cause the cancellation of the recognition or permit of any private educational institution which fails or refuses to observe the provisions of this Act for the second time. logo. badges. as well as the general public. . to all private and public schools. the attending public shall sing the anthem. or reproduced by any means. SECTION 43. through the Institute. Such items and devices shall be subject to inspection by the purchasing agency's internal inspector and the COA representative using the design and specifications approved by the Office of the President or by the Congress. all persons shall stand at attention and face the Philippine flag. in point of honor. shall be penalized by public censure which shall be published at least once in a newspaper of general circulation. but without the scroll and the inscription thereon. CHAPTER VI OFFICIAL SEAL AND OTHER HERALDIC ITEMS AND DEVICES SECTION 44. All officials and employees of the national and local government. with the arms as described in the preceding section. The anthem shall not be played and sung for mere recreation. and any agency or instrumentality thereof. Such heraldic devices and items shall be filed with the Institute for recording and evaluation as to precedence. shall after proper notice and hearing. scouting. shall be committed to memory by all students of both public and private educational institutions. MAKAKALIKASAN AT MAKABANSA. amusement or entertainment purposes except on the following occasions: a) International competitions where the Philippines is the host or has a representative. design.SECTION 38. SECTION 39. orders or decorations. insignia. Failure or refusal to observe the provisions of this Act. b) Local competitions. Those in military. customs and traditions. Beneath shall be the scroll with the words "REPUBLIKA NG PILIPINAS." CHAPTER IV THE NATIONAL COAT-OF-ARMS SECTION 41. they shall face the band or the conductor. Surrounding the whole shall be a double marginal circle within which shall appear the words "Republika ng Pilipinas. At the first note. and without the prior evaluation and documentation of such order or decoration by the Institute. All government offices including the military are hereby ordered to purchase all heraldic items and devices from manufacturers accredited and authorized by the Institute. including government- owned or controlled corporations." inscribed thereon. The Great Seal shall be circular in form. or as may be required by custom and usage. as adopted by law. MAKA-TAO. The Great Seal shall be affixed to or placed upon all commissions signed by the President and upon such other official documents and papers of the Republic of the Philippines as may be provided by law. and initiate awards. The Institute shall promulgate the corresponding rules and regulations which shall be submitted for approval to the Office of the President or to Congress. Culture and Sports and the Commission on Higher Education." For the purpose of placing The Great Seal. Culture and Sports (DECS) and the Commission on Higher Education shall ensure that the National Anthem. The singing must be done with fervor. the color of the arms shall not be deemed essential but tincture representation must be used. The salute shall be completed upon the last note of the anthem. and. The Department of Education. patches. ovoid argent over all the sun rayonnant with eight minor and lesser rays. In addition. CHAPTER VII PENALTIES SECTION 48. SECTION 47. citations. The National Motto shall be "MAKA-DIYOS. SECTION 45. upon the recommendation of the Institute and after proper notice and hearing.

upon the recommendation of the SSS President. He shall be appointed by the President of the Philippines and shall receive salary to be fixed by the Commission with the approval of the President of the Philippines. 1161. SECTION 54. develop. Declaration of Policy. rule or regulation contrary to.500. shall be subject to the confirmation by the Commission: Provided. Republic Act No. 8282 AN ACT FURTHER STRENGTHENING THE SOCIAL SECURITY SYSTEM THEREBY AMENDING FOR THIS PURPOSE.000)." SEC. further. shall be filled for the unexpired term only. or government instrumentality.000.It is the policy of the Republic of the Philippines to establish. That the personnel appointed by the SSS President.SECTION 50. administrative order. The Institute shall issue the necessary rules and regulations to implement the provisions of this Act within ninety (90) days after effectivity. The SSS President shall be a person who has had previous experience in the technical and administrative fields related to the purposes of this Act. AS AMENDED. maternity. That said members of the Commission shall also receive reasonable transportation and representation allowances as may be fixed by the Commission. SEC. as amended.000) nor more than Twenty thousand pesos (P20. 3. and one (1).00) per diem for each meeting actually attended by them but not to exceed Ten thousand pesos (P10. hereinafter referred to as ‘SSS’.000.Any law. or part hereof.If any provision. and local government units. allowances and other benefits. The appointive members of the Commission shall receive at least two thousand five hundred pesos (P2. Effectivity. otherwise known as the "Social Security Law". That for any second and additional offenses.This Act shall be known as the "Social Security Act of 1997. three (3) of whom shall represent the workers’ group. The Institute shall submit its rules and regulations to the Office of the President and the Congress of the Philippines.00) but not to exceed Fifteen thousand pesos (P15.000. for such assistance as it may deem necessary for the effective discharge of its functions under this Act. SECTION 53. SECTION 55. The Chairman of the Commission shall be designated by the President of the Philippines from among its members. death. honest and economical administration of the provisions and purposes of this Act: Provided. 1161. three (3). All vacancies. agency. or inconsistent with. OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW. shall appoint an actuary. be punished by a fine of not less than Five thousand pesos (P5. composed of the Secretary of Labor and Employment or his duly designated undersecretary. further. its President or Chief Executive Officer thereof shall be liable. 1998 SOCIAL SECURITY ACT OF 1997 REPUBLIC ACT NO. the general public whose representative shall have adequate knowledge and experience regarding social security. or both such fine and imprisonment. CHAPTER VIII COMMON PROVISIONS SECTION 51. the remainder of this Act not otherwise affected shall be valid and subsisting. or by imprisonment for not more than one (1) year. . the provisions of this Act is hereby repealed. to be appointed by the President of the Philippines. Separability clause. Repealing clause. is held invalid or unconstitutional. modified.00) a month: Provided .500. . however. Social Security System. except those below the rank of assistant manager. Philippines is hereby created. 2. . letter of instruction. and other contingencies resulting in loss of income or financial burden. The six (6) members representing workers and employers shall be chosen from among the nominees of workers’ and employers’ organizations. "(c) The Commission. with principal place of business in Metro Manila. both fine and imprisonment shall always be imposed: Provided. Approved: February 12. office. further. . Short Title. upon conviction.This Act shall take effect fifteen (15) days from the date of its publication in the Official Gazette or in at least two (2) newspapers of general circulation. is hereby further amended to read as follows: SECTION 1. The term of the appointive members shall be three (3) years: Provided. prescribe their duties and establish such methods and procedures as may be necessary to insure the efficient. the State shall endeavor to extend social security protection to workers and their beneficiaries. two (2) and three (3) years for every two members. at the discretion of the court: Provided. including government corporations. That members of the Commission shall also receive a per diem of at least Two thousand five hundred pesos (P2. presidential decree or issuance. and such other personnel as may be deemed necessary. That they shall continue to hold office until their successors shall have been appointed and duly qualified. further. The SSS shall be directed and controlled by a Social Security Commission.00) a month. It may call upon any government department. sickness. executive order. . That . prior to the expiration of the term. SECTION 1. or amended accordingly. respectively. old age. That the terms of the first six (6) appointive members shall be one (1). at least one (1) of whom shall be a woman. The Institute shall also be responsible for the strict enforcement of the provisions of this Act.00) a month:: Provided. promote and perfect a sound and viable tax- exempt social security service suitable to the needs of the people throughout the Philippines which shall promote social justice and provide meaningful protection to members and their beneficiaries against the hazards of disability. SECTION 52. Towards this end.(a) To carry out the purposes of this Act. further. a corporate body. the SSS president and seven (7) appointive members. REPUBLIC ACT NO. That in case the violation is committed by a juridical person. hereinafter referred to as ‘Commission’. payable from the funds of the SSS. at least one of whom shall be a woman. . the Social Security System. but not to exceed Ten thousand pesos (P10. the employers’ group. "(b) The general conduct of the operations and management functions of the SSS shall be vested in the SSS President who shall serve as the chief executive officer immediately responsible for carrying out the program of the SSS and the policies of the Commission. That the personnel of the SSS below the rank of Vice-President shall be appointed by the SSS President: Provided. respectively: Provided. fix their reasonable compensation. Any person or juridical entity which violates any of the provisions of this Act shall.

in the same manner as the decision of the Regional Trial Court by directing the city or provincial sheriff or the sheriff whom it may appoint to enforce such final decision or execute such writ. "(b) Appeal to Courts. or the Court of Appeals or the Supreme Court. under such rules and regulations as the Commission may adopt. the SSS shall have the following powers and duties: "(1) To submit annually not later than April 30. motu proprio or on motion of any interested party. the same shall be reviewed by the Supreme Court. self-employed and voluntary members and their earnings. and judicial review thereof shall be permitted only after any party claiming to be aggrieved thereby has exhausted his remedies before the Commission.Any decision of the Commission. efficient and stable administration of the SSS. and any person who shall fail or refuse to comply with such decision. compilations and analyses of statistical and economic data and to make investigation as may be needed for the proper administration and development of the SSS. subject to such rules and regulations as it may promulgate and approved by the President of the Philippines. Powers and Duties of the Commission and SSS. by the Solicitor General or any public prosecutors. for the payment of benefits to such officials and employees or their heirs under such terms and conditions as it may prescribe. "(6) To compromise or release. That the SSS shall be exempt from the provisions of Republic Act No. in the absence of an appeal therefrom as herein provided. . "(5) To adopt. "(d) Execution of Decisions. or more frequently as may be necessary. receive. and shall take precedence over all cases. or when requested by the Commission. "(2) To require the actuary to submit a valuation report on the SSS benefit program every four (4) years.The decision of the Commission upon any disputed matter may be reviewed both upon the law and the facts by the Court of Appeals. against all funds available to the SSS under this Act. criminal cases wherein life imprisonment or death has been imposed by the trial court shall take precedence. public or private property for the purpose of undertaking housing projects preferably for the benefit of low-income members and for the maintenance of hospitals and institutions for the sick. confirm. "(10) To sue and be sued in court. pass upon or review any and all actions of the SSS in the proper and necessary exercise of its powers and duties hereinafter enumerated. penalty or any civil liability to SSS in connection with the investments authorized under Section 26 hereof. "(7) To require reports. . "(3) To establish offices of the SSS to cover as many provinces. under such terms and conditions as it may prescribe and approved by the President of the Philippines. after it has become final and executory. The case shall be heard in a summary manner. "(4) To approve restructuring proposals for the payment of due but unremitted contributions and unpaid loan amortizations under such terms and conditions as it may prescribe. further. expropriation or otherwise. If the decision of the Commission involves only questions of law. and any case filed with respect thereto shall be heard by the Commission. "(5) To authorize cooperatives registered with the cooperative development authority or associations registered with the appropriate government agency to act as collecting agents of the SSS with respect to their members: Provided. . "(4) To enter into agreements or contracts for such service and aid. finally. including the addition of new ones. from time to time. Settlement of Disputes. . after being required to do so shall. for the payment of benefits to such members or their beneficiaries. except that in the Supreme Court. further. For the purpose of such review. "(b) The Social Security System. to undertake the necessary actuarial studies and calculations concerning increases in benefits taking into account inflation and the financial stability of the SSS. such rules and regulations as may be necessary to carry out the provisions and purposes of this Act. "(6) To set up its accounting system and provide the necessary personnel therefor. That such increases in benefits shall not require any increase in the rate of contribution.the personnel of the SSS shall be selected only from civil service eligibles and be subject to civil service rules and regulations: Provided.The Commission may. "(9) To acquire. shall be cognizable by the Commission. "(3) To maintain a provident fund which consists of contributions made by both the SSS and its officials and employees and their earnings. the procedure concerning appeals from the Regional Trial Court shall be followed as far as practicable and consistent with the purposes of this Act.Subject to the provision of Section four (4). and "(11) To perform such other corporate acts as it may deem appropriate for the proper enforcement of this Act. 5. determination and settlement of disputes shall be governed by the rules and regulations promulgated by the Commission. and to inspect or cause to be inspected periodically such offices. as well as schools for the members and their immediate families. and to provide for feasible increases in benefits every four (4) years. shall so order. . That the actuarial soundness of the reserve fund shall be guaranteed: Provided. cities and congressional districts. or by hearing officers duly authorized by the Commission and decided within twenty (20) days after the submission of the evidence. paragraph seven (7) hereof. which may be necessary or expedient for the attainment of the purposes of this Act. or any of its members. Appeal from a decision of the Commission must be taken within fifteen (15) days from notification of such decision. No appeal shall act as a supersedeas or a stay of the order of the Commission unless the Commission itself. . whenever and wherever it may be expedient. real or personal. The Commission shall be deemed to be a party to any judicial action involving any such decision. "(2) To establish a provident fund for the members which will consist of voluntary contributions of employers and/or employees.(a) Any dispute arising under this Act with respect to coverage. award or writ. aged and disabled. The filing. issue a writ of execution to enforce any of its decisions or awards. a public report to the President of the Philippines and to the Congress of the Philippines covering its activities in the administration and enforcement of this Act during the preceding year including information and recommendations on broad policies for the development and perfection of the program of the SSS. benefits. "(c) Court Review. That the SSS shall accredit the cooperative or association: Provided.For the attainment of its main objectives as set forth in Section 2 hereof. the Commission shall have the following powers and duties: "(1) To adopt. shall become final and executory fifteen (15) days after the date of notification. 6758 and Republic Act No. subject to the approval of the President of the Philippines. necessary and feasible. upon application by the Commission pursuant to Rule 71 of the Rules of Court. and may be represented by an attorney employed by the Commission. .(a) The Commission. SEC. SEC. . in whole or in part. be punished for contempt. or hold. any interest. by way of purchase. "(8) To acquire and dispose of property. subject to the approval of the President of the Philippines: Provided. and "(7) To approve. as may be needed for the proper. amend and rescind. No appeal bond shall be required. 4. contributions and penalties thereon or any other matter related thereto. That the persons authorized to collect are bonded. a budget of expenditures including salaries of personnel. 7430.

That the terms of such agreement shall conform with the provisions of this Act on coverage and amount of payment of contributions and benefits: Provided. who carries on in the Philippines any trade. "(o) Semester . "(n) Average daily salary credit. "(p) Quarter . "(2) Service performed on or in connection with an alien vessel by an employee if he is employed when such vessel is outside the Philippines. including corporations owned or controlled by the Government: Provided. international organization or their wholly-owned instrumentality employing workers in the Philippines or employing Filipinos outside of the Philippines. "(l) Contingency . his/her dependent illegitimate children shall be entitled to one hundred percent (100%) of the benefits. "(q) Credited years of service . unless the context indicates otherwise.For purposes of this Act. as far as practicable.The period from one end of the last payroll period of the preceding month to the end of the last payroll period of the current month if compensation is on hourly. industry. SEC. death. "(b) Commission . or the result obtained by dividing the sum of all the monthly salary credits paid prior to the semester of contingency by the number of monthly contributions paid in the same period. "(f) Compensation . Auditor and Counsel. and "(3) The parent who is receiving regular support from the member. That the dependent illegitimate children shall be entitled to fifty percent (50%) of the share of the legitimate.A period of three (3) consecutive calendar months ending on the last day of March. if on any other basis. That a self-employed person shall be both employee and employer at the same time. have the following meanings: "(a) SSS . In the absence of all the foregoing. correspondence and other records deemed necessary as evidence in connection with any question arising under this Act. legitimated or legally adopted. daily or weekly basis.The dependents shall be the following: "(1) The legal spouse entitled by law to receive support from the member. or their wholly-owned instrumentality: Provided. That in the absence of the dependent legitimate. "(b) The Secretary of Justice shall be the ex-officio counsel of the SSS. 6. any other person designated by the member as his/her secondary beneficiary. or activity of any kind and uses the services of another person who is under his orders as regards the employment. certify to official acts. and issue subpoena and subpoena duces tecum to compel the attendance of witnesses and the production of books. "(4) Service performed in the employ of a foreign government or international organization. domestic or foreign. funds and properties in general. where there is an employer-employee relationship: Provided. "(2) The legitimate. SEC. "(k) Beneficiaries . funds and properties of the SSS in the same manner and as frequently as the accounts.Any person who performs services for an employer in which either or both mental or physical efforts are used and who receives compensation for such services. That the provisions of this Act shall be supplementary to any such agreement.Any service performed by an employee for his employer except: "(1) Employment purely casual and not for the purpose of occupation or business of the employer. and "(5) Such other services performed by temporary and other employees which may be excluded by regulation of the Commission. That this exemption notwithstanding. Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the service of said contractors. For a member covered in or after January nineteen hundred and eighty five (1985). ‘monthly’ shall mean a period of one (1) month. he is congenitally or while still a minor has been permanently incapacitated and incapable of self-support. "(g) Monthly salary credit . . except the Government and any of its political subdivisions. Any case of contumacy shall be dealt with by the Commission in accordance with law. "(3) Service performed in the employ of the Philippine Government or instrumentality or agency thereof.The dependent spouse until he or she remarries. papers.The compensation base for contributions and benefits as indicated in the schedule in Section Eighteen of this Act. finally. "(e) Dependents . He or his representative shall act as legal adviser and counsel thereof. physically or mentally. In their absence. "(d) Employee . He or his representative shall check and audit all the accounts. and Production of Records.The retirement. whichever is greater: Provided.SEC. who shall be the primary beneficiaries of the member: Provided. June. branches or instrumentalities.The amount paid to the SSS by and on behalf of the members in accordance with Section Eighteen of this Act.All actual remuneration for employment.The Social Security System created by this Act. and illegitimate child who is unmarried. undertaking.The result obtained by dividing the sum of the six (6) highest monthly salary credits in the twelve-month period immediately preceding the semester of contingency by one hundred eighty (180). legitimated or legally adopted.(a) The Chairman of the Commission on Audit shall be the ex-officio Auditor of the SSS. 8.When authorized by the Commission. further. business. . take depositions. Terms Defined. That a self-employed person shall be both employee and employer at the same time. further. . not gainfully employed. may enter into an agreement with the Philippine Government for the inclusion of such employees in the SSS except those already covered by their respective civil service retirement systems: Provided. Witnesses. however. September and December. and has not reached twenty-one (21) years of age. "(m) Average monthly salary credit . "(j) Employment . That the injury or sickness which caused the disability shall be deemed as the permanent disability for the purpose of computing the average monthly salary credit. and he shall have. the following terms shall.Any person. as well as the cash value of any remuneration paid in any medium other than cash except that part of the remuneration in excess of the maximum salary credit as provided under Section Eighteen of this Act. legitimated children of the member. injury or sickness and maternity of the member. any foreign government. an official or employee thereof shall have the power to administer oath and affirmation. "(i) Contribution .A period of two (2) consecutive quarters ending in the quarter of contingency. Oaths. legitimated or legally adopted children: Provided. the number of calendar years in which six (6) or more contributions have been paid from the year of coverage up to the calendar year containing the . funds and properties of the government are checked and audited under existing laws. "(c) Employer. 7.The result obtained by dividing the sum of the last sixty (60) monthly salary credits immediately preceding the semester of contingency by sixty (60). natural or juridical.The Social Security Commission as herein created.For a member covered prior to January nineteen hundred and eighty five (1985) minus the calendar year of coverage plus the number of calendar years in which six (6) or more contributions have been paid from January nineteen hundred and eighty five (1985) up to the calendar year containing the semester prior to the contingency. including the mandated cost-of-living allowance. or if over twenty-one (21) years of age. disability. the dependent legitimate. the dependent parents who shall be the secondary beneficiaries of the member. "(h) Monthly . the same powers and duties as he has with respect to the checking and auditing of public accounts. and illegitimate children.

