Sss Gsis Part Ungos

SOCIAL SECURITY ACT OF 2018
e odt ot bREPUBLICACT NO.11199"

NOTES:
noituloeo7etue
Developmentofthe Lawp
B The Social Security Law came about on July 18, 1954 with the
enactment of Republic Act No. 1161, otherwise known as the Social
Security Act of 1954, but it was not implemented until September 1,
1957. It has undergone several amendments throughout the years.
Jon The rst amendatory act was Republic Act No. 1792 which
deleted the provisions on unemployment bene ts. Thereafter,
Republic Act No. 2658 was enacted wherein the coverage of the
Social Security System was broadened, the bene ts increased
and the enjoyment thereof liberalized. Republic Act No. 3839 was
promulgated three years thereafter, wherein the retirement bene ts
were increased and the minimumn age requirement for coverage was
removed. On June 19, 1965, Republic Act No. 4482 was enacted
wherein the reimnbursable amount of sickness bene ts advanced by
employers was increased. Thereafter, several other laws increasing
the amount of social security bene ts were promulgated, namely:
Republic Act No. 4857, Presidential Decree Nos. 24, 177, 347, 735,
1202, 1636, Executive Order Nos. 28, 102, Republic Act Nos. 7322
and 8282, the latter having been approved on May 1, 1997.
Rationale Behind the Social Security Law

The Social Security Law was enacted under the policy of the
State to establish, develop, and promote a sound and viable tax-
exempt social security system suitable to the needs of the people
throughout the Philippines and provide meaningful protection
to members and their bene ciaries against hazards of disability,
sickness, maternity, old age, death, and other contingencies resulting
in loss of income or nancial bene ts.?
'An Act Rationalizing and Expanding the Powers and Duties of the Social
Security Commission to Ensure the Long-Term Viability of the Social Security
System, Repealing for the Purpose R.A, No. 1161, as amended by R.A. No. 8282,
Otherwise Known as the "Social Security Act of 1997."
in2Social Security Act of 2018, Section 2; Mendoza v. People, G.R. No. 183891,
[August 3, 2010], 640 Phil. 661-669; Social Security Systemv. Moonwalk Development
472
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MOIT SOCIALSECURITYACTOF 2018itb 473
Validity of the Social Security Law lay2yiituss2

IaizoDol
ot The enactment of the SocialSecurity Law is a legitimate
exercise of police power. It is in full accord with the constitutional
provisions on the "promotion of social justice to insure the wel-being
and economic security of all thepeople." o rd
Construction of the SocialSecurityLawhay viim02 isiao2 orlT

J The provisions of the Social Securty Law are to be liberally
construed in favor of those seeking its bene ts.
The Social Security Law Is Not a Law on Succession

9T01 3
e In case of death of acoveredmember, it is not the heirs who are
to receive the bene ts but the designated bene ciaries. The heirs
are entitled to bene ts only when the bene ciary is the estate, when
there are no designated bene ciaries, or when the designation of
bene ciaryis void.u iro odi obaludrteo ehet e
The Social Security Law Is Not Part of the Taxation Systembod
290) The Social Security Law is not part of the taxation system
because its purpose is not for raising revenues but for the promotion
of the general welfare.6
dnndasdivdbeolgors
Gl102 Iniocordtloara1evo
o atairlT qtieaortelyr olgarolgis rs o aetee oc

& Housing Corp., G.R. No. 73345, [April 7, 1993]; Santiago v. Court of Appeals, G.R.
No. L-39949, [October 31, 1984], 218 Phil. 35-44; CMS Estate, Inc. v. Social Security
System, G.R. No. L-26298, (September 28, 1984], 217 Phil. 107-114; Social Security
System v. Court of Appeals, G.R. No. L-41299, (February 21, 1983], 205 Phil. 609-
634; United Christian Missionary Society v. Social Security Commission, G.R. No.
L-26712-16, (December 27, 1969], 141 Phil. 633-643; SSS Employees Association v.
Soriano, G.R. No. L-18081 (Resolution), [November 18, 1963], 118 Phil. 1354-1362; In
re Catholic Archbishop of Manila v. Social Security Commission, G.R. No. L-15045,
(January 20, 1961], 11O Phil. 616-622.
nte In re Catholic Archbishop of Manila v. Social Security Commission, G.R. No.
L-15045, January 20, 1961], 110 Phil. 616-622.
o Franklin Baker Company of the Philippines v. Social Security System, G.R.
No. L-17361, [April 29, 1963], 117 Phil. 840-845. 1
oilod 9Social Security System v. Davac, G.R. No. L-21642, (July 30, 1966], 124 Phil.
255-260; Tecson v. Social Security System, G.R. No. L-15798, (December 28, 1961],
113 Phil. 703-707.
diEe CMS Estate, Inc. v. Social Security System, G.R. No. L-26298, (September 28,
1984], 217 Phil. 107-114.
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474 AGRARIAN LAW AND SOCIAL LEGISLATION
The Social Security System WsJ yiiuonZ Isiao2orli lo ibiloy

916 The Social Security System is the implementing arm of the
Social Security Act of 2018. It is a corporate body with a personality
separate and distinct from the Government, directed and controlled
by theSocialSecurityCommission.'odtile io vaiue oirnonoosbns
The Social Security System May Sue and Be Suedo noltoutano
The Social Security Act of 2018 speci cally provides that
the Social Security System can sue and be sued in Court.s These
words "sue and besued embrace all civil process incident to a legal
action. The law itself has given the private citizen a remedy for the
enforcement and protection of his rights. A private citizen, therefore,
may bring a suit against it to obtain compensation in damages
arisingfromcontractandevenfortort. ud alo9d sr3 igor ol
TheFunds of theSocialSecuritySystemAre Private Funds o3
The funds contributed to the Social Security System are not
public funds. The funds belong to the members and are merely
held in trust by the Government,10 Thus, the inclusion of religious
organizations under the coverage of the Social Security Law does
not violate the constitutional prohibition against the application of
public funds for the use, bene t or support of any priest who may be
employed by the church.!"
Coverage of the Social Security Law

Coverage of the Social Security Law used to be predicated on
the existence of an employer-employee relationship.12 This is no
longer true because the policy now is to encourage even the self-
employed to become Social Security System members.13
feteaiMit
Social Security Act of 2018, Section 3. ) otvds
aoSocial Security Act of2018,Section 4(6)(11).0
S do lSIA9l
9Social Security System v. Court of Appeals, G.R. No. L-41299, (February 21,
1983],205Phil.
609-634. o) Ji sluta togordottdn ilotscD
1OUnited Christian Missionary Society v. Social Security Commission, G.R. No.
L-26712-16, (December 27, 1969], 141 Phil. 633-643; In re Catholic Archbishop of Manila
v. Social Security Commission, G.R. No. L-15045, (January 20, 1961], 110 Phil. 616-622.
H.D "In re Catholic Archbishop of Manila v. Social Security Commission, G.R. No.
L-15045, (January 20, 1961], 110 Phil. 616-622.TLI E30r
la 1 12LUSTEVECOv. SSS,G.R. No. L-20088, (January 22, 1966]; In re Catholic
Archbishop of Manila v. Social Security Commission, G.R. No. L-15045, [January 20,
1961), 110 Phil. 616-622.
e19Corporal, Sr. v. National Labor Relations Commission, G.R. No. 129315,
[October 2, 2000], 395 Phil. 890-902).
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O SOCIAL SECURITY ACT OF 2018/hDA 475
NotCoveredbytheSocialSecuritySystem g6
1) Services where there is no employer-employee
relationship; s srslavbtetnl'e
2) Serviceperformed in the employ of the
Philippine government or any of its instrumentalities and
agencies;16
esr 3) Service performed in the employ of foreign

governments or international organizations or their
wholly-owned instrumentality;® and
Temporaryemployees,ifexcludedby regulation
4)
of the Social Security Commission.!" TOK
NOTE: In the absence of a regulation exempting
temporary employees from coverage, temporary employees
are covered because there is no way of telling whether theUioY
saidemployeesbelong to a group or classdesignated byit
bns biod
regulation of the Social Security Commission as exempt.l0
viuoS 6auitvdborsvoo
sdysm s iml
Compulsory Coverageabog6o o1s oS a0slau,alesd ininaioy
Coverage under the Social Security System is compulsoryupon:
spayolc 1)1 Allemployers;ma1slugoioyonrnin9ertnoyailo?
All employees not over 60 years of age;o
sT
ttod rsbnn3) o Domestichelpers;?eorl ieiev2 roiapo8Isioo odt
bisgani 4) Self-employedpersons, including:S vOoban auisie
lea gea hus s9zolqts S1.s RS iuoteva vUD9 Laoo& sri ot
odt no haasdena) Professionals;"d) bosk9 todtstb9volgone
BUO9rLlusatetcb) Partners and single proprietors of gicl
adoton businesses;oa,bbituter, 9d liada ezeo sdt,agT9V00
lss ol) tol )o9 Actorsand
actresses, scriptwriters edT
directors,
and news correspondents who do not fall within the
ecloi de nition ofthe term"employee";
opsovo3 roteye viuöo21sloo2to otsl evitssiE
Social
Security
Actof2018,
Section 8(1)9olqmd tot
14Social Security Act of 2018, Section 8()(2).
16SocialSecurityAct of2018,Section 80Oos toja vtinuso2 Isiooh
"Social Security Act of 2018, Section 8()(4).
19LUSTEVECO v. SSs, G.R. No. L-20088, (January 22, 1966).
1"Social Security Act of 2018, Section 9(a).
20Tbid. 810Sio t0 oinu2 Inio2
Ibid.
2Social Security Act of 2018, Section 9-A(a).109o so he2 irioo2
brs aouril znittoualqris
2gocialSecurityAct of2018,Section 9-AD)2 S slurl 3I0S10 jA viruso?
4Social Security Act of 2018, Section 9-A(e).
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d) Professional athletes, coaches, trainers oM

andjockeys;""and
e)
mtt ioirooto2
Individual farmers and shermen;2 and
( zoliod
5) Overseas Filipino workers, whether land-based
or sea-based27UT19
8lpoioI99B
NOTE 1: Manning agencies are considered as
employers of sea-based overseas Filipino workers. They
7 are jointly and severally liable with their principals with
respect to the civil liabilities incurred for violating theos
Social
SecurityActof2018. 4ubrgsrsT (hiy i toe
NOTE 2: Land-basedoverseas Filipino workers areo
i considered in the same manner as self-employed persons.ageg
Voluntary Coverageo cswon at ors) eusod b9tsvon910

Spouses who devote full-time to managing the household and
family affairs may be covered by the Social Security System on a
voluntary basis, unless they are engaged in a vocation or employment
which is subjectto mandatory coverage.ait s9bnugAvO doas
Policy on the Primacy of Regular Employment over Self-Employment

Ifa personis bothself-employedand anemployeecoveredby
the Social Security System, he shall pay the contributions under both
status andcoverage. However, when the combined contributions paid
to the Social Security System as a regular employee and as a self.
employed member exceed the maximum contributions based on the
highest monthly salary credit prevailing at the time of simultaneous
coverage, the excess shall be refunded accordingly to the member.
The excess contributions to be refunded shall come from the self-
employedcontributions. otlwanobroqesrto0awen bs
ouat egi sdio otintob
Effective Date of Social Security System Coverage
1) Employers – on the rst day of hisYP

operation;
S08 noioo AI0So nA vihuaoio ania
2SocialSecurityAct of2018,Section9-A(d). o vim2 iniaoe
28Social
SecurityActof2018,Section
9-A(e). a y0U3vaT
21Social
SecurityActof2018,Section 9-5(a).to oAimulo tholie
29Social Security Act of 2018, Section 9-B(b).
29Social Security Act of 2018, Section 9-B(¢).
bidthote
3oSocial Security Act of 2018, Section 9-Ab).
Implementing Rules and Regulations of R.A. No. No. 11199 or the Social
Security Act of 2018, Rule 37, Section 3; Circular No. 37-P, May 16, 2007.
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SCIAL SECURITY ACT OF 2018 477
2)
and e
Employees - on the rst day of his employment;
3) Self-employed - upon his registration with the

Social Security System.92
Securing a Social Security System Number Does Not Confer

Membership
The mere fact that a person has obtained a Social Security
System Number does not automatically make him a member. He
will be considered as a member only when he has been reported for
coverage and has paid at least one month contribution.
MembersCannot Withdraw Their Membershipoyolgms ns noriW

oWhen a person registers for membership, hebecomesa member
for life. Therefore, during such time that the member failed to remit
contributions, the bene ts and loan privileges provided by the Social
Security System can still be availed of as long as the member meets
the qualifying conditions for entitlement thereto.
qiontta sdDa the
Obligations of Employers 101Eries
1) To report hisemployeesforcoverage;3ig9 lo footta
sldail o 2) To deduct the employee's contribution from his
monthly salary;4
3) To pay the employer's contributions; and
l 4) To remit the premium contributions to the

Social Security System within the rst 10 days of each
month;%
9anol90 toM el ditin9boo
Effect of Failure to Report an Employee forCoverageg sdT
Failure on the part of the employer to report an employee for
Social Security System coverage will subject him to the following
liabilities:
91
MSocial Security Act of 2018, Section 10.
"Social Security Act of 2018, Section 24(a).
leio uSocialSecurityActof2018,Section 18.f0 n t lntsu
B5SocialSecurityAct of2018,Section 19.JELR ok SDmtee ehisb
s0SocialSecurity Act of2018,Section22(a). 0go asYL
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1) If the employeebecomessick, disabled, retires

or dies, the employer is liable to the Social Security
System for damages which said employee would have
been entitled had his name been reported on time; and
2) In case ofpension bene ts, the employer is liable
on to theSocialSecuritySystemfordamagesequivalent to2
whichever is higher between: odmel
a lete a) the accumulated pension due as of the
H odo date of settlement of the claim; or
b) to the ve monthly pension,
years'
including dependents monthly pensions.37
When an Employer Is Not Liable for Damages for Failure to Report

The employer is not liable for damages if the contingency
occurs within 30 days from the date of employment8
Subsidiary Liability of the Principal

The principal is subsidiarily liable for the civil liabilities of his
contractor.39
Effect of Failure of Employer to Remit Contributions

In addition to criminal liability, the employer shall be liable to
pay:
1) the unremitted contributions, plus
2) 2% penalty per month from the date the
contribution
fell
due. i ooe
Good Faith Is Not a Defense
The penalty for failure to remit premium contributions is
punitive in character, hence, good faith is not a defense. From the
moment the remittance of premiums due is delayed, the penalty
immediately attaches to the delayed premium payments by force of
law,1
SISocial Security Act of 2018, Section 24(a).

