R.A.

1161

THE SOCIAL
SECURITY
SYSTEMS ACT

AN ACT TO CREATE A SOCIAL SECURITY SYSTEM PROVIDING SICKNESS,
UNEMPLOYMENT, RETIREMENT, DISABILITY AND DEATH BENEFITS FOR
EMPLOYEES

SECTION 1. Short Title. — This Act shall be known as the "Social Security Law" (As
amended by Sec. 1, P.D. No. 24, S-1972)."

SECTION 2. Declaration of Policy. — It is the policy of the Republic of the
Philippines to establish, develop, promote and perfect a sound and viable tax-
exempt social security service suitable to the needs of the people throughout the
Philippines which shall provide to covered employees and their families protection
against the hazards of disability, sickness, old age and death, with a view to
promoting their well-being in the spirit of social justice. (As amended by Sec. 1,
R.A. 1792 and Sec. 2, P.D. No. 24, S-1972)

A. Administration

SECTION 3. Social Security System. — (a) To carry out the purposes of this Act, the
Social Security System with principal place of business in Metro Manila, Philippines
is hereby created. The SSS shall be directed and controlled by a Social Security
Commission composed of the Secretary of Labor and Employment, the SSS
Administrator and seven appointive members: three of whom shall represent the
labor group, one of whom shall be a woman; three, the management group, one of
whom shall be a woman; and, one, the general public, to be appointed by the
President of the Philippines. The Chairman of the Commission shall be designated
by the President from among its members. The term of the appointive members
shall be three years: Provided, That the terms of the first six appointive members
shall be one, two and three years for every two members, respectively.

All vacancies, except through the expiration of the term, shall be filled for the
unexpired term only. The apppointive members of the Commission shall receive
one thousand five hundred pesos per diem for each meeting actually attended by
them: Provided, That no compensation shall be paid for more than eight meetings a
month. Members of the Commission who hear cases pending before the
Commission, shall also receive a per diem of one thousand five hundred pesos. (As
amended by Sec. 2, R.A. 1792, Sec. 1, R.A. 2658, Sec. 1, R.A. 4857; Sec. 3, P.D.
No. 24, S-1972; Sec. 1, P.D. No. 347, S-1973; Sec. 1, P.D. 735, S-1975; Sec. 1,
P.D. No. 1202, S-1977; Sec. 1, E.O. No. 102, S-1986; and R.A. 7688)

(b) The general conduct of the operations and management functions of the SSS
shall be vested in the Administrator who shall serve as the chief executive officer

immediately responsible for carrying out the program of the SSS and the policies of
the Commission. The administrator shall be a person who has had previous
experience in technical and administrative fields related to the purposes of this Act.
He shall be appointed by the President of the Philippines and shall receive a salary
to be fixed by the Commission with the approval of the President, payable from the
funds of the SSS. (As amended by Sec. 1, R.A. 2658; Sec. 3, P.D. No. 24, S-1972;
and Sec. 1, P.D. No. 735, S- 1975)

(c) The Commission, upon the recommendation of the Administrator shall appoint
an actuary, and such other personnel as may be deemed necessary; fix their
compensation; prescribe their duties and establish such methods and procedures
as may insure the efficient, honest and economical administration of the provisions
and purposes of this Act. Provided, however, That the personnel of the SSS shall
be selected only from civil service eligibles certified by the commissioner of civil
service and be subject to civil service rules and regulations. (As amended by Sec.
1, R.A. 2658 and Sec. 1, P.D. No. 735, S-1975)

SECTION 4. Powers and Duties of the Commission. — For the attainment of its main
objectives as set forth in section two hereof, the Commission shall have the
following powers and duties:

(a) To adopt, amend and rescind, subject to the approval of the President,
such rules and regulations as may be necessary to carry out the provisions
and purposes of this Act.

(b) To submit annually not later than March 31, a public report to the
President 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. (As amended by Sec. 2, P.D. No. 735, S-1975)

(c) To require the Actuary to submit a valuation report on the SSS benefit
program every five years, or more frequently as may be necessary, and to
undertake the necessary actuarial studies and calculations concerning
increases in benefits and the financial stability of the SSS and to provide for
the feasible increases in benefits and the addition of new ones under such
rules and regulations as the Commission may adopt subject to the approval
of the President: President, That the actuarial soundness of the reserve fund
shall be guaranteed: Provided, further, That such increases in benefits shall

3. 2. as may be needed for the proper. against all funds available to the System under this Act. public or private property for the purpose of undertaking housing projects preferably for the benefit of low-salaried employees and for the maintenance of hospitals and institutions for the sick. (j) To acquire. P. S-1975) (k) To sue and be sued in court.not require any increase in the rate of contribution. (i) To acquire property. and to inspect or cause to be inspected periodically such branches. 1636. (As amended by Sec. No. 1792) (h) To require reports. 2.O. R.A. which may be necessary or expedient for the attainment of the purposes of this Act. 1792) (g) To set up its accounting system and provide the necessary personnel therefor. (As amended by Sec. No.D. E. 2658 and Sec. real or personal. 3. (As amended by Sec. efficient and stable administration of the System.A. 2.D. No. R. (e) To enter into agreements or contracts for such service and aid. expropriation or otherwise. .. 1. S-1986) (d) To establish branches of the System whenever and wherever it may be expedient or necessary. (f) To adopt from time to time a budget of expenditures including salaries of personnel. 735. or hold. R. S-1979 and Sec. P. 102. compilations and analyses of statistical and economic data and to make investigations as may be needed for the proper administration and development of the System. (l) To perform such other acts as it may deem appropriate for the proper enforcement of this Act. aged and infirm employees and immediate members of their families. receive.A. by way of purchase. (As amended by Sec.

R. (c) Court Review. upon application by the . and Sec. (d) Execution of decisions — Any decision or award of the Commission after the same has become final and executory shall be enforced and executed in the same manner as decisions of Courts of First Instance and the Commission shall have the power to issue to the City or provincial sheriff or the sheriff whom it may appoint such writs of execution as may be necessary for the enforcement of such decision or award and any person who shall fail or refuse to comply with such decision. 4857. contributions and penalties thereon or any other matter related thereto. except that in the Supreme Court. the same shall be reviewed by the Supreme Court. by the Solicitor General or any fiscal. No appeal shall act as a supersedeas or a stay of the order of the Commission. P. shall become final fifteen days after the date of notification.SECTION 5. No.A. in the absence of an appeal therefrom as herein provided. No appeal bond shall be required. Appeal from a decision of the Commission must be taken within fifteen days from notification of such decision. after being required to do so shall. Settlement of Disputes. or the Court of Appeals or the Supreme Court. criminal cases wherein life imprisonment or death has been imposed by the trial court shall take precedence. — (a) Any dispute arising under this Act with respect to coverage. or any of its members. benefits. The Commission shall be deemed to be a party to any judicial action involving any such decision. determination and settlement of disputes shall be governed by the rules and regulations promulgated by the Commission. and shall take precedence over all cases. — Any decision of the Commission. award. and may be represented by an attorney employed by the Commission. or by hearing officers duly authorized by the Commission and decided within twenty days after the submission of the evidence. and any case filed with respect thereto shall be heard by the Commission. (As amended by Sec. — The decision of the Commission upon any disputed matter may be received both upon the law and the facts by the Court of Appeals. shall be cognizable by the Commission. If the decision of the Commission involves only questions of law. 2. shall so order. S-1975) (b) Appeal to Courts. R. 735. 3. unless the Commission itself. and judicial review thereof shall be permitted only after any party claiming to be aggrieved thereby has exhausted his remedies before the Commission. or when requested by the Commission. The filing. or writ. For the purpose of such review the procedure concerning appeals from the Court of First Instance shall be followed as far as practicable and consistent with the purposes of this Act.A. 2658. 3. The case shall be heard in a summary manner. Sec.D.