SEC. their monthly income shall not be less than One thousand pesos (P1. That any benefit already earned by the employees under private benefit plans existing at the time of the approval of this Act shall not be discontinued. Dependents’ Pension.semester prior to the contingency: Provided. the minimum pension shall be One thousand two hundred pesos (P1.00). further.Net income before income taxes plus non-cash charges such as depreciation and depletion appearing in the regular financial statement of the issuing or assuming institution.If the self-employed realizes no income in any given month. or "(2) Forth percent (40%) of the average monthly salary credit.00) for those with twenty (20) credited years of service. Individual farmers and fishermen. "4. SEC. "(r) Member . Retirement Benefits. adjustments. SEC.(a) The monthly pension shall be the highest of the following amounts: "(1) The sum of the following: "(i) Three hundred pesos (P300. That the monthly pension shall in no case be paid for an aggregate amount of less than sixty (60) months. "2. . Professional athletes. scriptwriters and news correspondents who do not fall within the definition of the term "employee" in Section 8 (d) of this Act. dependents’ pension equivalent to ten percent (10%) of the monthly pension or Two hundred fifty pesos (P250. "(b) Spouses who devote full time to managing the household and family affairs. . "3. 11. he shall pay to the SSS only the contribution required of him and he shall continue his contribution to such private plan less his contribution to the SSS so that the employer’s total contribution to his benefit plan and to the SSS shall be the same as his contribution to his private benefit plan before the compulsory coverage: Provided. and "5. 12-A. "Unless otherwise specified herein. That nothing in this Act shall be construed as a limitation on the right of employers and employees to agree on and adopt benefits which are over and above those provided under this Act. modifications. "(b) Notwithstanding the preceding paragraph. Effect of Interruption of Business or Professional Income. as well as those workers enumerated in Section Nine-A hereof. .Recurring expense such as amortization of debt discount or rentals for leased properties. Effective Date of Coverage.(a) Coverage in the SSS shall be compulsory upon all employees not over sixty (60) years of age and their employers: Provided. further. 12.Coverage in the SSS shall also be compulsory upon such self-employed persons as may be determined by the Commission under such rules and regulations as it may prescribe. continue to pay the total contributions to maintain his right to full benefit. reduced or otherwise impaired: Provided. 12-B.00): Provided. That the compulsory coverage of the self-employed person shall take effect upon his registration with the SSS. further. permanent total disability or retirement. further. finally. may be covered by the SSS on a voluntary basis. Partners and single proprietors of businesses. Compulsory Coverage of the Self-Employed. or "(3) One thousand pesos (P1. or (2) . which may be necessary to adopt by reason of the reduced contributions thereto as a result of the integration. but said employee shall be credited with all contributions paid on his behalf and entitled to benefits according to the provisions of this Act.000. That any changes.Any person whose income is not derived from employment. plus "(ii) Twenty percent (20%) of the average monthly salary credit. . directors. "(c) Filipinos recruited by foreign-based employers for employment abroad may be covered by the SSS on a voluntary basis. however.When an employee under compulsory coverage is separated from employment. . shall be subject to agreements between the employers and employees concerned: Provided. "SEC. All self-employed professionals. . however. beginning with the youngest and without substitution: Provided. SEC. That no retroactive payment of contributions shall be allowed other than as prescribed under Section Twenty-two-A hereof. Actors and actresses. SEC. That the private benefit plan which the employer shall continue for his employees shall remain under the employer’s management and control unless there is an existing agreement to the contrary: Provided. That in the case of domestic helpers. 9-A. Monthly Pension. all provisions of this Act applicable to covered employees shall also be applicable to the covered self-employed persons. eliminations or improvements in the benefits to be available under the remaining private plan. Coverage. SEC.Compulsory coverage of the employer shall take effect on the first day of his operation and that of the employee on the day of his employment: Provided. He may. That the Commission may provide for a different number of contributions in a calendar year for it to be considered as a credited year of service. .00. . unless they are also engaged in other vocation or employment which is subject to mandatory coverage. That where there are legitimate or illegitimate children.(a) A member who has paid at least one hundred twenty (120) monthly contributions prior to the semester of retirement and who: (1) has reached the age of sixty (60) years and is already separated from employment or has ceased to be self-employed. Effect of Separation from Employment. 9. including interest on funded and unfunded debt. whichever is higher. SEC. he shall not be required to pay contributions for that month. as defined under this Act.The worker who is covered under Section Nine and Section Nine-A of this Act. "(s) Self-employed .000. including but not limited to the following: "1. 11-A. "(t) Net earnings . 10.00) a month: Provided.400. the former shall be preferred. trainers and jockeys.Where monthly pension is payable on account of death. That private plans which are existing and in force at the time of compulsory coverage shall be integrated with the plan of the SSS in such a way where the employer’s contribution to his private plan is more than that required of him in this Act. be allowed to continue paying contributions under the same rules and regulations applicable to a separated employee member: Provided.200. plus "(iii) Two percent (2%) of the average monthly salary credit for each credited year of service in excess of ten (10) years. his employer’s contribution on his account and his obligation to pay contributions arising from that employment shall cease at the end of the month of separation. coaches. He may. "(u) Fixed charges . shall also be paid for each dependent child conceived on or before the date of the contingency but not exceeding five (5).00) for members with at least ten (10) credited years of service and Two thousand four hundred pesos (P2.

"(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 been separated from employment or ceased to be self-employed plus all adjustments thereto. Death Benefits. . rounded to the next higher integer. That if he has no primary beneficiaries and he dies within sixty (60) months from the start of his monthly pension. "(d) Upon the death of the retired member. his primary beneficiaries as of the date of disability shall be entitled to receive the monthly pension: Provided. the member shall be deemed as permanently totally disabled. in which case. whichever is higher. That if he has not paid the required thirty-six (36) monthly contributions. the benefit shall be such percentage of the lump sum benefit described in the preceding paragraph with due regard to the degree of disability as the Commission may determine. A member who (1) has received a lump sum benefit. That he is separated from employment and is not continuing payment of contributions to the SSS on his own. Permanent complete paralysis of two limbs. Complete loss of sight of both eyes. 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 NUMBER OF LOSS OF USE OF MONTHS One thumb 10 One index finger 8 One middle finger 6 One ring finger 5 One little finger 3 One big toe 6 One hand 39 One arm 50 One foot 31 One leg 46 One ear 10 Both ears 20 Hearing of one ear 10 Hearing of both ears 50 Sight of one eye 25 "(g) The percentage degree of disability which is equivalent to the ratio that the designated number of months of compensability bears to seventy-five (75). the monthly pension benefit shall be given in lump sum if it is payable for less than twelve (12) months. "(e) If the disability is permanent partial. or (2) the monthly pension computed at the time when he actually retires. 13. shall be entitled for as long as he lives to the monthly pension: Provided.has reached the age of sixty-five (65) years. "3. "4. "2. 13-A. That if he has no primary beneficiaries. he shall be entitled to the monthly pension: Provided. "(c) Upon the death of the permanent total disability pensioner. but shall be additive for deteriorating and related permanent partial disabilities to a maximum of one hundred percent (100%). his primary beneficiaries shall be entitled to the monthly pension: Provided. his primary or secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the monthly pension times the number of monthly contributions paid to the SSS or twelve (12) times the monthly pension. SEC. excluding the dependents’ pension. his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly pensions corresponding to the balance of the five-year guaranteed period excluding the dependents’ pension. Brain injury resulting to incurable imbecility or insanity.(a) Upon the permanent total disability of a member who has paid at least thirty-six (36) monthly contributions prior to the semester of disability. That he shall have the option to receive his first eighteen (18) monthly pensions in lump sum discounted at a preferential rate of interest to be determined by the SSS. he shall be entitled to a lump sum benefit equivalent to the monthly pension times the number of monthly contributions paid to the SSS or twelve (12) times the monthly pension. "(d) The following disabilities shall be deemed permanent total: "1. Permanent Disability Benefits. "(f) If the disability is permanent total and such disability occurs after thirty-six (36) monthly contributions have been paid prior to the semester of disability. and (2) is reemployed or has resumed self-employment not earlier than one (1) year from the date of his disability shall again be subject to compulsory coverage and shall be considered a new member. his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to thirty-six (36) times the monthly pension. shall not be additive for distinct. shall be entitled to a lump sum benefit equal to the total contributions paid by him and on his behalf: Provided. whichever is higher. "(b) The monthly pension and dependents’ pension shall be suspended upon the reemployment or resumption of self-employment or the recovery of the disabled member from his permanent total disability or his failure to present himself for examination at least once a year upon notice by the SSS. his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly pensions corresponding to the balance of the five-year guaranteed period. . . He shall again be subject to Section Eighteen and his employer to Section Nineteen of this Act. and such disability occurs before thirty-six (36) monthly contributions have been paid prior to the semester of disability. "(b) A covered member who is sixty (60) years old at retirement and who does not qualify for pension benefits under paragraph (a) above. separate and unrelated permanent partial disabilities.Upon the death of a member who has paid at least thirty-six (36) monthly contributions prior to the semester of death. Such cases as determined and approved by the SSS. If he has not paid the required thirty-six (36) monthly contributions. "SEC. "(c) The monthly pension shall be suspended upon the reemployment or resumption of self-employment of a retired member who is less than sixty- five (65) years old. and "5. That if he has no primary beneficiaries and he dies within sixty (60) months from the start of his monthly pension. Loss of two limbs at or above the ankle or wrists. "(h) In case of permanent partial disability. his primary beneficiaries as of the date of his retirement shall be entitled to receive the monthly pension: Provided.

where the best interest of the SSS will be served. a daily sickness benefit equivalent to ninety percent (90%) of his average daily salary credit. "(b) The compensable confinement shall begin on the first day of sickness. "(e)The claim of reimbursement shall be adjudicated by the SSS within a period of two (2) months from receipt thereof: Provided. 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. That if the recipient is a minor or a person incapable of administering his own affairs. and the payment of such allowances shall be promptly made by the employer every regular payday or on the fifteenth and last day of each month. and similarly in the case of direct payment by the SSS. . for as long as such allowances are due and payable: Provided. . SEC. such employer shall have no right to recover the corresponding daily allowance he advanced to the employee member as required in this section. That the SSS shall reimburse the employer or pay the unemployed member only for confinement within the one-year period immediately preceding the date the claim for benefit or reimbursement is received by the SSS. the employer shall pay to the SSS damages equivalent to the benefits which said employee member would otherwise have been entitled to. and "(3) The employee member shall notify his employer of the fact of his sickness or injury within five (5) calendar days after the start of his confinement unless such confinement is in a hospital or the employee became sick or was injured while working or within the premises of the employer in which case. or without the latter having been previously notified by the employer of the time of the pregnancy. That if the notification to the SSS is made by the employer beyond five (5) calendar days after receipt of the notification from the employee member. That the employer has notified the SSS of the confinement within five (5) calendar days after receipt of the notification from the employee member: Provided. "(f) The provisions regarding the notification required of the member and the employer as well as the period within which the claim for benefit or reimbursement may be filed shall apply to all claims filed with the SSS. That the beneficiary who is a national of a foreign country which does not extend benefits to a Filipino beneficiary residing in the Philippines. notification to the employer is necessary: Provided. . That should no payment be received by the employer within one (1) month after the period prescribed herein for adjudication. except confinement in a hospital in which case the claim for benefit or reimbursement must be filed within one (1) year from the last day of confinement. That the SSS shall pay the retirement benefits on the day of contingency to qualified members who have submitted the necessary documents at least six (6) months before: Provided. further. Non-Transferability of Benefits. That notwithstanding the foregoing. "(j) Should a member who is on partial disability pension retire or die. further.(a) A member who has paid at least three (3) monthly contributions in the twelve-month period immediately preceding the semester of sickness or injury and is confined therefor for more than three (3) days in a hospital or elsewhere with the approval of the SSS. shall not be entitled to receive any benefit under this Act: Provided. for each day of compensable confinement or a fraction thereof. or which is not recognized by the Philippines. Maternity Leave Benefit. . Such benefits are not transferable and no power of attorney or other document executed by those entitled thereto in favor of any agent. further. 13-B. shall.A female member who has paid at least three (3) monthly contributions in the twelve-month 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 seventy-eight (78) days in case of caesarian delivery. Funeral Benefit. "(c) One hundred percent (100%) of the daily benefits provided in the preceding paragraph shall be reimbursed by the SSS to said employer upon receipt of satisfactory proof of such payment and legality thereof: Provided. 14-A. the reimbursement shall thereafter earn simple interest of one percent (1%) per month until paid. if such person is unemployed or self-employed. nor shall any unused portion of the one hundred twenty (120) days of sickness benefit granted under this section be carried forward and added to the total number of compensable days allowable in the subsequent year. SEC.The SSS shall promptly pay the benefits provided in this Act to such persons as may be entitled thereto in accordance with the provisions of this Act: Provided. said employer shall be reimbursed only for each day of confinement starting from the tenth calendar day immediately preceding the date of notification to the SSS: Provided. . or the SSS. That in cases where notification is necessary. further. the Commission shall appoint a representative under such terms and conditions as it may deem proper: Provided. except when they are physically unable to collect personally such benefits: Provided. subject to the following conditions: "(a) That the employee shall have notified her employer of her pregnancy and the probable date of her childbirth. "(b) The full payment shall be advanced by the employer within thirty (30) days from the filing of the maternity leave application. That such allowance shall begin only after all sick leaves of absence with full pay to the credit of the employee member shall have been exhausted. the Commission may direct payments without regard to nationality or country of residence: Provided. "(d) That the maternity benefits provided under this section shall be paid only for the first four (4) deliveries or miscarriages. 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 member in which case the benefits shall be paid to such parents or spouse. he shall directly notify the SSS of his confinement within five (5) calendar days after the start thereof unless such confinement is in a hospital in which case notification is also not necessary: Provided."(i) For the purpose of adjudicating retirement. as representative payee of the recipient. in cash or in kind.00) shall be paid. 15.000. contributions shall be deemed paid for the months during which the member received partial disability pension: Provided. "(e) That the SSS shall immediately reimburse the employer of one hundred percent (100%) of the amount of maternity benefits advanced to the employee by the employer upon receipt of satisfactory proof of such payment and legality thereof. finally. That if the member is unemployed or self-employed. to help defray the cost of funeral expenses upon the death of a member. further. the confinement shall be deemed to have started not earlier than the fifth day immediately preceding the date of notification. That such contributions shall be based on his last contribution prior to his disability. SEC. which notice shall be transmitted to the SSS in accordance with the rules and regulations it may provide. attorney or any other person for the collection thereof on their behalf shall be recognized.A funeral grant equivalent to Twelve thousand pesos (P12. "(d) Where the employee member has given the required notification but the employer fails to notify the SSS of the confinement or to file the claim for reimbursement within the period prescribed in this section resulting in the reduction of the benefit or denial of the claim. "(c) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits provided by this Act for the same period for which daily maternity benefits have been received. further. Sickness Benefit. 14. further. subject to the following conditions: "(1) In no case shall the daily sickness benefit be paid longer than one hundred twenty (120) days in one (1) calendar year. including permanently totally disabled member or retiree. death and permanent total disability pension benefits. SEC. his disability pension shall cease upon his retirement or death. be paid by his employer. "(2) The daily sickness benefit shall not be paid for more than two hundred forty (240) days on account of the same confinement.