38Jbid.
39Tbid. ct of20134a ac 8SI0S
40Social Security Act of 2018, Section 22(a); Ambassador Hotel, Inc. v. Social
Security System, G.R. No. 194137, (June 21, 2017], 811 Phil. 424-440.
4Navarra v. People, G.R. No. 224943, [March 20, 2017], 807 Phil. 765-775:
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OT SOCIALSECURITYACTOF2018 479
Demand Is Not a Condition Precedent for Remittance of

Contributionspe b
The employer is duty-bound to remit the contributions without
need of any demand from the employee. It is the legal obligation of
every employer to remit the Social Security System contributions
within the rst 10 days of the month. With this mandate of the
law, demand on the part of the employee for the employer to remit
the contributions to the Social Security System is not a condition
precedent for such remittance. The Social Security System can
collect such contributions in the same manner as taxes are made
collectible under the National Internal Revenue Code.obau
2.9d dat aldeil bs ylnio blod
Liability of Managing Heads, Directors, or Partners ,Unih
.o oldgilvllgsoaia
The liability of managing heads, directors, or partners for
unremitted contributions is solidary with that of the corporation,
partnership, association, or institution. 48 Under the Social Security
Act of 2018,4 if an act or omission penalized by the said Act is
committed by a corporation, partnership, association, or institution,
its managing head, directors or partners shall be liable to the
penaltiesprovided for theoffense.181to vs 70noiiroqToo
od
Dox & Parcel Courier Express International, Inc. v.
Social Security System
moimsg ysg o
G.R. No. 225648, January 8, 2020
s3 norw of qU
enobudiỦno
Fhe FACTS: On December 6, 2005, the Social Security
System led a petition for the issuance of a warrant of levy and
te garnishment of the personalproperties and bank accounts of
iton the directors of a dissolvedcorporation to satisfy its unremittedd 1o
hb contributions
and
penalties.00(g hironlsgilde2s2olqiraU
In their defense, A and B (both directors) averred that
they had already assigned their respective shares to certain
persons on May 5, 1998. According to A and B, they already0
hhe ceased to be directors and were no longer connected in any
eili vdbaralab yrinteotlrilziom lndiailrditdrtos e'estolqo
ohesteL eidtooiait bts9domsntboyolqmeAlos
Mendoza v. People, G.R. No. 183891, (August 3, 2010], 640 Phil. 661-669; Chua v.
Court of Appeals, G.R. No. 125837, [October 6, 2004), 483 Phil. 126-141; United
Christian Missionary Society v. Social Security Commission, G.R. No. L-26712-16,
December 27, 1969], 141 Phil. 633-643. d.v sat iT bin?xolir
Lantaco, Sr. v. Llamas, A.M. No. 1037-CJ, [October 28, 1981], 195 Phil. 325-344.
A (. Dox & Parcel CourierExpressInternational, Ine. v. Social SecuritySystem,
G.R. No. 225648 (Notice), (January 8, 2020].
"Section 28 ().
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io ccapacitywith thecorporationat the time of thealleged non-o

remittance of the contributions. A and B stress that since theiro
Deed of Assignment was notarized, the assignment was binding
Tuon upon third parties, including the Social Security System.
47
0 o ISSUE:Can adirectorof adissolved
corporationbe99r
ySystem
held solidarily liable for its unremitted Social Security System 9v9
aftcontributions?IT7 1O 9t e
e RULING: TheSupremeCourt ruled in the af rmative. It
found that the Social Security System was not bound to recognize
the transfer, therebeing noshowing that the transfer of their
shareswasrecordedin thebooksof the corporation. Furthermore,ll0
underprevailingjurisprudence,""acorporatedirector may bel
held jointly and severally liable with the corporation when a
director, trustee or of cer is made, by a speci c provision of law, dai]
personally liable for his corporate action. In this regard, the
Supreme Court pointed to the provision of Section 28 () of the
SocialSecurityAct of1997,%whichreads: osdiigoo bstiment
&t tA ic ard«Sec.28.PenalClause. XXX ne 8104io oA

roiuiieith 0."() If the act oromissionpenalizedby this iunmo
sdt or 'sl Act be committed by anassociation, partnership,&ns
corporation or any other institution, its managing sitlanea
head, directors or partners shall be liable to the
Ees si penaltiesprovidedin this Act for theoffense. ,oCl
9ja(2 lins2.inino2
Up to when can an employer be obliged to pay premium
contributions? USUR,5 yIRUISb,80GS .0
,
The obligation of an employer to pay Social Security System
premium contributions subsists only during the term of employment
of his employee. When the employee is separated from employment
the employer's obligation to pay contribution shall cease at the end
of the month of separation.7
380I D0TT9 VG 9016 rilod) & has A estoh nisit ad
Contributionsofthe
Self-Employede40LL&M foanoqn the
noThe self-employed member pays both the employer's and
employee's contributions. The monthly earnings declared by the
self-employed member at the time of his registration with the Social
Philex Gold Phil. Inc. v. Philex Bulawan Supervisors Union, G.R. No. 149758,
[August 25, 2005], 505 PHIL 224-240.
eirta
,Oa 40Theprovision similarly appears as Section 28 () in the Social Security Act
of 2018.
"Social Security Act of 2018, Section 11.
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VOT SOCIALSECURITYACTOF 2018O8 481
Security System shall be considered as his monthly compensation.

Contributions of self-employedpersonsearningPhp1,000.00 monthly
or below may be reduced by the Social Security Commission.
The monthly earnings declared by the self-employed member
at the time of his registration shall remain the basis of his monthly
salary credit, unless he makes another declaration of his monthly
earnings, in which case the latest declaration becomes the new basis
ofhismonthlysalarycredit. o osraseitre
If the self-employed member does not earn any income in any
given month, he is not required to pay contributions for that month.9
Social Security System Bene ts
boni 1) Maternity leavebene t,50

ate2) Sickness
bene t.51 stt o tte aitgaibrvihvd
3) Permanent partial disability bene t;2
d 4) Permanenttotaldisability bene t;oKick
5) Unemployment or Involuntary Separation
Bene t:54
T9yolque 6) Retirement bene t; oeoltiortsm sdl
7) Deathbene t;8and io andt mol 2tso08nicltiw
Funeral beneft57olqiaesdt s2iudiien liw matave
8)
irstol snstey eonJooo 3n9rosltisr nolasoitibneD
TheMaternityLeave Bene tscies
od n The maternity leave bene t is available to female members,
rres
married or unmarried, who give birth, suffer miscarriage or
emergency termination of pregnancy. The maternity leave bene t
can be availed of for every instance (i.e., regardless of frequency),
of pregnancy, miscarriage or emergency termination of pregnancy.
"SocialSecurityActof2018,Section19.A9Umom slT (
4Social Security Act of 2018, Sections 11-A and 22-A. ngeig 79r
B0105-Day Expanded Maternity Leave Law, Section 3.
SISocial Security Act of 2018, Section 14.
S2SocialSecurity Act of2018,Section 13-A(e).nM habnsqzad-86r
SSocialSecurityAct of2018,Section13-Aa),n bshnel ore
4Social Security Act of 2018, Section 14-B. bidj
SSocialSecurityActof2018,Section12-B. 0N Ioso iDLos
B$Social Security Act of 2018, Section 13.
SocialSecurityAct of2018,Section13-B. 0 insshvtiano2 inioa
105-DayExpandedMaternityLeaveLaw,Section3. lio
LVEAd viagishbsbanczayo-0[
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oDuration
o
Maternity
f Leavebiassdlisde t ts2
wilo 1) For pregnancy- 105 days with full payJ
regardless of whether caesarian or normal delivery,
1ln extendible for 30 days without pay, at the option of the
wlb employee" or9rz nusasliedenoiteyeigene tusmtorl 3s
icttot NOTE:Soloparentsareentitledtoadditional 151 lne
Kiescdayswithfullpay.0,oisxalosh sinlodtDeFD fdw ot,sairee
2) For miscarriage or emergency termination of o
vas pregnancy- 60days with fullpay.$1
nAmountof
Maternity
Bene t.t isot ioosi d droti9vig
The amount of maternity bene t to be paid by the Social
Security System is 100% of the average daily salary credit.92
NOTE 1: Average daily salary credit is the result obtained
by dividing the sum of the 6 highest monthly salary credits in
the 12-month period immediately preceding the semester of
contingencyby180,63 D RT 3N9S9
NOTE 2: Monthly salary credit is the compensation base
for contributions andbene ts. 19IYofqmsi
G
To Be Paid In Advance By the Employer
The maternity leave pay will be paid in advance by the employer
within 30 days from ling of the application and the Social Security
System will reimburse the employer upon proof ofpayment.s5
L6TSAI
Conditions for Entitlement to Social Security System Maternity
Bene t ñeriea ovsal iirmeisM eriT
E9 The Social Security System maternity leave bene t can be
enjoyed under the following conditions:
bsrrsntntr0 9iS
forsd v 1) The member must have paid at least threeme
(o monthly
contributionsinthe12-month
period
immediately s
- precedingthesemesterof her childbirth,miscarriageor1q io
emergency termination of pregnancy; and
The member must notify the employer about
2)
her pregnancy and the probable date of childbirth.9$
Lotoe.2f1o o iavi,he toc

89105-DayExpanded Maternity Leave Law, Sections 3 and 5.loioo
105-DayExpandedMaternityLeaveLaw,Sections3and 5.i
6Jbid.
62SocialSecurityAct of2018,Section 14-A.oo 1o&, Nirwrt IuissPl
6Social
SecurityActof2018,
Section8(n). 02o ol ion iion
GASocialSecurityAct of2018,Section8(e). aI021o isA die ac
S5SocialSecurity Act of2018,Section14-A(b) and (e).bitRqrL (-di4h
s8105-Day Expanded Maternity Leave Law, Section 5.
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HUT SOCIAL SECURITY ACT OF2018 483
slckness Bene t"niesordieisslsis dilotothausbossnl

Sickness bene t is a daily cash allowance given to the member
during his con nemnent when he is not receiving his wage or salary.
Amount of Sickness Bene t
1 ( The SSS sickness bene t is 90% of the average daily salary
credit, 68 D1
aaoitibro
Conditions for Entitlement to SSS Sickness Bene t
Memberscan avail of thesicknessbene t if: 9t2Slo
abu 1) they have paid at least three monthly
contributions in the 12-month period immediately
preceding the semester ofsickness or injury;°9 mon eRb
2) they were con ned for more than three days in
a hospital or elsewhere with the approval of the Social
SecuritySystem;"º
dioien st a9clqate sdt aot soton
3) they have exhausted their paid company sick
leave bene t;7 and 93
they have noti ed the employer (or the Social
4)
Security System, in case of self-employed members) of
the fact of his sickness or injury within ve calendar days
3I91TSLNU9
after the
IOlstart ofhis con nement.dhoteb ati sribsoerq
TISlo
tabzhT NOTE: Noticeis notnecessaryif con nement10
orris is in a hospital or the sickness or injury occurredor
hoa while working or within the premises of, the
employer.soo o vsb iaslarla noiTRSY9io ntds
Limitations
The sickness bene t can be enjoyed up to a maximum of 120
days in one calendar year. It cannot be paid for more than 240 days
onaccountof the same con nement.4oreq 1nar-f ort niloiw
9951SWolisvisab gtibogzoT03 ard .b0ubeto bansh asw
bovdnios sdton 90olqts pdio beonsvbasr
S7Social Security Act of 2018, Section 14.
Social Security Act of 2018, Section 14(a).
69Tbid.
701bid.
iSocial Security Act of 2018, Section 14(b).
PSocial Security Act of 2018, Section 14(a)(3).
rJIbid.
14SocialSecurity Act of2018,Section14(a)(1)and (3). iosd Loi
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Unused portion of the sickness bene t cannot be carried forward

and added to the total number of compensable days allowable in
subsequentyear."
To Be Paid In Advance By the Employer
The sickness bene t shall be paid in advance by the employer
and the SSS will reimburse the employer under the following
conditions:
1) The employer should present satisfactory proof
ofpaymentandlegality
thereof;78 o lrsve o 10gaoM
vi2) The employer must have noti ed the Social
Security System of the con nement within fve calendar cinl
days from receipt of the notice from the employee;"?51
ia3) If the employer noti ed the Social Security

System after the ve-day period from receipt of the
notice from the employee, the reimbursement shall be
limited only for each day of con nement starting from
the 10th calendar day immediately preceding the date of
noti cation to the Social Security System;3
The Social Security System shall reimbursee
4)
the employer (or pay the unemployed member) only for
con nement within the one-year period immediately
preceding the date the of the ling of the claim for beneft
or reimbursement with the Social Security System, except
when the member was con ned in a hospital, in which
casethe claim for bene t or reimbursement must be lede
n within one year from the last day of con nement;9 and
If the employee has given the required notice,
5)
0Sr but the employer failed to notify the Social Security System
2ysb of the con nement or to le the claim for reimbursementb
within the 1-year period, as a result of which, the bene t
was denied or reduced, the corresponding daily allowance
o
he advanced to the employee, cannot be reimbursed.90
T6Social Security Act of 2018, Section 14(a)(1),

78Social Security Act of 2018, Section 14(c).
1[bid.
78Tbid.
79Tbid.
Social Security Act of2018, Section 14(). o ol oiuo&lajo2
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OT SOCIALSECURITYACTOF2018 OA 485
PermanentPartialDisability Bene t®init sd oto

Permanent partial disability bene t is available to members
who suffer partial loss of the use of any part of his body, specifcally
the loss of a nger, hand, arm, foot, leg, one or both ears, hearing of
one or both ears, or sight of one eye.2
ThePermanentPartial Disability Beneiti0 lsioT itonsne9
The permanent partial disability bene ts are as follows:
1) Monthly pension (depending on the body part
u;orl
that was lost) -if the memberhas paid 36contributions
prior to the semesterof disability, to wit:o 2ol
deil a) One little nger-3 monthsq
tTotat
iltodin b) One ring nger- 5monthsd hd
olinsani 1o
oi vd c)
bevotigge
andi
bts
d)
Onemiddle nger -6 months
asas280
dou2ataofe
Onebig toe-6 monthsiiuos&fnioo
e) Oneindex nger8 monthsnom oT
Onethumb 10 months
of
bipuardg) 19doeaTo 0erevlditolv L
One ear – 10 monthshcneeg
i029teoush) Hearingofoneear- 10months
shell be
9l 3s.
peneon i) Both ears – 20 months h,y3ilidsath
9dilo tesdnidar) eigoienog vitgot ssT :TO
j) Sight of oneeye - 25 months rirollot
a6 9i k) Onefoot -31 months ( lo
I) m)
srdto eg +siba slsaldtnom
One hand - 39months
One leg- 46 months
o ihe
Com
n) One arm- 50 months
idiuo ori ders bobryoxą 00,000,fqdi (
3rawomesJno) Hearing of both ears -50 monthsu
2) Percentageof the lump sum bene t - if the
member has not paid 36 contributions prior to the
semester of disability.4
(n)A8f oito9,8iS laJaAviiuse2inioo
f20b\A&t oiiol8&109o toviinue isio2
ISocial Security Act of2018,Section 13-A(e).o sh. voinso laiso
MSocialSecurity Act of2018,Section 13-A(): os1o aA ydinuo& lsioo2*
BISocialSecurity Act of2018,Section 13-A(). o1o doA iwso laioo
B4SocialSecurity Act of 2018, Section 13-A(e).nsio tokvdiTUD Loroo2
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Effect of Death or Retirement ovdeeiti ioiteinanare9

If the member retires or dies while enjoying permanent partial
disability bene ts, his disability pension shall cease upon his
retirementordeath85 n. btal t ato zel n
Permanent
Total
Disability
Bene t i Se ml pißng
The permanent total disability bene t is available to members
who sutter:
ds sM
enois 1) completeloss of sight of both eyes;ol anw tadt
2) loss of two limbs at or above the ankle or wrist;
3) permanent complete paralysis of two limbs;
4) brain injury resulting in incurable imbecility
or insanity; or Eecnri
5) such cases as determined and approved by the
Social Security System.37
The Permanent Total Disability Bene t
stortang om
(ohe debeof
The permanent total disability bene t is in the form
of:
1) Monthly Pension – for members who have paid
at least 36 monthly contributions prior to the semester of
disability. 88
or bencht
NOTE: The monthly pension is the highest of thept
following amounts: in whici
a) The sum of Php300.00 + 20% of the average
W monthly salary credit + 2% of the average monthly salary
credit for each credited year of service in excess of 10
years;89 or
b 40% of the average monthly salary credit; or
c) Php1,000.00, provided that the monthly

pension shall in no case be paid for an aggregate amount
of less than 60 months,91
l3 o1 o4 8noidudrtao08 bie ton andT9dns

Social Security Act of 2018, Section 13-A().ilidsaib lo xotsta
oSocial Security Act of 2018, Section 13-A(a).
67Social Security Act of 2018, Section 13-A(d).
s8Social Security Act of 2018, Section 13-A(a).0 2o3s4A inuna lsougte
89SocialSecurity Act of2018,Section 12(a)(1).0o toA viru lnioo2a
0SocialSecurityActof2018,Section12(a)(2). o s chiu laoe
91Social
SecurityAct of2018,Section 12(a)(3).o bA au2 lano24
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oT SOCIAL
SECURITY
ACTOF 2018D 487
The minimum pension shall be Php1,200.00 for members

with at least 10 credited years of service and Php2,400.00 for
those with 20 credited years ofservice.92
2) Lump Sum - for memberswho have not paid
36 monthly contributions.9 9 ilsilebr 219V00
NOTE: The lump sum is equivalent to whichever is
higherbetween:E nolsisgo nslnuiovil io nemyolgrmonu
a) the monthly pension x the number of
contributions paid to the Social Security System, or
22 DIR 9 O bs16Tq9e
b)
12 x themonthly pension.ttlaild sa9 l0 g080la
Death of the Member While Enjoying Permanent Total
Disability Bene ts
If the member dies while enjoying permanent total disability
bene ts: q tlaso vldinoIt io TOT
1) his primary bene ciaries as of the date of the
disability shall be entitled to receive his monthly pension;
Or od jlovnt zo -insmvolçrnsa ordT
2) if he has no primary bene ciaries and he diesnvs
within 60 months (i.e., ve years) from the start of his
monthly pension, his secondary bene ciaries shall be
entitled to lump sum bene t equivalent to the balance of
the ve-year guaranteed monthly pension, excluding the
dependents' pension.95
SuspensionofPension TS0a9vodanes leg(Saate
The monthly pension and the dependents' pension shall be
suspended:o5hdst
1)
upon re-employment or resumption of
employment;
2) upon recovery from permanent total disability;ts1
Or
3) for failure to present himself for examination

at least once a year upon notice by the Social Securityo)
System.96
Social Security Act of 2018, Section 12(b).