Witnesses. Oaths.D. undertaking. 24. (As amended by Sec. including corporations . domestic or foreign.Commission. certify to official acts. except the Government and any of its political subdivisions. He or his representative shall check and audit all the accounts. correspondence and other records deemed necessary as evidence in connection with any question arising under this Act. papers. unless the context indicates otherwise. the same powers and duties as he has with respect to the checking and auditing of public accounts. business. 1636. — For the purposes of this Act. take depositions. Definitions SECTION 8. 735. or activity of any kind and uses the services of another person who is under his orders as regards the employment. (As amended by Sec. S-1975) SECTION 7. S-1972) SECTION 6. Any case of contumacy shall be dealt with in accordance with the provisions of section five hundred eighty of the Administrative Code. No. Terms Defined. No. funds and properties of the SSS in the same manner and as frequently as the accounts. who carries on in the Philippines any trade. 4. P.D. P. P. and Production of Records. — (a) The Commissioner on Auditor shall be the ex-officio Auditor of the SSS. 4. natural or juridical. No. the following terms shall. be punished by the proper court for contempt. branches or instrumentalities. (b) The Secretary of Justice shall be the ex-officio counsel of the SSS. have the following meanings: (a) SSS — The Social Security System created by this Act. as far as practicable. and issue subpoena and subpoena duces tecum to compel the attendance of witnesses and the production of books. 2. S-1979) (b) Commission — The Social Security Commission as herein created.D. He or his representative shall act as legal adviser and counsel thereof. an official or employee thereof shall have the power to administer oath and affirmation. (As amended by Sec. Auditor and Counsel. (c) Employer — Any person. funds and properties of the government are checked and audited under existing laws. industry. — When authorized by the Commission. B. and he shall have. funds and properties in general.

4 R. That a self-employed professional shall be both employee and employer at the same time. "monthly" shall mean a period of one month.D. R. if on any other basis. No. No.D. 24. 4. S-1986) (g) Monthly salary credit — The compensation base for contributions and benefits as indicated in the schedule in section eighteen of this Act. P. where there is an employer-employee relationship: Provided. 2658. No. R.D. 3. (As amended by Sec. 4. 2. No. (As amended by Sec. (As amended by Sec. 5. R. provided that he is congenitally incapacitated and incapable of self-support. 5. except — . (As amended by Sec. That a self-employed professional shall be both employee and employer at the same time.A. S-1972) (h) Monthly — The period from one end of the last payroll period of the preceding month to the end of the last payroll period of the current month if compensation is on hourly. 4. S-1979) (e) Dependent — The legitimate. 1636. and Sec. not gainfully employed. E. Sec. 5 P. and the legitimate parents wholly dependent upon the covered employee for regular support.A. 4. 24.O. 2658 and Sec. 4857. legitimated or legally adopted child who is unmarried.owned or controlled by the Government: Provided. Sec. Sec. 2. 102. 2658 and Sec. 735.A. S- 1972. S-1975) (f) Compensation — All actual remuneration for employment.D. No. including the mandated cost of living allowance. physically or mentally. (i) Contribution — The amount paid to the SSS by the employee and by his employer in accordance with section eighteen of this Act. P. No. (As amended by Sec. 24. 3. 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 three thousand pesos received during the month. No. — Any service performed by an employee for his employer. 1792. 2658. 1636. daily or weekly basis. R.A.D. or over twenty-one years of age. S-1979) (d) Employee — Any person who performs services for an employer in which either or both mental and physical efforts are used and who receives compensation for such services. P. the legitimate spouse dependent for support upon the employee. 5. P. and Sec. and not over twenty-one years of age.A. R. P. S-1972) (j) Employment.A.D. (As amended by Sec.

Service performed in the employ of the Philippine Government or an instrumentality or agency thereof. 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. Sec. R. Service performed in the employ of a foreign government or international organization. No. 5.A. 4.D. or their wholly-owned instrumentality: Provided. 5. international organization. 3.D. and service performed by a child under the age of twenty-one years in the employ of his parents. 735. further. That his exemption notwithstanding. or their wholly-owned instrumentality employing workers in the Philippines or employing Filipinos outside of the Philippines 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. No. 735. and Sec. 6. 7. or spouse. Service performed on or in connection with an alien vessel by an employee if he is employed when such vessel is outside the Philippines. S-1975) . Agricultural labor when performed by a share or leasehold tenant or worker who is not paid any regular daily wage or base pay and who does not work for an uninterrupted period of at least six months in a year. 1.A. (As amended by Sec. Domestic service in a private home. any foreign government. daughter. That the provisions of this Act shall be supplementary to any such agreement.1. Employment purely casual and not for the purposes of occupation or business of the employer. P. Such other services performed by temporary employees who may be excluded by regulation of the Commission. Service performed by an individual in the employ of his son. 2658) 2. RA 4857. (As amended by Sec. 3. S-1975) 8. Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the services of said contractors. 3839. 5. 4. P. R. however. (As amended by Sec. finally.

(As amended by Sec. 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. injury or sickness of the covered employee. 5. No. June.D. 5. Sec. and Sec. S-1975.A. 735. P. permanent disability. P.O. 3. No. and Sec.(k) Beneficiaries — The dependent spouse until he remarries and dependent children. subject to the restrictions imposed on dependent children. 5. S-1975) (l) Contingency — The retirement. 2658. No. (As amended by Sec. S- 1973. whichever is greater: except where the month of contingency falls within eighteen months from the month of coverage. In their absence. R. 3.A. 177.A.D. 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 calendar months of coverage in the same period. R. 5. 3.D. 4. S-1975) (n) Average daily salary credit — The result obtained by dividing the sum of the six highest monthly salary credits in the twelve-month period immediately preceding the semester of contingency by one hundred eighty. 735. No. R. P. S-1986) (o) Semester — A period of two consecutive quarters ending in the quarter of contingency. P.A. 4857. R. 4857. 3. the dependent parents and. (As amended by Sec. September and December. (As amended by Sec. P. 4857 and Sec. any other person designated by the covered employee as secondary beneficiary. R. Sec. 735. 5. 102.A. who shall be the primary beneficiaries. 3. 4857) . No.D.D. 735. 735. 1. P. No. in which case it is the result obtained by dividing the sum of all monthly salary credits paid prior to the month of contingency by the total number of calendar months of coverage in the same period: Provided. S-1975) (p) Quarter — A period of three consecutive calendar months ending on the last day of March. death. S- 1975) (m) Average monthly salary credit — The result obtained by dividing the sum of the monthly salary credits in the sixty-month period immediately preceding the semester of contingency by the number of months of coverage in the same period. (As amended by Sec. In the absence of any of the foregoing.D. E. No. (As amended by Sec. the legitimate descendents and illegitimate children who shall be the secondary beneficiaries. Sec.