00 III 1. Employer’s Contributions.00 . 735.99 3000 152. Attorneys.750.249. P. with respect to such covered employee.00 .749.00 .00 VII 3. No.6. . filing or pursuing any claim for benefit under this Act shall demand or charge for his services any fee.99 2000 101.3. attorney or other person in charge of the preparation.00 XIII 6. his employer shall pay. the employer shall deduct and withhold from such employee’s monthly salary. 16.000.70 168.00 252. Notwithstanding any contract to the contrary. 19.250.4. unless it expressly revokes the declared policy of the State in Section 2 hereof granting tax- exemption to the SSS.30 116. which fees shall not be payable before the actual payment of the benefits.00 VIII 4.40 XI 5. SEC.00 378.70 183.250.249. .00 .00 .00) every year thereafter until it shall have reached Twelve thousand pesos (P12.000. Employee’s Contributions. wage.No agent.00 50. The retention or deduction of any amount from any benefit granted under this Act for the payment of fees for such services is prohibited: Provided.OVER 9000 456.250.749. .750.30 84.00 300.99 8500 430. SEC. further.70 133.749. Fee of Agents.00 XII 6.249. an employer shall not deduct.7.1. S. SEC.All laws to the contrary notwithstanding. 1972.00 .78 546. and shall not liable to attachments. either before or after receipt by the person or persons entitled thereto. "The maximum monthly salary credit shall be Nine thousand pesos (P9.749.30 66.000.749. from the compensation of his employees covered by the SSS or otherwise recover from them the employer’s contributions with respect to such employees.750.99 8000 403.30 714.30 266.8.99 5500 278.(a) Beginning as of the last day of the calendar month when an employee’s compulsory coverage takes effect and every month thereafter during his employment.750.00 .750.00 VI 3. 9.00) by Nineteen hundred and ninety nine (1999): Provided. further.7.70 420.249.249.00 630.99 1500 76.00 504.4.70 672. That the minimum and maximum monthly 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.99 7000 354.99 4000 202. D. (As amended by Sec. No tax measure of whatever nature enacted shall apply to the SSS.250.00 .00 . all contributions collected and all accruals thereto and income or investment earnings therefrom as well as all supplies.99 6500 329.249.750. assessment. That the monthly earnings declared by the self-employed member at the time of his registration with the SSS shall be considered as his monthly compensation and he shall pay both the employer and the employee contributions: Provided. Etc.30 210.249. "The monthly earnings declared by the self-employed member at the time of his registration shall remain the basis of his monthly salary credit. compensation or earnings.00). -.749. in which case such latest declaration becomes the new basis of his monthly salary credit. 17. and Sec. and any stipulation to the contrary shall be null and void.00 "The foregoing schedule of contribution shall also apply to self-employed and voluntary members.249. or both. 19-A. "Any violation of the provisions of this Section shall be punished by a fine of not less than Five hundred pesos (P500. 1975).749.70 283.00) effective January Nineteen hundred and ninety six (1996). charge.00) nor more than Five thousand pesos (P5.70 83. said benefits shall be paid to the legal heirs in accordance with the law of succession. P.00 XIV 7. fees or charges. the correct names and the SSS numbers of the employees and the total contributions paid for their account during the quarter.5.00 X 5. and all benefit payments made by the SSS shall likewise be exempt from all kinds of taxes.99 2500 126.00 250.749.(a) Beginning as of the last day of the month when an employee’s compulsory coverage takes effect and every month thereafter during his employment. equipment.00 . Legal Process and Lien.00 XV 7. however.00 XVI 8.30 588.000. . That the contributions of self-employed persons earning One thousand pesos (P1. unless he makes another declaration of his monthly earnings.99 3500 177. papers or documents shall be exempt from any tax. That it shall be increased by One thousand pesos (P1.8.750. the employee’s contribution in an amount corresponding to his salary. levy or seizure by or under any legal or equitable process whatsoever.30 336.70 33. at the discretion of the court.750. SEC.00 IX 4. SEC.00 . the employer’s contribution in accordance with the schedule indicated in Section Eighteen of this Act.00 II 1.00 . D.99 6000 304. or customs or import duty.00 . No. wage.That in case of death benefits.The contributions to the SSS of the self-employed member shall be determined in accordance with Section Eighteen of this Act: Provided.30 166.00 .00 .00 756.250. . 18. garnishments. Contributions of the Self-Employed Member.00 100.250.3.00 . and any stipulation to the contrary shall be null and void. subject to the approval of the President of the Philippines.00 V 2.99 7500 380.5.00 126.00 IV 2.000. fee. Provided. Any tax assessment imposed against the SSS shall be null and void. That any member of the Philippine Bar who appears as counsel in any case heard by the Commission shall be entitled to attorneys’ fees not exceeding ten percent (10%) of the benefits awarded by the Commission. S.00 200.30 216. Exemption from Tax.2.00 150.250.99 1000 50. 14.99 4500 228. if no beneficiary qualifies under this Act. compensation or earnings during the month in accordance with the following schedule: SALARY RANGE OF MONTHLY MONTHLY CONTRIBUTION BRACKET COMPENSATION SALARY CREDIT EMPLOYER EMPLOYEE TOTAL I 1.70 462.00) monthly or below may be reduced by the Commission.00 XVII 8. "(b) The remittance of such contributions by the employer shall be supported by a quarterly collection list to be submitted to the SSS at the end of each calendar quarter indicating the correct ID number of the employer.70 233. the SSS and all its assets and properties. 24.6.000.00 .1.99 5000 253.2.250. or imprisonment for not less than six (6) months nor more than one (1) year.70 294. except to pay any debt of the member to the SSS. directly or indirectly.

That upon separation of an employee. salaries and dependents of all his employees who are subject to compulsory coverage: Provided. SEC. That no retroactive payment of contributions shall be allowed.The benefits prescribed in this Act shall not be diminished and to guarantee said benefits the Government of the Republic of the Philippines accepts general responsibility for the solvency of the SSS. as amended. such payments shall discharge the SSS from liability unless and until such other beneficiary notifies the SSS of his claim prior to the payments. the contributions payable by the employees to be advanced by their respective employers: Provided. 20. That if the employee member or his beneficiary is entitled to pension benefits. . That any person or entity engaging the services of an independent contractor shall be subsidiarily liable with such contractor for any civil liability incurred by the latter under this Act: Provided.(a) The contributions imposed in the preceding Section shall be remitted to the SSS within the first ten (10) days of each calendar month following the month for which they are applicable or within such time as the Commission may prescribe. That the same person or entity engaging the services of an independent contractor shall require such contractor to post a surety bond to guarantee the payment of the worker’s benefits. 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 report or written communication about him from his employer. . he shall pay besides the contribution a penalty thereon of three percent (3%) per month from the date the contribution falls due until paid. SEC. . Payment may be made in cash. including dependents’ pension. . If as a result of such adjudication the SSS in good faith pays a monthly pension to a beneficiary who is inferior in right to another beneficiary or with whom another beneficiary is entitled to share. "(c) Should any person. except that in case of pension benefits. as the case may be. coupons. the Commission may also collect the same in either of the following ways: "1.As the contribution of the Government to the operation of the SSS. unless the necessary corrections to such records and reports have been properly made by the parties concerned before the right to the benefit being claimed accrues. the employer shall be liable to pay the SSS damages equivalent to the accumulated pension due as of the date of settlement of the claim or to the five (5) years’ pension. "(b) The contributions payable under this Act in cases where an employer refuses or neglects to pay the same shall be collected by the SSS in the same manner as taxes are made collectible under the National Internal Revenue Code. Failure or refusal of the employer to pay or remit the contributions herein prescribed shall not prejudice the right of the covered employee to the benefits of the coverage. civil status. shall not be divulged without the consent of the SSS President or any official of the SSS duly authorized by him. If deemed expedient and advisable by the Commission. tickets. That if the contingency occurs within thirty (30) days from the date of employment. Every employer required to deduct and to remit such contributions shall be liable for their payment and if any contribution is not paid to the SSS as herein prescribed. Government Contribution. except as provided in this Section. "(d) The last complete record of monthly contributions paid by the employer or the average of the monthly contributions paid during the past three (3) years as of the date of filing of the action for collection shall be presumed to be the monthly contributions payable by and due from the employer to the SSS for each of the unpaid month. "(b) Should the employer misrepresent the true date of employment of the employee member or remit to the SSS contributions which are less than those required in this Act or fail to remit any contribution due prior to the date of contingency. occupations. SEC. which shall hear and dispose of the case in preference to any other civil action.SEC. stamps. checks. 23. the collection and remittance of contributions shall be made quarterly or semi-annually in advance. Remittance of Contributions of Self-Employed Member. "(c) The records and reports duly accomplished and submitted to the SSS by the employer or the member. and shall be made the basis for the adjudication of the claim. the employer shall be relieved of his liability for damages: Provided. "(d) Every employer shall keep true and accurate work records for such period and containing such information as the Commission may prescribe. damages shall be equivalent to the accumulated pension due as of the date of settlement of the claim or to the five (5) years’ pension. their SSS numbers. the employer shall also be liable for the corresponding unremitted contributions and penalties thereon. including dependents’ pension: Provided. -. Employment Records and Reports. Method of Collection and Payment. natural or juridical. By an action in court. SEC. By issuing a warrant to the Sheriff of any province or city commanding him to levy upon and sell any real and personal property of the debtor. or from the time the benefit accrues. any contribution so paid in advance but not due shall be credited or refunded to his employer. That the SSS shall not be barred from determining and collecting the true and correct contributions due the SSS even after full payment pursuant to this paragraph.Self-employed members shall remit their monthly contributions quarterly on such dates and schedules as the Commission may specify through rules and regulations: Provided. and .The SSS shall require a complete and proper collection and payment of contributions and proper identification of the employer and the employee. 21.(a) Each employer shall immediately report to the SSS the names. -. The Sheriff’s sale by virtue of said warrant shall be governed by the same procedure prescribed for executions against property upon judgments by a court of record. or other reasonable devices that the Commission may adopt. shall be kept confidential by the SSS except in compliance with a subpoena duces tecum issued by the Court. Congress shall annually appropriate out of any funds in the National Treasury not otherwise appropriated. the said employer shall pay to the SSS damages equivalent to the benefits to which said employee member would have been entitled had his name been reported on time by the employer to the SSS. unless contradicted and overcome by other evidence: Provided. "In addition to the liability mentioned in the preceding paragraphs (a) and (b) hereof. In addition to this contribution. 22-A. nor shall the employer be relieved of his liability under Section Twenty-eight of this Act. finally. further. shall be presumed correct as to the data and other matters stated therein. resulting in a reduction of benefits. the necessary sum or sums to meet the estimated expenses of the SSS for each ensuing year. in addition to an "Annual Register of New and Separated Employees" which shall be secured from the SSS wherein the employer shall enter on the first day of employment or on the effective date of separation. whichever is higher. Remittance of Contributions. SEC. the employer shall pay to the SSS damages equivalent to the difference between the amount of benefit to which the employee member or his beneficiary is entitled had the proper contributions been remitted to the SSS and the amount payable on the basis of contributions actually remitted: Provided. 24. as the case may be. Government Guarantee. 22. ages. the names of the persons employed or separated from employment. "The right to institute the necessary action against the employer may be commenced within twenty (20) years from the time the delinquency is known or the assessment is made by the SSS. default in any payment of contributions. further. Congress shall appropriate from time to time such sum or sums as may be needed to assure the maintenance of an adequate working balance of the funds of the SSS as disclosed by suitable periodic actuarial studies to be made of the operations of the SSS. or "2.

further. they shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank. care. SEC. . That if the expenses in any year are less than the maximum amount permissible.All revenues of the SSS that are not needed to meet the current administrative and operational expenses incidental to the carrying out of this Act shall be accumulated in a fund to be known as the "Reserve Fund. Investment of Reserve Funds." Such portions of the Reserve Fund as are not 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. such numbers originally assigned to them should be used for purposes of this Section: Provided. "(e) Each employer shall require. and "In short and medium term loans to members such as salary. as a condition to employment. That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund. That said bank shall first have been designated as a depository for this purpose by the Monetary Board of the Bangko Sentral ng Pilipinas: Provided. promissory notes or other evidence of indebtedness to which the full faith. calamity and emergency loans: Provided. That not more than ten percent (10%) of the Investment Reserve Fund shall be invested in short and medium term loans. promissory notes or other evidence of indebtedness of shelter agencies of the National Government or financial intermediaries to finance housing loans of members. "(g) In real estate property. with respect to the persons in his employ. microfilm. 24-A. 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. depreciation and the maintenance of offices of the SSS: Provided. That not more than thirty five percent (35%) of the Investment Reserve Fund at any time shall be invested for housing purposes: Provided. That investment in real estate property. That the instruments issued by an agency or instrumentality of the government shall be guaranteed by the Government of the Philippines or any government financial institution or acceptable multilateral agency: Provided. "(e) In bonds. livelihood. including shares of stocks involving real estate property shall not exceed five percent (5%) of the Investment Reserve Fund: Provided. or any agencies or instrumentalities to finance domestic infrastructure projects such as roads. Report and Registration of the Self-Employed Member. credit and unconditional guarantee of the Government of the Philippines is pledged. debentures. securities. administered and disbursed in the same manner and under the same conditions and requirements as provided by law for other public special funds: Provided. in which case the collaterals or securities shall be assigned to the SSS under such terms and conditions as the Commission may prescribe: Provided. the Commission shall invest the funds to earn an annual income not less than the average rates of treasury bills or any other acceptable market yield indicator in any or in all of the following: "(a) In bonds. civil status. "(h) In bonds. prudence and diligence necessary under the circumstances then prevailing that a prudent man acting in like capacity and familiar with such matters would exercise in the conduct of an enterprise of a like character and with similar aims. improvement and maintenance of schools and hospitals and their equipment and facilities: Provided. and investment secured by first mortgages on real estate or other collaterals acceptable to the SSS: Provided. 26. cooperatives and non-governmental organizations. or in bonds.All money paid to or collected by the SSS every year under this Act. "(b) In bonds. securities. or non-erasable optical disk and other similar archival media copies of original SSS records and reports. including shares of stocks involving real estate property. including schools. promissory notes or other evidence of indebtedness of the Government of the Philippines. finally. prior to issuing any annual business license or permit. and in long-term direct individual or group housing loans giving priority to the low-income groups. securities. That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund. . Such records shall be open for inspection by the SSS or its authorized representatives quarterly or as often as the SSS may require. further. That not more than twelve percent (12%) of the total yearly contributions plus three percent (3%) of other revenues shall be disbursed for operational expenses such as salaries and wages. require submission of certificate of SSS coverage and compliance with the provisions of this Act: Provided. "(d) In bonds. bridges. That investments in other income earning projects and investments secured by first mortgages or other collaterals shall not exceed twenty five percent (25%) of the Investment Reserve Fund. shall have the same evidentiary value as the originals and be admissible as evidence in all legal proceedings. telecommunications. securities. finally. redound to the benefit of the SSS. . securities. educational. "(f) Notwithstanding any law to the contrary. SEC. supplies and materials. small-and- medium scale industries. up to a maximum of ninety percent (90%) of the appraised value of the properties to be mortgaged by the borrowers. average monthly net income and his dependents. "(c) In bonds. further.Each covered self-employed person shall. That such investments shall not exceed ten percent (10%) of the Investment Reserve Fund. in the determination of the Commission.such other data that the Commission may require and said annual register shall be submitted to the SSS in the month of January of each year. SEC. debentures or other evidence of indebtedness. ports. the difference shall not be availed of as additional expenses in the following years. That the SSS shall have priority over the revenues of the projects: Provided. and in line with the basic principles of safety. "(f) In bonds. 25. hospitals. That the issuance of such registration numbers by the SSS shall not exempt the employer from complying with the provisions of paragraph (a) of this Section. marital. the presentation of a registration number secured by the prospective employee from the SSS in accordance with such procedure as the SSS may adopt: Provided. That the certification or clearance shall be issued by the SSS within five (5) working days from receipt of the request. further. further. securities. 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. securities. further. That in the case of bank deposits. and other similar projects: Provided. local government units shall. promissory notes or other evidence of indebtedness of educational or medical institutions to finance the construction. age. Deposits and Disbursements. "(g) Notwithstanding any law to the contrary. and all accruals thereto shall be deposited. and occupation. whichever is smaller: Provided. That such projects and investments shall. That such investments shall not exceed forty percent (40%) of the Investment Reserve Fund. finally. That the issuing or assuming entity or its predecessors shall not have defaulted in the payment of interest on any of its securities and that during each of any three (3) including the last two (2) of the five (5) fiscal years next preceding the date of acquisition by the SSS of such bonds. duly certified by the official custodian thereof. "The SSS may also require each employer to submit. promissory notes or other evidence of indebtedness of government financial institutions or government corporations with acceptable credit or guarantee: Provided. Pursuant thereto. as well as the general public: Provided. the net earnings of the issuing or assuming institution available for its fixed . promissory notes or other evidence of indebtedness of any prime corporation or multilateral institutions to finance domestic projects: Provided. promissory notes or other evidence of indebtedness of the Government of the Philippines. good yield and liquidity. its members. securities. That in case of employees who have been assigned registration numbers by virtue of a previous employment. reports needed for the effective administration of this Act.

