lOMoARcPSD|5916110

SSS Law Reviewer copy

BS Accountancy (Ateneo de Zamboanga University)

StuDocu is not sponsored or endorsed by any college or university

Downloaded by Ysza Gian Vispo (yszavispo@gmail.com)

Social Security Law Reviewer
University of Santo Tomas Faculty of Civil Law
Social Security System Law
(Republic Act No. 1161, as amended)
Q: What is the purpose of the SSS Law?
A: to establish, develop, promote and perfect a sound
and viable tax-exempt social security system
–suitable to the needs of the people throughout the
Philippines
–which shall promote social justice and
–provide meaningful protection to members and their
beneficiaries against the hazards of
 disability,
 sickness,
 maternity,
 old age,
 death, and
 other contingencies resulting in loss of
income or financial burden.
Towards this end, the State shall endeavor to extend
social security protection to workers and their
beneficiaries.
Its purpose is to provide social security, which means
funds for the beneficiary, if the employee dies, or for
the employee himself and his dependents if he is
unable to perform his task because of illness or
disability xxx (Tecson v. SSS, G.R. No. L-15798,
[December 28, 1961], 113 PHIL 703-707)
Q: Who are compulsorily covered by the SSS?
A:
1. Employers
Any person, natural or juridical, domestic or foreign
 Who carries on in the Philippines any trade,
business, industry, undertaking or activity of
any kind; and
 Uses the services of another person who is
under his orders as regards the employment.
 EXCEPT the Government and any of its
political subdivisions, branches
instrumentalities, including corporations
owned or controlled by the Government.
Q: Are religious, charitable and non-profit
institutions covered?
Agrarian Law and Social Legislation Reviewer
Downloaded by Ysza Gian Vispo (yszavispo@gmail.com)
lOMoARcPSD|5916110
Atty. Cesar Santamaria
Professor – 2C (2017-2018)
A: Yes the definition of the term "employer" is, we
think, sufficiently comprehensive as to include
religious and charitable institutions or entities not
organized for profit, like here in appellant, within its
meaning.
This is made more evident by the fact that it contains
an exception in which said institutions or entities are
not included. And, certainly, had the Legislature really
intended to limit the operation of the law to entities
organized for profit or gain, it would not have defined
an "employer" in such a way as to include the
Government and yet make an express exception of it.
(In re Catholic Archbishop of Manila v. Social Security
Commission, G.R. No. L15045, [January20,1961],
110 PHIL 616-622)
2. Employees
All employees not over sixty (60) years of age
Employee -- Any person who performs services for
an employer in which either or both mental and
physical efforts are used and who receives
compensation for such services, where there is an
employer-employee relationship
Well-settled is the rule that the mandatory coverage of
RA 1161, as amended, is premised on the existence
of an employer-employee relationship. (Co v. People,
G.R. No. 160265, [July 13, 2009], 610 PHIL 60-71)
3. Domestic helpers earning not less than One
thousand pesos (P1,000.00) a month
The minimum wage of domestic workers is now
P1,500 to P2,500 pursuant to Section 24 of RA
10361 (Batas Kasambahay).
Consequently, all domestic workers should be
covered.
Per RA 10361, a domestic worker who has rendered
at least one (1) month of service shall be covered by
the Social Security System (SSS), the Philippine
or
Health Insurance Corporation (PhilHealth), and the
Home Development Mutual Fund or Pag-IBIG, and
shall be entitled to all the benefits in accordance with
the pertinent provisions provided by law.
4. Self Employed Persons
Including, but not limited to the following:
1. All self-employed professionals;
Page 1 of 14
 lOMoARcPSD|5916110
Social Security Law Reviewer
University of Santo Tomas Faculty of Civil Law
2. Partners and single proprietors of
businesses;
3. Actors and actresses, directors, scriptwriters
and news correspondents who do not fall
within the definition of the term "employee" in
Sec. 8
4. (d) of this Act;
5. Professional athletes, coaches, trainers and
jockeys; and
6. Individual farmers and fishermen.
Q: Is this compulsory coverage and therefore,
compulsory contribution, Constitutional?
A: Yes. The Social Security Law is a legitimate
exercise of the police power of the State.
It affords protection to labor, especially to working
women and minors, and is in full accord with the
constitutional provisions on the "promotion of social
justice to insure the well-being and economic security
of all the people.― (Roman Catholic Archbishop of
Manila v. SSC; GR L-15045, January 20, 1961)
Q: Can the parties still agree to a private benefit
plan providing for greater benefits?
A: Yes. Nothing in this Act shall be construed as a
limitation on the right of employers and employees to
agree on and adopt benefits which are over and
above those provided under this Act. (Section 9)
Q: Who may volunteer for coverage?
A:
1. Spouses who devote full time to managing
the household and family affairs; and
2. Filipinos recruited by foreign-based
employers for employment abroad.
Q: Who are excluded from the coverage of the
law?
A:
1. Purely casual employees; (see also Viernes
case)
Casual means occasional, coming without regularity.
The work
is purely casual when it is not a part of the business in
which the employer is engaged. (Mansal v. P.P.
Agrarian Law and Social Legislation Reviewer
Downloaded by Ysza Gian Vispo (yszavispo@gmail.com)
Atty. Cesar Santamaria
Professor – 2C (2017-2018)
Gocheco Lumber Co., G.R. No. L-8017, [April 30,
1955], 96 PHIL 941-946)
In the case at bar the employment of respondent A to
help in the repair or replacement of the eave of a
commercial store owned by petitioner UC was purely
casual because such work was needed only when
the said structure was damaged or broken. When it
would be broken and repaired nobody could foresee.
Work on the eave could not be made at fixed
intervals. The employment of a carpenter and a
tinsmith for its repair or replacement was therefore
only occasional, sporadic and for a short time. (Uy
Chao v. Aguilar, G.R. No. L-9069, [March 28, 1958],
103 PHIL 219-223)
2. Employees on an alien vessel employed when
such vessel is outside the Philippines;
3. Employees of the Philippine Government or
instrumentality or agency thereof;
4. Employees of a foreign government or
international organization, or their wholly- owned
instrumentality; and
5. Temporary and other employees excluded by
regulation of the Commission.
Q: What are the effective dates of coverage of
employers and employees?
A: Section 10 of RA 1161
Employer = on the 1st day of operation.
Employee = on the day of his employment.
Self-employed = upon registration.
Q: What are the obligations of an employer under
the law?
A:
1. Reporting of Covered Employees; Section
24(a).
2. Remittance of Contributions; Sections 18,
19, 19-A, and 22.
Q: What is the employer required to report?
A: Names, ages, civil status, occupations, salaries
and dependents of all his employees who are subject
to compulsory coverage
Q: In case of a legitimate contracting
arrangement, who has the obligation to report?
Page 2 of 14
 lOMoARcPSD|5916110