No. shall be subject to agreements between the employers and employees concerned: Provided. reduced or otherwise impaired: Provided. finally. 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. — (a) Coverage in the SSS shall be compulsory upon all employees not over sixty years of age and their employers: Provided. nineteen hundred seventy five minus the calendar year of coverage plus the number of calendar years in which six or more contributions have been paid from January 1975 up to the calendar year containing the semester prior to the contingency. (As amended by Sec. adjustments. 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 that that required of him in this Act 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 private benefit plan and to the Social Security System shall be the same as his contribution to his private benefit plan before the compulsory coverage: Provided. R. No. That any changes. 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. 2. Scope of the System SECTION 9. Compulsory coverage. 2. (q) Replacement ratio — The sum of twenty per cent and the quotient obtained by dividing three hundred by the sum of three hundred forty and the average monthly salary credit. 5.A. the number of calendar years in which six or more contributions have been paid from the year of coverage up to the calendar year containing the semester prior to the contingency. 3839) . R. S-1979) C. (As amended by Sec.A. 1636. 2. which may be necessary to adopt by reason of the reduced contribution thereto as a result of the integration. 1636. further. For a member covered in or after January 1975. R. S-1979) (r) Credited years of service — For a member covered prior to January 1975. modifications. P. That any benefit already earned by employees under private benefit plans existing at the time of the approval of this Act shall not be discontinued. 1972. eliminations or improvements in the benefits to be available under the remaining private plan. P. 2658. 5. and Sec. (As amended by Sec.D. further. further.D.A.

— Coverage in the SSS shall also be compulsory upon all self-employed persons earning P1. Professionals athletes. 735.D. — 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. No. 1972.D. all provisions of the SSS Law applicable to covered employees shall also be applicable to the covered self-employed persons. but said employee shall be credited with all contributions paid on his behalf and entitled to benefits according . 1980. 3. That the compulsory coverage of self-employed persons referred to in paragraphs (1) to (4) shall take effect on the first day of January following the calendar year they started the practice of their profession or business operations but in no case earlier than January 1. P. Effective Date of Coverage. All self-employed professionals licensed by the Professional Regulations Commission or those licensed to practice law. (As amended by Sec. Actors and actresses. R. 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. directors. 6. 177. 1636.D. S-1979) SECTION 11. No. 4. P. P. No. S-1979) SECTION 10. (As amended by Sec. 2658. 6. 2. coaches. 1636. 4. scriptwriters and news correspondents who do not fall within the definition of the term "employee" in section eight (d) of this Act. R.800 or more per annum: Provided. S-1973 and Sec. Partners and single proprietors of businesses. S-1975) SECTION 9-A.A. 2. trainers licensed by the Games and Amusement Board as well as jockeys and trainers licensed by the Philippine Racing Commission. Effect of Separation from Employment.(b) Filipinos recruited in the Philippines by foreign-based employers for employment abroad may be covered by the SSS on a voluntary basis. Sec. — When an employee under compulsory coverage is separated from employment. No. That the effectivity of coverage of certain groups of self- employed shall be determined by the Commission under such rules and regulations it may prescribe: Provided.D. and Sec. 3. 6. Compulsory Coverage of the Self-employed. That the effectivity of the coverage of the following self-employed persons shall be in accordance with section ten (b) hereof: 1. Unless otherwise specified herein. further. P. (As amended by Sec.A.

He may. — If the self-employed realizes no net professional or business income in any calendar year. S-1979. S-1977) SECTION 12-B. R. S-1986) SECTION 12-A. 1202. 1. Sec. 7.to the provisions of this Act. he shall not be required to pay contributions for the succeeding year. 5. Retirement Benefits. R.A. No.D. 1636. No. — The dependents' pension shall be equivalent to ten per cent of the monthly pension for each dependent child but not exceeding five. Sec. E. S-1975. 28. be allowed to continue paying contributions under the same rules and regulations applicable to separated covered employees.D. P. No. — (a) The monthly pension shall be the sum of the following: The average monthly salary credit multiplied by the replacement ratio.O. 4857 and Sec. P. Effect of Interruption of Business or Professional Income.D.D. No. 8.D. 1202. Sec. 4. 2658. (As amended by Sec. He may. 7. E.D. P. No. S-1975) SECTION 11-A. (As amended by Sec. however. 177. P. P. 24.A. Dependents' Pension. Sec. and who (1) has reached the age of sixty years and is not receiving monthly compensation of at least three hundred pesos or (2) has reached the age of sixty- . S-1986. R. S-1979) D.A. 6.O. 2. (As amended by Sec. No. P. That the monthly pension of surviving pensioners as of December 31. R. P. — (a) A covered employee who has paid at least one hundred twenty monthly contributions prior to the semester of retirement. Sec. 102. however. Sec. No. beginning with the youngest and without substitution. No. 7. S-1977. 3. 735. S-1973. 6. 1792. 5. 4. 735. 1636. 1986 shall be increased by twenty per cent. P. Monthly Pension. and Sec. Sec. Sec. No. and One and a half per cent of the average monthly salary credit for each credited year of service in excess of ten years.A. continue to pay the total contributions to maintain his right to full benefit. S- 1972. (As amended by Sec. Benefits SECTION 12. (b) The monthly pension shall in no case be less than two hundred pesos nor paid in an aggregate amount of less than sixty times the monthly pension except to a secondary beneficiary: Provided.D. No. 3.D. 4857.

4. P. S-1977. 7.D. 2658.D. — Upon the covered employee's death. 7.A. No. 1792. Sec. his primary beneficiaries shall be entitled to the monthly pension and his dependents to the dependents' pension: Provided. Death Benefits. That he is separated from employment and is not continuing payment of contributions to the SSS on his own. P. No. further. That his dependents born before his retirement of a marriage subsisting when he was fifty-seven years old shall be entitled to the dependents' pension. S-1975. (As amended by Sec. S-1979 and E. R. No.five years. P.D. That he has paid at least thirty-six monthly contributions prior to the semester of death: Provided. 102. No. P. 24. 6. 7. That if the foregoing condition is not satisfied his primary beneficiaries shall be entitled to a lump sum benefit equivalent to thirty-five times the monthly pension: Provided. S-1986) SECTION 13. his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the bigger of (1) twenty times the monthly pension or (2) the difference of sixty times the monthly pension and the total monthly pensions paid by the SSS excluding the dependents' pension. P. No. Sec. 1636. S-1977) (b) A covered member who is sixty years old at retirement and who does not qualify for pension benefits under paragraph (a) above. and Sec. No. That if he has no primary beneficiaries. 8.O. (c) The monthly pension shall be reduced upon the re-employment of a retired employee who is less than sixty-five years old by an amount equivalent to one-half his earnings over three hundred pesos. No. 3. Sec. shall be entitled for as long as he lives to the monthly pension: Provided. P. That the minimum death benefit shall not be less than the total . 1202.A. No. Sec. S-1979) (d) Upon the death of the retired employee pensioner.D. P. (As amended by Sec. S-1972. Sec. shall be entitled to a lump sum benefit equal to the total contributions paid by him and on his behalf: Provided. He shall again be subject to section eighteen and his employer to section nineteen of this Act. however. further. 4. 1202. 177. S- 1973. his primary beneficiaries as of the date of his retirement shall be entitled to eighty per cent of the monthly pension and his dependents to the dependents' pension: Provided. (As amended by Sec. 735. 7. his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to twenty times the monthly pension: Provided. 1636.D. R. That if he has no primary beneficiaries and he dies within sixty months from the start of his monthly pension.D.D.