That investments in foreign mutual funds 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 one-half percent (7. including the salaries of the examiners and of the actuary of the Insurance Commission who have been assigned to make such examination for the actual time spent in said examination: Provided. shall have been not less than one and one-quarter times the total of its fixed charges for such year: Provided. showing in particular the status of the finances of the SSS and the benefits administered. He shall also cause to be published in two (2) newspapers of general circulation in the Philippines a synopsis of the annual report.(a) Whoever. Mortgagor Insurance Account. That the issuing company has proven track of record of profitability over the last three (3) years and a record of regular dividend pay-out over the same period: Provided. except as may be allowed under this Act: Provided. "No portion of the Investment Reserve Fund or income thereof shall accrue to the general fund of the National Government or to any of its agencies or instrumentalities. Fund Managers. the SSS shall act as insurer of all or part of its interest on SSS properties mortgaged to the SSS. That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund. "(l) In loans secured by such collaterals like cash. "(b) The SSS may insure any of its interest or part thereof with any private company or reinsurer. as it may deem appropriate. shall make or cause to be made false statement or representation as to any compensation paid or received or whoever makes or causes to be made any false statement of a material fact in any claim for any benefit payable under this Act. That for each examination. for the purpose of causing any payment to be made under this Act. Penal Clause.As part of its investment operations. Provided. and other Bangko Sentral ng Pilipinas approved financial instruments or other assets issued in accordance with the existing laws of the countries where such financial instruments are issued: Provided. SEC. the SSS shall pay to the Insurance Commission an amount equal to the actual expense of the Insurance Commission in the conduct of examination. SEC. That no portion of the Investment Reserve Fund shall be invested for any purpose or in any instrument. . 28. their occupations and employment status. 26-B. representation. prime and non-speculative equities.5% in foreign-currency denominated investments SEC. That the general law on insurance and the rules and regulations promulgated thereunder shall have suppletory application insofar as it is not in conflict with this Act and its rules and regulations. 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. further. as defined in this Act. . . or whoever makes or causes to be made any false statement. including statistical data on the number of persons covered and benefited. the assets held in the Mortgagors’ Insurance Account shall not be chargeable with the liabilities arising out of any other business the SSS may conduct but shall be held and applied exclusively for the benefit of the owners or beneficiaries of the insurance contracts issued by the SSS under this paragraph. the SSS President shall prepare for submission to the President of the Philippines and to Congress of the Philippines a report of operations of the SSS during the preceding year.(a) As part of its investment operations. foreign fund managers to manage the Investment Reserve Fund.5%) of the Investment Reserve Fund.charges.The SSS President shall keep and cause to keep records of operations of the funds of the SSS and of disbursements thereof and all accounts of payments made out of said funds. or lives of mortgagors whose properties are mortgaged to the SSS. Records and Reports. or application for loan with the SSS. the SSS shall establish a separate account to be known as the "Mortgagors’ Insurance Account. . finally. . "(k) In foreign currency deposits or triple "A" foreign currency denominated debts. That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund. where none is authorized to be paid. 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. shall suffer the penalties provided for in Article One hundred seventy-two of the Revised Penal Code. and the report of said examination shall be submitted to the Commission and a copy thereof shall be furnished the Office of the President of the Philippines within a reasonable time after the close of the examination: Provided. 26-A. the finances of the SSS at the close of the said year. That such investments shall not exceed twenty percent (20%) of the Investment Reserve Fund: Provided. For this purpose. The Insurance Commission or its authorized representatives shall make an examination into the financial condition and methods of transacting business of the SSS at least once in two (2) years. including government-owned or controlled corporations. such other risk management instruments of any prime or solvent corporation or financial institution created or existing under the laws of the Philippines with proven track record of profitability over the last three (3) years and payment of dividends at least once over the same period: Provided. in the absence thereof.5%) of the Investment Reserve Fund. and recommendations. "(i) In preferred or common shares of stocks listed or about to be listed in the stock exchange or options or warrants to such stocks or." All amounts received by the SSS in connection with the aforesaid insurance operations shall be placed in the Mortgagors’ Insurance Account. subject to the policies and guidelines which the Commission may formulate. government securities or guarantees of multilateral institutions: Provided. the SSS may appoint local or. SEC. further. the duration and amount of benefits paid. "(j) In domestic or foreign mutual funds in existence for at least three (3) years. That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund. That these instruments or assets are listed in bourses of the respective countries where these instruments or assets are issued: Provided. 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. subject to prior approval of the Bangko Sentral ng Pilipinas. further. Notwithstanding any provision of law to the contrary. affidavit or document in connection with such claim or loan. but in no case shall it exceed seven and one-half percent (7. or under an agreement thereunder. During the month of January of each year. but such examination shall be limited to the insurance operation of the SSS as authorized under this paragraph and shall not embrace the other operations of the SSS. institution or industry over 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. 27. further.

subject to the implementing rules and regulations which the Commission may prescribe: Provided. . the prescribed penalty shall be imposed from the time the contributions first became due as provided in Section 22 (a) hereof. 3. the other provisions not affected thereby shall remain valid.Any employer who is delinquent or has not remitted all contributions due and payable to the SSS may. uses. That such criminal action may be filed by the SSS in the city or municipality where the SSS office is located. shall be fined not less than Five thousand pesos (P5. proclamations. alters. or uses. shall be fined not less than Five thousand pesos (P5. or imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years. if the violation was committed within its territorial jurisdiction or in Metro Manila. directors or partners shall be liable for the penalties provided in this Act for the offense.All laws.000. SEC. or both. within six (6) months from the effectivity of this Act. lends. That where the violation consists in failure or refusal to register employees or himself. or imprisoned for not less than six (6) years and one (1) day nor more than twelve (12) years. 29. 1997 . coupon. financial or otherwise. or shall take or misappropriate.00) nor more than Twenty thousand pesos (P20. or has in his possession any such altered. "(i) Criminal action arising from a violation of the provisions of this Act may be commenced by the SSS or the employee concerned either under this Act or in appropriate cases under the Revised Penal Code: Provided. Transitory Clause. That the employer submits the corresponding collection lists together with the remittance or proposal to pay in installments: Provided. Effectivity Clause. "(h) Any employer who. Repealing Clause. at the discretion of the court. fails to remit the said deduction to the SSS within thirty (30) days from the date they became due. forged.000. or makes. Approved: May 01. sells.000. sells." SEC. prescribed pursuant to Section Twenty-three hereof by the Commission for the collection or payment of contributions required herein.000. 30. "(e) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations promulgated by the Commission. book or other device prescribed by the Commission for the collection or payment of any contribution required herein. payable or deliverable to the SSS and who shall appropriate the same.00). coupon. forged or counterfeited materials. coupon. .The establishment of the SSS shall not disqualify the members and employers from receiving such government assistance. in case of the covered self-employed or to deduct contributions from the employees’ compensation and remit the same to the SSS. SEC. forges.00) nor more than Twenty thousand pesos (P20. its managing head.000. "(c) Whoever buys.00) or imprisoned for not less than six years (6) and one (1) day nor more than twelve (12) years.000. . or pledges or gives in pledge. SEC. any stamp. . SEC. shall suffer the penalties provided in Article Two hundred seventeen of the Revised Penal Code. "(f) If the act or omission penalized by this Act be committed by an association. as may be provided. That in case the employer fails to remit contributions within the six-month grace period or defaults in the payment of any amortization provided the approved proposal. 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 Penal Code. or through abandonment or negligence. That no person shall be deemed to be vested with any property or other right by virtue of the enactment or operation of this Act. sells or has in his possession any such altered.If any provision of this Act is declared invalid. at the discretion of the court: Provided. the penalty shall be a fine of not less Five thousand pesos (P5. Separability Clause. wholly or partially. shall be punished by a fine of not less than Five thousand pesos (P5. at the option of the SSS. makes or counterfeits any stamp. further.000. offers for sale. or both. "(g) Any employee of the SSS who receives or keeps funds or property belonging. ticket. shall permit any other person to take such property or funds. or shall otherwise be guilty of misappropriation of such funds or property. except as authorized in this Act or in regulations made pursuant thereto. 4.This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) national newspapers of general circulation whichever comes earlier. ticket. transfers or takes or gives in exchange. remit said contributions or submit a proposal to pay the same in installment within a period of not more than twelve (12) months from the effectivity of this Act without incurring the prescribed penalty. or both.00) and imprisoned for not less than six (6) years and one (1) day nor more than twelve (12) years. book or other device. without being entitled thereto with intent to defraud any member.00) nor more than Twenty thousand pesos (P20. uses.00) and imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years.000. executive orders.00) non more than Twenty thousand pesos (P20. 2. after deducting the monthly contributions or loan amortizations from his employee’s compensation."(b) Whoever shall obtain or receive any money or check under this Act or any agreement thereunder. rules and regulations or parts thereof inconsistent with this Act are hereby repealed. book or other device. ticket. corporation or any other institution. partnership. or shall consent. shall be fined not less than Five thousand pesos (P5.00).000.00) nor more than Twenty thousand pesos (P20. at the discretion of the court.000. employer or the SSS. . "(d) Whoever. modified or amended accordingly: Provided. Government Aid. with intent to defraud. material in imitation of the material used in the manufacture of such stamp.

not over the age of majority. 4. "(m) Revalued average monthly compensation. branches.The basic monthly pension multiplied by sixty (60). bonuses.00). Presidential Decree No. agencies or instrumentalities. or is over the age of majority but incapacitated and incapable of self-support due to a mental or physical defect acquired prior to age of majority. "(p) Gainful Occupation. pursuant to his election/appointment. subject to the restrictions on dependent children. retirement.Accrues or arises upon the irrevocable loss or impairment of certain portion/s of the physical faculties. "(d) Employee or Member.00). "B.00) of the average monthly compensation plus one hundred percent (100%) of the average monthly compensation in excess of One thousand pesos (P1. irrespective of employment status." "A.Unless the context otherwise indicates. separation. AS AMENDED.. subject to the condition that they must settle first their financial obligation with the GSIS.Any person receiving compensation while in the service of an employer as defined herein.A member separated from the service shall continue to be a member. including the illegitimate child.The national government. "(o) Pensioner. "(r) Total Disability. Compulsory Membership. the following terms shall mean: "(a) GSIS. and premium shall be nine percent (9%) and twelve percent (12%) for employee and employer covering the AMC limit and below and two percent (2%) and twelve percent (12%) for employee and employer covering the compensation above the AMC limit. 186. further. "(n) Lump sum.000. MEMBERSHIP IN THE GSIS "SEC.000. legitimated.The Board of Trustees of the Government Service Insurance System. not gainfully employed. as amended. 1146.Accrues or arises when recovery from the impairment mentioned in Section 2 (Q) is medically remote. survivorship. "(f) Dependents. That initially the average monthly compensation shall not exceed Ten thousand pesos (P10. (b) the legitimate. 2. "(k) Current Daily Compensation. EXPANDING AND INCREASING THE COVERAGE AND BENEFITS OF THE GOVERNMENT SERVICE INSURANCE SYSTEM. and (c) the parents dependent upon the member for support.The Government Service Insurance System created by Commonwealth Act No. 3. and shall be entitled to whatever benefits he has qualified to in the event of any contingency compensable under this Act. including government-owned or controlled corporations.The actual daily compensation or the actual monthly compensation divided by the number of working days in the month of contingency but not to exceed twenty-two (22) days.Complete incapacity to continue with his present employment or engage in any gainful occupation due to the loss or impairment of the normal functions of the physical and/or mental faculties of the member. "(h) Secondary beneficiaries.Any person receiving old-age permanent total disability pension or any person who has received the lump sum excluding one receiving survivorship pension benefits as defined in Section 20 of this Act. "(i) Compensation. Title.Dependents shall be the following: (a) the legitimate spouse dependent for support upon the member or pensioner.An amount equal to one hundred seventy percent (170%) of the first One thousand pesos (P1. excluding per diems.The legal dependent spouse until he/she remarries and the dependent children. 1146. "(e) Active Member.The basic pay or salary received by an employee. and contractuals who have no employer and employee relationship with the agencies they serve.The amount payable to the GSIS by the member and the employer in accordance with Section 5 of this Act. "(j) Contribution. "(u) Permanent Partial Disability. the legitimate descendants.The dependent parents and. honoraria. INSTITUTING REFORMS THEREIN AND FOR OTHER PURPOSES. . . or by the number of months he received such compensation if he has less than thirty-six (36) months of service: Provided. THE GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997 REPUBLIC ACT NO. all members of the GSIS shall have life insurance. except members of the Armed Forces of the Philippines and the Philippine National Police. "(t) Temporary Total Disability. "(c) Employer. and all other social security protections such as disability. is hereby further amended to read as follows: "SECTION 1.The quotient arrived at after dividing the aggregate compensation received by the member during his last thirty-six (36) months of service preceding his separation/retirement/ disability/death by thirty-six (36). . and unemployment benefits. "Except for the members of the judiciary and constitutional commissions who shall have life insurance only. Effect of Separation from the Service. "(b) Board. including barangay and Sanggunian officials. and financial institutions with original charters. irrespective of status of appointment. who is unmarried.Accrues or arises when the impaired physical and/or mental faculties can be rehabilitated and/or restored to their normal functions.Any productive activity that provided the member with income at least equal to the minimum compensation of government employees. the constitutional commissions and the judiciary. That the average monthly compensation shall in no case exceed the amount and rate as may be respectively set by the Board under the rules and regulations implementing this Act as determined by the actuary of the GSIS: Provided. DEFINITIONS "SEC. "(q) Disability. "(s) Permanent Total Disability. allowances and any other emoluments received in addition to the basic pay which are not integrated into the basic pay under existing laws. "(l) Average Monthly Compensation (AMC). -The title of this Act shall be: "The Government Service Insurance System Act of 1997. SECTION 1. Definition of terms. otherwise known as the "Revised Government Service Insurance Act of 1977".000. "(g) Primary beneficiaries. whether by election or appointment. 8291 AN ACT AMENDING PRESIDENTIAL DECREE NO. legally adopted child. its political subdivisions.Any loss or impairment of the normal functions of the physical and/or mental faculty of a member which reduces or eliminates his/her capacity to continue with his/her current gainful occupation or engage in any other gainful occupation.Membership in the GSIS shall be compulsory for all employees receiving compensation who have not reached the compulsory retirement age.A member who is not separated from the service. overtime pay. "SEC. despite which the member is able to pursue a gainful occupation.

that the basic monthly pension for those who have rendered at least twenty (20) years of service after the effectivity of this Act shall not be less than Two thousand four hundred pesos (P2. Penal sanctions shall be imposed upon employers who fail to include the payment of contributions in their annual appropriations or otherwise fail to remit the accurate/exact amount of contributions on time. Unemployment or Involuntary Separation Benefits. Interest on Delayed Remittances. their corresponding employment status. That he has been paying integrated contributions for at least one (1) year prior to separation. including subsequent changes therein.Unemployment benefits in the form of monthly cash payments equivalent to fifty percent (50%) of the average monthly compensation shall be paid to a permanent employee who is involuntarily separated from the service due to the abolition of his office or position usually resulting from reorganization: Provided."C. that the member resigns or separates from the service after he has rendered at least three (3) years of service but less than fifteen (15) years. and those that may be prescribed by the GSIS in coordination with the Civil Service Commission. .0% II. as may be required by the GSIS. those performed overseas under the authority of the Republic of the Philippines.5%) of said revalued average monthly compensation for each year of service in excess of (15) years: Provided. that part-time and other services with compensation may be included under such rules and regulations as may be prescribed by the GSIS. plus any additional premiums that may be required on account of the hazards or risks of its employee’s occupation. "SEC. . .400. . "(b) The employer shall include in its annual appropriation the necessary amounts for its share of the contributions indicated above.300. 7. "SEC. the term service shall include full-time service with compensation: Provided. the employer shall deduct each month from the monthly salary or compensation of each employee the contribution payable by him in accordance with the schedule prescribed in the rules and regulations implementing this Act. resignation or separation for which corresponding benefits have been awarded under this Act or other laws shall be excluded in the computation of service in case of reinstatement in the service of an employer and subsequent retirement or separation which is compensable under this Act.Agencies which delay the remittance of any and all monies due the GSIS shall be charged interests as may be prescribed by the Board but not less than two percent (2%) simple interest per month. salaries and such other pertinent information. Maximum Average Monthly Compensation (AMC) Limit and Below 9. whichever comes later: Provided. "D.0% 12. if any. "SEC. .00): Provided. positions. 9. "(c) It shall be mandatory and compulsory for all employers to include the payment of contributions in their annual appropriations. 11. "SEPARATION BENEFITS "SEC. plus "2) two and one-half percent (2. Computation of the Basic Monthly Pension.0% 12. Such interest shall be paid by the employers concerned. 5. "For the purpose of this section. The remittance by the employer of the contribution to the GSIS shall take priority over and above the payment of any and all obligations.The government of the Republic of the Philippines hereby guarantees the fulfillment of the obligations of the GSIS to its members as and when they fall due.0% 12. except salaries and wages of its employees. BENEFITS "SEC. Computation of Service. that the member resigns or separates from the service after he has rendered at least fifteen (15) years of service and is below sixty (60) years of age at the time of resignation or separation. 8. 10.(a) The basic monthly pension is equal to: "1) thirty-seven and one-half percent (37. "SEC. Separation Benefits.The separation benefits shall consist of: (a) a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions. however. "(b) All service credited for retirement. That the basic monthly pension shall not exceed ninety percent (90%) of the average monthly compensation.(a) The employer shall report to the GSIS the names of all its employees. Collection and Remittance of Contributions. Contributions. Unemployment benefits shall be paid in accordance with the following schedules: .00) a month.(a) The computation of service for the purpose of determining the amount of benefits payable under this Act shall be from the date of original appointment/election. plus an old-age pension benefit equal to the basic monthly pension payable monthly for life upon reaching the age of sixty (60): Provided. or "(b) a cash payment equivalent to eighteen (18) times his basic monthly pension at the time of resignation or separation.0% "Members of the judiciary and constitutional commissioners shall pay three percent (3%) of their monthly compensation as personal share and their employers a corresponding three percent (3%) share for their life insurance coverage. that the basic monthly pension shall not be less than One thousand and three hundred pesos (P1. Government Guarantee.5%) of the revalued average monthly compensation. 12. "SEC. including periods of service at different times under one or more employers. . . SOURCES OF FUNDS "SEC. further.000) payable upon reaching sixty (60) years of age upon separation. 6. "(b) Each employer shall remit directly to the GSIS the employee’s and employer’s contributions within the first ten (10) days of the calendar month following the month to which the contributions apply.0% -In Excess of the AMC Limit 2. or delay the remittance of premium contributions to the GSIS.(a) It shall be mandatory for the member and employer to pay the monthly contributions specified in the following schedule: "Monthly Compensation Percentage of Monthly Compensation Payable by Member Employer I. Over the Maximum AMC Limit -Up to the Maximum AMC Limit 9. but not less than Twelve thousand pesos (P12. The heads of offices and agencies shall be administratively liable for non-remittance or delayed remittance of premium contributions to the GSIS. "(b) The basic monthly pension may be adjusted upon the recommendation of the President and General Manager of the GSIS and approved by the President of the Philippines in accordance with the rules and regulations prescribed by the GSIS: Provided. .