Social Security Law Reviewer Atty. Cesar Santamaria

University of Santo Tomas Faculty of Civil Law Professor – 2C (2017-2018)

A: Employees of bona fide independent contractors Example: If employee begins work on June 20,
shall not be deemed employees of the employer deduction and contribution should be made by June
engaging the services of said contractors. (Section 30.
8(j))
– Principal shall be subsidiarily liable for the civil Q: What about the obligation to remit?
liabilities of the contractor under the SSS Law.
A: The contribution imposed in the preceding section
Q: What are the consequences of an employer’s shall be remitted to the SSS within the first ten (10)
failure to report? days of each calendar month following the month for
which they are applicable or within such time as the
A: Effect of Failure to Report; Section 24(a) Commission may prescribe. (Section 22)
1. DAMAGES if the employee subject to
compulsory coverage Example: June contributions should be remitted by
2. Dies; July 10.
3. Becomes sick or disabled; or
4. Reaches the age of sixty (60) Q: What are the consequences if the employer
Without the SSS having previously received any fails or refuses to remit?
report or written communication about him from his
employer. A: Employer shall be liable for:
1. Payment of the contributions.
1. The said employer shall pay to the SSS damages 2. Penalty of 3% per month from due date until
 equivalent to the benefits to which said paid.
employee member would have been 3. Fine and imprisonment under Section 28(e).
entitled had his name been reported on 4. Estafa under Article 315 of the RPC.
time by the employer to the SSS Misappropriation is presumed if he deducts
but does not remit within 30 days. Section
In case of pension benefits, damages shall be 28(h).
equivalent to the accumulated pension due as of the 5. If employer fails to remit prior to date of
date of settlement of the claim or the five (5) years' contingency, resulting in reduction of
pension, whichever is higher, including benefits, employer shall be liable to pay the
dependents' pension. SSS damages equivalent to the difference
between the amount of benefit which the
2. The employer shall also be liable for the payment member should have received and the
of the corresponding unremitted contributions and amount payable based on the contributions
penalties thereon. actually remitted.
o except that in case of pension
3. Section 28(e) -- where the violation consists in benefits, the employer shall be
failure or refusal to register employees xxx the liable to pay the SSS damages
penalty shall be a FINE of not less than Five equivalent to the accumulated
thousand pesos (P5,000) nor more than Twenty pension due as of the date of
thousand pesos (P20,000) AND IMPRISONMENT for settlement of the claim or the five
not less than six (6) years and one (1) day nor more (5) years' pension, whichever is
than twelve (12) years. higher, including dependents'
pension
Q: When does the employer’s obligation to deduct o
and contribute begin? Failure or refusal of the employer to pay or remit the
contributions herein prescribed shall not prejudice the
A: The last day of the calendar month when an right of the covered employee to the benefits of the
employee's compulsory coverage takes effect. coverage.
(Sections 18 and 19)