No.D. 1202. if such disability occurs after he had paid at least thirty- six monthly contributions prior to the semester of disability. No. P. That the beneficiaries of the covered employee who dies without having paid at least three monthly contributions shall be entitled to the minimum benefit.D. No. 6. 9. 9. (As amended by Sec. 6. No. 102. his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the bigger of (1) twenty times the monthly pension or (2) the difference of sixty times the monthly pension and the total monthly pensions paid by the SSS excluding the dependents' pension. No. S-1977) (b) The monthly pension shall be reduced upon his re-employment by an amount equivalent to one-half of his earnings over three hundred pesos. he shall be entitled to the monthly pension and his dependents to the dependents' Pension: Provided. he shall be entitled to a lump sum benefit equivalent to thirty-five times the monthly pension: Provided. P. E.O. further. finally. 5. S- 1977 and Sec. (As amended by Sec.D. No. (As amended by Sec. That if the disability occurs before he has paid thirty-six monthly contributions prior to the semester of disability.D. 6. 1636. — (a) Upon the covered employee's permanent total disability. The monthly pension and dependents' pension shall be suspended upon his recovery from the permanent total disability. That if he has no primary beneficiaries and he dies within sixty months from the start of his monthly pension. S-1979) (c) Upon the death of the permanent total disability pensioner. No. P.D. P. P. P. or his failure to present himself for examination at least once a year upon notice by the SSS. That a member who (1) received a lump sum benefit and (2) is re-employed not earlier than one year from date of his disability shall again be subject to compulsory coverage and considered a new member. 1636.D. 1202. S-1979 and Sec. S-1977 and Sec. his primary beneficiaries as of the date of disability shall be entitled to eighty per cent of the monthly pension and his dependents to the dependents' pension: Provided. That a covered employee who becomes permanently totally disabled without having paid at least three monthly contributions shall be entitled to the minimum benefit: Provided. S-1986) . (As amended by Sec.contributions paid by him and his employer on his behalf nor less than one thousand pesos: Provided. 8. S-1979) SECTION 13-A. Permanent disability benefits. further. That the minimum disability benefit shall not be less than the total contributions paid by him and his employer on his behalf nor less than one thousand pesos: Provided. 1202. finally. 1636.

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. No. Complete loss of sight of both eyes. P. the benefit shall be the monthly pension for permanent total disability payable not longer than the period designated in the following schedule: Complete and Number permanent loss of of Months use of One thumb 10 One index finger 8 One middle finger 6 One right finger 5 One little finger 3 One big toe 6 One hand 39 . S-1979) (f) If the disability is permanent partial and such disability occurs after thirty-six monthly contributions have been paid prior to the semester of disability. Permanent complete paralysis of two limbs. 1636. 4.D. 9. 3. Brain injury resulting to incurable imbecility or insanity. 2. 5. Such cases as determined and approved by the SSS. 9. (As amended by Sec.D. 1636. No. and such disability occurs before thirty-six monthly contributions have been paid prior to the semester of disability.(d) The following disabilities shall be deemed permanent total: 1. and. S-1979) (e) If the disability is permanent partial. Loss of two limbs at or above the ankle or wrists. P. (As amended by Sec.

No.D. 1636. Sec. S-1975 and Sec. separate and unrelated permanent partial disabilities. No. No. but shall be additive for deteriorating and related permanent partial disabilities. 735.O. in which case the employee shall be deemed as permanently totally disabled. E. P. — (a) A covered employee who has paid at least three monthly contributions in the twelve-month period immediately preceding the semester of sickness and is confined for more than three days in a hospital or elsewhere with the Commission's approval. shall not be additive for distinct. Sickness Benefit. to a maximum of one hundred per cent. 1636. 10. 9. 102. which is equivalent to the ratio that the designated number of months of compensability bears to seventy-five. One arm 50 One foot 31 One leg 46 One ear 10 Both ears 20 Hearing of one ear 10 Hearing of both 20 ears Sight of one eye 25 (As amended by Sec. permanently totally disabled employee or retiree. P. shall.D. for each day of compensable . No. S-1975. No. S-1986.D. E. (As amended by Sec. (As amended by Sec.D. and Sec. No. P. S-1979) SECTION 13-B. 2. P.O. 7. 9. rounded to the next higher integer. S-1986) SECTION 14. 28. 11. S- 1979) (g) The percentage degree of disability. Funeral Benefit. 735. — A funeral grant of two thousand pesos shall be paid to help defray the cost of funeral expenses upon the death of a covered member.

No. 177. 24. and Sec. P. P. for as long as such allowances are due and payable: Provided.D. Sec. 7. Sec.D. 5. S-1986) (2) No employee shall be paid any sickness benefit for more than two hundred forty days on account of the same confinement. S-1975) . an allowance equivalent to ninety per cent of his average daily salary credit. No. P. That in cases where notification is necessary.O. subject to the following conditions: (As amended by Sec. No.A. 9. 2658. 9.A. R. and (3) The employee shall notify his employer of the fact of his sickness or injury within five 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 notification to the employer is not necessary: Provided. E. Sec. R. 3. 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. 735. 7. further. 2658. (As amended by Sec. 10. Sec. E.A. and Sec. 1636. No.D. That such allowance shall begin only after all sick leaves of absence with full pay to the credit of the employee shall have been exhausted. No.A. 24. or the SSS. R. 8. E. 8. 28. 8. P. That if the member is unemployed he shall directly notify the SSS of his confinement within five calendar days after the start thereof unless such confinement is in a hospital in which case notification is also not necessary: Provided. S-1972. P. (As amended by Sec. 735. S-1973. No. No. 4857. S-1975. (As amended by Sec. 28.O. 102. and similarly in the case of direct payment by the SSS. Sec. if such person is unemployed. 4857. No. be paid by his employer. P. R. nor shall any unused portion of the one hundred twenty 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.D. 14. 3. S-1986) (1) In no case shall the total amount of such daily allowance be less than seven pesos and fifty centavos nor exceed seventy-five pesos nor paid longer than one hundred twenty days in one calendar year. Sec. No.confinement or fraction thereof.O.D. the confinement shall be deemed to have started not earlier than the fifth day immediately preceding the date of notification. S-1979) (b) The compensable confinement shall begin on the first day of sickness. S-1972. S-1986 and Sec.D. 12.