habitual intoxication. he has paid at least thirty-six (36) monthly contributions within the five (5) year period immediately preceding disability. further. 13. 14.000. A seven-day (7) waiting period shall be imposed on succeeding monthly payments. or "(3) he fails to present himself for medical examination when required by the GSIS. or "(2) cash payment equivalent to eighteen (18) months of his basic monthly pension plus monthly pension for life payable immediately with no five- year (5) guarantee. . subject to the corresponding conditions thereof. "SEC.The monthly pension of all pensioners including all those receiving survivorship pension benefits shall be periodically adjusted as may be recommended by the GSIS actuary and approved by the Board in accordance with the rules and regulations prescribed by the GSIS. 15. 17. and "(5) such other cases as may be determined by the GSIS. and (3) he is not receiving a monthly pension benefit from permanent total disability. he shall be advanced the cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions. That if he has less than fifteen (15) years of service. notorious negligence. or (2) if separated from the service. "(b) Unless the service is extended by appropriate authorities. "(2) loss of two (2) limbs at or above the ankle or wrist. or willful intention to kill himself or another. That: (1) he has rendered at least fifteen years of service. he may be allowed to continue in the service in accordance with existing civil service rules and regulations. That he satisfies either conditions (1) or (2) of Section 16 (a). starting upon expiration of the five-year (5) guaranteed period covered by the lump sum.(a) Retirement benefits shall be: "(1) the lump sum payment as defined in this Act payable at the time of retirement plus an old-age pension benefit equal to the basic monthly pension payable monthly for life. he shall receive a monthly income benefit for life equal to the basic monthly pension effective from the date of disability: Provided. retirement shall be compulsory for an employee of sixty-five (65) years of age with at least fifteen (15) years of service: Provided. . Retirement Benefits. finally. Permanent Partial Disability Benefits. shall be entitled to the benefits provided for under Sections 16 and 17 immediately following. . .A member who suffers permanent disability for reasons not due to his grave misconduct. "(4) brain injury resulting in incurable imbecility or insanity. whose decision shall be final and binding. "SEC. "Contributions Made Benefit Duration 1 year but less than 3 years 2 months 3 or more years but less than 6 years 3 months 6 or more years but less than 9 years 4 months 9 or more years but less than 11 years 5 months 11 or more years but less than 15 years 6 months "The first payment shall be equivalent to two (2) monthly benefits. "(b) If a member who suffers permanent total disability does not satisfy conditions (1) and (2) in paragraph (a) of this section but has rendered at least three (3) years of service at the time of his disability. disability benefit shall be suspended when: "(1) he is reemployed. "(b) The following disabilities shall be deemed permanent partial: "(1) complete and permanent loss of the use of: . "(3) permanent complete paralysis of two (2) limbs. 16. Periodic Pension Adjustment. That a member cannot enjoy the monthly income benefit for permanent disability and the old-age retirement simultaneously.00) which should have been his separation benefit. in addition to the monthly income benefit. "All accumulated unemployment benefits paid to the employee during his entire membership with the GSIS shall be deducted from voluntary separation benefits. "PERMANENT DISABILITY BENEFITS "SEC. General Conditions for Entitlement. 13-A. "SEC. he was in the service and has paid a total of at least one hundred eighty (180) monthly contributions. "The GSIS shall prescribe the detailed guidelines in the operationalization of this section in the rules and regulations implementing this Act. "RETIREMENT BENEFITS "SEC. "(c) Unless the member has reached the minimum retirement age.(a) If the permanent disability is total. he shall receive a cash payment in accordance with a schedule of disabilities to be prescribed by the GSIS: Provided. but not less than Twelve thousand pesos (P12. prior to his disability: Provided. Conditions for Entitlement. "SEC. (2) he is at least sixty (60) years of age at the time of retirement. That if at the time of disability. "(d) The following disabilities shall be deemed total and permanent: "(1) complete loss of sight of both eyes. or has paid a total of at least one hundred eighty (180) monthly contributions. he shall receive a cash payment equivalent to eighteen (18) times his basic monthly pension: Provided. .(a) If the disability is partial. Permanent Total Disability Benefits.A member who retires from the service shall be entitled to the retirement benefits enumerated in paragraph (a) of Section 13 hereof: Provided. or "(2) he recovers from his disability as determined by the GSIS. . That: (1) he is in the service at the time of disability.

but not less than Twelve thousand pesos (P12. counted from the youngest and without substitution. "TEMPORARY DISABILITY BENEFITS "SEC. Survivorship Benefits. or (2) the survivorship pension plus a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for every year of service: Provided. (i) any finger (ii) any toe (iii) one arm (iv) one hand (v) one foot (vi) one leg (vii) one or both ears (viii) hearing of one or both ears (ix) sight of both eyes "(2) such other cases as my be determined by the GSIS. (b) The survivorship pension shall be paid as follows: (1) when the dependent spouse is the only survivor. "(c) The notices required of the member and the employer. (d) For purposes of the survivorship benefits. . and (2) the dependent children’s pension not exceeding fifty percent (50%) of the basic monthly pension . but not earlier than the fourth day of his temporary total disability: Provided. or (2) in the absence of secondary beneficiaries. Death of a Member. the beneficiaries shall be entitled to survivorship benefits provided in Sections 21 and 22 hereunder subject to the conditions therein provided for. (c) In the absence of primary beneficiaries. That: "(1) he is in the service at the time of his disability. the secondary beneficiaries shall be entitled to: (1) the cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions.00) a day. That the deceased has rendered at least three (3) years of service prior to his death but does not qualify for the benefits under item (1) or (2) of this paragraph. plus the dependent children’s pension equivalent to ten percent (10%) of the basic monthly pension for every dependent child not exceeding five (5). the benefits under this paragraph shall be paid to his legal heirs.(a) Upon the death of a member. they shall be entitled to the basic survivorship pension for as long as they are qualified. That the member is in the service at the time of his death and has at least three (3) years of service. That the deceased was in the service at the time of his death with at least three (3) years of service. or has paid a total of at least one hundred eighty (180) monthly contributions prior to his death. 19. he has rendered at least three (3) years of service and has paid at least six (6) monthly contributions in the twelve-month period immediately preceding his disability.00): Provided. but not less than Twelve thousand pesos (P12. "(b) The temporary total disability benefit shall in no case be less than Seventy pesos (P70. "SEC.000. Temporary Total Disability Benefits. . legitimate children shall include legally adopted and legitimated children. the mode of payment. the dependent spouse shall receive the basic survivorship pension for life or until he/she remarries. further. if any. That if the disability requires more extensive treatment that lasts beyond one hundred twenty (120) days. (2) when only dependent children are the survivors. or (3) a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions. the payment of the temporary total disability benefit may be extended by the GSIS but not to exceed a total of two hundred forty (240) days. "SURVIVORSHIP BENEFITS "SEC. or "(2) if separated. "Provided.00): Provided. and the other requirements for entitlement to temporary total disability benefits shall be provided in the rules and regulations to be prescribed by the GSIS. has at least three (3) years of service at the time of his death and has paid thirty-six (36) monthly contributions within the five-year period immediately preceding his death.When a member or pensioner dies. Non-scheduled Disability. or (ii) if separated from the service. 21. 20.000. . the GSIS shall determined the nature of the disability and the corresponding benefits therefor. The survivorship pension shall consist of: (1) the basic survivorship pension which is fifty percent (50%) of the basic monthly pension. however. the primary beneficiaries shall be entitled to: (1) survivorship pension: Provided. That a member cannot enjoy the temporary total disability benefit and sick leave pay simultaneously: Provided.(a) A member who suffers temporary total disability for reasons not due to any of the conditions enumerated in Section 15 hereof shall be entitled to seventy-five percent (75%) of his current daily compensation for each day or fraction thereof of temporary disability benefit not exceeding one hundred twenty (120) days in one calendar year after exhausting all his sick leave credits and collective bargaining agreement sick leave benefits. 18. "SEC.For injuries or illnesses resulting in a disability not listed in the schedule of partial/total disability provided herein. he/she shall receive the basic survivorship pension for life or until he/she remarries. . . and the dependent children shall receive the dependent children’s pension mentioned in the immediately preceding paragraph (2) hereof. That the deceased: (i) was in the service at the time of his death. (3) when the survivors are the dependent spouse and the dependent children.

32. the survivorship pension shall be paid only after the expiration of the said period. 30. certify to official acts. (2) for those whose insurance will mature after the effectivity of this Act. 33. Execution of Decision. That it shall be increased to at least Eighteen thousand pesos (P18. shall not bar the legal and eligible recipient to his right to demand the payment of benefits. Settlement of Disputes. 25. or (d) a retiree who at the time of his retirement was of pensionable age under this Act but who opted to retire under Republic Act No. and other records deemed necessary as evidence in connection with any question arising under this Act. hospitalization. memorial plans. papers. subject to the provisions of paragraph (b) of Section 21 hereof. The GSIS shall maintain the required reserves to guarantee the fulfillment of its obligations under this Act. to a beneficiary or claimant subsequently found not entitled thereto. and issue subpoena ad testificandum and subpoena duces tecum to compel the attendance of witnesses and the production of books. 28. have a right to institute the appropriate action in a court of law against the ineligible recipient. Payments made by the GSIS prior to its receipt of an adverse claim. writ or process after being required to do so shall."SEC. . Death of a Pensioner.The GSIS shall have original and exclusive jurisdiction to settle any disputes arising under this Act and any other laws administered by the GSIS. together with all documentary and testimonial evidence to the Board within thirty (30) working days from the time the parties have closed their respective evidence and filed their last pleading. General Insurance Fund created under Act No.When no appeal is perfected and there is no order to stay by the Board. any decision or award of the Board shall be enforced and executed in the same manner as decisions of the Regional Trial Court. 29. Any employer may likewise apply for group insurance coverage for its employees. and such other plans as may be designed by the GSIS. "E. (3) for those without any life insurance as of the effectivity of this Act.When authorized by the Board. . and claims from the GSIS. "LIFE INSURANCE BENEFITS "SEC. or (b) a member who has been separated from the service. 27.The GSIS shall prescribe rules and regulations to facilitate payment of benefits. . or (c) a pensioner.Claims for benefits under this Act except for life and retirement shall prescribe after four (4) years from the date of contingency. the qualified beneficiaries shall be entitled to the survivorship pension defined in Section 20 of this Act. health. 1997 which will take effect on July 1. a member may apply for insurance and/or pre-need coverage embracing life.All employees except for Members of the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) shall. an official or employee of the GSIS shall have the power to administer oath and affirmation. 23. The appeal shall not stay the execution of the order or award unless ordered by the Board. "SEC. as amended.Appeals from any decision or award of the Board shall be governed by Rules 43 and 45 of the 1997 Rules of Civil Procedure adopted by the Supreme Court on April 8. upon application by the GSIS. Oaths.000. . and Production of Records. make findings of fact and submit recommendations. "SEC. . as amended. Funeral Benefits. Reinsurance.Upon the death of an old-age pensioner or a member receiving the monthly income benefit for permanent disability. 22. who shall. education. The payment of the premiums/installments for optional insurance and pre-need products may be made by the insured or his employer and/or any person acceptable to the GSIS. 31. or official of the GSIS who is a lawyer. 1616. Optional Insurance. Witnesses. That the appeal shall take precedence over all other cases except criminal cases when the penalty of life imprisonment or death or reclusion perpetua is imposable. and any person who shall fail or refuse to comply with such decision. which shall automatically take effect as follows: (1) for those employed after the effectivity of this Act.The GSIS may reinsure any of its interests or part thereof with any private company or reinsurer whether domestic of foreign: Provided. correspondences. 34. further. and such other special funds existing or that may be created for special groups or persons rendering services to the government. FUNDS OF THE GSIS "SEC. Compulsory Life Insurance. 626.000. In addition. 656. The Board may designate any member of the Board. The cases heard directly by the Board shall be decided within thirty (30) working days from the time they are submitted by the parties for decision. . and claims under this Act and any other laws administered by the GSIS. Any case of contumacy shall be dealt with in accordance with the provisions of Section 580 of the Revised Administrative Code. "SEC.D. . Funds. be punished for contempt. . . as defined in Section 2 (o) of this Act. "FUNERAL BENEFITS "SEC. Appeals. For this purpose.00): Provided. "SEC. 1997 shall be governed by the applicable rules of procedure: Provided. but who may be entitled to future benefit pursuant to Section 4 of this Act. Dividends. ADJUDICATION OF CLAIMS AND DISPUTES "SEC. by the Court of Appeals or by the Supreme Court and the appeal shall be without prejudice to the special civil action of certiorari when proper. for himself and/or his dependents. "F. "SEC. award. the Employees’ Compensation Insurance Fund created under P. When the pensioner dies within the period covered by the lump sum. proceeds. "SEC. however. under such terms and conditions as may be promulgated by the GSIS.The amount of the funeral benefits shall be determined and specified by the GSIS in the rules and regulations but shall not be less than Twelve thousand pesos (P12. "SEC. .An annual dividend may be granted to all members of the GSIS whose life insurance is in force for at least one (1) year in accordance with a dividends allocation formula to be determined by the GSIS. "SEC. . the Board shall have the power to issue to the city or provincial sheriff or its appointed sheriff such writs of execution as may be necessary for the enforcement of such decision or award. That the GSIS shall submit an annual report on its reinsurance operations to the Insurance Commission. . The Board shall decide the case within thirty (30) days from the receipt of the hearing officer’s findings and recommendations.All contributions payable under Section 5 of this Act together with the earnings and accruals thereon shall constitute the GSIS Social Insurance Fund. be compulsorily covered with life insurance. 26. Facility of Payment. their insurance shall be deemed renewed on the day following the maturity or expiry date of their insurance. . proceeds.00) after five (5) years and shall be paid upon the death of: (a) an active member as defined under Section 2 (e) of this Act. their insurance shall take effect following said effectivity. . Prescription. take deposition.Subject to the rules and regulations prescribed by the GSIS. 24. to act as hearing officer to receive evidence. the GSIS shall administer the optional insurance fund for the insurance coverage described in Section 26 hereof. 1997: Provided. their insurance shall take effect on the date of their employment. The said fund shall be used to finance the benefits administered by the GSIS under this Act. That pending cases and those filed prior to July 1. by the Court of Appeals or by the Supreme Court.

"SEC. mortality. ordinances. securities. That the said bank has prior designation as a depository for the purpose by the Monetary Board of the Central Monetary Authority. morbidity.The funds of the GSIS shall not be used for purposes other than what are provided for under this Act. (f) in debt instruments and other securities traded in the secondary markets. to wit: (a) in interest-bearing bonds or securities or other evidence of indebtedness of the Government of the Philippines. "SEC. That investments shall satisfy the requirements of liquidity. Records and Reports. promissory notes or other evidence of indebtedness of educational or medical institutions to finance the construction. and (j) in foreign mutual funds and in foreign currency deposits or foreign currency-denominated debts. educational. expenses. liabilities. That in the case of such deposits. 39.The funds of the GSIS which are not needed to meet the current obligations may be invested under such terms and conditions and rules and regulations as may be prescribed by the Board: Provided.It is hereby declared to be the policy of the State that the actuarial solvency of the funds of the GSIS shall be preserved and maintained at all times and that contribution rates necessary to sustain the benefits under this Act shall be kept as low as possible in order not to burden the members of the GSIS and their employers. sums or monies corresponding to the benefits under this Act shall be exempt from attachment. the GSIS. superseded and rendered ineffective and without legal force and effect. notwithstanding any laws to the contrary. or incurred relative to or in connection with his position or work except when his monetary liability. its members as well as the general public. fees. giving priority to the low income groups and in short and medium term loans to members such as salary. (b) in interest-bearing deposits or securities in any domestic bank doing business in the Philippines: Provided. is in favor of the GSIS. further. . (h) in common and preferred stocks of any solvent corporation or financial institution created or existing under the laws of the Philippines listed in the stock exchange with proven track record of profitability over the last three (3) years and payment of dividends at least once over the same period. That these instruments or assets are listed in bourses of the respective countries where these instruments or assets are issued: Provided. including his pecuniary accountability arising from or caused or occasioned by his exercise or performance of his official functions or duties.The GSIS shall make a periodic actuarial examination and valuation of its funds in accordance with accepted actuarial principles. or in bonds. Consequently. These exemptions shall continue unless expressly and specifically revoked and any assessment against the GSIS as of the approval of this Act are hereby considered paid. . "Moreover. Taxes imposed on the GSIS tend to impair the actuarial solvency of its funds and increase the contribution rate necessary to sustain the benefits of this Act. no portion of the funds of the GSIS or income thereof shall accrue to the General Fund of the national government and its political subdivisions. these exemptions shall not be affected by subsequent laws to the contrary unless this section is expressly. Investment of Funds. Legal Process and Lien. Exemption from Tax. That no less than forty percent (40%) of the investible fund of the GSIS Social Insurance Fund shall be invested for these purposes. "The funds and/or the properties referred to herein as well as the benefits. shall be exempt from all taxes. "SEC. notwithstanding and independently of the guaranty of the national government to secure such solvency or liability. all laws. policy. and benefits paid. 36. Accordingly. (i) in domestic mutual funds including investments related to the operations of mutual funds. improvement and maintenance of schools and hospitals. That such investment shall. redound to the benefit of the GSIS. That the GSIS shall submit an annual report on all investments made to both Houses of Congress of the Philippines. . emergency stock purchase plan and other similar loans: Provided. A maximum expense loading of twelve percent (12%) of the yearly revenues from all sources may be disbursed for administrative and operational expenses except as may be otherwise approved by the President of the Philippines on the basis of actuarial and management studies. specifically and categorically revoked or repealed by law and a provision is enacted to substitute or replace the exemption referred to herein as an essential factor to maintain or protect the solvency of the fund. (g) in loans to. revenues including all accruals thereto. contractual or otherwise. regulations. issuances. The GSIS shall maintain appropriate books of accounts to record its assets. . calculations and valuations of the funds of the GSIS including such data needed in the computation of rates of disability. . (d) in bonds. there shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank. (e) in real estate property including shares of stocks involving real state property and investments secured by first mortgages on real estate or other collaterals acceptable to the GSIS: Provided. "SEC. safety/security and yield in order to ensure the actuarial solvency of the funds of the GSIS: Provided. further. 38. charges. administered and disbursed in accordance with the law. 37. receipts and disbursement of funds and other financial transactions and operations. instrumentalities and other agencies including government-owned and controlled corporations except as may be allowed under this Act. . opinions or jurisprudence contrary to or in derogation of this provision are hereby deemed repealed. That the issuing company has proven track record of profitability over the last three (3) years and payment of dividends at least once over the same period. debentures. levy or other processes issued by the courts. assessments. garnishment. "SEC. 35.The GSIS shall keep and cause to keep such records as may be necessary for the purpose of making actuarial studies. Moreover. quasi-judicial agencies or administrative bodies including Commission on Audit (COA) disallowances and from all financial obligations of the members.All revenues collected and all accruals thereto shall be deposited. in the determination of the Board. whichever is smaller: Provided. (c) in direct housing loans to members and group housing projects secured by first mortgage. Examination and Valuation of the Funds. or duties of all kinds. its assets. non-speculative equities and other financial instruments or other assets issued in accordance with existing laws of the countries where such financial instruments are issued: Provided. Deposits and Disbursements. promissory notes or other evidence of indebtedness of any solvent corporation created or existing under the laws of the Philippines. separation and retirement among the members and any other information useful for the adjustment of the benefits of the members. execution. income. further.