s9Social Security Act of 2018, Section 13-A(a).
ATbid.
5SocialSecurityAct of2018,Section 13-A(c).u na értod landa
B#SocialSecurity Act of2018,Section13-A(b).0Slo oA uouao lain
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Effect ofRe-Employment nondsy tmniria odl

If the member who has already received a lump sum bene t
is re-employed, or has resumed self-employment after one year
from the date of disability, he shall again be subject to compulsory
coverage and shall be considered as a new member.97
tplmi9eo od:3TOK
l
UnemploymentorlnvoluntarySeparation Bene tod oiad
This is available to employees who have been involuntarily
separated from employment, such as retrenchment, redundancy or
closureof establishment.tttdsoori T
D0 TheUnemploymentorInvoluntarySeparation BenejtdpalC
sl Theunemploymentorinvoluntaryseparationbene t is in the
form of monthly cash payments equivalent to 50% of the average
monthly salary credit for a maximum of two months.
Conditions for Entitlement to Unemployment Bene tsath
The unemployment or involuntary separation bene t is
available to SSS members who: b 2sdodli
1) havepaid at least36monthlycontributions,
12 months of which should be in the 18-month period
immediately preceding the involuntary unemployment or
separation; and
moienog 'atrtsb19qeb
2) are not over 60 years old.oin o Molairau
od Il An employeewho is involuntarily unemployed can claim
t
unemployment bene tsonceevery three years. In caseof concurrence
of two or more compensable contingencies, only the highest bene t
shall be paid.
asteolqzns
Retirement Beneftizenzsq moiatusix nog (
The retirement bene t is available to members who have
reached the age of 60 years (optional retirement) or 65 years
(compulsory
retirement), oio
iclh-& to LOSlo3aé isna lni

97Social Security Act of 2018, Section 13-A(a). hiite
98SocialSecurityAct of2018,Section14-B.I09 lo ta vtws2 Ieioe
99SocialSecurityAct of2018,Section12-B.102 to tok iUe laibo
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MOm SOCIAL SECURITY ACT OF 2018 489
The
Retirement
Bene t eloo o on
The rates of retirement bene t are as follows:
1) Lifetime monthly pension - for memberswho
have paid at least 120 monthly contributions (i.e., 10
years) prior to the semester of retirement,100
NOTE: The member has the option to receive his
rst 18 monthly pensions in lump sum discounted at a
preferential rate of interest to be determined by the Socialos
Security
System.0 o al toitaibionod yinomig
2) Lump sum equal to the total contributions paid
- for members who have not paid at least 120 monthly
contributions prior to the semester ofretirement.103
Suspension of Monthly Pension
The monthly pension of a member who retires at the age of 60
willbesuspendedif he is
re-employed.103IGiateo rtorn
olsiao
Effect of Death of RetiredMember olsviups snuEgonsl
If the retired member dies his primary bene ciaries as of
the date of his retirement shall be entitled to receive the monthly
pension. 104
NOTE: The primary bene ciaries are:

1) The dependent spouse until he or she remarries;e u7
2) The dependent children, whether legitimate, e
slinl legitimated, or legallyadopted;and
3) The dependent illegitimate children (entitled to 50% of
the share of legitimate, legitimated, or legally adopted children) o6
Bl If the retired member does not have primary bene ciaries
and he dies within 60 months (i.e., ve years) from the start of his
monthly pension, the secondary bene ciaries shall be entitled to
a lump sum bene t equivalent to the balance of the total monthly
pensions (excluding the dependents' pension) for the 5-year
guaranteed
period
106TB13
O bluit Sdiot o 9
osd ttesd,pi id 9se ahsisisrod
o1i ogocial Security Act of 2018, Section 12-B(a). aa a odi,nilsLSie
101SocialSecurity Act of 2018, Section 12-B(a).
104SocialSecurity Act of 2018, Section 12-BO).
109SocialSecurity Act of 2018, Section 12-B(c).
104SocialSecurity Act of2018,Section12-B(d). tof. vliurao lsre
1o4Social
SecurityActof2018,Section
8(k).9t02h slasso2 lnok t
1Social Security Act of2018,Section12-B(d). o wruss tatioe
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NOTE: The secondary bene ciaries are: snits s

1) Thedependent
parents; orramLioiada
orfe 2)drIf there are no dependent parents, any person
designated by the member as his secondary bene ciary,i07,yh
nsmoiiin lo1918Srnsa
val oj rorrg(a1n
Death Bene t108
1) If the deceased member has paid at least 36
monthly contributions prior to thesemesterof death- the
primary bene ciaries will be entitled to monthly pension.
bieg arOH NOTE: If there are no primary bene ciaries
Udsn the death bene t shall be paid to the secondaryo!
bene ciaries in the form ofa lump sum equivalentJa0
to thirty-six (36) times the monthly pension. in the
qeutrace
C07o9gs 2) If thedeceasedmember has not paid at least 36
monthly contributions prior to the semester of death the Ilrw
primary or secondary bene ciaries shall be entitled to a
lump sum equivalent to whichever is higher between the:
Bo as egivginiter
monthly pensionx the numberof monthly
Vicitoouest oa) 1115EN9TEJ9T2II
contributions, or
Tnoiartog
18-onth peno
b) 12 x the monthly pension.(NTOMnt o
FuneralBene t109 2 To9d iban oaoqe 1ebrsqobodT (E
trsbasgsh
The funeral bene t is payable in cash or in kind. It is available
even if at the time of death, the member was permanently totally
disabled, or has retired.
11blrdo 9iRtgollr 3a9busg
ofto
Suppose the member/ while still unmarried, designates his
brothers and sisters as bene ciaries, will they be entitled to the
death bene ts?ca asiaioiorsd iebrooss orft ,roiensg vldnom
gdtoruthe death
Dthao and sisters will not beupsentitled
The brothers
bene ts, even if the member failed to change the designation of
bene ciaries after his marriage. Death bene ts under the Social
Security Law are vested only upon death of the member. Under such
situation, the surviving spouse and his children would be entitled to
(c-SI roito 810StodnAvinus2 Isio2ot
o)-eI aorfoe ,T0S1o ɔA oiu98 Inioo21
(o)a-81 aoitoo& 810s to 39A voruo& loioog
107SocialSecurity Act of2018,Section8(<).8I0Shot9 ouse lsio210
108SocialSecurity Act of2018,Section 13. 10s io ind yiiuwo92 Laipo2t
199SocialSecurity Act of 2018, Section 13-B.108 lo s9A yoruiose Iaino2t
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WOIT SOCIAL SECURITY ACT OF 2018 A 491
the death bene ts. Brothers and sisters will qualify as bene ciaries
only in the absence of the surviving spouse and children, or of the
legitimate parents.
The Social Security Commission isoo2oritturtega oitautat

The Social Security Commission is composed of the following:
1) Secretaryof Finance- Ex OffcioChairperson; isit
2) Social Security System President and Chief
Executive Of cer -Vice Chairperson; lan! lrnoigoler
a Secretary of the Department of Labor and ah
3)
Employment - Ex Of ciomember; Joud.(aoibuitagup
4) six members to be appointed by the President
of the Philippines, to wit:
alnqAtoire a) three of theappointedmembersshould ii

otrepresent the workers' group, at least one of whom
shall be a woman; and
9oito moit evshG ntdiiy wsivan
b) the other three appointed members
should represent the employers' group, at least one
of whom shall be a woman.
The six members representing workers and employers shall
be chosen from among the nominees of workers' and employers'
organizations, respectively.
The term of the regular appointive members shall be three years
which can be extended for another three years. They shall continue
to hold of ce until their successors shall have been appointed and
duly qualifed. All vacancies, prior to the expiration of the term,
shall be lled for the unexpired term only,!10
Jurisdiction of the Social Security Commission

The Social Security Commission has jurisdiction to hear and
decide disputes pertaining to:
1) coverage;
2) bene ts;
0 acia3)3 contributionsandpenaltiesthereon;or 9
doegia
any other matter related thereto,111
Tes4) oio) diio92
110SocialSecurity Act of2018,Section3(a).aL08 lo 3of. vinub& lsbo
iSocial Security Act of 2018, Section 5(a).
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The Soclal Securlty Commisslon and the Regional Trial Courts Are
Co-Equal
inRankooyue irenei obongsort i vino
The Social Security Commission and the Regional Trial
Courts areco-equal in rank, hence, the latter cannot issuea writ of
injunctionagainsttheSocialSecurityCommission,
112 b02 6T
to)si
Can the Social Security Commission sue or be sued in the Regional
Trial Court? )oni
The Social Security Commission may sue and be sued in
the Regional Trial Courts only on matters connected with its
admmistrative functions, but not on matters connected with its
quasi-judicial
functions.!13dsn os02 insyolarH
Appeal from Decisions of the Social Security Commission
Decisions of the Social Security Commission in the exercise of
its quasi-judicial functions may be reviewed by the Court of Appeals
under Rule 43 of the Rules of Court by ing a verifed petition for
review within 15 days from notice of judgment.!4
eT9dmTsnboimioqgs 9etTrio 9d1
sno taeoli8 quoTg e19volS 9rit trsatqprbiirosle
AISOLOWs 9d llsrte tnorw îc
lade erovolams has etesrow gmioz01Gas etodrism Xie srT
atsvolcao bts isdiow o e90nnot 9rianome actnocortasd
lavitosqast ,enoitasinegro
eTe9Y 991idod llsde arodnen 9vitnicggeTslsgoxedtio ue srdT
aridacs llsde vadI avs9-7i4 t9n'oneTei bebszs 9das3 soiw
bus betcicgqsrro9dgvsd lsda oeetol1e tisd iioe sorio blod o
9) dt lonodsriqzest oi
TOT2510K0SYlAbotilanptsb
o vlto net hyrigou sdtrotbsllħadiisda
nolazimIIOO iTue2 lsiao anitio noitoibpiwl
bes8sdo oioihud soato uiuos2loivc2srll
ot gnistoq29tuqaibobib
9gTv03 Eocinl
Stsnsd
112Philippine American Life Insurance Co. v. Social Security Commission, G.R.
No. L-20383, [May 24, 1967], 126 Phil. 497-506; Poblete Construction Co. v. Social
Security Commission, G.R. No. L-17605, (January 22, 1964], 119 Phil. 264-267.
9Philippine American Life Insurance Co. v. Social Security Commission, G.R.
No. L-20383, (May 24, 1967], 126 Phil. 497-506.
4Social Security Act of2018,Section5(c). 3(uSu 1oA ULO2 Ieio
610t03t iisnsc loroogt
fl
THE GOVERNMENT SERVICE INSURANCE
SYSTEM ACT OF 1997
PRESIDENTIAL DECREE NO0. 11461

iidtqa
[As Amended by Republic Act No. 8291]hiaes
NOTES:
Coverage of the Government Service Insurance Systemidue loM

The Government Service Insurance System covers government
employees, irrespective of employment status, who are employed with
the:
tox
1) National government, its political subdivisions,
branches, agencies or instrumentalities;
2) Government-owned or controlled corporations;
rt 3) Government nancial institutions withoriginmal
charters;
ob Qd a09v0lgtl
vld) )
5)
Constitutional commissions; and
Judiciary.3
to axUOd
ToRan9qmc
Compulsory Membership qileradnsla
Membership with the Government Service Insurance System
iscompulsoryupon: baolgaemooaodt s1e, :9dmsV TAlugel
tlod bv1) All government
personnel
(whetherelectiveor rt
loz appointive) who are receiving xed monthly compensationvog
and have not reached the mandatory retirement age of 65 as
years;
)SSoiioo
'Amending, Expanding, Increasing and Integrating the Social Security and
Insurance Bene ts of Government Employees and Facilitating the Payment Thereof
under Commonwealth Act No. 186, as Amended, and for Other Purposes.
An Act Amending P.D. No. 1146, as Amended, Expanding and Increasing
the Coverage and Bene ts of the Government Service Insurance System, Instituting
Reforms Therein and for Other Purposes,
SThe Government Service Insurance System Act of 1997, Section 3.
Revised Implementing Rules and Regulations of R.A. No. 8291, Rule II,
Section 2.1.
hovs2
493
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OW 2) Elective of cials who will be more than 65

years old at the end of his term (including the period of
his re-election without interruption);
3) O cials appointed by the President of the
Republic of the Philippines who remain in of ce after
reaching the age of 65;° and yd helyesnh
enional
4)Contractual or casual employees who receive
xed monthly compensation and render the required
number of working hours for the month.?
NotSubjecttoCompulsory Coveragenota voo orii iopgst9Vo

3 9 1) Uniformed personnel of the Armed Forces of
the Philippines, Philippine NationalPolice, Bureau of Firecju9
Protection, and Bureau of Jail Management and Penology: 9
2) Barangay and Sanggunian Of cials who areals
not receiving xed monthly compensation;
belkonin 190 Wa
3) Contractual Employees who are not receiving
xed monthlycompensation;10andnshinnavoi) (8
Employees who do not have monthly regular
4)
hours of work and are not receiving xed monthly
compensation. 1 zsoibu& (G
Classes of Membership qirlerodrm M qozluqmo
9tev 1) RegularandSpeialvo) nds dtin qilersdsL
Regular Members are those employed by the government of
the Republic of the Philippines, national or local, legislative bodies,
government-owned rand controlled corporations witho original
GOlo:sge Jasznetiiat yotsbaaH erli borlossr dort svsd baa
Section 2.2(1).
ʻRevised Implementing Rules and Regulations of R.A. No. 8291, Rule II,
Section 2.2(2).
"Revised Implementing Rules and Regulations of R.A, No. 8291, Rule I,
Section 2.3.
Section 3.1.1.
Revised Implementing Rules and Regulations of R.A. No. 8291, Rule II
Section 3.1.2.
10Revised Implementing Rules and Regulations of R.A. No. 8291, Rule I,
Section 3.1.3.
"Revised Implementing Rules and Regulations of R.A. No. 8291, Rule I.
Section 3.1.4.
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THE GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997 495
charters, government nancial institutions, except uniformed

personnel of the Armed Forces of the Philippines, the Philippine
National Police, Bureau of Jail Management and Penology and
Bureau of Fire Protection, who are required by law to remit regular
monthly contributions to the Government Service Insurance System.12
Special Members refer to the constitutional commissioners,
members of the judiciary, including those with equivalent ranks,
who are required by law to remit regular monthly contributions for
life insurance policies to the Government Service Insurance System
in order to answer for their life insurance bene ts,13
2) Active and Inactive
An active member refers to a member of the Government
Service Insurance System, whether regular or special, who is still
in the government service and together with the government agency
to which he belongs, is required to pay the monthly contribution.4
An inactive member refers to a member who is separated from
the service either by resignation, retirement, disability, dismissal
from the service, retrenchment or, who is deemed retired from the
service under the Government Service Insurance System Act of
1997.15
Efective Date of Membership s djw a1dot

Membership with the Government Service Insurance System
takes effect on the date of assumption to of ce by virtue of the
original
appointmentor election.cvidtnoin ssv8
Effect of Separation from the Serviceg 9d Jndtsoiviae
VSg .00.000,Slq
A member who is separated from the service continues to
be a member, and therefore, entitled to whatever bene ts he has
quali ed to in the event of any compensablecontingency.
12Revised Implementing Rules and Regulations of R.A. No. 8291, Rule II,
Section
2.4.1(a). eeo w eeetaaeal so iasaceso d
1Revised Implementing Rules and Regulations of R.A. No. 8291, Rule II,
Section 2.4.1(b).
"Revised Implementing Rules and Regulations of R.A. No. 8291, Rule II,
Section 2.4.2(a).t
1SRevised Implementing Rules and Regulations of Republic Act No. 8291, Rule
I, Section2.4.2(b).
16Revised Implementing Rules and Regulations of Republic Act No. 8291, Rule
IL, Section 5. 92itesnoro
1"The Government Service Insurance System Act of 1997, Section4.1
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496 OLAGRARIAN LAW AND SOCIAL LEGISLATIONV0)aT
GovernmentServiceInsuranceSystem Bene tsvag eool