12.D. (As amended by Sec. 4857. 1. 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. S-1972) (f) The provisions regarding the notification required of the covered employee 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 beginning January 1.D. No.D.(c) One hundred per cent 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. P. Sec. 24. (As amended by Sec. R. 1973. 24. S-1972) (e) The claim of reimbursement shall be adjudicated by the SSS within a period of two months from receipt thereof. 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. 4482. 7.A. — A covered female employee who has paid at least three monthly maternity contributions in the twelve-month period preceding the semester of her childbirth. S-1972) SECTION 14-A. That if the notification to the SSS is made by the employer beyond five calendar days after receipt of the notification from the employee. 735. R. and Sec. 9. S-1972) (d) Where the employee 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 such employer shall have no right to recover the corresponding daily allowance he advanced to the employee as required in this section. R. except confinement in a hospital in which case the claim for benefit or reimbursement must be filed within one year from the last day of confinement. abortion. 2658.D. (As amended by Sec. S-1972 and Sec. further. No. No.A.D. or miscarriage and who is currently employed shall be paid a daily maternity benefit equivalent to one . finally. 8. P. P. 8. Maternity Leave Benefit. 24. 24. Sec. 8. That the employer has notified the SSS of the confinement within five calendar days after receipt of the notification from the employee: Provided.A. Provided. No. P. P. (As amended by Sec. That should no payment be received by the employer within one month after the period prescribed herein for adjudication the reimbursement shall thereafter earn simple interest of one per cent per month until paid. No. 8.

11. (e) That the maternity benefits provided under this section shall be paid only for the first four deliveries after March 13.hundred per cent of her present basic salary.A. or without the latter having been previously notified by the employer of time of the pregnancy. 7. That the beneficiary who is a national of a foreign country which does not extend benefits to a Filipino beneficiary residing in . No. abortion. (As amended by Sec. and R. — The SSS shall pay the benefits provided for in this Act to such persons as may be entitled thereto in accordance with the provisions of this Act: Provided.D. and (g) That if an employee should give birth or suffer abortion or miscarriage without the required contributions having been remitted for her by her employer to the SSS. or miscarriage. (f) That the SSS shall immediately reimburse the employer of one hundred per cent of the amount of maternity benefits advanced to the employee by the employer upon receipt of satisfactory proof of such payment and legality thereof. the employees shall be paid the daily maternity benefit for seventy-eight days. and the SSS shall in turn pay such amount to the employee concerned. (d) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits provided by this Act for the same compensable period of sixty days for the same childbirth.D. (b) That the payment shall be advanced by the employer in two equal installments within thirty days from the filing of the maternity leave application. No. the employer shall pay to the SSS damages equivalent to the benefits which said employee would otherwise have been entitled to. 1973. 7322) SECTION 15. Sec. 1202. S-1977. S-1979. P. 1636. P. (c) That in case of caesarian delivery. Non-transferability of Benefits. allowances and other benefits or the cash equivalents of such benefits for sixty days subject to the following conditions: (a) That the employee shall have notified her employer of her pregnancy and the probable date of her childbirth which notice shall be transmitted to the SSS in accordance with the rules and regulations it may provide.

S-1975) SECTION 16. the Commission may direct payments without regard to nationality or country of residence: Provided. except when they are physically unable to collect personally such benefits: Provided. P. assessment. or which is not recognized by the Philippines. all contributions collected and all accruals thereto and income or investment earnings therefrom as well as all supplies. Sec.D. charge. 10. P.A. No tax measure hereafter enacted shall apply to the SSS. and shall not be liable to attachments.the Philippines. That in case of death benefits. fee. P. No. R. where the best interest of the SSS will be served.D. 3839. Legal Process and Lien. and Sec. the Commission shall appoint a representative under such terms and conditions as it may deem proper: Provided. Any tax assessment against. R.D. That notwithstanding any law to the contrary. if no beneficiary qualifies under this Act. 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 employee in which case the benefits shall be paid to such parents or spouse. fees or charges. That notwithstanding the foregoing. shall not be entitled to receive any benefit under this Act: Provided. Exemption from Tax. Such benefits are not transferrable and no power of attorney or other document executed by those entitled thereto. further. further.D. No. (As amended by Sec. or any other person for the collection thereof on their behalf shall be recognized. the payment of benefits under this Act shall bar the recovery of similar benefits under Title II of Book IV of the Labor Code of the Philippines. papers or documents which may be required in connection with the operation or execution of this Act shall be exempt from any tax. 24. 735. That if the recipient is a minor or a person incapable of administering his own affairs. S-1972 and Sec. 4. 4857. and conversely. levy or seizure by or under any legal or equitable process whatsoever. S-1972. P. said benefits shall be paid to the legal heirs in accordance with the law of succession: Provided. equipment. as amended. 9.A. Sec. either before or after receipt by the person or persons entitled thereto. unless it expressly revokes the declared policy of the State in section two hereof granting tax- exemption to the SSS. or customs or import duty. in favor of any agent. 24. garnishments. R. and still unpaid by the SSS shall be null and void. attorney. 8-A. No. 2658. further.A. S-1975) . 735. as representative payee of the recipient. further. except to pay any debt of the covered employee to the SSS. finally. No. 14. 13. 8. and all benefit payments made by the SSS shall likewise be exempt from all kinds of taxes. — All laws to the contrary notwithstanding the SSS and all its assets and properties. during the period of such payment for the same contingency. Sec. (As amended by Sec.

6 14.D. No. Any violation of the provisions of this Section shall be punished by a fine of not less than five hundred pesos nor more than five thousand pesos.499.2 10 25.10 P 125. 1202.00 10.249.50 II 150 . filing or pursuing any claim for benefit under this Act shall demand or charge for his services any fee. at the discretion of the court.99 600 30.2 V 350 .7 VI 500 . S- 1977) E.SECTION 17.149. the employee's contribution in an amount corresponding to his salary.4 20 50. Attorneys. the employer shall deduct and withhold from such employee's monthly salary.7 14. S-1973 and Sec. however.99 175 9 5. No. 8. 4. attorney or other person in charge of the preparation. which fees shall not be payable before the actual payment of the benefits. and any stipulation to the contrary shall be null and void.4 7.7 III 200 . or imprisonment for not less than six months nor more than one year.199.5 18. 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. (As amended by Sec. Sources of Funds — Employment Records and Reports SECTION 18.9 IV 250 . 1987: Salary Range of Monthly Monthly Contribution Bracket Compensation Salary Employer Employee Total Number Credit I P 1 . or both. 347.99 425 21. and any stipulation to the contrary shall be null and void.D. P. Employee's Contribution. etc.349. Fee of Agents. wage.99 300 15.99 P P 6. — (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.99 225 11.1 35. That any member of the Philippine Bar who appears as counsel in any case heard by the Social Security Commission shall be entitled to attorney's fees not exceeding ten per cent of the benefits awarded by the Commission.699. P.40 P 4. — No agent. wage. compensation or earnings. compensation or earnings during the month in accordance with the following schedule effective on January 1.4 .

699. 1.400 .3 66.00 101.00 152 100 252 The tabulated schedule for the monthly contribution of the self-employed and voluntary members effective January 1.199.99 XI 1.250 .899.00 240 .00 200 2.00 II 150 .500.100 . 1.000.3 84 IX 1100 .7 168 2249.99 1.99 XII 2250 .99 800 64 VIII 900 .500.99 225 18 IV 250 .OVER 3.250.000.99 XI 1750 .000.349.7 67. 2.7 83.000.99 800 40.899.99 425 34 VI 500 .00 120 1.00 126.5 26.000.99 175 14 III 200 .249.500.149.750 .99 P 125.00 50.99 XIII 2.249.99 XII 2. 1. 2.749.99 X 1.00 76 50 126 1749.3 41.99 300 24 V 350 .750 .7 105 1399.00 160 2.250.00 63.OVER 3.99 XIII 2750 .499.00 P 10. VII 700 .000. 1.749.7 33.500.00 80 1. 2. 2.99 600 48 VII 700 . 1987 shall be as follows: Salary Range of Monthly Monthly Bracket compensation Salary Contribution Number Credit I P 1 .99 IX 1.399.099.00 100 1.1099. 1.2 VIII 900 .3 210 2749.99 X 1400 .