domestic or foreign. as well as the effective exercise of the powers and functions. privatization or expansion of subsidiaries. That all positions in the GSIS shall be governed by the compensation and position classification system and qualifications standards approved by the GSIS Board of Trustees based on a comprehensive job analysis and audit of actual duties and responsibilities: Provided. make. real or personal property in the Philippines or elsewhere necessary to carry out the purposes of this Act. its officers and employees. settlement of claims. (o) to fix and periodically review and adjust the rates of interest and other terms and conditions for loans and credits extended to members or other persons. foreign or domestic. (n) to design and adopt an Early Retirement Incentives Plan (ERIP) and/or financial assistance for the purpose of retirement for its own personnel. Powers and Functions of the GSIS."G. enterprise. . primarily confidential or highly technical in nature according to the Civil Service rules and regulations: Provided. whether natural or juridical. otherwise known as the Portability Law. 186 shall implement the provisions of this Act. and the enforcement of the provision of this Act. (d) to acquire. private or government. firm or association or corporation. (l) to invest. not later than June 30. increased benefit and loan packages to members. development of housing projects. contributions. That the compensation plan shall be comparable with the prevailing compensation plans in the private sector and shall be subject to the periodic review by the Board no more than once every four (4) years without prejudice to yearly merit reviews or increases based on productivity and profitability. (f) to have the power of succession. disposition of acquired assets. (k) to borrow funds from any source.000) membership. to authorize such capital and operating expenditures and disbursements of the GSIS as may be necessary and proper for the effective management and operation of the GSIS. ADMINISTRATION "SEC. "SEC. (s) to maintain a provident fund. (r) to submit annually. firm or entity. . and to conduct its business and exercise its powers throughout and in any part of the Republic of the Philippines and/or in any or all foreign countries. a public report to the President of the Philippines and the Congress of the Philippines regarding its activities in the administration and enforcement of this Act during the preceding year including information and recommendations on board policies for the development and perfection of the programs of the GSIS. (j) to have one or more offices in and outside of the Philippines. re-adjust the benefits. for the payments of benefits to such officials and employees or their heirs under such terms and conditions as it may prescribe. only as an incident in the securitization of housing mortgages of the GSIS and on account of its receivables from any government or private entity. 7699. (b) to adopt or approve the annual and supplemental budget of receipts and expenditures including salaries and allowances of the GSIS personnel. (q) to be able to float proper instrument to liquefy long-term maturity by pooling funds for short-term secondary market. Implementing Body. (i) to carry on any other lawful business whatsoever in pursuance of. (p) to enter into agreement with the Social Security System or any other entity. amend and/or rescind such rules and regulations as may be necessary to carry out the provisions and purposes of this Act. (t) to approve and adopt guidelines affecting investments. interest rates or the allocation or re-allocation of the funds to the contingencies covered. (m) to approve appointments in the GSIS except appointments to positions which are policy determining. (h) to enter into. 40. or in connection with the provisions of this Act. 41. and the discharge of duties and responsibilities of the GSIS. (g) to sue and be sued. perform and carry out contracts of every kind and description with any person. insurance coverage of government properties.The Government Service Insurance System as created under Commonwealth Act No. (e) to conduct continuing actuarial and statistical studies and valuations to determine the financial €condition of the GSIS and taking into consideration such studies and valuations and the limitations herein provided. in any manner recognized by law. which consists of contributions made by both the GSIS and its officials and employees and their earnings. . states and territories: Provided. utilize or dispose of. directly or indirectly. That the GSIS shall maintain a branch office in every province where there exists a minimum of fifteen thousand (15. further. corporation or partnership for the benefit of members transferring from one system to another subject to the provisions of Republic Act No. adopt. in accordance with the provisions of this Act. (c) to invest the funds of the GSIS.The GSIS shall exercise the following powers and functions: (a) to formulate. premium rates. own or otherwise participate in equity in any establishment.

43. guidelines and programs to effectively carry out the purposes of this Act.500. civil or administrative or otherwise. The Board shall demand payment or settlement of the obligations referred to herein within thirty (30) days from the date the obligation becomes due. review. The Board of Trustees. criminal. investment. (u) any provision of law to the contrary notwithstanding.00) for each board meeting actually attended by them. incentives. The President and General Manager. another four (4) from the banking. remove. and the enforcement of the provisions of this Act. Tenure and Compensation. shall hold office for six (6) years without reappointment. except the President and General Manager who shall cease as trustee upon his separation. whether public or private. under such terms and conditions as it may impose for the best interest of the GSIS. to initiate or institute the necessary or proper actions or suits. otherwise known as the Attrition Law. proper or incidental to the attainment of the purposes and objectives of this Act. . among others. Vacancy. fix. increased benefit and loan packages to members. to approve the annual and supplemental budget of receipts and expenditures of the GSIS. to authorize the payment of extra remuneration to the officials and employees directly involved in the collection and/or remittances of contributions. finance. development of housing projects. That the best interest of the GSIS shall be observed thereby. and to establish. 42. The programs shall be so designed as to spur socio-economic take-off and maintain continued growth. whether natural or juridical. and insurance sectors. to approve the GSIS organizational and administrative structure and staffing pattern. "SEC. . "SEC. which shall be exempt from Republic Act No. insurance coverage of government properties. other than through the expiration of the term. (v) to determine. and (y) to exercise such powers and perform such other acts as may be necessary. disposition of acquired assets.The President and General Manager of the GSIS shall be its Chief Executive Officer and shall be appointed by the President of the Philippines. "(d) upon the recommendation of the President and General Manager. Powers and Functions of the Board of Trustees. Powers and Duties of the President and General Manager. senior vice-presidents and managers in addition to the usual supervisory and rank-and-file positions who shall be appointed and removed by the President and General Manager with the approval of the Board. and one (1) recognized member of the legal profession who at the time of appointment is also a member of the GSIS. one (1) of whom shall be either the President of the Philippine Public School Teachers Association (PPSTA) or the President of the Philippine Association of School Superintendents (PASS). The Trustees. .000. The members of the Board shall be entitled to a per diem of Two thousand five hundred pesos (P2. bonuses. liabilities and/or accountabilities. shall be filled for the unexpired term only. commissions. "(b) to promulgate such rules and regulations as may be necessary or proper for the effective exercise of the powers and functions as well as the discharge of the duties and responsibilities of the GSIS. The Trustees shall elect from among themselves a Chairman while the President and General Manager of the GSIS shall automatically be the vice-chairman. revise and adjust the appropriate compensation packages for the officers and employees of the GSIS and reasonable allowances. another two (2) shall represent the leading organizations or associations of government employees/retirees. and "(i) to do and perform any and all acts necessary. "(c) upon the recommendation of the President and General Manager. "SEC. useful. but not to exceed Ten thousand pesos (P10. any claim or settle liability to the GSIS. fix. . operation and administration of the GSIS. and impose interest upon unpaid or unremitted premiums and/or contributions. He shall be a person with management and investments expertise necessary for the effective performance of his duties and functions under this Act. "(f) the provision of any law to the contrary notwithstanding. subject to the approval of the Board. fix and impose interest upon unpaid premiums due from employers and employees. Appointment.00) a month and reasonable transportation and representation allowances as may be fixed by the Board. and Compensation of the President and General Manager and of other Personnel. regardless of the amount involved. "SEC. and to authorize such operating and capital expenditures and disbursements of the GSIS as may be necessary or proper for the effective management. shall appoint the personnel of the GSIS. (w) to ensure the collection or recovery of all indebtedness. boards. execute and administer the policies and resolutions approved by the Board and direct and supervise the administration and operations of the GSIS. suspend or otherwise . including unpaid premiums or contributions in favor of the GSIS arising from any cause or source whatsoever. in whole or in part. "(e) to fix and periodically review and adjust the rates of interest and other terms and conditions for loans and credits extended to its members or other persons. "(g) to approve and adopt guidelines affecting investments. to compromise or release. operation and administration of the GSIS. privileges and other benefits as may be necessary or proper for the effective management. and in the event of failure or refusal of the obligor or debtor to comply with the demand. and other monies due to the GSIS at such rates and under such conditions as it may adopt: Provided. 6758. due from obligors. loan repayments.The Board of Trustees shall have the following powers and functions: "(a) to formulate the policies. "The GSIS President and General Manager shall be assisted by one or more executive vice-presidents. Qualifications. its Composition. its officers and employees. or until their successors are duly appointed and qualified. (x) to design and implement programs that will promote and mobilize savings and provide additional resources for social security expansion and at the same time afford individual members appropriate returns on their savings/investments. 45. or bodies of proper jurisdiction within thirty (30) days reckoned from the expiry date of the period fixed in the demand within which to pay or settle the account.The corporate powers and functions of the GSIS shall be vested in and exercised by the Board of Trustees composed of the President and General Manager of the GSIS and eight (8) other members to be appointed by the President of the Philippines. or to attain the purposes and objectives of this Act. tribunals. "(h) to determine. 44.The President and General Manager of the GSIS shall. before the courts. in accordance with the existing Civil Service rules and regulations. incidental or auxiliary to carry out the provisions of this Act. settlement of claims.

subject to approval by the proper court.00) or imprisonment of not less than six (6) years and one (1) day to twelve (12) years. "(g) The heads of the offices of the national government. That all requirements are submitted to the GSIS within a reasonable period prior to the effective date of the retirement. shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government. and/or enhance the marketability of an acquired asset. Powers of the Insurance Commission. 48. Auditor. 52. and in addition. and in addition. "No injunction or restraining order issued by any court. as the GSIS may decide or determine from time to time: Provided. or through abandonment or negligence. or takes or misappropriates or uses the same for any purpose other than authorized by this Act.00) nor more than Twenty thousand pesos (P20. payable or deliverable to the GSIS and appropriates the same.The GSIS may call upon any employer for such assistance as may be necessary in the discharge of its duties and functions.00) but not more than Six thousand pesos (P6. "(d) The treasurer. That the present legal services group in the GSIS shall serve as its in-house legal counsel.00) or by imprisonment of not less than six (6) years and one (1) day to twelve (12) years. 46. budget officer or other official or employee who fails to include in the annual budget the amount corresponding to the employer and employee contributions. tribunal or office shall bar. shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government. suffer the penalties of imprisonment from six (6) months and one (1) day to six (6) years.000. suffer the penalties of imprisonment of not less than one (1) year nor more than five (5) years and a fine of not less than Ten thousand pesos (P10. "The GSIS may sell its acquired assets in accordance with existing Commission on Audit (COA) rules and regulations for an amount not lower than the current market value of the property.(a) The GSIS shall pay the retirement benefits to the employee on his last day of service in the government: Provided. however. "(c) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations adopted by the GSIS. "H. Development and Disposition of Acquired Assets. agencies and instrumentalities. shall suffer the penalties provided in Article 217 of the Revised Penal Code. "(b) The GSIS shall discontinue the processing and adjudication of retirement claims under R.A. and prescribe their duties and qualifications to the end that only competent persons may be employed. "(f) Any employee who. preparation and review of contracts/agreements and others. 910.discipline them for cause. No.The GSIS shall have the right to develop and dispose of its acquired assets obtained in the ordinary course of its business. falsification. and the personnel of such offices who are involved in the collection of premium contributions. or both. PENAL PROVISIONS "SEC. or who fails or refuses or delays by more than thirty (30) days from the time such amount becomes due and demandable. "SEC.000. issues for legal opinions.000.00) nor more than Twenty thousand pesos (P20.000. turnover. . branches. or misrepresentation in any transaction with the GSIS. loan amortization and other accounts due the GSIS who shall fail. and a fine of not less than Three thousand pesos (P3. or permits another person to take. after deducting the monthly contribution or loan amortization from a member’s compensation.The Insurance Commissioner or his authorized representatives shall make an examination of financial condition and methods of transacting business of the GSIS at least once every three (3) years and the report of said examination shall be submitted to the Board of Trustees and copies thereof be furnished the Office of the President of the Philippines and the two houses of the Congress of the Philippines within five (5) days after the close of examination: Provided. . quasi-judicial agencies or administrative bodies in cases involving the GSIS.000. disbursing officer. upon conviction by final judgment. cashier. all agencies concerned shall process and pay the gratuities of their employees. without being entitled thereto with the intent to defraud any member. finance officer. "(e) Any employee or member who receives or keeps fund or property belonging.000. 47. "(b) Whoever shall obtain or receive any money or check invoking any provision of this Act or any agreement thereunder. commission. including government- owned or controlled corporations and government financial institutions. fails to remit the same to the GSIS within thirty (30) days from the date they should have been remitted under Section 6(a). 1616 except refund of retirement premium under R. 49.000. misappropriate or use said fund or property by expressly consenting thereto. in whole or in part. Government Assistance to the GSIS. the GSIS. That for each examination. Penalty. The Board shall adopt the proper rules and procedures for the implementation of this provision. refuse or delay the payment. To add value to. . impede or delay the sale and disposition by the GSIS of its acquired assets except on questions of ownership and national or public interest. including the salaries of the examiners and of the actuary of such examination for the actual time spent. in accordance with the existing Civil Service rules and regulations. . No. upon conviction by final judgment. shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government. . collusion. GENERAL PROVISION "SEC. shall be punished by a fine of not less than Five thousand pesos (P5. 51. or is otherwise guilty of the misappropriation of said fund or property. its political subdivisions. "I. however. "SEC. . Dispensation of Social Insurance Benefits. and the necessary personnel to assist said representative in the performance of his duties. deputize any personnel of the legal service group to act as special sheriff in the enforcement of writs and processes issued by the court. and in addition. shall submit to the Board soon after the close of each calendar year. shall suffer the penalties provided for in Article 172 of the Revised Penal Code. "SEC.00) nor more than Twenty thousand pesos (P20. or any third party. or both. "(b) The Chairman of the Commission on Audit or his authorized representatives. .00). shall be presumed to have misappropriated such contribution or loan amortization and shall suffer the penalties provided in Article 315 of the Revised Penal Code. an audited statement showing the financial condition and progress of the GSIS for the calendar year just ended. 50.000. any employer. For this purpose. whether for him or for some other persons.The Government Corporate Counsel shall be the legal adviser and consultant of the GSIS.00). Legal Counsel. "The GSIS may. at the discretion of the court. the GSIS shall conduct an annual appraisal of its property or acquired assets to determine its current market value. A. "SEC. the GSIS shall pay the office of the Insurance Commissioner an amount equal to the actual expenses incurred by the said office in the conduct of examination. shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government. shall be punished by a fine of not less than Five thousand pesos (P5. . improve profitability on.(a) Any person found to have participated directly or indirectly in the commission of fraud. the GSIS may further develop/renovate the same either with its own capital or through a joint venture arrangement with private companies or individuals. Instead. or to deduct the monthly contributions of the employee shall. "SEC.(a) The Chairman of the Commission on Audit shall be the ex officio auditor of the GSIS. and in addition. but the GSIS may assign to the Office of the Government Corporate Counsel (OGCC) cases for legal action or trial. at the discretion of the court. remittance or delivery of such accounts to the GSIS within thirty (30) days from the time that the same shall have been due and demandable shall. All notices of sale shall be published in newspapers of general circulation.

including surcharges and interests. Powers.00) nor more than Ten thousand pesos (P10. That the rights under the existing laws. 2013 and House Bill No. Presidential Decrees and Letters of Instructions. . was finally passed by the Senate and the House of Representatives on May 29. including the chairman and the vice-chairman. further. the liabilities therein set forth shall be construed as waiver of the State of its immunity from suit. . Functions and Activities. 4.Should any provision of this Act or any part thereof be declared invalid. respectively. SEC. "(k) Criminal actions arising from violations of the provisions of this Act may be commenced by the GSIS or by the aggrieved member.00) without prejudice to any civil or administrative liability which may also arise therefrom. under the Revised Penal Code. so far as they are separable from the invalid ones. 53.000. a new employee or an employee who has previously retired or separated and is reemployed in the service shall be covered by the provisions of this Act. "SEC. 56. to comply with the provisions of paragraph (w) of Section 41 hereof. Non-impairment of Benefits. However. That subsequent to the effectivity of this Act. "(i) For the charges or complaints referred to in paragraph (g) of this section. . shall subject them to imprisonment of not less than six (6) months nor more than one (1) year or a fine of not less than Five thousand pesos (P5. . Implementing Rules and Regulations. . hence. . shall remain in force and effect. SEC. either under this Act or. "SEC. Approved: May 30. "SEC. 8561.The amount necessary to carry out the provisions of this Act shall be included in the respective budgets of the agencies in the national government obligation program of the year following its enactment into law and thereafter. Appropriations.Nothing in this Act shall be construed to repeal.Whenever other laws provide similar benefits for the same contingencies covered by this Act. the member who qualifies to the benefits shall have the option to choose which benefits will be paid to him. if the benefits provided by the law chosen are less than the benefits provided under this Act. 3. Jurisdiction. 54.This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in at least two (2) newspapers of general circulation."(h) The officers and/or personnel referred to in paragraph (g) of this section shall be liable not only criminally but also civilly to the GSIS or to the employee or member concerned in the form of damages. "SEC.All laws and any other law or parts of law specifically inconsistent herewith are hereby repealed or modified accordingly: Provided. rules and regulations vested upon or acquired by an employee who is already in the service as of the effectivity of this Act shall remain in force and effect: Provided. 55. the other provisions.000. 2. which is a consolidation of Senate Bill No.The implementing rules and regulations to carry out the provisions of this Act shall be adopted and promulgated by the GSIS not later than ninety (90) days after the approval of this Act. Exclusiveness of Benefits. amend or limit any provision of existing laws. Repealing Clause. Privileges. "(j) Failure of the Members of the GSIS Board. Rights. 1997 . the GSIS shall pay only the difference. Effectivity. 1997 and May 28. This Act. 1997. the above-mentioned officials and/or personnel may not invoke the defense of non-suability of the State. not otherwise specifically inconsistent with the provisions of this Act. in appropriate cases." SEC. Separability Clause. .