1) Separation benefts:18
horinlanls ofomot
elug 1i2) Unemployment or involuntary separation

bene ts;19nl
e1osa3) Temporarytotal disabilitybene ts;20 Inog?
elostirtolvppsire o gitlbuiortL eobu adi toPT9driom
o Anoin 4) Permanent
partialdisabilitybene ts;rpor S oig
5) Permanent total disability bene ts:22 Wa0t oiil
6) Retirement bene ts; bas avitsk (9
tscrav) Survivorship bene ts;* 9dc9rt eVilDEnA

ili3aor 8) Funeralbene ts:25and eley? 6oTletd sorz92
oidsd 9) o Lifeinsurancebene t.?sT ei egolod sddoislwo

ot o
Separation
Bene ts? mM Ect erio 19dten svitosninA
109rioritsT ordsgieyT yd 19nsts 5oivrsa orli
93 This is available tomemberswho resign or are separatedfrom
service. Mt918 Teri corvze?
iasnrrevo ss obno90ro8
RL,Teer
Rate of Separation Bene t:
Memberswith at least three years but less 1
1)
9t than15yearsservice:,oanovoD adi rawqutesednsM
9ds 10912u112Va)
Cashpaymentequivalent to 100% of theh
average monthly compensation for each year of
service that he paid contributions, but not less than
Php12,000.00, payable upon reaching the age of 60
ol a9t1t years or uponseparation,whichevercomeslater28
PRd srl eiisned orstetlw ot bstiorg sTolo99dr bra odot B od
sl 9TheGovernmentServiceInsuranceSystemAct of1997,Section11.
19TheGovernment Service Insurance System Act of 1997, Section 12.oits2
sL The GovernmentServiceInsuranceSystemAct of1997,Section18.
2IThe Government Service Insurance System Act of 1997, Section 17. noe?
OThe Government Service Insurance System Act of 1997, Section 16.
»The Government Service Insurance System Act of 1997, Section18.S rose
Soolu 24The Government Service Insurance System Act of 1997, Section 20.
29The Government Service Insurance System Act of 1997, Section 23.
Se sls 20The Government Service Insurance System Act of 1997, Section 24.
ZThe Government Service Insurance System Act of 1997, Section 11: ei
28The Government Service Insurance System Act of 1997, Section 11(a).
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NOTE: Average monthly compensation is

the quotient arrived at after dividing the aggregate
compensation received by the member during his
last 36 months of service preceding his separation/
retirement/disabilityldeath by 36, or by the number
of months he received such compensation if he has
less than 36 months ofservice.29
qrnoit oJbolirtngsd ol
2) Members with at least 15 years of service and
below 60 years old at the time of separation:oetEq92
al Bonui a) Cash payment equivalent to 18x his basic
monthly pension payable at the time of resignation
or separation, plus:
b) old-age pension equal to the basic monthly
pension payable monthly for life upon reaching the
age of 60years,30 eie alildsela IstoT,yieiogmaT
boieskon(B0 NOTE: Thebasic monthlypensionis equal to:nT
euitlo iela 1 g759% of the revalued average monthly
compensation; plus
2) 2.5% of said revalued average monthly
ylsbaro compensation for each year of service in excess of 15 years:
Provided, That the basic monthly pension shall not exceed
201 90% of the average monthly compensation.1
Ioo oco ri Bypb 0SI
Unemployment or Involuntary Separation Bene ts2
This is available to permanent employees separated from the
service due to abolition of of ce.
Ho RateofUnemployment
Bene t eltiig oanitsbao
The unemployment bene t is in the form of monthly cash
payments equivalent to 50% of the average monthly compensation.
Duration of Entitlement
Members who have made contributions for:
1) 1 year but less than 3 years -2 months .SSnotya2
2) 3 years but less than 6 years -3 months Snowa2

arncltslue ne zoluHgrismopotnndbspiyy
291The Government Service Insurance System Act of 1997, Section 20).
s sOThe Government Service Insurance System Act of 1997, Section 11(b).
SIThe Government Service Insurance System Act of 1997, Section 9(a). VI
OThe Government Service Insurance System Act of 1997, Section 12.
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498 orO AGRARIAN
LAWANDSOCIALLEGISLATION08
3) 6 years but less than 9 years - 4 months

4) 9 years but less than 11 years 5 months
5) 11 years but less than 15 years - 6 months
Conditions for Entitlement to Unemployment Bene ts
To be entitled to unemployment bene t, the member:
brn 1) Must be a permanent employee at time of
separation:33 oilsReqoe lo smil od
oian 2) The separation was due to the abolition of his
of ce:4andion ota dnzsq toirog litinot
3) Has paid the premium contributions for at
least one year prior to separation.5-blo (d
sti gudT nogir ll otvlrdinon
slrisyegtoian
Temporary Total Disability Bene ts8
This is available to a member who is momentarily incapacitated
to work as a result of impairment of physical or mental faculties
which can be rehabilitated or restored to their normal functions.37
Rate of Temporary Total Disability Bene t
The temporary total disability bene t is 75% of the current daily
compensation for each day of disability for a period not exceeding
120 days in one calendar year.
NOTE: Ifthe disabilityrequiresmoreextensive treatmenten!
beyond 120 days, the temporary total disability bene t may be
9rli rextended by the Government Service Insurance System for a
period not exceeding 240 days.
Conditions for Entitlement to Temporary Total Disability Bene t

des To be entitled to temporary total disability bene t, the member:
StONBEf 1) mustbe in theserviceat the time ofhis disability;8 V84
Asosltitsa lonoitunn
aM
sSRevised Implementing Rules and Regulations of R.A. No. 8291, Rule IV,
Section 22.1.1.itsouL 69v
Revised Implementing Rules and Regulations of R.A. No. 8291, Rule IV,
Section 22.1.2.inont &
36Revised Implementing Rules and Regulations of R.A. No. 8291, Rule IV,
Section 22.1.3.
S"Revised Implementing Rules and Regulations of Republic Act No. 8291, Rule
IV, Section 23.2.3.
38The Government Service Insurance System Act of 1997, Section 18(a)(1).
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2) if separated, must have rendered at least three

years of service and paid at least six monthly contributions
in the 12-month period immediately preceding his
disability; and
3) must have exhausted all sick leave credits,40
Permanent Partial Disability Bene ts41

s bisqeslcdw rodss
This is available to members who get incapacitated to work
for a limited period because of complete and permanent loss of any
of a body part, i.e., any nger, any toe, one arm, one hand, one leg,
one foot, one or both ears, hearing of one or both ears, sight of one
eye and cases as may be determined by the Government Service
InsuranceSystem. q219i horetiL
vidirot 021 bi
Rate ofPermanentPartial Disability Bene taoot bl
The permanent partial disability bene t consists in cash
payment in accordance with a schedule of disabilities prescribed by
theGovernmentServiceInsuranceSystem.isb sdt to
Condition for Entitlement toPermanent Partial Disability Bene t
To be entitled to permanent partial disability bene t, the
membermust: 70p91 olt bg
1) be in the service at the time of disability, or
(a02) a if alreadyseparatedfrom theservice:
a) has paid at least 36 months contributions
within the ve-year period immediately preceding
ins his disability, or
o rrude 9baga llaie3itsnadyddseb Isiot ttarisng
b) has paid a total of at least 180 months
contributions prior to the disability.42
borivet b anhirdneib totesovooor
Permanent Total Disability Bene ts is2308.nu0o
This is available to members who suffer complete loss of sight
for both eyes, loss of two limbs at or above the ankle or wrists,
SPThe Government Service Insurance System Act of 1997, Section 18(a)(2).

40The Government Service Insurance System Act of 1997, Section 18(a).
The Government Service Insurance System Act of 1997, Section 17.
4CRevised Implementing Rules and Regulations of R.A. No. 8291, Rule IV,
Section
23.4.2. A
4TheGovernmentServiceInsurance System Act of 1997,Section16. tos
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permanent complete paralysis of two limbs; brain ínjury resulting

in incurable imbecility or insanity; and such other cases as may be
determined and approved by the Government Service Insurance
System."
Rate ofPermanent Total Disability Bene t
1) Disability suffered while in the service by a
member who has paid at least 180 monthly contributions:
d
oofsto)
b)
Litetime basic monthly pension, plus;
cash payment equivalent to 18 x his basic
monthly pension.
2) Disability suffered after separation from service
by a member who has paid 180 monthly contributions
or 36 monthly contributions within the ve-year period
immediately preceding his disability:
d ssdre a) Lifetime basic monthly pension effective
from the date of disability.
Sio 3) Disability suffered after separation from
service by a member who has rendered at least three
years of service but has not paid the required minimum
contributions:
a) 100% ofhis average monthly compensation
for each year of service (but not less than Php12,000).
Suspension of Permanent Total Disability Bene t
Unless the member has reached the minimum retirement age,
permanent total disability bene t shall be suspended when he:
1) is reemployed or
2) recovers from disability as determined by the
GovernmentServiceInsuranceSystem; orisloT tnonsms
towhen
e3)required
fails to present himself for medical examination
by the Government Service Insurance
System.
A.1 3 irrsluu bns saltst goitosatolgial baervs

Section 23.2.1.
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Retirement Bene ts45

This is available to members who:
1) have reached at least the age of 60years;"%
2) have rendered at least 15 years of service; and
3 are not receiving a monthly pension bene t

from permanent total disability,48
Options
A retiring member has the following options:
1) Cash payment equivalent to 18 x of the basic
monthly pension plus monthly pension for life;19 or
2) 5-year lump sum equivalent to 60 months
of basic monthly pension. After the lapse of the 5-year
period - basic monthly pensionpayable forlife.50
Death of the Member While the Retirement Claims Are Being
Processed
1) If thedeceasedmemberopted for ve-year lump

sum bene t - his legal heirs shall be entitled to ve-year
lump sum bene t equivalent to 60 months basic monthly
pension. But the survivorship pension shall be granted
only after the end of the 5-year guaranteedperiod;51
lds 2) If the deceasedmember opted for immediate
pension- his legal heirs shall be entitled to the cash
payment bene t equivalent to 18 months of basic monthly
pension, plus accrued pension up to the date of death of
ēl theretiree;or nie
o;esiRroisnodnh

46The Government Service Insurance System Act of 1997, Section 13-A(2).
Section 20.2.2.
BORevised Implementing Rules and Regulations of R.A. No. 8291, Rule IV,
Section 20.2.1.
S
Section 20.5.1(a).
BRevised Implementing Rules and Regulations of R.A. No. 8291, Rule IV,
Section 20.5.1(b).
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B02 40T AGRARIANLAWANDSOCIALLEGISLATION
3) If the deceased member failed to indicate

any retirement option - the retirement bene t shall be
computed as if he opted for immediate pension.9
Survivorship Bene ts4

(
Survivorship bene ts of members who died while in active
service:
de lo
1) Members with at least 15 years of creditable
service:
a) His primary bene ciaries shall receive the

Diaed survivorship pension and cash payment equivalent
to 18 x the basic monthly pension;5cyine
ilooo b) In the absence of primary bene ciaries,
8a his secondary bene ciaries shall receive the cash
payment equivalent to 18x the basic monthly pension:%
ns sheni) In the absence of secondary bene ciaries,

the legal heirs shall receive the cash paymento
equivalent to 18 x the basic monthly pension."
u9 2) Members with less than 15 years of creditable

service:
His primary bene ciaries shall receive
a)
the cash payment equivalent to 100% of the average
oTBro monthly compensation for every year of creditable
service.holhiine ed lLtls
Survivorship Bene ts of Inactive Members
Primary bene ciaries of inactive members with at least 15
years of creditable service shall receive the survivorship pension
only.58
Section 20.5.1(c).
Section 24.2.1(c). aote2
Vi sl69RevisedImplementing Rules and Regulations of R.A. No. 8291, Rule IV,
Section 24.2.1(d). IS.0C oto
Vi Revised Implementing Rules and Regulations of RA. No. 8291, Rule IV,
Section 24.2.1(e). TO0aordoe
VI 58Revised Implementing Rules and Regulations of R.A. No. 8291, Rule IV,
Section 24.3.1.
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Primary bene ciaries of inactive members with at least three

years but less than 15 years of creditable service and less than
60 years old at the time of death shall receive the cash payment
equivalent to 100% of the average monthly compensation for every
year of creditable service, but not less thanPhp12,000.00.59
Primary bene ciaries of inactive members with less than 15
years of creditable service but at least 60 years old at the time of
separation and have received the corresponding separation bene t,
shall not be entitled to survivorship bene ts. However, if the
member has not received yet his separation bene t within four years
after his/her separation, the primary bene ciaries shall receive the
cash bene t equivalent to 100% of the inactive member's average
monthly compensation for every year of creditable service, but not
less than Php12,000.00,80
Payment of Survivorship Bene ts oaed qe
The survivorship bene ts shall be paid as follows:
a 9h6ac
o 1) When the dependentspouseis the only survivor,
he shall receive the basic survivorship pension;daezT
o ch 2) When only the dependent children are the
survivors, they shall be entitled only to the dependent9
children's pension equivalent to 10% of the basic monthly
pension for every dependent child, not exceeding ve,
counted from the youngest and without substitution;62
3) When the survivors are the dependent spouse
and the dependent children, the dependent spouse shall
receive the basic survivorship pension for life or until he
remarries or cohabits, and the dependent children shall
receive the dependent children's pension,63
4) When the dependent spouse and dependent
children are already receiving the basic survivorship
ORevised Implementing Rules and Regulations of R.A. No. 8291, Rule IV,
Section 24.3.1(a).
ORevised Implementing Rules and Regulations of R.A. No. 8291, Rule IV,
Section 24.3.1(b).
6IRevised Implementing Rules and Regulations of R.A. No. 8291, Rule IV,
Section 24.4.1(a).
Section 24.4.1(b).
SRevised Implementing Rules and Regulations of R.A. No. 8291, Rule IV,
Section 24.4.1(c).
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3
nd pension anddependentchildren'spension,respectively,
d any subsequent death, emancipation or disquali cation
tos of any one of them shall not entitle the otherbene ciaries
to theforfeited
share;4
5) In the absence of a natural guardian, the
guardian de facto of dependent children, as well as the
physically or mentally incapacitated dependent children,
must e a Petition for Guardianship to be able to claim
the survivorship bene ts on behalf of the dependent
children;s5 or
6) When the pensioner dies within the ve-
year period after receiving the ve-year lump sum, the
survivorship pension shall be paid only after the end
of the said ve-year period. However, ling of claim for
survivorship bene t should be done before the end of the
four-year prescription period.°6
Conditions Which Will Bar Entitlement to Survivorship Bene ts
Except for dependent children, the bene ciaries are not entitled
to the survivorship bene ts if immediately preceding the death of
the member or pensioner:
1) They are engaged in gainful occupation/
business with income at least equal to the minimum
compensation of government employees;7
2) The surviving spouse and the deceased member
were not living together as husband and wifes
So-3) They are receiving any other pension from the

Government Service Insurance System or another local or
foreign institution or organization;® or
Section 24.4.1(d).
W Revised Implementing Rules and Regulations of R.A. No. 8291, Rule IV,
Section 24.4.1(e).
Section 24.4.1().
2SRevised Implementing Rules and Regulations of R.A. No. 8291, Rule IV,
Section 24.5(a).
Section 24.5(b).
S9Revised Implementing Rules and Regulations of R.A. No. 8291, Rule IV,
Section 24.5(e).
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4) In the case of the dependent spouse, payment

of the basic survivorship pension shall discontinue when
he/she remarries, cohabits, or engages in common-law
bor relationship,70
FuneralBene ts
The funeral bene t is intended to help defray the expenses
incident to the burial and funeral of thedeceasedmember, pensioner
or retiree. It is available in case of death of:
1) an active member;
2) an old-age or disability pensioner; or
3) a member with more than 15 years of creditable
service, who has been separated from the service but
entitled to future separation or retirement bene ts.72
This bene t is payable to any quali ed individual, in accordance
with the following order of priority:
1) Legitimate spouse
2) Legitimate child who spent for the funeral
services;4 or
3) Any other person who can show incontrovertible
proof that he shouldered the funeral expenses of the
deceased, 75
Life Insurance Bene t7s

The Government Service Insurance System life insurance is
compulsory and available to all employees, except for Members of
the Armed Forces of the Philippines and the Philippine National
Police.
7ORevised Implementing Rules and Regulations of R.A. No. 8291, Rule IV,
Section 24.5().
TThe Government Service Insurance System Act of 1997, Section 23.
Section 25.
Section 25.1(a).
Section 25.1(6).
Section25.1().2ear la ol cate2 suanl soiv2ia9mmo0 si
7OThe Government Service Insurance System Act of 1997, Section 24.
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506 See:0 AGRARIANLAW AND SOCIAL LEGISLATION VOOBT
Prescriptive Period for Filing Claims

Claims for Government Service Insurance System bene ts,
except for life insurance and retirement, must be led within four
years from the date of contingency, otherwise these will be barred
by prescription,7
eilenoais9u
509g.19do baesoosbsrl) eLase bns liud orll otbbibai
dudoivta sdt o boissq9s sd esilodcinuaD

tonodta9rtutlon0 gisecesul o blaus
obasbros ni eubrvibuthocúsEp vand stdsyaq ai iharsd etdT
odotetaoe las otanitled

