SSS LAW

Republic Act No. 8282

AN ACT FURTHER STRENGTHENING THE SOCIAL SECURITY SYSTEM THEREBY

AMENDING FOR THIS PURPOSE, REPUBLIC ACT NO. 1161, AS AMENDED, OTHERWISE
KNOWN AS THE SOCIAL SECURITY LAW
Under the Republic Act No 8282 – Social Security Law, SSS, also known as Social Security
System, is a policy of the state to establish, develop and promote sound and viable tax-exempt
social security system 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, sickness, maternity, old age, death and other contingencies
resulting in loss of income and financial burden. Towards the end, the State shall endeavor to
extend social security protection to workers and their beneficiaries.

Type of SSS Benefits

Sickness benefits
Sickness benefit pertains to the daily cash allowance paid for the number of days a member is
unable to work due to sickness or injury. To qualify for the availment of sickness benefit, the
following conditions must be present, namely:

1. The member is unable to work due to sickness or injury and is confined either in a
hospital or at home for at least four days.
2. The member has paid at least 3 months of contributions within the 12-month period
immediately before the semester of sickness.
3. The member has used up all company sick leaves with pay for the current year and has
duly notified his/her employer.
4. The member must notify the SSS directly by filling a sickness benefit application if
he/she is separated from employment, a voluntary or self-employed member.

The amount of an employee’s sickness benefit is computed as: the daily sickness allowance
times the approved number of days.

Maternity benefits

Maternity Benefit pertains to the daily cash allowance granted to a female member who is
unable to work due to childbirth or miscarriage. To claim for maternity benefits, 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.

To qualify for the availment of maternity benefit, the following conditions must be present,
namely:

1. The member has paid at least three months of contributions within the 12-month period
immediately before the semester of her childbirth or miscarriage.
 2. If employed, she must has given notification of her pregnancy through her employer, or
must have directly notified the SSS if she is separated from employment, a voluntary or
self-employed member.

The amount of the daily Maternity Benefit allowance is equivalent to 100% of her average daily
salary credit, multiplied by 60 days in case of normal delivery or miscarriage, or by 78 days for
caesarian section delivery. Said Maternity Benefits may be granted only up to the first four
deliveries or miscarriage [Sec. 14-A].

Retirement benefits

Retirement Benefits pertain to the cash benefit paid to a member who can no longer work due to
old age. To qualify for retirement benefit, a member should be at least 60 years old and
unemployed, and has paid at least 120 monthly contributions prior to the semester of retirement
(optional retirement). Also qualified for retirement benefits are members who are 65 years old,
whether employed or not (compulsory retirement). If employed, the member should have paid at
least 120 monthly contributions prior to the semester of retirement.

Retirement Benefits may be in the form of monthly pension or payment of lump sum amount.
The monthly pension is a lifetime cash benefit paid to a retiree who has paid at least 120
monthly contributions to the SSS prior to the semester of retirement. The lump sum amount, on
the other hand, is granted to a retiree who has not paid the required 120 monthly contributions,
and is equal to the total contributions paid by the member and by the employer including
interest [Sec. 12-B].

Disability benefits

The new SSS Disability program is a re-designed disability program that implements the revised
manual of disability assessment. The new program adopts the World Health Organization’s
(“WHO”) definition of disability that states as any “restriction or lack (resulting from impairment)
of ability to perform an activity in the manner or within the range considered normal for a human
being.” The re-designed program aims to ensure that the right cash benefit for disability is paid
to truly deserving members.

Disability benefits may take the form of monthly pension or lump sum payment. The monthly
pension is a cash benefit paid to a disabled member who has paid at least 36 monthly
contributions to the SSS prior to the semester of disability. The lump sum amount is granted to
those who have not paid the required 36 monthly contributions [Sec. 13-A].

Death and funeral benefits

Death Benefit pertains to the cash benefit either in monthly pension or lump sum paid to the
beneficiaries of a deceased member, which may be paid either through monthly pensions, or in
lump sum amount. The monthly pension is granted only to the primary beneficiaries of a
deceased member who had paid 36 monthly contributions before the semester of death. The
lump sum is the amount granted to the primary beneficiaries of a deceased member who had
paid less than 36 monthly contributions before the semester of death. The secondary
beneficiaries shall be entitled to a lump sum benefit [Sec. 13].
A funeral grant up to a maximum of P40,000 is given to whoever pays the burial expenses of
the deceased member or pensioner [See: SSS Circular No. 2015-009]. The primary or
secondary beneficiaries of a deceased employee-member, who had no contribution payment at
all and who was reported for coverage shall be entitled to funeral benefit only [Sec. 13-B].

Maintaining the well being of one’s own employees should be endeavored by every employer,
and the programs of SSS are tools to achieve that without employers having to provide for
everything from their own pockets. To this end, all such employers have to make sure is that
their employees are duly registered, all their contributions are religiously deducted and remitted,
and keep themselves and their employees aware of the program’s conditions for availing its
benefits.