Agrarian Law and Social Legislation Reviewer Page 3 of 14

Downloaded by Ysza Gian Vispo (yszavispo@gmail.com)

 lOMoARcPSD|5916110

Social Security Law Reviewer Atty. Cesar Santamaria

University of Santo Tomas Faculty of Civil Law Professor – 2C (2017-2018)

Q: The United Christian Missionary Society is a BENEFITS

religious organization. It believed that it is not
covered by the SSS and therefore, did not remit Q: What are the benefits given under the SSS
any contribution to the System. It filed a petition Law?
for the condonation of penalties. Decide.
A:
A: Good faith or bad faith is rendered irrelevant, since 1. Sickness Benefits; Section 14
the law makes no distinction between an employer 2. Maternity Benefits; Section 14-A.
who professes good reasons for delaying the 3. Permanent Disability Benefits; Section 13-A
remittance of premiums and another who deliberately 4. Retirement Benefits; Section 12-B.
disregards the legal duty imposed upon him to make 5. Death Benefits; Section 13.
such remittance. From the moment the remittance of 6. Funeral Benefits; Section 13-B
premiums due is delayed, the penalty immediately 7. Member loans; Section 26(e).
attaches to the delayed premium payments by force
of law. Sickness Benefit
No discretion or alternative is granted respondent
Commission in the enforcement of the law's mandate It is a DAILY ALLOWANCE for each day of
that the employer who fails to comply with his legal compensable confinement or fraction thereof
obligation to remit the premiums to the System within
the prescribed period shall pay a penalty of three Remember, purpose of SSS is to provide meaningful
(3%) per month. protection against contingencies resulting in loss of
income or financial burden.
Being a mere trustee of the funds of the System
which actually belong to the members, respondent Equivalent to 90% of the employee‘s average daily
Commission cannot legally perform any acts affecting salary credit
the same, including condonation of penalties, that
would diminish the property rights of the owners and Average daily salary credit — The result obtained
beneficiaries of such funds without an express or by dividing the sum of the six (6) highest monthly
specific authority therefor. (United Christian salary credits in the twelve-month period immediately
Missionary Society, et al. v. Social Security preceding the semester of contingency by one
Commission, et al. (G.R. No. L-26712-16, December hundred eighty (180).
27, 1969)
―The six (6) highest monthly salary credits in the
Q: What is the effect of separation of employee on twelve-month period immediately preceding the
the obligation to contribute and remit? semester of contingency‖

A: His employer's contribution on his account and his
obligation to pay contributions arising from that
employment shall cease at the end of the month of
separation,
 Said employee shall be credited with all
contributions paid on his behalf and entitled
to benefits according to the provisions of this
Act.
 He may, however, continue to pay the total
contributions to maintain his right to full
benefit. (Section 11)
Any contribution paid in advance by the employer but
not due shall be credited or refunded to his employer.
(Section 22)
Semester — A period of 2 consecutive quarters
ending in the quarter of contingency.
Quarter — A period of 3 consecutive calendar
months ending on the last day of March, June,
September and December.
Q: What are the conditions for entitlement to the
sickness benefit?
A:
1. The member has paid at least 3 monthly
contributions in the twelve-month period
immediately preceding the semester of
sickness.