10;0ivT92
oldirneiezlac weneusooil w nosq tsrlkoRnA
orls o aantqx9 lotsnrtsrl! bssbluod, sl tedt oo
beas99b
ens&sonsuanloll
at93riaUaniotil nalag?eoasUanlsovo nsiavo)iT
.9oiloI
A.2o aolsnlurss brs oluf

TThe Government Service Insurance System Act Ct
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THE LIMITED PORTABILITY LAW
REPUBLIC ACT No. 76991
02014TMAoie5E9
NOTES:
Applicability
The Limited Portability Law applies to employees who are
covered or may have been covered by both the Social Security System
and the Government Service Insurance System.2
Meaning of Portability
Portability means transfer of funds for the account and benefît
of an employee who transfers from one system to the other.3
Totalization gAM AAIGR 3SOS1SSHO

I
o Ifa coveredemployeetransfers employment from onesector to
another or is employed in both sectors, his services or contributions
in both Systems shall be credited to his record. In case the covered
employee does not qualify for bene ts in either or both Systems, his
services or contributions shall be totalized for purposes of eligibility
to, and computation of, his old-age, disability, survivorship and other
bene ts. The overlapping periods of membership shall be credited
only once for purposes of totalization. BEbotiesslb edsodsoantet
All contributions paid by the member personally, and those
that were paid by his employers to both Systems shall be considered
in the processing of bene ts which he can claim from either or both
Systems. However, the amount of bene ts to be paid by one System
shall be in proportion to the number of contributions actually
remitted to that System.
'An Act Instituting Limited PortabilitySchemein theSocialSecurityInsurance

Systems by Totalizing the Workers' Creditable Services or Contributions in Each of
the Systems.
*RulesandRegulationsImplementingR.A.No.7699,RuleI,Section 1.tr
SRules and Regulations Implementing R.A. No. 7699, Rule III, Section 1.
"R.A. No. 7699, Sections 3 and 4.
507
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WAJYTL
APPENDICESMHT
oAPPENDIXAUSH o
PRESIDENTIAL DECREE NO. 271
DECREEING THE EMANCIPATION OF TENANTS FROM THE

BONDAGE OF THESOIL, TRANSFERRING TO THEM THE OWNERSHIP
OF THE LAND THEY TILL AND PROVIDING THE INSTRUMENTS AND
MECHANISM THEREFOR
ilgrgs wrl illdo xo' Sosiml 9dT
ma Inasmuch as the old concept of land ownership by a few has spawned
valid and legitimate grievances that gave rise to violent con ict and social
tension,
The redress of such legitimate grievances being one of the fundamental

objectivesoftheNewSociety, hui to 1oteuT erútom vtilidsro
Since Reformation must start with the emancipation of the tiller of
the soil from his bondage,
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of

the Philippines, by virtue of the powers vested in me by the Constitution
as Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081, dated September 21, 1972, and General
Order No. 1 dated September 22, 1972, as amended do hereby decree and
order the emancipation of all tenant farmers as of this day, October 21,
1972 to 2sco q'1o1 bovdsto1 9d lisde aiortsdrJsL0D 108901VT92
191dobtiisiicieGVIVESa.viilidaztb 93n-blo ett.lo roitsitrgIL0D bs .ot
hat This shall apply to tenant farmers of private agricultural lands
primarily devoted to rice and corn under a system of sharecrop or lease-
1200'L TO1DMO VIIO
tenancy, whether classifed as landed estate or not;
on
i Thetenantfarmer,whetherin landclassi edaslandedestateornot,
shall be deemed owner of a portion constituting a family-size farm of ve (5)
hectares if not irrigated and three (3)hectares if irrigated;ie29301qodt ai
on9dto,JCLƯODS 9d1,Sy9woi,aitoiave
In all cases, the landowner may retain an area of not more than seven
1013TO00
(7) hectares if such landowner is cultivating such area or will now cultivate
it:
For the purpose of determining the cost of the land to be transferred
to the tenant-farmer pursuant to this Decree, the value of the land shall be
Ltdt
equivalent to two and one-half (2 1/2) times the average harvest of three
normal crop years immediately preceding the promulgation of this Decree;
bto &esoifoa
.eeaso4 .
'{October 21, 1972].
508 Serdon
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APPENDIX A 509
PRESIDENTIAL DECREE NO. 27
The total cost of the land, including interest at the rate of six (6) per
centum per annum, shall be paid by the tenant in fteen (15) years of fteen
(15) equal annual amortizations;
In case of default, the amortizations due shall be paid by the farmers'
cooperative in which the defaulting tenant-farmer is a member, with the
cooperative having a right of recourse against him;
r Thegovernmentshall guarantysuchamortizations with shares of
stockin
government-owned
and
government-controlled
corporations; M
No title to the land owned by the tenant-farmers under this Decree
shall be actually issued toa tenant-farmer unless and until the tenant-
farmer has become a full- edged member of a duly recognized farmer's
cooperative;
Title to land acquired pursuant to this Decree or the Land Reform
Program of the Government shall not be transferable except by hereditary
succession or to the Government in accordance with the provisions of
this Decree, the Code of Agrarian Reforms and other existing laws and
regulations; orit
The Department of Agrarian Reform through its Secretary is hereby
empowered to promulgate rules and regulations for the implementation of
this Decree.
at
esstnewdorod
All laws, executive orders, decrees and rules and regulations, or parts
thereof, inconsistent with this Decree are hereby repealed andor modi ed
accordingly. bosio osatos) 8.o oos (rdnsbiesn
Ts DONE in the City of Manila, this 21st day of October, in the year of
OurLord,NineteenHundredandSeventy-Two.d leda .ok C9 vd
i alrgs nr
encsubo4
hal linano)
vayaerali
ntlivd
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APPENDIX B
EXECUTIVE ORDER NO. 228 upe(ay
DECLARING FULL LAND OWNERSHIP TO QUALIFIED FARMER
BENEFICLARIES COVERED BY PRESIDENTILAL DECREE NO. 27;
DETERMINING THE VALUE OF REMAINING UNVALUED RICE AND
CORN LANDS SUBJECT TO P.D. NO. 27; AND PROVIDING FOR THE
MANNER OF PAYMENT BY THE FARMER BENEFICIARY AND MODE
OF COMPENSATION TO THE LANDOWNER
o oafrsl: at sltit oM
WHEREAS, Presidential Decree No. 27, for purposes of determining
the cost of the land to be transferred to the tenant-farmer, provided that
valuation shall be determined by crop productivity; Codo
WHEREAS, there is a need to complete Operation Land Transfer and
accelerate the payment to the landowners of lands transferred to tenant-
farmers; and
WHEREAS, there is also a need to maintain the nancial viability of
the Land Bank of the Philippines, the nancing arm of the agrarian reform
program of the government;
NOW THEREFORE, I, CORAZON C. AQUINO, President of the
Philippines, by virtue of the powers vested in me by the Constitution,
hereby order that:
SECTION 1. All qualifed farmer bene ciaries are now deemed
full owners as of October 21, 1972 of the land they acquired by virtue of
Presidential Decree No. 27 (hereinafter referred to as P.D. No. 27).
a o SECTION2.Henceforth,thevaluationofriceandcornlandscovered
by P.D. No. 27 shall be based on the average gross production determined
by the Barangay Committee on Land Production in accordance with
Department Memorandum Circular No. 26, series of 1973, and related
issuances and regulations of the Department of Agrarian Reform. The
average gross production per hectare shall be multiplied by two and a half
(2.5), the product of which shall be multiplied by Thirty Five Pesos(P35.00),
the government support price for one cavan of 50 kilos of palay on October
21, 1972, or Thirty One Pesos (P31.00), the government support price for
one cavan of 50 kilos of corn on October 21, 1972, and the amount arrived at
shall be the value of the rice and corn land, as the case may be, for the purpose
of determining its cost to the farmer and compensation to the landowner.
Lease rentals paid to the landowner by the farmer beneiciary after
October 21, 1972, shall be considered as advance payment for the land. In
the event of dispute with the landowner regarding the amount oflease rental
Published in the Offcial Gazette, Vol. 83 No. 31, 3528-17 Supp., on August
3, 1987].
510
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ORtsb APPENDIX B 611
EXECUTIVE ORDER NO. 228
paid by the farmer bene ciary, the Department of Agrarian Reform and
the Barangay Committee on Land Production concerned shall resolve the
dispute within thirty (30) days from its submission pursuant to Department
of Agrarian Reform Memorandum Circular No. 26, series of 1973, and other
pertinent issuances. In the event a party questions in court the resolution of
the dispute, the landowner's compensation claim shall still be processed for
payment and the proceeds shall be held in trust by the Trust Department
of the Land Bank in accordance with the provisions of Section 5 hereof,
pending the resolution of the dispute before the court.
odt SECTION 3. Compensation shall be paid to the landowners in any of
the following modes, at the option of the landowners:
(a) Bond payment over ten (10) years, with ten percent
(10%) of the value of the land payable immediately in cash, and
the balance in the form of LBP bondsbearing market rates of
interest that are aligned with 90-day treasury bills rates, net
of applicable nal withholding tax. One-tenth of the face value
of the bonds shall mature every year from the date of issuance
until the tenth year.
frlk The LBP bonds issued hereunder shall be eligible for the purchase of
government assets to be privatized.
(b) Direct payment in cash or in kind by the farmer
bene ciaries with the terms to be mutually agreed upon by the
bene ciaries and landowners and subject to the approval of the bas
TUD Department of Agrarian Reform; and G
(c) Other modes of payment as may be prescribed or

approved by the Presidential Agrarian Reform Council.
eSECTION 4. All outstanding Land Bank bonds that are retained by
the original landowners-payee or by their heirs, are deemed matured up
to one-twenty fth (1/25) of their yearly face value from their date of issue
to the date of this Executive Order and may be claimed by the original
landowner-payee by surrendering the bonds to the Land Bank. The original
landowner-payee may claim payment for the remaining unmatured period
of the surrendered bonds under any of the modes of compensation provided
inSection3,subsections(a) (b) or (c)hereot. dt benvon at-iusnst adt
er In order to meetthe nancialrequirementsmentionedin this Section,
the Central Bank shall remit to the Land Bank such sums as may be
necessary from the Sinking Fund established by the Land Bank from the
retirement of its bonds and other long-term obligations and which Sinking
Fund is administered by the Central Bank: Provided, however, That there is
no change in maturity of other outstanding Land Bank bonds acquired and
held by transferees from original bondholders.
The landowner is exempt from capital gains tax on the compensation
paid to him under this Executive Order.
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Sak SECTION 5. In the event the landowner does not accept payment
of the compensation due him, his compensation shall be held in trust for
him by the Trust Department of the Land Bank. The cash portion of the
compensation and such portions that mature yearly shall be invested by the
Trust Department only in government securities fully guaranteed by the
Republic of the Philippines. All the net earnings of the investment shall be
for the bene t of the landowner, his heirs or successors in interest.
The rights of the landowners may be exercised by his heirs upon his
death.
0 r SECTION6. The totalcosts of the land includinginterest at the
rate of six percent (6%) per annum with a two percent (2%) rebate for
amortizations paid on time, shall be paid by the farmer-bene ciary or his
heirs to the Land Bank over a period of up to twenty (20) years in twenty
(20) equal annual amortizations. Lands already valued and nanced by the
Land Bank are likewise extended a 20-year period of payment of twenty
(20) equal annual amortizations. However, the farmer-bene ciary if he so
elects, may pay in full before the twentieth year or may request the Land
Bank to structure a repayment period of less than twenty (20) years if the
amount to be nanced and the corresponding annual obligations are well
within the farmer's capacity to meet. Ownership of lands acquired by the
farmer-bene ciary may be transferred after full payment of amortizations.
SECTION7. As of the date of this Executive Order, a lien by way of
mortgage shall exist in favor of the Land Bank on all lands it has nanced
and acquired by the farmer-bene ciary by virtue of P.D. No. 27 for all
amortizations, both principal and interest, due from the farmer-bene ciary
or a valid transferee until the amortizations are paid in full.
SECTION8. Henceforth, failure on the part of the farmer-bene ciary
to pay three (3) annual amortizations shall be suf cient cause for the Land
Bank to foreclose on the mortgage.
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SECTION 9. Thirty (30) days after nal notice for payment to the
defaulting tenant-farmer, a copy of which notice shall be furnished to the
Departmnent of Agrarian Reform, the Land Bank may foreclose on the
mortgage by registering a certi cation under oath of its intent to foreclose
with the Registry of Deeds of the city or province where the land is located
attaching thereto: a copy of the nal notice for payment; proof of service to
the tenant-farmer and the Department of Agrarian Reform of the nal notice
for payment; and a certi cation that at least three (3) annual amortizations
on the land or the sum thereof remain unpaid. The mortgage is deemed
foreclosed upon registration of said documents with the Registry ofDeeds.
a In the event the defaulting tenant-farmer could not beserved the nal
notice for payment, the Land Bank shall post the notice for payment in
the town hall, public market and barangay hall or any other suitable place
frequented by the public of the barangay where the defaulting tenant-farmer
resides, A certi cation by the Land Bank to this effect will substitute for the
proof of service of the nal notice of payment for purposes of foreclosure.
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APPENDIX B WARA 513
EXECUTIVE ORDER NO. 228
The Register of Deeds of all cities and provinces are directed to have
a separate registry book to enter all the requirements of foreclosure as
provided
herein. lo i teo iicitsi vd1 d ede
SECTION 10. The tenant-farmer, or any of his compulsory heirs may
ift the foreclosure within a period of two (2) years from its registration by
paying the Land Bank all unpaid amortizations on the land with interest
thereon of six percent (6%) per annum. In caseof failure to lift the foreclosure
within the said period. Ownership of the land shall be deemed transferred
to the Land Bank.
(uê) SECTION 11. The Land Bank, not later than three (3) months after its
acquisition of the land, shall sell theforeclosedland to any interested landless
farmer duly certi ed to as a bona de landless farmer by the Department
of Agrarian Reform of the barangay or the two closest barangays where
the land is situated. The cost of the land is the unpaid amortizations due
on the lands as of the date of the sale with interest thereon of six percent
(6%)per annum. In the event that there is more than one interested buyer,
the actual buyer shall be determined by lottery in the presence of all the
buyers or their representatives and a representative of the Department of
Agrarian Reform. The Deed of Conveyanceexecuted by the Land Bank in
favor of the farmer transferee shall be registered with the Register of Deeds
of the city or province where the land is located. Ownership shall transfer
to the farmer transferee only upon registration with the Registry of Deeds.
The lien of the Land Bank by way of mortgage on the remaining unpaid
amortizations shall subsists on the title of the transferee. K0TE2
SECTION 12. The Land Bank, at least one (1) month prior to the sale,
shall furnish the Department of Agrarian Reform with a notice of sale and
shall post a similar notice in the town hall, public market and barangay hall
or any other suitable place frequented by the public of the barangay where
the property is located. The notice shall state the description of the property
subject of the sale, the price, the date and place of sale.
SECTION 13. The National Land Titles and Deeds Registration
Administration is hereby authorized to issue such rules and regulations
as may be necessary relative to the registration with the Register of Deeds
of all transactionsactivities required herein taking into consideration the
need to protect the integrity of the Torrens System, the interests of the
parties and innocent third parties.
All transactions/activities and their corresponding documents that
are registered with the Register of Deeds pursuant to the requirements of
P.D. No. 27 and this Executive Order shall be free from all documentary
stamps and registration fees.
SECTION 14. The Department of Agrarian Reform and the Land
Bank are authorized to issue the additional implementing guidelines of this
Executive Order which shall not be later than sixty (60) days from the date
hereof.
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SECTION 15. To insure thesuccessful implementation of the Agrarian

Reform Program, an Agrarian Reform Operating Fund (Agrarian Fund)
shall be set up by the National Government in the Land Bank. The amnount
of this Agrarian Fund, to be determined by the Government Corporation
Monitoring and Coordinating Committee (hereinafter referred to as
GCMCC), will source the funding requirements for Land Bank to carry out
the full implementation of this program which will include the net operating
losses directly and indirectly attributable to this program and the credit
facilities to farmers and farmers' organizations. Within thirty (30) days
from the effectivity of this Executive Order, the Land Bank shall submit to
the GCMCC its funding requirements for 1987. Thereafter, within sixty (60)
days after the end of each calendar year, the Land Bank shall submit to the
GCMCC an accounting of all drawings the Land Bank had made against
the Fund. At the same time, it will also submit its prospective funding
requirements for the current year for review and validation of the GCMCC.
The amount approved by the GCMCC shall be deemed appropriated and
the amount programmed for release in coordination with the Department
of Finance, Budget and Management and the National Economic and
Development Authority. Within thirty (30) days from GCMCC's approval,
such funds shall be remitted to the Land Bank for credit to the Agrarian
SECTION 16. If any part of this Executive Order is declared invalid or

unconstitutional, it shall not affect any other part thereof.
SECTION 17. All laws, presidential decrees, orders, letters of
instructions, rules and regulations, and other issuances or parts thereof
inconsistent with this Executive Order are hereby repealed or modi ed
accordingly.
wzod SECTION 18. This Executive Order shall take effect upon its signing
andpublicationasprovidedby law.edz oiscn olh bein
DONE in the City of Manila, this 17th day of July, in the year of Our
Lord, Nineteen Hundred and Eighty-Seven.
iols sisnaobEbnoreoTIO rit hoaotitvitseaostseere
tri ovtlabirg aitaemslyninaohcbbadt

s8eeiothasssostr ard
fi
an
ad) APPENDIXC
nt REPUBLIC ACT NO.3844)
on
as Presidential
ut alDecreeNos.1
TAs Amended by Republic ActNos.4366:24886: 5984; and 6389:
239; 251: 338:444:10882:1946;1"1039; an
it and
D. 2478 on May 4, August