Each of the aforementioned NSTP program components shall be undertaken for an academic period of two (2) semesters. clustering of affected students from different educational institutions may be done. such academic and administrative supervision shall be exercised jointly with that accredited NGO. formulated and adopted by the DND. of any baccalaureate degree course or at least two (2)-year technical vocational courses in public and private educational institutions shall be required to complete one (1) of the NSTP components as requisite for graduation. out of school youth. adoption and implementation of the different NSTP components in their respective schools. Provided. 7077 AND PRESIDENTIAL DECREE NO. further. Management of the NSTP Components . and TESDA. shall be motivated. the DND shall formulate and adopt a program of assistance and/or incentive to those students who will take the said component. 7077 designed to provide military training to tertiary level students in order to motivate. Section 8.Higher and technical vocational institutions shall not collect any fee for any of the NSTP components except basic tuition fees.Students. organized and mobilized in military training. Funds for this purpose shall be included in the annual regular appropriations of the CHED and TESDA.There is hereby established a National Service Training Program. trained. Provided.All higher and technical-vocational institutions. recreation and morals of the citizenry. In offering the NSTP whether during the semestral or summer periods. respect for rights of civilians. which shall form part of the curricula of all baccalaureate degree courses and of at least two (2)-year technical vocational courses and is a requisite for graduation. Coverage . education. among others. 1706. organize and mobilize them for national defense preparedness. AMENDING FOR THE PURPOSE REPUBLIC ACT NO. (c) "Literacy Training Service" is a program designed to train students to become teachers of literacy and numeracy skills to school children. and adherence to the Constitution. Short Title . Section 4. Recognizing the youth's vital role in nation-building. NSTP Offering in Higher and Technical-Vocational Educational Institutions . branch of service and geographical considerations. Section 3. Philippine Association of State Universities and Colleges (PASUC). and (3) The Civic Welfare Training Service The ROTC under the NSTP shall instill patriotism. male and female. . (b) "Reserve Officers' Training Corps (ROTC)" is a program institutionalized under Sections 38 and 39 of Republic Act No. in consultation with the Department of National Defense (DND). civic welfare and other similar endeavors in the service of the nation. Section 10. That such training module shall be accredited by the CHED and TESDA. it shall be the responsibility of all citizens to defend the security of the State and in fulfillment thereof. Fees and Incentives . In turn. Definition of Terms . Duration and Equivalent Course Unit . CHED and TESDA to which schools are identified. the following are hereby defined as follows: (a) "National Service Training Program (NSTP)" is a program aimed at enhancing civic consciousness and defense preparedness in the youth by developing the ethics of service and patriotism while undergoing training in any of its three (3) program components.For purposes of this Act. Provided. the most valuable resource of the nation. may design and implement such other program components as may be necessary in consonance with the provisions of this Act. military or civil service. moral virtues. Provided. taking into account logistics. Schools that do not meet the required number of students to maintain the optional ROTC and any of the NSTP components shall allow their students to cross-enroll to other schools irrespective of whether or not the NSTP components in said schools are being administered by the same or another branch of service in the Armed Forces of the Philippines (AFP). safety.This Act shall be known as the "National Service Training Program (NSTP) Act of 2001". which shall not be more than fifty percent (50%) of what is currently charged by schools per unit. Section 9.REPUBLIC ACT NO. In pursuit of these goals. must offer at least one of the program components. further.It is hereby affirmed the prime duty of the government to serve and protect its citizens. especially those devoted to improving health. 2002 AN ACT ESTABLISHING THE NATIONAL SERVICE TRAINING PROGRAM (NSTP) FOR TERTIARY LEVEL STUDENTS. train. moral. Section 7. that State universities and colleges shall offer the ROTC component and at least one other component as provided herein. entrepreneurship. intellectual and social well-being. consisting of the following service components: (1) The Reserve Officers' Training Corps (ROTC). Scholarships . Section 6. spiritual. Section 2. (2) The Literacy Training Service. The Commission on Higher Education (CHED) and Technical Education and Skills Development Authority (TESDA). (e) "Program component" shall refer to the service components of the NSTP as enumerated in Section 4 of this Act. Declaration of Policy . The school authorities concerned. In lieu of the two (2) semester program for any of the components of the NSTP. AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: Section 1. that private higher and technical-vocational education institutions may also offer the ROTC if they have at least three hundred and fifty (350) cadet students. That in case a CHED. the youth. a one (1)-summer program may be designed. forumulation. CHED. which is hereby made option and voluntary upon the effectivity of this Act. Coordinating Council of Private Educational Associations of the Philippines (COCOPEA) and other concerned government agencies. . Establishment of the National Service Training Program. In the case of ROTC.There is hereby created a Special Scholarship Program for qualified students taking the NSTP which shall be administered by the CHED and TESDA. 9163 January 23. nationalism. public and private. literacy. the government may require each citizen to render personal. the State shall promote civic consciousness among the youth and shall develop their physical.or TESDA-accredited non government organization (NGO) has been contracted to formulate and administer a training module for any of the NSTP components. and other segments of society in need of their service. (d) "Civic Welfare Training Service" refers to programs or activities contributory to the general welfare and the betterment of life for the members of the community or the enhancement of its facilities. Its various components are specially designed to enhance the youth's active contribution to the general welfare. and advance their involvement in public and civic affairs. Citizenship training shall be given emphasis in all three (3) program components.The school authorities shall exercise academic and administrative supervision over the design. CHED and TESDA shall ensure that group insurance for health and accident shall be provided for students enrolled in any of the NSTP components. environment. Section 5. It shall inculcate in the youth patriotism.

Effectivity . may either continue in the program component they are currently enrolled or shift to any of the other program components of their choice. NGOs and recognized student organizations in drafting the implementing rules. rules and regulations and other issuances inconsistent with the provisions of this Act are hereby deemed amended and modified accordingly. the Basic ROTC course he has completed shall be counted for the purpose of completing the NSTP requirement. Section 17. pursuant to Republic Act No. Amendatory Clause . CHED and TESDA. Implementing Rules.If any section or provision of this Act shall be declared unconstitutional or invalid. Section 13. Graduates of the ROTC shall form part of the Citizens' Armed Force. .There is hereby created a National Service Reserve Corps. except those falling under Section 14 of this Act. 7077.Students who have yet to complete the Basic ROTC. Approved: January 23.Section 35 of Commonwealth Act No. TESDA and DND in this regard. Section 12. and Sections 38 and 39 or Republic Act No. Creation of the National Service Reserve Corps . The implementing rules shall include the guideline for the adoption of the appropriate curriculum for each of the NSTP components as well as for the accreditation of the same. That in case he shifts to another program component. 2002 . Suspension of ROTC Requirement . he shall complete the NSTP in component. Section 16. orders.207 of 1939. the PASUC and COCOPEA. 1.This Act shall take effect fifteen (15) days after its publication in two (2) newspapers of national circulation. These three (3) agencies shall consult with other concerned government agencies. CHED and TESDA shall have the joint responsibility for the adoption of the implementing rules of this Act within sixty (60) days from the approval of this Act. as well as all laws. Sections 2 and 3 of Presidential Decree No. further. Transitory Provisions . Executive Order No. Periodic reports shall be submitted to the CHED.The DND. Section 11. 7077. to be composed of the graduates of the non-ROTC components. Separability Clause . Provided. Section 14. the other sections or provisions not affected thereby shall remain in full force and effect. but the implementation of this Act shall commence in the school year of 2002-2003. That once he has shifted to another program component.The completion of ROTC training as a requisite for graduation is hereby set aside for those students who despite completing all their academic units as of the effectivity of this Act have not been allowed to graduate.The CHED and TESDA regional offices shall oversee and monitor the implementation of the NSTP under their jurisdiction to determine if the trainings are being conducted in consonance with the objectives of this Act. 1706. decrees. Provided. Members of this Corps may be tapped by the State for literacy and civic welfare activities through the joint effort of the DND. Section 15.

and (g) To establish schools and learning centers as facilities where schoolchildren are able to learn a range of core competencies prescribed for elementary and high school education programs or where the out-of-school youth and adult learners are provided alternative learning programs and receive accreditation for at least the equivalent of a high school education. projects and services in communities they serve. knowledge and values they need to become caring. (j) Non-Formal Education . the field offices which shall implement educational programs.is a school that offers a complete basic education in one school site and has unified instructional program. attitudes and insights from daily experiences at home. (b) Basic Education . the terms or phrases used shall mean or be understood as follows: (a) Alternative Learning System -is a parallel learning system to provide a viable alternative to the existing formal education instruction. Purposes and Objectives. out-of-school youth and adult learners. (d) To ensure that schools and learning centers receive the kind of focused attention they deserve and that educational programs.is the education intended to meet basic learning needs which lays the foundation on which subsequent learning can be based. divisions. at play and from life itself. It is a venue for face-to-face learning and activities and other learning opportunities for community development and improvement of the people's quality of life.is an educational institution. Definition of Terms. (c) Cluster of Schools . Schools and learning centers shall be empowered to make decisions on what is best for the learners they serve.is a person responsible for the administrative and instructional supervision of the school or cluster of schools. Schools shall have a single aim of providing the best possible basic education for all learners. Declaration of Policy. undertaking educational operation with a specific age-group of pupils or students pursuing defined studies at defined levels. projects and services take into account the interests of all members of the community. Section 3.is any organized. 9155 August 11. receiving instruction from teachers. . needs and aspirations of a school community are reflected in the program of education for the children. . .is a lifelong process of learning by which every person acquires and accumulates knowledge. At the end of each level. the learner needs a certification in order to enter or advance to the next level. (f) To encourage local initiatives for the improvement of schools and learning centers and to provide the means by which these improvements may be achieved and sustained. systematic educational activity carried outside the framework of the formal system to provide selected types of learning to a segment of the population.is a physical space to house learning resources and facilities of a learning program for out-of-school youth and adults. .For purposes of this Act. projects and services developed. (e) To enable the schools and learning centers to reflect the values of the community by allowing teachers/learning facilitators and other staff to have the flexibility to serve the needs of all learners.REPUBLIC ACT NO. relevance and excellence of the education given to meet the needs and aspirations of an individual and society. 2001 AN ACT INSTITUTING A FRAME WORK OF GOVERNANCE FOR BASIC EDUCATION." Section 2.The purposes and objectives of this Act are: (a) To provide the framework for the governance of basic education which shall set the general directions for educational policies and standards and establish authority. elementary and high school education as well as alternative learning systems four out-of-school youth and adult learners and includes education for those with special needs.is the systematic and deliberate process of hierarchically structured and sequential learning corresponding to the general concept of elementary and secondary level of schooling. accountability and responsibility for achieving higher learning outcomes. Section 4. Short Title. (h) Learning Center . . (f) Integrated School.is any individual seeking basic literacy skills and functional life skills or support services for the improvement of the quality of his/her life. seIf-reliant.is the key learning support person who is responsible for supervising/facilitating the learning process and activities of the learner. It encompasses both the nonformal and informal sources of knowledge and skills.This Act shall be known as the "Governance of Basic Education Act of 2001. AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled: Section 1. Governance of basic education shall begin at the national level it is at the regions. The school shall be the heart of the formal education system.It is hereby declared the policy of the State to protect and promote the right of all citizens to quality basic education and to make such education accessible to all by providing all Filipino children a free and compulsory education in the elementary level and free education in the high school level. The State shall ensure that the values.is a group of schools which are geographically contiguous and brought together to improve the learning outcomes. Such education shall also include alternative learning systems for out-of-school youth and adult learners. (i) Learning Facilitator . productive and patriotic citizens. RENAMING THE DEPARTMENT OF EDUCATION. The State shall encourage local initiatives for improving the quality of basic education. (e) Informal Education . schools and learning centers herein referred to as the field offices . It shall be the goal of basic education to provide them with the skills. and (m) . It is where children learn. adapted and offered to fit local needs. (g) Learner . It encompasses early childhood. (d) Formal Education . . ESTABLISHING AUTHORITY AND ACCOUNTABILITY.where the policy and principle for the governance of basic education shall be translated into programs. (c) To make schools and learning centers the most important vehicle for the teaching and learning of national values and for developing in the Filipino learners love of country and pride in its rich heritage. CULTURE AND SPORTS AS THE DEPARTMENT OF EDUCATION. (I) . (k) Quality Education .is the appropriateness. at work. private and public.School Head . skills. usually located in a building or a group of buildings in a particular physical or cyber site. (b) To define the roles and responsibilities of and provide resources to.School .

and learning centers. (c) The principles of accountability and transparency shall be operationalized in the performance of functions and responsibilities at all levels. Consistent with the national educational policies. placing and evaluating all employees in the regional office. accountability and responsibility for ensuring access to. selection and training of all staff in the region and divisions. Consistent with the national educational policies. promoting equity in. Culture and Sports shall henceforth be called the Department of Education. and (8) Performing such other functions as may be assigned by proper authorities. Principles of Shared Governance. (3) Promulgating national educational Standards. Division Level A division shall consist of a province or a city which shall have a schools division superintendent. planning. and (7) Enhancing the total development of learners through local and national programs and/or projects. physical and fiscal resources of the regional office. accountability and responsibility for the following: (1) Defining a regional educational policy framework which reflects the values. . (7) Formulating. Powers. (4) Monitoring the utilization of funds provided by the national government and the local government units to the schools and learning centers. including professional staff development. evaluating and assessing regional learning outcomes. (5) Undertaking research projects and developing and managing region wide projects which may be funded through official development assistance and/or or other finding agencies. physical and fiscal resources of the division. accountability and responsibility for the following: (1) Formulating national educational policies. (2) Formulating a national basic education plan. (6) Promoting awareness of and adherence by all schools and learning centers to accreditation standards prescribed by the Secretary of Education. (3) Developing regional educational standards with a view towards bench-marking for international competitiveness. (7) Supervising the operations of all public and private elementary. Feedback mechanisms shall be established to ensure coordination and open communication of the central office with the regional. Each regional office shall have a director. professional competence. ancillary and other support services. (3) Hiring. Section 6. (8) Determining the organization component of the divisions and districts and approving the proposed staffing pattern of all employees in the divisions and districts. A. (4) Monitoring and assessing national learning outcomes. division and school levels. It shall be vested with authority. (II) Planning and managing the effective and efficient use of all personnel. National Level In addition to his/her powers under existing laws. C.(a) Shared governance is a principle which recognizes that every unit in the education bureaucracy has a particular role. Section 7. (9) Hiring. except for the assistant division superintendent. (6) Ensuring strict compliance with prescribed national criteria for the recruitment. needs and expectations of the communities they serve. (5) Undertaking national educational research and studies. plans and standards the schools division superintendents shall have authority. Regional Level There shall be as many regional offices as may be provided by law. B. legal. (12) Managing the database and management information system of the region. (6) Enhancing the employment status. except for the position of assistant director. culture and sports shall be as provided for in Sections 8 and 9 hereof. and (d) The communication channels of field offices shall be strengthened to facilitate flow of information and expand linkages with other government agencies. Arts.The Department of Education. Governance. and improving the quality of basic education. and (14) Preforming such other functions as may be assigned by proper authorities. the regional director shall have authority. task and responsibility inherent in the office and for which it is principally accountable for outcomes. administrative. at least one assistant schools division superintendent and an office staff for programs promotion.The Secretary of the Department of Education shall exercise overall authority and supervision over the operations of the Department. the budget to support the regional educational plan which shall take into account the educational plans of the divisions and districts. plans and standards. secondary and integrated schools. (2) Developing a regional basic education plan. duties and responsibilities shall be governed by law. welfare and working conditions of all personnel of the Department. (4) Monitoring. an assistant director and an office staff for program promotion and support. (5) Ensuring compliance of quality standards for basic education programs and for this purpose strengthening the role of division supervisors as subject area specialists. placing and evaluating all division supervisors and schools district supervisors as well as all employees in the division. There shall be at least one undersecretary and one assistant secretary who shall be career executive service officers chosen from among the staff of the Department. . both teaching and non-teaching personnel. planning. (2) Planning and managing the effective and efficient use of all personnel. CHAPTER 1 GOVERNANCE OF BASIC EDUCATION Section 5. The Secretary of Education shall be assisted by not more than four (4) undersecretaries and not more than four (4) assistant secretaries whose assignments. (b) The process of democratic consultation shall be observed in the decision-making process at appropriate levels. (10) Evaluating all schools division superintendents and assistant division superintendents in the region. fiscal.. the Secretary of Education shall have authority. accountability and responsibility for the following: (1) Developing and implementing division education development plans. (13) Approving the establishment of public and private elementary and high schools and learning centers. including professional staff development. administrative and fiscal services. including school heads. . in coordination with the regional development council. local government units and nongovernmental organizations for effective governance. Duties and Functions. .

