[G.R. No. L-16359. December 28, 1961.

THE INSULAR LIFE ASSURANCE COMPANY, LTD., as employer of Agustin O.

Benitez (SSS No. 03-095312), Petitioner-Appellant, v. SOCIAL SECURITY
COMMISSION, Respondent-Appellee.

Enrico V. Nano for Petitioner-Appellant.

Solicitor General for Respondent-Appellee.

Jurisprudence:

Circular only interprets or implements the clear and express provisions of the law.

Facts:

The petitioner, in two separate letters to the Social Security Commission dated May 13, 1959 and June
16, 1959, objected to the enforcement of Circular No. 21 of the Commission, promulgated on October
15, 1959, which Circular requires employers to remit to the Commission their contributions for
employees who are on leave of absence without pay. The petitioner also asked for the refund of the
contributions already remitted by it. Notwithstanding its objections and pursuant to said Circular, the
petitioner continued to remit its contributions to the Commission for its employee, Agustin O. Benitez,
from May 15, 1959 to August 30, 1959.

On June 25, 1959, the Social Security Commission denied the objections, holding that Circular No. 21 is a
valid interpretation of the provisions of the Social Security Act. On July 6, 1959, petitioner asked for a
reconsideration of the stand of the Commission and it reiterated the same in its subsequent letters of
June 7, 1959 and September 7, 1959.

Issue:

Whether or not the commission can exercise legislative power.

Ruling:

We can not agree to this contention. We are more inclined to accept as correct the argument of the
Solicitor General that said Circular only interprets or implements the clear and express provisions of the
law. As already adverted to above, the Social Security Act in its Sections 9, 11, 22 and 28(a) clearly
imposes an obligation to contribute upon the employer as long as the relationship of employer and
employee exists. Said Circular only lays down the amount and basis of, and the manner of collecting said
contributions when the employee is on leave without pay. Said circular is not, therefore, an
administrative rule or regulation, the effectivity of which is subject to the President’s approval and to its
publication in the Official Gazette, but is merely an interpretation and implementation by the
Commission of the express and clear mandate of the law.