1964.]. 8, 1963.Publishedin theOf cialGazette,
to
Vol. 60, No. 18,
) Hundred Fifty-Eight
Ffty-Eight
of the Third Paragraph ofSubsection(2) ofSection
Act to Amend
of Republic ActNumberedThirty-EightHundredForty-Four,
Known asthe"Agriculturs One
Land Reform
Othera in the Of cial Gazette, Vol. 62,No. Code" [Approved:
30,p.5377on June 19, 1965.
July25,1966]-
3An Act Amending Section One Hundred Sixty-Three of Republic Act
wed Thirty-Eight Hundred Forty-Four, OtherwiseKnownasthe"Agricultural
d
68. No. 44, p. Code
d Reform LApproved:June17,1967.Pubishedin
9890 on October 30,1967]. theOf cialGazette,Vol.
t
d 4An Act Amending the First Paragraph ofSectionOneHundredSixty Two of
Republi
Act Numbered Three Thousand Eight HundredForty-Four,Knownasthe
ieultural Land Reform Code(ReappointmentofSubordinateOf cials)[Enacted
rithout Executive approval, August 4, 1969.Published in the Offcial Gazette,Vol.
66. No. 13, p. 3126 on March 30, 1970].
2
5An Act Amending Republic Act Numbered Thirty-Eight Hundred and Forty-
Rour, as Amended, Otherwise Known as the Agricultural Land ReformCode,and for
Other Purposes [Approved: September 10, 1971. Published in the Of cial Gazette,
Vol. 68, No. 5, p. 915 on January 31, 1972.
SReorganizing the Executive Branch of the National Government[September
f
24,
1972]. i
Withdrawing the Authority of the Land RegistrationCommissiontoApprove
Original Survey Plans, Repealing for this Purpose, Paragraph 3, Section 34-A, of
R.A. No. 3844, as Inserted by Section 6, R.A. No. 6389, Otherwise Known as the
Agricultural Land Reform Code [July 9, 1973.]
BAmending Certain Provisions of Republic Act Numbered Three Thousand
Eight Hundred Forty-Four, as Amended, Entitled "TheCodeof AgrarianReform if
thePhilippines" (July 21, 1973]. 00 aulo frtuolmlTaaggtidi9ls
Amending P.D. No. 251 [November 22, 1973].
SSLA 1Amending Certain Sections ofRepublicActNumberedThreeThousandEight
Hundred And Forty-Four, as Amended, Entitled The CodeofAgrarianReformin the
Philippines' May 4, 1974).

bsbn "Regulating the Tax-Free Importation ofGovernmentAgenciesIncluding
Government-Owned or Controlled Corporations (January30,1976].
1od"Reorganizing the Courts of AgrarianRelations,StreamliningTheirProcedures,
and tor Other Purposes (June 17, 1976], asamendedbyTheJudiciaryReorganizationAct
of19 (Batas Pambansa Blg. 29, as amended [Approved:August 14,1981.Published in
the Of cial Gazette. Vol. 79 No. 35 Page 4781 on August 29,1983]).
Amending Further Section Eighty-Six of RepublicActNumberedThirty
Eig Hundred and Forty-Four, asAmended, Entitled "TheCodeofAgrarianReforms
es sae
e Philippines." [October 21, 1976.Publishedin theOf cialGazette,Vol.73No. 5
of t
8e 48 on January31,1977]. al utnbeagbl)lalbgsotAee corduis
515
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APPENDIX C
REPUBLIC ACT NO. 3844
Se 517
AN ACT TO ORDAIN THE AGRICULTURAL LAND REFORM

CODE AND TO INSTITUTE LAND REFORMS IN THE
PHILIPPINES, INCLUDING THE ABOLITION OF TENANCY AND
THE CHANNELING OF CAPITAL INTO INDUSTRY, PROVIDE FOR
THE NECESSARY IMPLEMENTING AGENCIES, APPROPRIATE
FUNDS THEREFOR AND FOR OTHER PURPOSES
PRELIMINARYCHAPTER -Title, Declaration of Policy and

Composition of Code
Section 1. Title. - This Act shall be known as the Code of Agrarian
Reforms of the Philippines." hast leut!
L Section2.Declaration ofPolicy. -It is the policy of the State:
To establish cooperative-cultivatorship among those
(1)
who live and work on the land as tillers, owner-cultivatorship
and the economic family-size farm as the basis of Philippine
agriculture and, as a consequence, divert landlord capital in
agriculture to industrial development;
aanAL A
(2) To achieve a digni ed existence for the small farmers
free from pernicious institutional restraints and practices;
(3) To create a truly viable social and economic structure
in agriculture conducive to greater productivity and higher farm
income through a c0operative system of production, processing,
marketing, distribution, credit and services;
b (4) To apply all labor laws equally and without
discrimination to both industrial and agricultural wage earners;
(5) To provide a more vigorous and systematic land
resettlement program and public land distribution: u
uo bassboJ
(6) To make the small farmers more independent,
self-reliant and responsible citizens, and a source of genuine
strength in our democratic society;
() To give rst priority to measures for the adequate

and timely nancing of the Agrarian Reform Program pursuant
to House Joint Resolution Numbered Two, otherwise known
as the Magna Carta of Social Justice and Economic Freedom;
existing laws; executive and administrative orders; and rules
lis and
regulationstothecontrarynotwithstanding:buo, ota
o (8) To involve local governments in the implementation
of the Agrarian Reform Program; and
21Amended by Section 1 of R.A. No. 6389.

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(9) To evolvea system of land use and classi cation.28

Section 3. Composition of Code. - In pursuance of the policy
enunciated in Section two, the following are established under this Code:
(1) An agricultural leasehold system to replace all
existing share tenancy systems in agriculture;
(2) Asystem of crediting rental as amortization payment
on purchase price;
(3) A declaration of rights for agricultural labor;
(4) A machinery for the acquisition and equitable
distribution of agricultural land;
(5) An institution to nance the acquisition and
distribution of agricultural land;
(6) A machinery to extend credit and similar assistance
to agricultural lessees, amortizing owners-cultivator, owners-
cultivator and cooperatives;
() A machinery to provide marketing, management,

and other technical assistance and/or services to agricultural
lessees, amortizing owners-cultivator, owners-cultivator, and
cooperatives;
(8) A machinery for cooperative development;
(9)A department for formulating and implementing
projects of agrarian reform;
(10) An expanded program of land capability survey,
classi cation, and registration;
(11) Ajudicial system to decide issues arising under this
Code and other related laws and regulations; and
(12) A machinery to provide legal assistance to
agricultural lessees, amortizing owners-cultivator, and owners-
cultivator 29
CHAPTERI-Agricultural Leasehold System

Section 4. Automatic Conversion to Agricultural Leasehold.
Agricultural share tenancy throughout the country, as herein de ned,
is hereby declared contrary to public policy and shall be automatically
converted to agricultural leasehold upon the effectivity of this section.

29Ibid.
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APPENDIX C 519
The credit assistance traditionally extended by a land-owner and a

local lender to a tenant under the share tenancy systems in agriculture
for production loans and loans for the purchase of work animals, tillage
equipment, seeds, fertilizers, poultry, livestock feed and other similar items,
and advances for the subsistence of a lessee and his family, may be continued
by said landowner and local lender: Provided, That the total charges on these
loans, including interest and service, inspection and issuance fees, shall not
exceed fourteen per cent per calendar year and the principal thereof shall not
be subject to upward adjustment even in case of extraordinary in ation and
or devaluation: Prouided, further, That on all loans or advances other than
money, the interest shall be computed on the basis of the current price of the
goods at the time when the loans or advances were made.
Any work animal and tillage equipment in the possession of a share
tenant but owned by a landowner shall automatically be sold to said tenant
on installment fora period not exceeding ve years and at a price agreed
upon by the parties: Provided, however, That the tenant shall pay in advance
ten per cent of the price agreed upon.
Existing share tenancy contracts may continue in force and effect in
any region or locality, to be governed in the meantime by the pertinent
provisions of Republic Act Numbered Eleven hundred and ninety-nine,
as amended, until the end of the agricultural year when the President of
the Philippines shall have organized by executive order the Department
of Agrarian Reform in accordance with the provisions of this amendatory
Act, unless such contracts provide for a shorter period or the tenant sooner
exercises his option to elect the leaseholdsystem: Provided, That in order not
to jeopardize international commitments, lands devoted to crops covered by
marketing allotments shall be made the subject of a separate proclamation
by the President upon recommendation of the department head that
adequate provisions, such as the organization of cooperatives, marketing
agreement, or other similar workable arrangements, have been made to
insure e cient management on all matters requiring synchronization of the
agricultural with the processing phases of such crops.
In case some agricultural share tenants do not want to become
agricultural lessees of their respective landholding, they shall, with the
assistance of the Bureau of Agrarian LegalAssistance, notify in writing the
landowners concerned. In such a case, they shall have one agricultural year
from the date of the notice to accept leasehold relationship, otherwise the
landowner may proceed to their ejectment.0
Section 5. Establishment of Agricultural LeaseholdRelation. The
agricultural leasehold relation shall be established by operation of law in
accordance with Section four of this Code and, in other cases, either orally
or in writing, expressly or impliedly.

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he Section 6. Parties to Agricultural Leasehold Relation. The

agricultural leasehold relation shall be limited to the person who furnishes
the landholding, either as owner, civil law lessee, usufructuary, or legal
possessor, and the person who personally cultivates the same.
Section 7. Tenure of Agricultural Leasehold Relation. The
agricultural leasehold relation once established shall confer upon the
agricultural lessee the right to continue working on the landholding until
such leasehold relation is extinguished. The agricultural lessee shall be
entitled to security of tenure on his landholding and cannot be ejected
d
therefrom unless authorized by the Court for causes herein provided. IO
Section8.Extinguishment of AgriculturalLeaseholdRelation. -
The agricultural leasehold relation established under this Code, shall be
extinguished by:
boe (1) Abandonment of the landholding without the knowledge of the
agricultural lessor: ROJE
(2) Voluntary surrender of the landholding by the agricultural
lessee, written notice of which shall be served three months in advance; or
run (3) u Absence of the persons under Section nine to succeed to the
lessee,in the event of death or permanent incapacity of the lessee.ots e
iliig adt
Section 9. Agricultural Leasehold Relation Not Extinguished by Death
or Incapacity of the Parties. In case of death or permanent incapacity
of the agricultural lessee to work his landholding, the leasehold shall
continue between the agricultural lessor and the person who can cultivate
the landholding personally, chosen by the agricultural lessor within one
month from such death or permanent incapacity, from among the following:
(a) the surviving spouse; (b) the eldest direct descendant by consanguinity;
or (c) the next eldest, descendant or descendants in the, order of their
age: Provided, That in case the death or permanent incapacity of the
agricultural lessee occurs during the agricultural year, such choice shall be
exercised at the end of that agricultural year: Provided, further, That in the
event the agricultural lessor fails to exercise his choice within the periods
herein provided, the priority shall be in accordance with the order herein
established.
adt o Incaseof death or permanent incapacity of the agricultural lessor, the

leaseholdshallbindhislegalheirs. t riprliorby9a0c tsterwol nol
odT Section 10. Agricultural Leasehold Relation Not Extinguished by
Expiration of Period,etc. -The agricultural leasehold relation under this
Code shall not be extinguished by mere expiration of the term or period
in a leasehold contract nor by the sale, alienation or transfer of the legal
possession of the landholding. In case the agricultural lessor sells, alienates
or transfers the legal possession of the landholding, the purchaser or
transferee thereof shall be subrogated to the rights and substituted to the
obligationsof the agricultural lessor.0 .HloIsoita qd brok
UCYAEDRL APPENDIXC SSSSA 521
REPUBLIC ACT N0. 3844
d Section 11.Lessee'sRight ofPre-emption. -In casethe agricultural

lessordecides to sell the landholding, the agricultural lessee shall have the
Dreferential right to buy the same under reasonable terms and conditions:
Provided, That the entire landholding offered for sale must be pre-empted
by the Department of Agrarian Reform upon petition of the lessee or any
of them: Provided, further, That where there are two or more agricultural
lessees,each shall be entitled to said preferential right only to the extent
of the area actually cultivated by him. The right of pre-emption under this
Section may be exercised within one hundred eighty days from notice in
writing, which shall be served by the owner on all lessees affected and the
Department of Agrarian Reform.
If the agricultural lesseeagrees with the terms and conditions of the

sale,he must give notice in writing to the agricultural lessor of his intention
toexercise his right of pre-emption within the balance ofone hundred eighty
day'speriod still available to him, but in anycase not less than thirty days.
He must either tender payment of, or present a certi cate from the land
bank that it shall make payment pursuant to section eighty of this Code on,
theprice of the landholding to the agricultural lessor. If the latter refuses to
acceptsuch tender or presentment, he may consign it with the court.
o si Any dispute as to thereasonablenessof the terms and conditions may

be brought by the lessee or by the Department of Agrarian Reform to the
proper Court of Agrarian Relations which shall decidethe same within sixty
days from the date of the ing thereof: Provided, That upon nality of the
decisionof the Court of Agrarian Relations, the Land Bank shall pay to the
agricultural lessor the price xed by the court within one hundred twenty
days:Provided, further, That in case the Land Bank fails to pay within that
period, the principal shall earn an interest equivalent to the prime bank
rate existing at the time.
Upon the ling of the corresponding petition or request with the

department or corresponding case in court by the agricultural lessee or
lessees, the said period of one hundred and eighty days shall cease to run.
Any petition or request for pre-emption shall be resolved within sixty

daysfrom the iling thereof; otherwise, the saidperiod shall start to run again."
Section 12.Lessee'sRight ofRedemption. -In casethe landholding

is sold to a third person without the knowledge of the agricultural lessee,
the latter shall have the right to redeem the same at a reasonable price
and consideration: Provided, That where there are two or more agricultural
lessees,each shall be entitled to said right of redemption only to the extent
of the area actually cultivated by him. The right of the redemption under
this Section may be exercised within one hundred eighty days from notice in
writing which shall be served by the vendee on all lessees affected and the
"Amended by Section 2 of R.A. No. 6389.

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B22 AGRARIAN LAW AND SOCIAL LEGISLATION
Department of Agrarian Reform upon the registration of the sale, and shal
have priority over any other right of legal redemption. The redemption price
shall be the reasonable price of the land at the timne of the sale.
Upon the ing of the corresponding petition or request with the
department or corresponding case in court by the agricultural lessee or
lessees, the said period of one hundred and eighty days shall cease to run.
Any petition or request for redemption shall be resolved within sixty
days from the ling thereof; otherwise, the said period shall start to run
again.
gA tolothtug
The Department of Agrarian Reform shall initiate, while the Land
Bank shall fînance, said redemption as in the case of pre-emption.32
es Section13. Af davit Required in Sale of Land Subjectto Right ofPre-
emption. No deed of sale of agricultural land under cultivation by an
agricultural lessee or lessees shall be recorded in the Registry of Property
unless accompanied by an af davit of the vendor that he has given the
written notice required in Section eleven of this Chapter or that the land is
not worked by an agricultural lessee.
qB Section 14. Right of Pre-emption and Redemption Not Applicable to
Land to be Converted into Residential, Industrial and Similar Purposes.3
cdts Section 15. Agricultural Leasehold Contract in General. The
agricultural lessor and the agricultural lessee shall be free to enter into any
kind of terms, conditions or stipulations in a leasehold contract, as long as
they are not contrary to law, morals or public policy. A term, condition or
stipulation in an agricultural leasehold contract is considered contrary to
law, morals or public policy:
(1) Ifthe agricultural lesseeis required to pay a rental in
excessof that which is hereinafter provided for in this Chapter;csb
(2) If the agricultural lessee is required to pay a
ylxi consideration inexcessof the fair rental value as de ned herein,
for the use of workanimalsand/orfarmimplementsbelongingpsh
to the agricultural lessor or to any other person; or
gniblodbnnt 10
992801 3) If it is imposed as a condition in the agricultural
93trg leasehold contract: (a) that the agricultural lessee is requiredar
leas to rent work animals or to hire farm implements from thebas
Sra agricultural lessor ora third person, or to make use of any storesl
toht Orservicesoperatedby the agricultural lessor or a third person;y u
ci yoi or (b) that the agricultural lessee is required to perform any
odt b work or render any service other than his duties and obligations
MAmended by Section 2 of R.A. No. 6389.