fiscal and auxiliary services. taking into consideration the uniqueness of the working conditions of the teaching service. Consistent with the national educational policies. The Secretary of the Department of Education. Section 11. recording and reporting thereof. status of employment and welfare and benefits of school heads shall be the same for public elementary. distribution and utilization of resources provided by thenational government for the field offices. at the appropriate levels. in the issuance of audit rules and regulations that will govern the utilization of all resources as well as the liquidation.D. including the plantilla positions they occupy. The Secretary of Education shall create a promotions board. shall issue appropriate personnel policy rules and regulations that will best meet the requirements of the teaching profession taking into consideration the uniqueness of the working conditions of the teaching service. CHAPTER 3 ABOLITION OF THE BUREAU OF PHYSICAL EDUCATION AND SCHOOL SPORTS Section 9. bequests and grants for the purpose of upgrading teachers' learning facilitators' competencies. A core of nonteaching staff shall handle the school's administrative. salary grade. Section 12. Cultural Agencies. the school heads shall have authority. schools district supervisors. CHAPTER 2 TRANSFER OF CULTURAL AGENCIES SEC. Such donations or grants must be reported to the appropriate district supervisors and division superintendents. The program for school arts and culture shall remain part of the school curriculum. CHAPTER 4 SUPPORT AND ASSISTANCE OF OTHER GOVERNMENT AGENCIES Section 10. assistant regional directors. (2) Curricula supervision. secondary and integrated schools. goals and objectives of the school. Abolition of BPESS. projects and services. jointly promulgate the guidelines on the allocation. plans and standards. All other BPESS personnel shall be retained by the Department. nonacademic personnel of public schools.All functions. Records Management and Archives Office and the National Library shall now be administratively attached to the National Commission for Culture and the Arts (NCCA) and no loner with the Department of Education. The school head. (11) Accepting donations. subject to civil service laws and regulations. and (12) Performing such other functions as may be assigned by proper authorities. which shall formulate and implement a system of promotion for schools decision supervisors. school desks and textbooks and other instructional materials intended are allocated directly and released immediately by the Department of Budget and Management to said offices. A schools district shall have a schools district supervisor and an office staff for program promotion. School Level There shall be a school head for all public elementary schools and public high schools or a cluster thereof. shall be both an instructional leader and administrative manager. The school head shall form a them with the school teachers/learning facilitators for delivery of quality educational programs. (6) Introducing new and innovative modes of instruction to achieve higher learning outcomes. . (10) Establishing school and community networks and encouraging the active participation of teachers organizations. The Bureau of Physical Education and School Sports (BPESS) is hereby abolished. its organizational set up as well as the nature of the operations of schools and learning centers. (5) Offering educational programs. The Secretary of the Department of Education shall ensure that resources appropriated for the field offices are adequate and that resources for school personnel.The Komisyon ng Wikang Pilipino. Promotion of school heads shall be based on educational qualification. School districts already existing at tile time of the passage of the law shall be maintained. are hereby transferred to the PSC without loss of rank. Schools District Level Upon the recommendation of the schools division superintendents. gifts. The Secretary of Education and the Secretary of Budget and Management shall. projects and services which provide equitable opportunities for all learners in the community. The Commission on Audit. (8) Recommending the staffing complement of the school based on its needs. The qualifications. programs and activities of the Department of Education related to sports competition shall be transferred to the Philippine Sports Commission (PSC). (7) Administering and managing all personnel. The program for school sports and physical fitness shall remain part of the basic education curriculum. (4) Developing the school education program and school improvement plan. and (3) Performing such other functions as may be assigned by proper authorities. accountability and responsibility for the following: (1) Setting the mission. physical and fiscal resources of the school. 8. improving ad expanding school facilities and providing instructional materials and equipment. the regional director may establish additional schools district within a schools division. within ninety (90) days from the approval of this Act. (3) Implementing the school curriculum and being accountable for higher learning outcomes. who may be assisted by an assistant school head. and school heads. . vision. (9) Encouraging staff development. The establishment of integrated schools from existing public elementary and public high schools shall be encouraged. E. No appointment to the positions of regional directors. schools division superintendents and assistant schools division superintendents shall be made unless file appointee is a career executive service officer who preferably shall have risen from the ranks. The personnel of the BPESS. merit and performance rather than on the number of teachers/learning facilitators and learners in the school. (2) Creating an environment within the school that is conducive to teaching and learning. National Historical Institute. and parents-teachers-community associations. shall take into account the different characteristics and distinct features of the department's field offices. . The schools district supervisor shall be responsible for: (1) Providing professional and instructional advice and support to the school heads and teachers/facilitators of schools and learning centers in the district or cluster thereof. presently detailed with the PSC.

decrees. inconsistent with the provisions of this Act. who have been actively engaged in higher education for at least ten (10) years. as amended"'. shall take effect fifteen (15) days following its publication in at least two (2) newspapers of general circulation. the Commission on Higher Education is hereby created. Thereafter. Finally. and attached to the Office of the President for administrative purposes only.] AN ACT CREATING THE COMMISSION ON HIGHER EDUCATION.This act shall be known as the "Higher Education Act of 1994". Culture and Sports as ex-officio chairman of the Commission for a maximum period of one (1) year. Title. the president may appoint the Secretary of Education. part or parts thereof. as well as their pride in. districts. SEC. Composition of the Commission. entitled' An Act Providing for the Autonomous Region in Muslim Mindanao. 4. The commission shall hold office until their successors shall have been appointed and qualified. the intellectual and scholarly life. and must not have been candidates for elective positions in the elections immediately preceding heir appointment. The State shall likewise ensure and protect academic freedom and shall promote its exercise and observance for the continuing intellectual growth. public and private.If for any reason. 5. State-supported institutions of higher learning shall gear their programs to national. 6. . APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: SECTION 1. respectively.6734. = The chairman and the commissioners shall have the rank of a Department Secretary and Undersecretary.This Act. regional or local development plans. SEC. the education of high-level and middle-level professionals. . the President shall appoint a Chairman of the Commission and four (4) commissioners. Rank and Emoluments. Separability Clause. which begins upon approval of this Act. Should a member of the Commission fail to complete his term. Section 15.The State shall protect. are hereby repealed or modified accordingly. . . . respectively. all institutions of higher learning shall exemplify through their physical and natural surroundings the dignity and beauty of.The President shall appoint the full-time chairman and the commissioners for a term of four (4) years. Governance in the ARMM. and the enrichment of our historical and cultural heritage. In no case shall any and all of the Commissioners appoint representatives to act on their behalf. executive orders. Section 16 Repealing Clause. 9054. without prejudice to the provisions of Republic Act No. Effectivity Clause. CHAPTER 5 FINAL PROVISIONS Section 13. Creation of the Commission on Higher Education.In pursuance of the abovementioned policies.The Regional Education Secretary for the Autonomous Region in Muslim Mindanao (ARMM) shall exercise similar governance authority over the divisions. the development of responsible and effective leadership. They shall receive the compensation and other emoluments corresponding to those of a Department Secretary and Undersecretary. Section 17. The Commission shall be independent and separate from the Department of Education. During the transition period. foster and promote the right of all citizens to affordable quality education at all levels and shall take appropriate steps to ensure that education shall be accessible to all. his successor shall be appointed by the President of the Philippines but only for the unexpired portion of the term. who shall be holders of earned doctorate(s).7722 . The terms of the initial appointees shall be on staggered basis: the full-time chairman shall hold office for a term of four (4) years.All laws. Its coverage shall be both public and private institutions of higher education as well as degree- granting programs in all post-secondary educational institutions. any portion or provision of this Act shall be declared unconstitutional. Approved: August 11. . Term of Office.The Commission shall be composed of five (5) full-time members. .The Secretary of Education shall promulgate the implementing rules and regulations within ninety (90) days after the approval of this Act: Provided. 2001 [ REPUBLIC ACT NO. rules and regulations. Amending for the Purpose Republic Act No. . and shall be subject to the same disqualification. SEC. Rules and Regulations. SEC. hereinafter referred to as the Commission. entitled "An Act to Strengthen and Expand tile Organic Act for the Autonomous Region in Muslim Mindanao. . The members of the Commission shall belong to different academic specialization. the next two (2) commissioners for three (3) years. 2 Declaration of Policy. SEC. the advancement of learning and research. without prejudice to one reappointment. They shall be academicians known for their high degree of professionalism and integrity who have distinguished themselves as authorities in their chosen fields of learning. That the Secretary of Education shall fully implement the principle of shared governance within two (2) years after the approval of this Act. Culture and Sports (DECS). and the last two (2) commissioners for two (2) years. . 3. Section 14. . . other parts or provisions hereof which are not affected thereby shall continue to be in full force and effect. schools and learning centers in the region as may be provided in the Organic Act.

support and develop potential centers of excellence in program areas needed for the development of world-class scholarship. k) devise and implement resource development schemes. nation building and national development. conversion or elevation is sought to be made. Culture and Sports. program termination or school closure. d) set minimum standards for programs and institutions of higher learning recommended by panels of experts in the field and subject to public hearing. scholarships. and g) the President of the Fund for Assistance to Private Education (FAPE). That these shall not detract from the fiscal autonomy already enjoyed by colleges and universities. Board of Advisers. It shall fix the secretariat's staffing pattern. c) the Secretary of Science and Technology. 8. but not limited to. policies. as chairman. and other similar programs: Provided. subject to the national compensation and position classification plan. policies and guidelines for the creation of new ones as well as the conversion or elevation of schools to institutions of higher learning.The Commission shall have the following powers and functions: a) formulate and recommend development plans. and enforce the same. subject to budgetary limitations and the number of institutions of higher learning in the province or region where creation. n) promulgate such rules and regulations and exercise such other powers and functions as may be necessary to carry out effectively the purpose and objective of this Act. recommendation on the downgrading or withdrawal of accreditation. The Commission shall organize a secretariat. . as described in section 10 hereunder.There shall be constituted a Board of Advisers which shall meet with the Commission at least once a year to assist it in aligning its policies and plans with the cultural. l) administer the Higher Education Development Fund. determine the duties. i) develop criteria for allocating additional resources such as research and program development grants. which shall be headed by an executive officer. The Secretariat. b) the Director-General of the National Economic and Development Authority. which will promote the purposes of higher education. Powers and Functions of the Commission. . 9. j) direct or redirect purposive research by institutions of higher learning to meet the needs of agro-industrialization and development. qualifications. and o) perform such other functions as may be necessary for its effective operations and for the continued enhancement. SEC. m) review the charters of institutions of higher learning and state universities and colleges including the chairmanship and membership of their governing bodies and recommend appropriate measures as basis of necessary action. c) recommend to the executive and legislative branches. f) the President of the Federation of Accrediting Association of the Philippines (FAAP). growth or development of higher education. e) the Secretary of Labor and Employment. g) recommend to the Department of Budget and Management the budgets of public institutions of higher learning as well as general guidelines for the use of their income. as co-chairman. diminution or withdrawal of subsidy. priorities and programs on research. political and socioeconomic development needs of the nation and with the demands of world-class scholarship. SEC. SEC. The Board of Advisers shall be composed of the following: a) the Secretary of Education. . priorities and grants on higher education and research. 7. policies. h) rationalize programs and institutions of higher learning and set standards. e) monitor and evaluate the performance of programs and institutions of higher learning for appropriate incentives as well as the imposition of sanctions such as. priorities and programs on higher education and research b) formulate and recommend development plans. d) the Secretary of Trade and Industry. f) identify. The President upon recommendation of the Commission may appoint two (2) additional members of the Board of Advisers.

and 5) the equivalent of one percent (1%) of the gross sales of the lotto operation of the Philippine Charity Sweepstakes Office (PCSO). and other conveyances including materials.The Fund shall be administered by the Commission. 2) the amount of fifty million pesos (P50. as well as the compensation scheme for the positions to be created upon the recommendation of the executive officer. .000. the Commission shall appoint a reputable government financial institution as portfolio manager of the Fund. including earnings thereof.000) for the initial operation of the Commission. The Higher Education Development Fund. The technical panels shall be composed of senior specialists or academicians to be appointed by the Commission. No academic or curricular restriction shall be made upon private educational institutions. c) The Commission shall appoint and organize a separate staff. 4) the equivalent of thirty percent (30%) share of the collections from the Professional Registration Fee. equipment. Authority. 16. government financing Institutions identified and requested by the Commission may contribute to the Fund an amount equivalent to not less than three percent (3%) but not more than five (5%) percent of their unimpaired surplus realized during the immediately preceding year. The Technical Panels. independent Administratively and budgetarily separate from the Commission Secretariat.The Commission shall reconstitute and/or organize technical panels for different disciplines/program areas.The Commission shall provide incentives to institutions of higher learning. public and private. . For sound and judicious management of the Fund. Tax Exemptions. properties and services by gratuitous title. shall be used to underwrite overhead expenses for administration. only earnings of private contributions shall be used for administrative expenses.000. . (a) minimum unit requirements for specific academic programs.000) as seed capital. SEC. hereinafter referred to as the Fund. and d) The Fund shall be utilized equitably according to regions and programs. responsibilities and functions. subject to the following conditions: a) No part of the seed capital of the Fund. no abridgment of curricular freedom of the individual educational institutions by the Commission shall be made except for. 11. and (c) specific professional subjects as may be stipulated by the various licensing entities. They shall assist the Commission in setting standards and in program and institution monitoring and evaluation. . (b) general education distribution requirements as may be determined by the Commission. 12. bequest and grant which may be made to the Commission shall constitute as allowable deduction from the income of the donor for income tax purposes and shall be exempt from donor's tax. whose programs are accredited or whose needs are for accreditation purposes.A Higher Education Development Fund. gifts. 15. c) The Fund shall have a private portion to be raised from donations. . the Commission shall prepare the necessary guidelines for its use. The Commission shall exercise such authority as may be deemed necessary within its premises. b) Starting Fiscal Year 1995 and every year thereafter. 10. 14. Management and Administration of the Higher Education Development fund. . as amended. In particular. subject to such conditions as provided under the National Internal Revenue Code. It shall also prepare and approve its budget. SEC. SEC. SEC. .Nothing in this Act shall be construed as limiting the academic freedom of universities and colleges. That the Commission may seek the assistance of other government agencies for the proper implementation of this Act. 3) the equivalent of forty percent (40%) annual share on the total gross collections of the travel tax. SEC. Guarantee of Academic Freedom. contribution.Any donation. Or areas of operation to effectively carry out its powers and functions to attain its objectives: Provided. b) Unless otherwise stipulated by the private donor. 13. Accreditation. a) The Government's contribution to the fund shall be the following: 1) the amount of five hundred million pesos (P500. SEC. which are not required for chartered state colleges and universities. subject to the following conditions: As administrator of the Fund. is hereby established exclusively for the strengthening of higher education in the entire country. SEC.

rules and regulations and parts thereof which are inconsistent with the provisions of this Act are hereby repealed. The sum equivalent to the appropriations for the current year for the Bureau of Higher Education and the degree-granting-programs of the Bureau of Technical Vocational Education. 19. the Philippine Association of State Universities and Colleges (PASUC). The Catholic Educational Association of the Philippines (CEAP). 18. the funds necessary shall be included in the General Appropriations Act. All regular and permanent employees transferred to the Commission shall not suffer any loss of seniority or rank or decrease in emoluments. which shall not be later than three (3) months after the effectivity of this Act. Transitory Provisions. Approved: 18 May 1994 . SEC. The amount of five hundred million pesos is hereby authorized to be appropriated for the seed capital of the fund. under the Department Education. SEC. functions and responsibilities of the Bureau of Higher Education. maintenance and other operating expenses and capital outlay. The additional amount of 50. Chair of the Senate Committee on Education. If any part or provision of this Act shall be held unconstitutional or invalid. SEC. other provisions hereof which are not affected thereby shall continue to be in full force and effect. as well as parts of the Budgetary items under the DECS budget that are concerned higher and tertiary education and degree-granting vocational and technical programs such as those for personal services. Chair of the House Committee on Education and Culture. The Commission shall have the authority to appoint its own personnel. 1994. properties. rules and regulations. This Act. assets and liabilities. SEC. The Philippine Association of Colleges and Universities (PACU).This Act shall take effect upon its approval. 17.000 pesos is hereby authorized to be appropriated out of the funds in the National Treasury not otherwise appropriated or out of the Philippine Amusement and Gaming Corporation (PAGCOR) funds for the initial operation of the Commission. and the Philippine Association Of Private Technical Institutions. . SEC. including those for higher and tertiary education and degree-granting vocational and technical programs in the regional offices. Culture and Sports. the Philippine Association of Private Schools Colleges and Universities (PAPSCU). Effectivity. a representative each of the Association of Christian Schools and Colleges (ACSC). was finally passed by the Senate and the House of Representatives on may 4. promulgate the rules and regulations necessary to effectively implement the smooth and orderly transfer to the Commission. 1994 and May 17. All laws. 1453 and House Bill No. respectively. Personnel of the Bureau of Higher Education not otherwise transferred to the Commission shall be reassigned by the DECS in any of its offices and bureau: Provided. Repealing Clause. presidential decrees. Jurisdiction over DECS-supervised or chartered state-supported post-secondary degree granting vocational and technical programs and tertiary institutions shall be transferred to the Commission. including those for higher and tertiary education and degree-granting vocational and technical programs of the Bureau of Technical-Vocational Education in the regional offices. It shall likewise. Separability Clause. however. 21. Such personnel. executive orders. That. shall be transferred to the Commission. any employee who cannot be accommodated shall be given all the benefits as may be provided under existing laws. Thereafter. A transitory body is hereby created which shall be composed of the Secretary of Education. Appropriation. 000. which is a consolidation of Senate Bill No. Culture and Sports (DECS). The transitory body shall facilitate the complete and full operation of the Commission. 12200. and other government entities having functions similar to those of the Commission are hereby transferred to the Commission. 20. Arts and Culture.