24. S-1979) SECTION 19. (As amended by Sec. from the compensation of his employees covered by the SSS or otherwise recover from them the employer's contributions with respect to such employees. Sec. directly or indirectly. interest investments and the like . P. 1202. — The contributions to the SSS of the self-employed shall be determined in accordance with section eighteen of this Act: Provided. No. P. — (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. 2658. and Sec. 1636. No.A. the correct names and SS numbers of the employees and the total contributions paid for their account during the quarter. Contributions of the Self-employed. (As amended by Sec.D. S-1986) (b) Every employer shall issue a receipt for all contributions deducted from the employee's compensation or shall indicate such deductions on the employee's pay envelopes.The maximum covered earnings or compensation of all SSS members shall be limited to three thousand pesos per month as provided in the foregoing schedules unless otherwise provided by the Social Security Commission through rules and regulations taking into consideration actual calculations and rate of benefits.D. No. That the average monthly net earnings declared by the self- employed at the time of his registration with the SSS shall be considered as his monthly compensation and he shall pay both the employer and employee contributions. 10. Notwithstanding any contract to the contrary. (As amended by Sec. Net earnings as understood under this section shall be the net income from his business or profession as reflected in the income tax return for the immediately preceding year. 11. Employer's Contributions. dividend. R.D. 10. 13.D. P. an employer shall not deduct. excluding rental income. 9. S-1972. with respect to such covered employee.A. S-1979) SECTION 19-A. P. No. R. 1636. the employer's contribution in accordance with the schedule indicated in section eighteen of this Act. (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. Sec. his employer shall pay. 12. 1792.

SECTION 21. Government Guarantee. P. the contributions payable by the employees to be advanced by their respective employers: Provided. unless he makes. 1792) SECTION 22. That upon separation of an employee. 14. The average monthly net earnings declared by the self-employed member at the time of his registration shall remain the basis of his monthly salary credit. the collection and remittance of contributions shall be made quarterly or semi-annually in advance. any . he shall pay besides the contribution a penalty thereon of three per cent per month from the date the contribution falls due until paid. R. the necessary sum or sums to meet the estimated expenses of the System for each ensuing year.or all types of incomes which are not derived from his business registered with the SSS or from the practice of his profession. 1636. (As amended by Sec. S-1979) SECTION 20. Remittance of Contributions. If deemed expedient and advisable by the Commission. 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. in which case such latest declaration becomes the new basis of his monthly salary credit. another declaration of his average monthly net earnings based on his income tax returns for the immediately preceding year. 13. — As the contribution of the Government to the operation of the System. the Congress shall annually appropriate out of any funds in the National Treasury not otherwise appropriated.A. No. (As amended by Sec. Government Contribution. — 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 System. In addition to this contribution. at the start of the year. the 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 System as disclosed by suitable periodic actuarial studies to be made of the operations of the System. — (a) The contribution imposed in the preceding section shall be remitted to the SSS within the first seven days of each calendar month following the month for which they are applicable or within such time as the Commission may prescribe.D.

(As amended by Sec. P. any employer who is delinquent or has not remitted all the monthly contributions due and payable may within six months from the issuance of this Executive Order remit said contributions to the SSS and submit . 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. No. (As amended by Sec. S-1977) (e) For purposes of this Section.D. 1202. or from the time the benefit accrues. 11. the Commission may also collect the same in either of the following ways: (1) By an action in court. S-1972) (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. 24. 12. 15. or (2) By issuing a warrant to the Sheriff of any province or city commanding him to levy upon and sell any real and personal property of the debtor.D. P. No. (d) The last complete record of monthly contributions paid by the employer or the average of the monthly contributions paid during the past three 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.D. as amended. S-1972 and Sec. default in any payment of contributions. (As amended by Sec. No. natural or juridical.D. which shall hear and dispose of the case in preference to any other civil action. 24. The right to institute the necessary action against the employer may be commenced within twenty years from the time the delinquency is known or the assessment is made by the SSS. as the case may be. nor shall the employer be relieved of his liability under section twenty- eight of this Act.contribution so paid in advance but not due shall be credited or refunded to his employer. 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. 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. 1636. S-1979) (c) Should any person. No. 12. P. unless contradicted and overcome by other evidence: Provided. P.

(As amended by Sec. — (a) Each employer shall immediately report to the SSS the names. P. P.D.O. Remittance of Contributions of Self-employed. 735.D. Employment Records and Reports. ages. and Sec. Sec. (c) and (d) of section twenty-two of this Act are also applicable to the collection of penalties and contributions of the covered self-employed. 1636. S- 1973. tickets. the employer shall be liable to pay the SSS damages equivalent to five year's monthly pension. That if the contingency occurs within thirty . S-1975) SECTION 24. No. 177. In case the employer fails to remit to the SSS the said contributions within the six months grace period. as the Commission may specify through rules and regulations. 24. S-1986) SECTION 22-A. No. Payment may be made in cash. except that in case of pension benefits. (As amended by Sec. That if an employee subject to compulsory coverage should die or become sick or disabled or reach the age of sixty without the SSS having previously received any report or written communication about him from his employer or a contribution paid in his name by his employer. — Self-employed members shall remit their monthly contributions quarterly on such dates and schedules. checks. 16. S-1979) SECTION 23. The penalty of three per cent per month for late payments provided for in paragraph (a) of section twenty-two of this Act and the manner of collection of contributions specified in paragraphs (b). 6. 15. stamp. 28. No. — The SSS shall require a complete and proper collection and payment of contributions and proper identification of the employer and the employee. or other reasonable devices that the Commission may adopt. including dependents' pension: Provided. P.D. coupons. P. E. the penalty of three per cent shall be imposed from the time the contributions first became due as provided in paragraph (a) of this section. No. further. the said employer shall pay to the SSS the damages equivalent to the benefits to which said employee would have been entitled had his name been reported on time by the employer to the SSS. No. S-1972.D. occupations. 4. civil status.the corresponding collection lists herefore without incurring the prescribed three per cent penalty. Method of Collection and Payment. 12. salaries and dependents of all his employees who are subject to compulsory coverage: Provided. (As amended by Sec.