SRepealed by Section 3 of Republic Act No. 6389. go
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APPENDIXC AASO 523
providedin this Chapterwith or withoutcompensation;or ()t

Sil that the agricultural lessee is required to answer for any ne,
deductions and/or assessments. nso s Inh0T09 ó
opo Any contract by which the agricultural lessee is required to0 accept
a loan or to make payment therefor in kind shall also be contrary to law,
moralsor publicpolicy. priasqs cid o togzollarualuoirgssdsroontsseus!
Section 16. Nature and Continuity of Conditions of Leasehold
Contract. In theabsenceof anyagreementas to theperiod, the terms and
conditions of a leasehold contract shall continue until modi ed by the parties:
Provided, That in no case shall any modi cation of its terms and conditions
prejudice the right of the agricultural lessee to the security of his tenure on
the landholding: Provided, further, That in case of a contract with a period
an agricultural lessor may not, upon the expiration of the period, increase the
rental except inaccordancewith the provisions ofSection thirty-four.v
tU Section17.Form andRegistrationofContract. "Should theparties
decide to reduce their agreement into writing, the agricultural leasehold
contract shall be drawn in quadruplicate in a language or dialect known to
the agricultural lessee and signed or thumb-marked both by the agricultural
lessee personally, and by the agricultural lessor or his authorized
representative, before two witnesses, to be chosen by each party. If the
agricultural lessee does not know how to read, the contents of the document
shall be read and explained to him by his witness. The contracting parties
shall acknowledge the execution of the contract before the justice of the
peace of the municipality where the land is situated. No fees or stamps
of any kind shall be required in the preparation and acknowledgment of
the instrument. Each of the contracting parties shall retain a copy of the
contract. The justice of the peace shall cause the third copy to be delivered
to the municipal treasurer of the municipality where the land is located and
the fourth copy to the Of ce of the Agrarian Counsel.
Except in case of mistake, violence, intimidation, undue in uence,
or fraud, an agricultural contract reduced in writing and registered as
hereinafter provided, shall be conclusivebetween the contracting parties, if
not denounced or impugned within thirty days after its registration.
Section 18. Registration of Leasehold Contract. The municipal
treasurer shall, upon receipt of his copy of the contract, require the
agricultural lessee and agricultural lessor to present their respective copies
of the contract, and shall cause to be annotated thereon the date, time and
place of registration as well as its entry or registration number.
unor Section 19. Registry of Agricultural Leasehold Contracts. The
Municipal Treasurer of the municipality wherein the land is situated shall
keep a record of all such contracts drawnand executed within his jurisdiction,
to be known as Registry of Agricultural Leasehold Contracts. He shall keep
this registry together with a copy of each contract entered therein, and
make annotations on said registry of all subsequent acts relative to each
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contract, such as its renewal, novation, cancellation, etc. No registration

fees or documentary stamps shall be required in the registration of said
contracts or of any subsequent acts relative thereto.
Section 20. Memorandum of Loans. No obligation to pay money
on account of loans including interest thereon obtained by the agricultural
lessee from the agricultural lessor or his representative shall be enforceable
unless the same or a memorandum thereof be in writing in a language or
dialect known to the agricultural lessee, and signed or thumb-marked by
him, or by his agent.
de 9KOKOOiotse89l & ioertotitbTO0
Section21.Exemptionfrom Lien and/or Execution. The following
shall be exempt from lien and/or execution against the agricultural lessee:
rost botbaal srt
(1) Twenty- ve per centum of the entire produce of the land under
cultivation; and
(2) Work animals and farm implements belonging to the agricultural
lessee: Provided, That their value does not exceed one thousand pesos. But
no article or species of property mentioned in this Section shall be exempt
from execution issued upon a judgment recovered for its price or upon a
judgment offoreclosure of a mortgagethereon.yd hos vllnirogs goasl
Section 22. Use of Accepted Standards of Weights and Measures.
In all transactions entered into between the agricultural lessee and the
agricultural lessor concerning agricultural products the of cial or, upon
agreement of the parties, the accepted standards of weights and measures
shall be used.
Section23.RightsofAgriculturalLesseeinGeneral. It shallbethe
right oftheagriculturallessee: ilsraescnqori oeoiteut dl .to0noo
bm'betsoo (1) Tohavepossessionandpeacefulenjoymentof the t ot
LLSIUSTS
land; P
19t (2) To manage and work on the land in a manner and
bmethod ofcultivationandharvestwhichconformtoproven farmo
3t opractices;
2retigt eebTri tasdorta
bongtquitsobooisotobJon
(3) To mechanize all or any phase of his farm work; and
Laisisonten S101TSZ
stt orLpc (4)To deal with millers andprocessorsand attend toase
oiu theissuanceofquedansandwarehousereceiptsfor theproduce iT8
Lt duehim. t noodibasatoans
sdotceuolods s dortnoosrt o
Section24. Right to a Home Lot. The agricultural lessee shall have
the right to continue in the exclusivepossession and enjoyment of any home
lot he may have occupied upon the effectivity of this Code, which shall be
consideredasincluded in theleasehold. bssiroo rioualls io bro99s g99
Section25. Right tobe Indemnifed for Labor,The agricultural lessee
shall have the right to be indemni ed for the cost and expenses incurred in
the cultivation, planting or harvesting and other expenses incidental to the
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NAPII APPENDIX
C6 uNO 525
improvement of his crop in case he surrenders or abandons his landholding

for just cause or is ejected therefrom. In addition, he has the right to be
indemni ed for one-half of the necessary and useful improvements made by
him on the landholding: Provided, That these improvements are tangible and
have not yet lost their utility at the time of surrender and/or abandonment
of the landholding, at which time their value shall be determined for the
purpose of the indemnity for improvements. 0
Section 26. Obligations of theLessee. – It shall be the obligation of
the agricultural lessee: ayoosto
(1) To cultivate and take care of the farm, growing crops,ub
and other improvements on the landholding as a good father of
a family and perform all the work therein in accordance with
proven farm practices;
0 10280l lutleoeRE Ori vdblodozrod
(2) To inform the agricultural lessor within areasonable
time of any trespass committed by third persons upon the farm,
without prejudice to his direct action against the trespasser;
nc: (3)s To take reasonable care of the work animals and
farm implements delivered to him by the agricultural lessor
and see that they are not used for purposes other than those
all be
intended or used by another without the knowledge and consent
of the agricultural lessor: Prouided, however, That if said work
animals get lost or die, or said farm implements get lost or are
destroyed, through the negligence of the agricultural lessee, he
shall be held responsible and made answerable therefor to the
extent of the value of the work animals and/or farm implements
at the time oftheloss,deathor destruction;ú eid o soon
o100 (4) To keep his farm and growing crops attended to
during the work season. In case of unjusti ed abandonment or
neglect of his farm, any or all of his expected produce may, upon
o i1 order of the Court, be forfeited in favor of the agricultural lessor
to the extent of the damage caused thereby;
diw (5) To notify the agricultural lessor at least three
days before the date of harvesting or, whenever applicable, of
threshing; and 918rl
079 (6) To pay the lease rental to the agricultural lessor
whenit fallsdue. Dl onst10,898qt
ri9oTgeit iob5401i 1stt bbisor
Section27. Prohibitions to Agricultural Lessee.It shall be unlawful
fortheagricultural
lessee: beiisscyaenistsyst ohuetatnitcand
(1) To contract to work additional landholdings
belonging to a different agricultural lessor or to acquire and
personally cultivate an economic family-size farm, without the
knowledge and consent of the agricultural lessor with whom he
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526 AGRARIẠN LAW AND SOCIAL LEGISLATION
hadentered rstinto
household,ifthe rst
landholdingis of i
suf cient size to make him and the members of his immediate
farm household fully occupied in its cultivation; or
To employ a sub-lessee on his landholding: Provided,
(2)
however, That in case of illness or temporary incapacity he may
employ laborers whose services on his landholding shall be on
his account.
Section 28. Termination of Leasehold by Agricultural Lessee During
Agricultural Year. The agricultural lessee may terminate the leasehold
during the agricultural year for any of the following causes:
(1) Cruel, inhuman or offensive, treatment of the
agricultural lessee or any member of his immediate farm
household by the agricultural lessor or his representative with
the knowledge and consent of the lessor;
(2) Non-complianceon the part of the agricultural lessor
with any of the obligations imposed upon him by the provisions
of this Code or by his contract with the agricultural lessee;
(3) Compulsion of the agricultural lessee or any member
of his immediate farm household by the agricultural lessor to do
any work or render any service not in any way connected with
farm work or even without compulsion if no compensation is
paid;lo
(4) Commission of a crime by the agricultural lessor
or his representative against the agricultural lessee or any
member of his immediate farm household; or
o (5) Voluntary surrender due to circumstances more
advantageous to him and his family.
Section29.Rightsof the AgriculturalLessor. -It shall be the right of
the agricultural lessor:
() To inspect and observe the extent of compliance with

the terms and conditions of their contract and the provisions of
this Chapter;
(2) To propose a change in the use of the landholding to
other agricultural purposes, or in the kind of crops to be planted:
Provided, That in case of disagreement as to the proposed
change, the same shall be settled by the Court according to the
best interest of the parties concerned: Provided, further, That in
no case shall an agricultural lessee be ejected as a consequence
of the conversion of the land to some other agricultural purpose
or because of a change in the crop to be planted;
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APPENDIX C 527
(3) To require the agricultural lessee, taking into

consideration his nancial capacity and the credit facilities
available to him, to adopt in his farm proven farm practices
necessary to the conservation of the land, improvement of its
fertility and increase of its productivity: Provided, That in case
of disagreement as to what proven farm practice the lessee shall
adopt, the same shall be settled by the Court according to the
best interest of the parties concerned; and
(4) To mortgage expected rentals.
Section 30. Obligations of the Agricultural Lessor. – It shall be the
obligation of the agricultural lessor: arlt
(1) To keep the agricultural lessee in peacefulpossession

and cultivation of his landholding; and
(2) To keep intact such permanent useful improvements
existing on the landholding at the start of the leasehold relation
as irrigation and drainage systems and marketing allotments,
which in the case of sugar quotas shall refer both to domestic
and export quotas, provisions of existing laws to the contrary
notwithstanding.
Section 31. Prohibitions to the AgriculturalLessor. - It shall be
unlawful for the agricultural lessor:
(1) To dispossess the agricultural lessee of his
landholding except upon authorization by the Court under
Section thirty-six. Should the agricultural lesseebedispossessed o
os of hislandholdingwithoutauthorizationfrom the Court, the
agricultural lessor shall be liable for damages suffered by the
agricultural lessee in addition to the ne or imprisonment
prescribed in this Code for unauthorized dispossession;
ea (2) To require the agricultural lessee to assume, directly

or indirectly, the payment of the taxes or part thereof levied by
the government on the landholding:
(3) To require the agricultural lesseeto assume, directly
or indirectly, any part of the rent, canon or other consideration
which the agricultural lessor is under obligation to pay to third
ops persons for the use of the land;
(4) To deal with millers or processors without written
authorization of the lessee in cases where the crop has to be sold
in processed form before payment of the rental; or
hra (5) To discourage, directly or indirectly, the formation,
maintenance or growth of unions or organizations of agricultural
lessees in his landholding, or to initiate, dominate, assist or T94
interfere in the formation or administration of any such union
or organization.
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Section32. Cost of Irrigation System. - The cost of construction of a

permanent irrigation system, including distributary canals, may be borne
exclusively by the agricultural lessor who shall be entitled to an increase
in rental proportionate to the resultant increase in production: Provided,
That if the agricultural lessor refuses to bear the expenses of construction
the agricultural lessee/or lessees may shoulder the same, in which case the
former shall not be entitled to an increase in rental and shall, upon the
termination of the relationship, pay the lessee or his heir the reasonable
value of the improvement at the time of the termination: Provided, further,
That if the irrigation system constructed does not work, it shall not be
considered as an improvement within the meaning of this Section: Provided,
furthermore, That the lessees, either as individuals or as groups, shall
undertake the management and control of irrigation systems within their
respective jurisdiction. However, those constructed and operated by the
government may be given to the lessees either as individuals or as groups at
their option with the right to maintain, manage and operate such irrigation
systems and to collect and receive rentals therefrom: Provided, still further,
That the lessees, either as individuals or as groups, shall allocate not more
than twenty- ve per cent of their collection for rentals to the government
if the irrigation system has obligations to meet until paid, otherwise such
irrigation system will be maintained, managed and operated solely by the
lessees either as individuals or as groups, subject to such rules on water
rights and water use promulgated by the National Irrigation Administration
or such other government agencies authorized by law: Provided, nally,
That if the irrigation systemnis installed and/or constructed at the expense
of the landowner or agricultural lessor, the Department ofAgrarian Reform
shall initiate, while the Land Bank shall nance, the acquisition of such
irrigation system at its current fair market value so that the ownership
thereof may be vested in the lessees as individuals or groups.
Section 33. Manner, Time and Place of Rental Payment.L The

consideration for the lease of the land shall be paid in an amount certain
in money or in produce, or both, payable at the place agreed upon by the
parties immediately after threshing or processing if the consideration is in
kind, or within areasonabletime thereafter, if not in kind.
In no case shall the agricultural lessor require the agricultural lessee
to le a bond, make a deposit or pay the rental in advance, in money or in
kind or in both, but a special and preferential lien is hereby created in favor
of the agricultural lessor over such portion of the gross harvest necessary
for the paymentof the rental due in his favor.9s3o rnesod
Section 34. Consideration for theLease of Riceland and Lands Devoted
to Other Crops. - The consideration for the lease of riceland and lands
devoted to other crops shall not be more than the equivalent of twenty- ve
per centum of the average normal harvest or if there have been no normal

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74 2lu21APPENDIXC3VAHA 529
harvests, then the estimated normal harvest during the three agricultural
years immediately preceding the date the leasehold was established after
deducting the amount used for seeds and the cost of harvesting, threshing,
loading, hauling andprocessing, whichever are applicable: Provided, That if
the land has been cultivated for a period of less than three years, the initial
consideration shall be based on the average normal harvest or if there have
been no normal harvests, then the estimated normal harvest during the
preceding years when the land was actually cultivated, or on the harvest of
the rst year in the case of newly cultivated lands, if that harvest is normal
harvests, the nal consideration shall be based on the average normal
harvestduringthesethreeprecedingagriculturalyears. prihthras oi
In the absence of any agreement between the parties as to the rental,
the Court of Agrarian Relations shall summarily determine a provisional
rental in pursuance of existing laws, rules and regulations and production
records available in the different eld units of the department, taking into
account the extent of the development of the land at the time of the conversion
into leasehold and the participation of thelessee in the development thereof.
This provisional rental shall continue in force and effect until a xed rental
is nally determined. The court shall determine the xed rental within
thirty days after the petition is submitted for decision. iti93 750
If capital improvements are introduced on the farm not by the lessee
to increase its productivity, the rental shall be increased proportionately to
the consequent increase in production due tO said improvements. In case of
disagreement, the Court shall determine the reasonableincrease in rental.35
t0 21 Section 34-A. Rental credited as amortization payment onpurchase
price.38 –The rental paid under the preceding section after the approval
of this amendatory Act shall be credited as amortization payment on the
purchase price of the landholding tilled by thelessee in any of the following
instances:t
(1) When the landholding is expropriated by the
governmentfor thelessee;and no T9rto yan,nl
(2) hen it isredeemed g butootueit
ow The purchase price of the landholding shall be determined by the
parties or the government agencies concerned on the same basis prescribed
under section fty-six of this Code:Provided, That whatever balance remains
after crediting as amortization the rental paid, the same may be nanced by
the Land Bank in the same ratio and mode of payment as provided under
sectioneightyof thisCode.otaft dsiw enoisSLTOslsirte viwoana
35Amended by Section 5 of R.A. No. 6389

