Salient Feature of SSS Law (For Recitation tomorrow with Atty Acosta)

This might help you guys!

Social Security Act of 1997

(RA 8282)

Who are covered:

1. EMPLOYER – any person, natural or judicial, domestic or foreign who carries on in the Philippines any trade, business,
industry undertaking or activity of any kind and uses the services of another person who is under his orders as regards
employment 8(c)
*EXEMPT EMPLOYER: government and any of its political subdivisions, branches and instrumentality, including GOCCs, i.e.,
those under GSIS
2. EMPLOYEE – any person who performs services for an employer who receives compensation for such
services, where there is an employer-employee relationship
3. SELF-EMPLOYED – considered both employer and employee

DEPENDENTS
1. Legal spouse entitled for support;
2. Child, whether legitimate, legitimated, legally adopted or illegitimate;
3. Parents dependent for support

CONDITIONS FOR CHILD TO BE CONSIDERED DEPENDENT

1. Unmarried;
2. Not gainfully employed;
3. Has not reached 21 years of age; OR 3. Not over age of majority; OR
4. Incapable of supporting himself either physically or mentally prior to 21 years of age or
age of majority, as the case may be

BENEFICIARIES
1. PRIMARY
a. Dependent Spouse until remarriage AND
b. Dependent Legitimate or Legitimated or Legally Adopted and Illegitimate ChildreN

2. SECONDARY
a. Dependent Parents
b. Absent primary and secondary beneficiaries, any other person designated by member as secondary beneficiary

3. OTHERS
As to DEATH BENEFITS, if no beneficiary qualifies under the Act, benefits shall be paid to Legal Heirs in accordance with Law
of Succession

BENEFITS
1. Monthly Pension
2. Dependents Pension
3. Retirement
4. Death
5. Permanent Disability
6. Funeral
7. Sickness
8. Maternity (ONLY 1ST FOUR DELIVERIES OR MISCARRIAGES)
9. Loan Grant

COVERAGE
1. COMPULSORY
a. All employees not over sixty (60) years of age and their employers; 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
b. Self-employed persons as may be determined by the Commission under such rules and regulations as it may prescribe,
including, but limited to: all self-employed professionals; partners and single-proprietors of business; actors and actresses,
directors, scriptwriters and news correspondents not employees; professional athletes, coaches, trainers and jockeys, and
individual farmers and fishermen; upon their registration with the SSS
c. Domestic helpers sixty years of age and below with a monthly income of not less than P1,000 on the date of their
employment
d. Individual farmers and fishermen under SSS rules and regulations
B. VOLUNTARY
a. Filipinos recruited by foreign-based employers for employment abroad
b. Employee separated from employment to maintain his right to full benefits
c. Self-employed who realizes no income for a certain month
d. Spouses who devote full time to managing household and family affairs unless specifically mandatorily covered

*By Arrangement: Any foreign government, international organization or wholly owned instrumentality employing workers in
the Philippines or employing Filipinos outside the Philippines may enter agreement with Philippines for inclusion of such
employees in SSS EXCEPT those already covered by their respective civil service retirement System

EXCEPTIONS FROM COVERAGE

1. Employment purely casual and not for purpose occupation, or business employer
2. Service performed on or in connection with alien vessel, if employed when such vessel is outside of Philippines
3. Employees of Philippine government or instrumentality or agency thereof
4. Service performed in the employ of a foreign government, or international organizations, or wholly owned instrumentality
employing workers in the Philippines or employing Filipinos outside of the Philippines
5. Services performed by temporary employees and other employees excluded by SSS regulation;
employees of bona fide independent contractors shall not be deemed employees of the employer engaging the services of an
independent contractor

COMPENSATION
All actual renumeration for employment, including the mandated cost-of-living allowance, as well as the cash value of any
renumeration paid in any medium other than cash except that part of the renumeration in excess of the maximum salary
credit

BASIS OF CLAIM
Non-work connected disability, sickness, maternity, death and old age and other contingencies resulting in loss of income or
financial burden (sec. 2)

EFFECTS OF SEPARATION FROM EMPLOYMENT

1. Employer’s contribution on his account ceases
2. Employee’s obligation to contribute also ceases at the end of the month of
separation
3. Employee shall be credited with all contributions paid on his behalf and entitled to benefits according to the provisions of
this Act

REPORTING REQUIREMENTS
A. Employer:
Report immediately to SSS the names, ages, civil status, occupations, salaries and dependents of all his covered employees
B. Self-employed:
Report to SSS within 30 days from the first day of his operation, his name, age, civil status, occupation, average monthly net
income and his dependents

FUNDING
1. Employer’s contributions
2. Employee’s/member’s contributions

EXEMPTION FROM TAX/LEGAL PROCESS/LIEN

Property, assets, and revenues of SSS and GSIS are all exempt from taxes, and all benefits paid by SSS or GSIS shall likewise
be exempt from taxes, assessments, fees, charges, and duties of all kind
DISPUTE SETTLEMENT
Dispute arising from:
1. Coverage
2. Benefits
3. Contributions
4. Penalties
5. Any matters related thereto

Jurisdiction: Social Security Commission

When decision made: Mandatory period of 20 days from submission of evidence
Appeal:
CA – questions of law and facts
SC – questions of law only

PRESCRIPTIVE PERIOD
10 years from accrual of right of action