No. No. P. R. 13. P. Sec. R. and such other data that the Commission may require and said annual register shall be submitted to the SSS in the month of January of each year. No. No. P. 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. (As amended by Sec.A.D. their SSS numbers. the employer shall be relieved of his liability for damages.days from the date of employment. 735. 12. P. (As amended by Sec. Sec. S-1972. 1792. 24. S-1972 and Sec. the employer shall also be liable for the payment of the corresponding unremitted contributions and penalties thereon. S-1975. 16.D. 1636. No. Such records shall be open for inspection by the SSS or its authorized representatives quarterly or as often as the SSS may require. S-1975) (d) Every employer shall keep true and accurate work records for such period and containing such information as the Commission may prescribe. S- 1972. S-1979) In addition to the liability mentioned in the preceding paragraphs (a) and (b) hereof. 17. 24. . (As amended by Sec. 1202.D.D. 16. 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. 13. No. and Sec. 15. P. 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. resulting in a reduction of benefits. shall not be divulged without the consent of the Administrator or any official of the SSS duly authorized by him. unless and until such other beneficiary notifies the SSS of his claim prior to the payments. S- 1979) (c) The records and reports duly accomplished and submitted to the SSS by the employee or the employer. (As amended by Sec. No. 13. S- 1977) (b) Should the employer misrepresent the true date of employment of his employees or remit to the SSS contributions which are less than those required in this Act.D. the employer shall pay to the SSS damages to the extent of such reduction. the names of the persons employed or separated from employment.D. S-1975. 4857. 24.D. 1636. P.A. such payments shall discharge the SSS from liability. and shall be made the basis for the adjudication of the claim. shall be kept confidential by the SSS except in compliance with a subpoena duces tecum issued by the Courts. Sec. as the case may be. 9. 16. and Sec. No. 17.D. P. P. 735. 735. shall be presumed correct as to the data and other matters stated therein. No. Sec.D. P.

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.The SSS may also require each employer to submit. No. 1636. with respect to the persons in his employ. reports needed for the effective administration of this Act. administered and disbursed in the same manner and under the same conditions and requirements as provided by law for other public special funds: Provided. operational expenses and the maintenance of regional offices of the SSS: Provided. (As amended by Sec. S-1972) (f) Notwithstanding any law to the contrary. such numbers originally assigned to them should be used for purposes of this section: Provided. P. report to the SSS his name. (As amended by Sec. P. the SSS shall not pay him the corresponding benefit. or disabled or reach the age of sixty without the SSS having previously received such report.D. and all accruals thereto shall be deposited. 16. No. 24. (As amended by Sec. S-1975) SECTION 24-A. he should die or become sick. age. That if after said period of thirty days. Funds of the System SECTION 25. purchases of office equipment and materials. No. Report and Registration of the Self-employed. 24. That not more than twelve per cent of the total yearly contributions plus three per cent of other revenues shall be disbursed for salaries and wages. average monthly net income and his dependents: Provided. 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. No. each employer shall require as a condition to employment. — All moneys paid to or collected by the SSS every year under this Act. P. within thirty days from the effective date of coverage.D. shall have evidentiary value as the originals and be admissible as evidence in all legal proceedings. (As amended by Sec. duly certified by the official custodian thereof. civil status. 13. 735. 18. That if the expenses in any year are less than . That in case of employees who have earlier been assigned registration numbers by virtue of a previous employment. — Each covered self- employed person shall. S-1979) F. Deposit and Disbursements.D. 13. further.D. and occupation. 1973. further. P. S-1972) (e) Effective July 1. microfilm copies of original SSS records and reports.

Sec.D. 735.A. 24. That such investment in deposits or securities shall be equitably distributed to all designated banks. No. 16.O. 1636. No. S-1972. 14. and Sec. 24.D. P. S-1986) SECTION 26. whichever is smaller: Provided. No. That such deposits shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank. P. That the tolls shall be collected by the SSS for a reasonable fee. — 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'. R. 102.D. Sec.D. R. No. S-1975. P. 10. or bonds or securities for the payment of the interest and principal to which the faith and credit of the Republic of the Philippines is pledged. S-1972) (d) In direct housing loans to covered employees and group housing projects giving priority to the low-income groups. E. S-1972) (c) In loans or interest-bearing advances to the National Government for the construction of permanent toll bridges. 2658.A. 24. up to a maximum of ninety per cent of the appraised value of the properties to be mortgaged by the borrowers and in loans for the construction and the maintenance of hospitals and . 5. Sec. (As amended by Sec.D. No. (b) In interest-bearing deposits or securities in any domestic bank doing business in the Philippines: Provided. S-1986) (a) In interest-bearing bonds or securities of the Government of the Philippines. No. 4857.the maximum amount permissible. Sec. No. (As amended by Sec. 102. S-1979. 11. 17. further. Such portions of the Reserve Fund as are not needed to meet the current benefit obligations thereof shall be invested to earn an average annual income of at least nine per cent and shall be known as the 'Investment Reserve Fund' which shall be invested in any or all of the following: (As amended by Sec. E. No. R.O. P. Investment of Reserve Funds. the difference shall not be availed of as additional expenses in the following years. 3839. (As amended by Sec. 10.A. P. That said bank shall first have been designated as the depository for this purpose by the Monetary Board of the Bangko Sentral ng Pilipinas: Provided. toll roads or government office buildings in accordance with actuarial considerations and the conditions prescribed by law in such cases: Provided. 14. 13-A. and Sec. finally.D. P. S-1972. 19. 14. 24. Sec.

Sec." All amounts received by the SSS in connection with the aforesaid insurance operations shall be placed in the Mortgagors' Insurance Account.A. 17. S-1986) (e) In short and medium term loans to covered employees such as salary. (As amended by Sec. 14. S-1972) (g) As part of its investment operations. E. That any such investment shall be made with due diligence and prudence to earn the highest possible interest consistent with safety. P.D.O. Sec. 15. (h) The SSS may insure any of its interests or part thereof with any private company or reinsurer. 24. educational.A. No. but such examination shall be limited to the insurance operation of the SSS as . and Sec. (As amended by Sec. the SSS shall establish a separate account to be known as the "Mortgagors' Insurance Account. 4857. 14. 735.D. R. 24.A.O. P.D. in the determination of the Commission. No. That such investment shall not exceed thirty per cent of the Investment Reserve Fund. the SSS shall act as insurer of all or part of its interests on SSS properties mortgaged to the SSS. R. and Sec. 102. Notwithstanding any provision of law to the contrary. 11. 14. No. 2658. No. Sec. 15. S-1972. or lives of mortgagors whose properties are mortgaged to the SSS. For this purpose. P. its members. S-1972. 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. 2658. shall redound to the benefit of the SSS.A. P. The Insurer 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 years. 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.D.institutions for the sick. 24. No. as well as the public welfare: Provided. R. Sec. S-1975. 1792. R. 11. (As amended by Sec. aged and infirmed members and their families. S-1986) (f) In other income earning projects and investments secured by first mortgages on real estate collaterals which. 11. and Sec. calamity and emergency loans: Provided. E. 102. 18. That not more than ten per cent of the Investment Reserve Fund at any time shall be invested for this purpose. No. referred to in section 4 (j) of this Act: Provided.