36Added by Section 6 of R.A. No. 6389.
b or sE
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lesusThe provisions of Act Numbered Four hundred ninety-six, as

amended, and other laws to the contrary notwithstanding, the [Land
Management Bureauļ"" [is hereby authorized] to approve survey plans of
lands intended for original registration and to issue transfer certi cate of
title in favor of the new amortizing-owner-bene ciaries under this section
and the Registries ofDeeds to register the same. For this purpose, the [Land
Management Bureau] shall issue the necessary rules and regulations for
the implementation of this provision. brsloft ru
IanT The Department and/or the Bank, in appropriatecases,shall facilitate
the immediate issuance of the corresponding transfer certi cate of title of
the landholding to the new amortizing owner with the encumbrance thereof
duly annotated.
Provisions of existing laws, rules and regulations to the contrary
notwithstanding, any amortizing owner may use this transfer certi cate
of title to obtain a loan from any public or private lending institution
and he shall be entitled to borrow therefor an amount not less than sixty
per centum of the fair market value of the property: Provided, That the
proceeds of such loan shall be applied as follows: fty per centum as partial
payment of any unpaid balance on the landholding and the remaining fty
per centum for the capital improvement of the land and operating capital
for farm operations of the amortizing owner.
rler
The payment of all loans obtained pursuant to the provisions of this
section shall be guaranteed by the Land Bank and for this purpose, it
shall set aside a sinking fund in such amount as may be iC
necessary to be
determined by its Board of Trustees. T932tb
soi Incaseofdefault in the payment of threeconsecutiveinstallments on

the loan, the lender shall immediately notify, among others, the Land Bank
and the department of such default, and thereafter, these agencies shall
take the appropriate steps either: bslip nriblodbaslod to saiig 9AilTUg
(1) To answer for the default in case the reason therefor
isduetofortuitousevent,ora'bionbas yrt n9V/
(2) )
In any other case, to take over the ownership and
administration of said property.
In the latter case mentioned under the preceding paragraph, the
government shall endeavor to substitute the defaulting amortizing.owner
with a new one who does not own any land and who shall be subrogated to
the rights, and shall assume the obligations, of the former amortizing owner.
di The rulesprescribed in the two immediatelyprecedingparagraphs
shall apply in case the lessee defaults in the payment of at least three
consecutive rental amortizations, with the former landowner giving the
required notice in proper cases.
SThe Bureau of Lands, which was tasked to perform the duties in this
provision, was then renamed to the Land Management Bureau under Executive
Order No. 192, Series of 1987.
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01TAIEIOKILAPPENDIX C MAIHAS6 531
In all instances where default is due to fortuitous events the Land

Bank shall be answerable for such default and the farmers shall be released
from the obligations to pay such installment or installments due together
withinterest thereon."ots sÅ
ttis o t2 8rorfo
Section 35. Exemption from Leasehold of Other Kinds of Lands.9
Section 36. Possession of Landholding; Exceptions. Notwithstanding
any agreement as to the period or future surrender, of the land, an agricultural
lessee shall continue in the enjoyment andpossessionof his landholding except
when his dispossession has been authorized by the Court in a judgment that is
nalandexecutoryif afterduehearingit isshownthat: 8 ooa
(1) The landholding is declared by the department head
upon recommendation of the National Planning Commission to
be suited for residential, commercial, industrial or some other
urban prposes: Provided, That the agricultural lessee shall be
entitled to disturbance compensation equivalent to ve times
the average of the gross harvests on his landholding during the
last ve preceding calendaryears;10minim ot tógit h(8)
(2) The agricultural lessee failed to substantially
comply with any of the terms and conditions of the contract or
any of the provisions of this Code unless his failure is caused by c
fortuitous event or force majeure;
sb (3)The agriculturallesseeplantedcrops or used the
landholding for a purpose other than what had been previously
agreed
upon;hozslo
noisregaue
tauinse
3igil )
(4) The agricultural lessee failed to adopt proven farm
practices as determined under paragraph3 of Section twenty-nine;
(5)The landgor other substantiald permanentS0
3stg improvement thereon is substantially damaged or destroyed oriol
lagso has unreasonably deteriorated through the fault or negligencelda
sle i oftheagriculturallessee;aBbovolqn9laubivibalettotint9qo
Sd aoiiV (6) The agriculturallesseedoesnot pay the lease rental o
when it falls due:Provided, That if the non-payment of the rental
ELLSI shall be due to crop failure to the extent of seventy- ve per centum
otlt no as a result ofa fortuitous event, the non-payment shall not be Ow
aground fordispossession,although theobligation to pay the s
rental due that particular crop is not thereby extinguished; or
oubs
brof tod(7) The lessee employed a sub-lessee on his landholdingo
sdt in iolation of the terms of paragraph 2 of Section twenty-seven.
S8Added by Section 6 of R.A. No. 6389.

9Repealed by Section 76 of the Comprehensive Agrarian Reform Law of 1988.
40Amended by Section 7 of R.A. No. 6389. 8 otae yd bhaena
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Section 37. Burden of Proof. - The burden of proof to show the

existence of a lawful cause for the ejectment of an agricultural lessee shall
rest upon the agricultural lessor.iRni tlon
Section 38. Statute of Limitations. –An action to enforce anycause of
action under this Code shall be barred if notcomménced within three years
after such cause of action accrued.
bsatloi Hroiios
qt CHAPTER II- Bill of Rights forAgricultural Laborosl
Section 39. Rights for Agricultural Labor. To enable the farm
workers to enjoy the same rights and opportunities in life as industrial
workers, they shall enjoy the following: 2E1COtOI GI 90 J
dJo (1) Righttoself-organization;cebiebiho botia ouy

(2) Right to engage in concerted activities as de ned
under Republic Act Numbered Eight hundred and seventy- ve."st
(3) Right to minimum wage;broii nnibbss vàdedh g
i (4) Right to work for not more than eight hours;
Right to claim for damages for death or injuries
sustained while at work;
bd b.(6) Right to compensation for personal injuries, death
orillness;and tu nndi odiobbiqugeyohgriilerdasslto be
() Right against suspension or lay-off.
Section 40. Right to Self.Organization. The farm workers shall
have the right to self-organization and to form, join or assist farm workers'
organizations of their own choosing for the purpose of collective bargaining
through representatives of their own choosing: Provided, That this right
shall be exercised in a manner as will not unduly interfere with the normal
farm operations. Individuals employed as supervisors shall not be eligible
for membership in farm workers' organizations under their supervision but
may form separate organizations of their own.
sor :esballcliirodw
Section41: Right to Engage in ConcertedActivities. The farm
workers shall also have the right to engage in concerted activities for the
purpose of collective bargaining and other mutual aid or protection.
hadEttrdiIS
For the purpose of this and the precedingSection, it shall be the duty
of the farm employer or manager to allow the farm workers, labor leaders,
organizers, advisers and helpers complete freedom to enter and leave the
farm, plantation or compound at the portion of the same where said farm
workers live or stay permanently or temporarily.
sdoTaua')it loATaot dboleagsST

"Amended by Section 8 of R.A. No. 6389. H1o Viobe yobohaoamA
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dl 1o'A
APPENDIXCAisN9 533
Section42. Right to Minimum Wage.-Notwithstanding any provision

of law or contract tó the contrary, farm workers in farm enterprises shalI
be entitled to at least P3.50 a day for eight hours' work: Provided, That this
wage may, however, be increased by the Minimum Wage Board as provided
for in Republic Act Numbered Six hundred and two.
Section 43. Right to Eight Hours' Work. Notwithstanding the
Drovisionof existing laws to the contrary, farm workers shall not be required
to work for more than eight hours daily. When the work is not continuous,
the time during which the farm worker is not working and can leave his
working place and can rest completely shall not be counted.
saoi Work may be performed beyond eight hours a day in case of actual
or impending emergencies caused by serious accidents, re, ood, typhoon,
epidemic, or other disaster or calamity, or in case of urgent work to be
performed on farm machines, equipment or installations in order to avoid
a serious loss which the farm employer or manager would otherwise suffer,
or some other just cause of a similar nature, but in all such cases the farm
workers shall be entitled to receive compensation for the overtime work
performed at the same rate as their regular wages, plus at least twenty- ve
percentumadditional,basedon their dailywages.odsl o Jgs Es
No farmn employer or manager shall compel a farm worker to work
during Sundays and legal holidays: Provided, however, That should the
farm worker agree to work on said days, he shall be paid an additional sum
of at least twenty- ve per centum of his regular compensation; Provided,
further, That the farm employer or manager shall not be held liable for any
claim for overtime work which he had not previously authorized, except if
the work rendered was to avoid damages to crops, produce, work animals or
implements, buildings or the like.
Any agreement or contract between the farm employer or manager
and the farm worker contrary to the provisions of this Section shall be null
and void.
Section 44. Right of Action for Damages. Notwithstanding the
provisions of existing laws to the contrary, Act Numbered Eighteen hundred
and seventy-four, as amended, entitled An Act to extend and regulate the
responsibility of employers for personal injuries and death suffered by their
employees while at work, shall apply to farm workers insofar as it may be
applicable.
Section 45. Right to Compensation for Personal Injuries, Death, or
llness. Notwithstanding the provisions of existing laws to the contrary,
Act Numbered Thirty-four hundred and twenty-eight, as amended, entitled
An Act prescribing the_ compensation to be received by employees for
personal injuries, death or illness contracted in the performnance of their
duties, shall apply to farm workers insofar as it may be applicable.
fl
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534 AGRARIAN LAW AND SOCAL LEGISLATION
Section46. Right AgainstSuspensionor Lay-Off. The landowner,

farm employer or farm manager shall not suspend, lay-off or dismiss any
farm worker without just cause from the time a farm workers' organization
or group of farm workers has presented to the landowner a petition or
complaint regarding any matter likely to cause a strike or lockout and
a copy thereof furnished with the Department of Labor, or while an
agricultural dispute is pending before the Court of Agrarian Relations. If
it is proved during the said period that a worker has been suspended or
dismissed without just cause, the Court may direct the reinstatement and
the payment of his wage during the time of his suspension or dismissal, or of
any sum he should have received had he not been suspended or dismissed,
without prejudice to any criminal liability of the landowner, farm employer
or farm manager as prescribed by Section twenty-four of Commonwealth
ActNumberedOnehundredandthree,asamended. to x0 oimshica
Section 47. Other Applicable Provisions. All other existing laws
applicable to non-agricultural workers in private enterprises which are not
inconsistent with this Code shall likewise apply to farm workers, farm labor
organizations and agrarian disputes as de ned in this Code, as well as to
relations between farm management and farm labor and the functions of
the Department of Labor and other agencies.
Section 48. Exceptions to Preceding Section. S Gs o7
mgThe precedingSections of this Chapter, exceptSections forty, forty.
one, forty-two and forty-three shall not apply to farm enterprises comprising
notmorethantwelve hectares.hUS H 9ole hrslas
SarlTsi
oJrsat Chapter lIl- Department of Agrarian Reform dt
9malgt
ARTICLEI-Organization and Functions ng
of the Department of Agrarian Reform2 B
aaortahEXECUTIVE ORDERNO. 129-A loaitoiaryot
MODIFYING EXECUTIVE ORDER NO, 129 REORGANIZING AND
STRENGTHENING THE DEPARTMENT OF AGRARIAN REFORM AND
FOR OTHER PURPOSES
XXX dgoilqas
SECTION3.DeclarationofPolicy. It is thedeclaredpolicyof the
State of completely abolish all remnants of feudalism and all other types
of unjust tenurial arrangements, implement the comprehensive agrarian
reform program, increase the productivity of the direct producers, and
strengthen the agricultural base for increased industrialization. isuou194
4Article I of Chapter III is superseded by Executive Order No. 129-A

fi
MOTTAELDT APPENDIXc 535
Pursuantto thispolicy,theState shall:ociblt eessst

Establish owner-cultivated economic, family-size
a).
farms and collectively-owned/cooperatively-cultivated farms as
the foundation of Philippine agriculture;
sto b) Prohibit absentee land ownership; a boi

c) Rechannel and divert landlord capital in agriculture
to industrialdevelopment; h bnil
Assist in the preservation and conservation of prime
lands for agricultural purposes;
e Encourage the establishment and protect the autonomy
and independence of institutions of farmers and farmworkers
that will safeguard their interests and ensure their digni ed
existence,freefromperniciousrestraintsandpractices; tor
ol ) Createjustandviable
socio-economic
structuresin
agriculture conducive to greater productivity and higher incomes
through the cooperative system of production, processing,
marketing, distribution, and credit services;
in g) Accelerate the disposition of public alienable,
disposable, and cultivable land to actual cultivators and other
quali ed bene ciaries and develop agrarian communities for
full utilization of land for human growth anddevelopment;vob
sab h)a Institutionalizepartnershipsbetweengovernment
and organizations of farmers and farmworkers in agrarian reform
policy formulation, program implementation, and evaluation;
i) Provide speci c investment opportunities,
alternative employment, and other incentives for landowners
affected by agrarian reform;boo0o1 sOroAyoy 9rii xos osbrve
alau j) i Ensure
adequate
funding
supportfortheagrarian
reform program as well as timely, affordable, and appropriate
nancingschemesto itsbene ciaries; dgn Iooybne holo
aWBl
k) Implement an agricultural land taxschemethat will
prevent land hoarding and/or speculation.
SECTION 4. Mandate. The Department shall be responsible for
implementing the Comprehensive Agrarian Reform Program and, for such
purpose, it is authorized to:
abucss o a) Acquire, determine the value of, subdivide into
family-size farms or organize into collective of cooperative o
wn farms anddevelop private agricultural lands for distribution to
quali edtillers, actualoccupants,anddisplacedurbanpoor; tea
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SOCIAL SECURITY ACT OF 2018

e odt ot bREPUBLICACT NO.11199"

Rationale Behind the Social Security Law

Validity of the Social Security Law lay2yiituss2

Construction of the SocialSecurityLawhay viim02 isiao2 orlT

The Social Security Law Is Not a Law on Succession

o atairlT qtieaortelyr olgarolgis rs o aetee oc

The Social Security System WsJ yiiuonZ Isiao2orli lo ibiloy

Coverage of the Social Security Law

esr 3) Service performed in the employ of foreign

d) Professional athletes, coaches, trainers oM

i considered in the same manner as self-employed persons.ageg

Voluntary Coverageo cswon at ors) eusod b9tsvon910

Policy on the Primacy of Regular Employment over Self-Employment

1) Employers – on the rst day of hisYP

3) Self-employed - upon his registration with the

Securing a Social Security System Number Does Not Confer

MembersCannot Withdraw Their Membershipoyolgms ns noriW

l 4) To remit the premium contributions to the

1) If the employeebecomessick, disabled, retires

When an Employer Is Not Liable for Damages for Failure to Report

Subsidiary Liability of the Principal

Effect of Failure of Employer to Remit Contributions

SISocial Security Act of 2018, Section 24(a).

Demand Is Not a Condition Precedent for Remittance of

io ccapacitywith thecorporationat the time of thealleged non-o

&t tA ic ard«Sec.28.PenalClause. XXX ne 8104io oA

Security System shall be considered as his monthly compensation.

Social Security System Bene ts

boni 1) Maternity leavebene t,50

Lotoe.2f1o o iavi,he toc

slckness Bene t"niesordieisslsis dilotothausbossnl

Unused portion of the sickness bene t cannot be carried forward

ia3) If the employer noti ed the Social Security

T6Social Security Act of 2018, Section 14(a)(1),

PermanentPartialDisability Bene t®init sd oto

Effect of Death or Retirement ovdeeiti ioiteinanare9

c) Php1,000.00, provided that the monthly

l3 o1 o4 8noidudrtao08 bie ton andT9dns

The minimum pension shall be Php1,200.00 for members

3) for failure to present himself for examination

Social Security Act of 2018, Section 12(b).

Effect ofRe-Employment nondsy tmniria odl

iclh-& to LOSlo3aé isna lni

NOTE: The primary bene ciaries are:

NOTE: The secondary bene ciaries are: snits s

The Social Security Commission isoo2oritturtega oitautat

alnqAtoire a) three of theappointedmembersshould ii

Jurisdiction of the Social Security Commission

PRESIDENTIAL DECREE NO0. 11461

Coverage of the Government Service Insurance Systemidue loM

OW 2) Elective of cials who will be more than 65

NotSubjecttoCompulsory Coveragenota voo orii iopgst9Vo

charters, government nancial institutions, except uniformed

Efective Date of Membership s djw a1dot

GovernmentServiceInsuranceSystem Bene tsvag eool

elug 1i2) Unemployment or involuntary separation

tscrav) Survivorship bene ts;* 9dc9rt eVilDEnA

oidsd 9) o Lifeinsurancebene t.?sT ei egolod sddoislwo

NOTE: Average monthly compensation is

2) 3 years but less than 6 years -3 months Snowa2

3) 6 years but less than 9 years - 4 months

Conditions for Entitlement to Temporary Total Disability Bene t

2) if separated, must have rendered at least three