Agrarian Law and Social Legislation Reviewer Page 4 of 14

Downloaded by Ysza Gian Vispo (yszavispo@gmail.com)

 lOMoARcPSD|5916110
Social Security Law Reviewer
University of Santo Tomas Faculty of Civil Law
2. The member was confined for more than 3
days (whether in a hospital or elsewhere with
the SSC‘s approval).
3. The member has exhausted his company
granted sick leaves with pay, if any.
4. The employee member shall notify his
employer of the fact of his sickness or injury
within five (5) calendar days after the start of
his confinement
 notification to the employer
is not necessary where --
 confinement is in a
hospital; or
 the employee became
sick or was injured
while working or within
the premises of the
employer
SECTION 11. Effect of Separation from Employment.
— When an employee under compulsory coverage is
separated from employment xxxsaid employee shall
be credited with all contributions paid on his behalf
and entitled to benefits according to the provisions of
this Act. He may, however, continue to pay the total
contributions to maintain his right to full benefit.
Q: What happens where the employee member
has given the required notification but the
employer fails to notify the SSS of the
confinement or to file the claim for reimbursement
within the period prescribed in this section
resulting in the reduction of the benefit or denial
of the claim?
A: Where the employee member has given the
required notification but the employer fails to notify the
SSS of the confinement or to file the claim for
reimbursement within the period prescribed in this
section resulting in the reduction of the benefit or
denial of the claim, such employer shall have no right
to recover the corresponding daily allowance he
advanced to the employee member as required in this
section.
(Section 14 (d))
Period to File Claim
Hospital confinement: 1 year from last day of
confinement.
Agrarian Law and Social Legislation Reviewer
Downloaded by Ysza Gian Vispo (yszavispo@gmail.com)
Atty. Cesar Santamaria
Professor – 2C (2017-2018)
Elsewhere: 1 year from start of confinement.
– the SSS shall reimburse the employer or pay the
unemployed member only for confinement within the
one-year period immediately preceding the date the
claim for benefit or reimbursement is received by the
SSS, except confinement in a hospital in which case
the claim for benefit or reimbursement must be filed
within one (1) year from the last day of confinement.
Q: How long is the benefit payable?
A: The compensable confinement shall begin on the
first day of sickness (assuming notification was given
on time if required)
– Provided, That such allowance shall begin only
after all sick leaves of absence with full pay to the
credit of the employee member shall have been
exhausted.
 120 days max. per year; no carry over
 240 days max. per confinement
Q: When payments should be made?
A: The payment of such allowances shall be
promptly made by the employer every regular payday
or on the fifteenth and last day of each month, and
similarly in the case of direct payment by the SSS, for
as long as such allowances are due and payable.
Maternity Benefits
DAILY ALLOWANCE given to an employee who gives
birth or suffers a miscarriage.
It is equivalent to 100% of the employee‘s average
daily salary credit.
Benefits:
• Normal, miscarriage = 60 days
• Caesarean = 78 days
Q: What are the conditions for entitlement to the
maternity benefit?
A:
1. The female member has given birth or
suffers a miscarriage and such is not yet in
excess of four deliveries or miscarriages;
Page 5 of 14
 lOMoARcPSD|5916110
Social Security Law Reviewer
University of Santo Tomas Faculty of Civil Law
2. The female member has paid at least 3
monthly contributions within the 12 month
period immediately preceding the semester
of childbirth or miscarriage.
– Same as sickness benefit.
Example: Delivery: December 2014
The semester of contingency would be July-
December 2014
The twelve (12)-month period before the semester of
contingency would be July 2013 to June 2014
Assume that the six (6) highest monthly salary credits
during this period are P15,000 each. The average
daily allowance would be P500.00
• The daily maternity allowance would be
P500.00
• The total maternity benefit due would be
P30,000 for normal delivery or P39,000 for
caesarian cases.
Q: What is the procedure for availment of the
maternity leave benefit?
A:
1. The employee notifies the employer of her
pregnancy and the probable date of her
delivery
2. The employer transmits the notice to the
SSS
3. The employer advances the payment of the
benefit within 30 days from the filing of the
maternity leave application; and
4. The SSS shall reimburse the employer upon
satisfactory proof of such payment and
legality thereof.
Q: What is the effect on the member’s entitlement
to the maternity benefit in case she should give
birth or suffer miscarriage
 without the required contributions having
been remitted for her by her employer to
the SSS, or
 without the SSS having been previously
notified by the employer of the time of
the pregnancy?
A: The employer shall pay to the SSS damages
equivalent to the benefits which said employee
member would otherwise have been entitled to.
Agrarian Law and Social Legislation Reviewer
Downloaded by Ysza Gian Vispo (yszavispo@gmail.com)
Atty. Cesar Santamaria
Professor – 2C (2017-2018)
– Remember: Failure or refusal of the employer to
pay or remit the contributions herein prescribed shall
not prejudice the right of the covered employee to the
benefits of the coverage. (Section 22(b))
Disability Benefits
Q: What are the two types of permanent disability
benefits?
A:
1. Permanent TOTAL disability benefits
2. Permanent PARTIAL disability benefits
Q: What disabilities are deemed PERMANENT
TOTAL?
A:
1. Complete loss of sight of both eyes;
2. Loss of two limbs at or above the ankle or
wrists;
3. Permanent complete paralysis of two limbs;
4. Brain injury resulting to incurable imbecility
or insanity; and
5. Such cases as determined and approved by
the SSS.
Q: What are the PT disability benefits?
A: If member has paid AT LEAST 36 monthly
contributions prior to the semester of disability =
 MONTHLY PENSION plus
 DEPENDENT‘S PENSION for each
dependent child (up to 5) conceived on or
before the date of contingency
o Counting is from youngest, no
substitutions
o Legitimate children shall be
preferred.
SECTION 12-A. Dependents' Pension. — Where
monthly pension is payable on account of death,
permanent total disability or retirement,
dependents' pension equivalent to ten percent
(10%) of the monthly pension or Two hundred fifty
pesos (P250.00), whichever is higher, shall also be
paid for each dependent child conceived on or
before the date of the contingency but not
exceeding five (5), beginning with the youngest
and without substitution: Provided, That where
there are legitimate and illegitimate children, the
former shall be preferred.
Page 6 of 14
 lOMoARcPSD|5916110