No. 24. (As amended by Sec. 177.D. and Sec. No. S- 1973. shall have been not less than one and one-quarter times the total of its fixed charges for such year: Provided. the net earnings of the issuing. P. P. further. or other evidences of indebtedness. No. assuming or guaranteeing institution.authorized under this section and shall not embrace the other operations of the SSS. debentures. S-1986) (j) In preferred stocks of any solvent corporation or institution created or existing under the laws of the Philippines: Provided. as hereinafter defined. but excluding extraordinary non-recurring items of income or expense appearing in the regular financial statement of the issuing.O. 102. or guaranteeing entity or its predecessors has paid regular dividends upon its preferred or guaranteed stocks for a period of at least . Sec. 1. 14. debentures or other evidences of indebtedness of any solvent corporation or institution created or existing under the laws of the Philippines: Provided. The Term 'fixed charges' shall include interest on funded and unfunded debt. That such investment shall not exceed 10 per cent of the Investment Reserve Fund. taxes other than income taxes.D. That the issuing. (As amended by Sec. As used in this section. P. the SSS shall pay to the Insurance Commission an amount equal to the actual expenses of the Insurance Commission in the conduct of the examination 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. E. P. Sec. further.D. assuming or guaranteeing institution available for its fixed charges. depreciation and depletion. S-1975) (i) In bonds. No. That the general law on insurance promulgated thereunder shall have suppletory application insofar as it is not in conflict with the SS Law and its rules and regulations. 12. 7. No. 65. 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. the term 'net earnings available for fixed charges' shall mean net income after deducting operating and maintenance expenses. That for each examination.D. 735. That the issuing. assuming or guaranteeing 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 including the last two of the five fiscal years next preceding the date of acquisition by the SSS of such bonds. amortization of debt discount and rentals for leased properties. S-1972. 18. assuming.

or under an agreement thereunder. That if the stocks are guaranteed. the amount of stocks so guaranteed is not in excess of fifty percentum of the amount of the preferred or common stocks. the duration and amount of benefits paid. where none is authorized to be paid. Records and Reports. Penal Clause.O. of the issuing corporations: Provided. 12. for the purpose of causing any payment to be made under this Act. their occupations and employment status. showing in particular the status of the finances of the System and the benefits administered. No. the Administrator shall prepare for submission to the President and to the Congress of the Philippines a report of operations of the System during the preceding year including statistical data on the number of persons covered and benefited. shall make or cause to be made any 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 . (As amended by Sec. 102. three years next preceding the date of investment in such preferred or guaranteed stocks: Provided. That such investment shall not exceed ten per cent of the Investment Reserve Fund. 12. — The administrator shall keep and cause to be keep records of operations. S- 1986) SECTION 27. E. the corporation or institution has sufficient retained earnings to declare dividends for at least two years on such preferred stock: Provided. the finances of the System at the close of the said year. That if the corporation or institution has not paid dividends upon its preferred stocks. and recommendations. (As amended by Sec. No. — (a) Whoever. as the case may be.O. finally. S-1986) (k) In common stocks of any solvent corporation or institution created or existing under the laws of the Philippines listed in the stock exchange with proven track record of profitability and payment of dividends over the last three years: Provided. That such investment shall not exceed 10 per cent of the Investment Reserve Fund. 102. E. of the funds of the System and of disbursements thereof and all accounts of payments made out of said funds. During the month of January of each year. He shall also cause to be published in two newspapers of general circulation in the Philippines a synopsis of the annual report. SECTION 28. furthermore. further.

8. alters. (As amended by Sec. sells. 5.D. 15. or pledges or gives in pledge. coupon. in case of the covered self-employed or to deduct contributions from employee's compensation and remit the same to the SSS. forged. That where the violation consists in failure or refusal to register employees or himself. employer or the SSS. at the discretion of the court. 347. at the discretion of the court: Provided.benefit payable under this Act. P. 24. one hundred seventy-two of the Revised Penal Code. or both. or uses.D. P. shall suffer the penalties provided for in Art. any stamp. transfers. ticket. P. sells. (d) Whoever. No.D. or other device. shall be fined not less than five hundred pesos nor more than five thousand pesos and imprisoned for not less than six months nor more than one year. S-1972. or imprisoned for not less than six months nor more than one year. offers for sale. shall be punished by a fine of not less than five hundred pesos nor more than five thousand pesos. with intent to defraud. forged material in imitation of the material used in the manufacture of such stamp. representation. No. coupon. or has in his possession any such altered. and Sec. except as authorized in this Act or in regulations made pursuant thereto. No. ticket. coupon. affidavit. No. without being entitled thereto with intent to defraud any covered employee. (e) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations promulgated by the Commission. ticket. S-1973) (b) Whoever shall obtain or receive any money or check under this Act or any agreement thereunder. prescribed pursuant to section twenty-three hereof by the Commission for the collection or payment of contributions required herein. uses. 24. shall be fined not less than one thousand pesos nor more than ten thousand pesos or imprisoned for not less than one year nor more than five years. or has in his possession any such altered. S-1972) (c) Whoever buys.D. book. (As amended by Sec. or whoever makes or causes to be made any false statement. book or other device prescribed by the Commission for the collection or payment of any contribution required herein. P. uses. 177. or both. sells. lends. makes or counterfeits any stamp. 15. or application for loan with the SSS. book or other device. Sec. at the discretion of the court. the penalty shall be a fine of not less than five hundred pesos nor more than five thousand pesos and imprisonment for not less than six months nor more than . forges. or both. imprisonment for not less than six months nor more than one year. or document in connection with such claim or loan. shall be fined not less than five hundred pesos nor more than five thousand pesos. or counterfeited materials or makes. takes or gives in exchange. S-1973.

corporation or any other institution. or shall take or misappropriate or shall consent. partnership. at the option of the SSS. — The establishment of the Social Security System shall not disqualify the covered employees and employers from receiving such government assistance. P. 15.D. shall suffer the penalties provided in Art. 735. 20. R. No.one year. 177. and Sec.A. S-1979) (f) If the act or omission penalized by this Act be committed by an association. 15. No.D. wholly or partially. 1636. 2658. No. 24. No. Sec. 13. S-1973. That such criminal action may be filed by the SSS in the city or municipality where the SSS provincial or regional office is located if the violation was committed within its territorial jurisdiction or in Metro Manila. 8.D. 1792. (g) Any employee of the System who receives or keeps funds or property belonging. 16.D.A. fails to remit the said deductions to the SSS within thirty days from the date they became due shall be presumed to have misappropriated such contributions or loan amortizations and shall suffer the penalties provided in Art. 2658) (h) Any employer who after deducting the monthly contributions or loan amortizations from his employee's compensation. P. No. Government Aid.D. 19. and Sec. (As amended by Sec. S-1972) (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. three hundred fifteen of the Revised Penal Code.D. as may be provided. No. P. 24. S-1975. Sec. .A. (As amended by Sec. 16. two hundred seventeen of the Revised Penal Code. 1202. P. or shall otherwise be guilty of misappropriation of such funds or property. R. S-1972. S-1977) SECTION 29. or through abandonment or negligence shall permit any other person to take such property or funds. P. its managing head. R. payable or deliverable to the System and who shall appropriate the same. P. Sec. (As amended by Sec. directors or partners shall be liable to the penalties provided in this Act for the offense. 19. financial or otherwise. (As amended by Sec.

735. No. — The Assembly hereby reserves the right to amend. R. the remainder of this Act or the application of said provision to other persons or circumstances shall not be affected by such declaration. SECTION 31. Separability Clause. alter. 20.A. Effectivity. Approved: June 18. or repeal any provision of this Act. S-1975) SECTION 32. (As amended by Sec. — In the event any provision of this Act or the application of such provision to any person or circumstance is declared invalid. P. and no person shall be or shall be deemed to be vested with any property or other right by virtue of the enactment or operation of this Act. 21.D. 19541awphil@alf .SECTION 30. — This Act shall take effect upon its approval. Saving Clause. 1792 and Sec.