Social Security Law Reviewer Atty. Cesar Santamaria

University of Santo Tomas Faculty of Civil Law Professor – 2C (2017-2018)

Q: What disabilities are deemed PP?

Q: What is the effect of death of a PT disabled
pensioner? Complete and Permanent Loss
No. of Months
of Use of
A: Upon the death of the permanent total disability
One thumb 10
pensioner, his primary beneficiaries as of the date of
disability shall be entitled to receive the monthly One index finger 8
pension:
One middle finger 6
 Provided, That if he has no primary
beneficiaries and he dies within sixty (60) One ring finger 5
months from the start of his monthly pension,
his secondary beneficiaries shall be entitled One little finger 3
to a lump sum benefit
o Equivalent to the total monthly One big toe 6
pensions corresponding to the One hand 39
balance of the five-year guaranteed One arm 50
period excluding the dependents'
pension. One foot 31
One leg 46
Note: Should a member who is on partial disability One ear 10
pension retire or die, his disability pension shall cease
upon his retirement or death. Both ears 20
Hearing of one ear 10
Q: What are the PT disability benefits? Hearing of both ears 50
A: If member has paid LESS THAN 36 monthly Sight of one eye 25
contributions prior to the semester of disability =
LUMP SUM equivalent to no. of contributions x
monthly pension, or 12 monthly pensions, whichever Q: What are the PP disability benefits?
is higher.
A:
Q: What is effect of re-employment not earlier If disability occurs after thirty-six (36) monthly
than 1 year from PT disability? contributions have been paid prior to the semester of
disability, the benefit shall be the monthly pension for
A: A member who -- permanent total disability payable not longer than the
1. Has received a lump sum benefit and period designated in the foregoing schedule.
2. Is re-employed or has resumed self-  The monthly pension benefit shall be given
employment not earlier than one (1) year in lump sum if it is payable for less than
from the date of his disability twelve months.
-- shall again be subject to compulsory coverage and  For the purpose of adjudicating retirement,
shall be considered a new member. death and permanent total disability pension
benefits, contributions shall be deemed paid
Q: X paid 36 monthly contributions from October for the months during which the member
2009 to September 2012. received partial disability pension

X lost both eyes on January 1, 2013, Pension or

lump sum? Q: What about dependent’s pension?

What if disability occurred on December 31, 2012?

Pension or lump sum?

Agrarian Law and Social Legislation Reviewer Page 7 of 14

Downloaded by Ysza Gian Vispo (yszavispo@gmail.com)

 lOMoARcPSD|5916110
Social Security Law Reviewer
University of Santo Tomas Faculty of Civil Law
A: No. It is given only where monthly pension is
payable on account of death, permanent total
disability or retirement.
Should a member who is on partial disability pension
retire or die, his disability pension shall cease upon
his retirement or death.
What if re-employed? No effect.
If disability occurs before thirty-six (36) monthly
contributions have been paid prior to the semester
of disability, the benefit shall be such percentage of
the lump sum benefit for PTD with due regard to
the degree of disability as the Commission may
determine.
Q: May a PP disability be converted into a PT
disability?
A: Yes. If ―percentage degree of disability‖ equals or
exceed 100%
Percentage Degree of Disability = [Total no. of
months of deteriorating and related permanent partial
disabilities] ÷ 75
The percentage degree of disability, which is
equivalent to the ratio that the designated number of
months of compensability bears to seventy-five (75),
rounded to the next higher integer, shall not be
additive for distinct, separate and unrelated
permanent partial disabilities, but shall be additive for
deteriorating and related permanent partial
disabilities, to a maximum of one hundred percent
(100%), in which case the member shall be deemed
as permanently totally disabled.
Example: Suppose that a single disease has
resulted in the disability and deterioration of:
 One thumb (10)
 One index finger (8)
 One middle finger (6)
 One ring finger (5)
 One little finger (3)
 One big toe (6)
 One hand (39)
PDD = [10 + 8 + 6 + 5 + 3 + 6 + 39] ÷ 75
PDD = 77 ÷ 75
Agrarian Law and Social Legislation Reviewer
Downloaded by Ysza Gian Vispo (yszavispo@gmail.com)
Atty. Cesar Santamaria
Professor – 2C (2017-2018)
PDD = 102.67% or 103%
PTD even though person lost only 1 thumb, 4
fingers, 1 big toe, and 1 hand
Q: May a PP disability be converted into a PT
disability?
A: Yes. See SSC and SSS v. CA; G.R. No. 152058.
September 27, 2004.
SSC and SSS v. CA; G.R. No. 152058. September
27, 2004
The Court of Appeals correctly observed that Rago‘s
injury made him unable to perform any gainful
occupation for a continuous period exceeding 120
days.
The SSS had granted Rago sickness benefit for 120
days and, thereafter, permanent partial disability for
38 months
Such grant is an apparent recognition by the SSS that
his injury is permanent and total as we have
pronounced in several cases.
―xxx if by reason of the injury or sickness he
sustained, the employee is unable to perform his
customary job for more than 120 days and he does
not come within the coverage of Rule X of the
Amended Rules on Employees Compensability xxx
then the said employee undoubtedly suffers from
'permanent total disability' regardless of whether
or not he loses the use of any part of his body.
We further reiterate that disability should be
understood less on its medical significance than
on the loss of earning capacity.
Permanent total disability means disablement of an
employee to earn wages in the same kind of work, or
work of similar nature that he was trained for or
accustomed to perform, or any kind of work which a
person of his mentality and attainment could do. It
does not mean absolute helplessness.
A person's disability may not manifest fully at one
precise moment in time but rather over a period of
time. It is possible that an injury which at first was
considered to be temporary may later on become
Page 8 of 14
 lOMoARcPSD|5916110
Social Security Law Reviewer
University of Santo Tomas Faculty of Civil Law
permanent or one who suffers a partial disability
becomes totally and permanently disabled from the
same cause.
Retirement Benefits
Q: Who is entitled to a monthly pension upon
retirement?
A: A member who has paid at least one hundred
twenty (120) monthly contributions prior to the
semester of retirement and
1. has reached the age of sixty (60) years and
is already separated from employment or
has ceased to be self-employed or
2. has reached the age of sixty-five (65) years
Note: He shall have the option to receive his first
eighteen (18) monthly pensions in lump sum
discounted at a preferential rate of interest to be
determined by the SSS.
Dependents’ Pension also payable? – Yes.
Q: What are the effects of the reemployment or
resumption of self-employment of a retired
member who is less than 65 years old?
A:
1. The monthly pension shall be suspended.
2. ER and EE contributions shall resume.
Q: What is the effect of the death of the retired
member?
A: His primary beneficiaries shall be entitled to
receive the monthly pension.
The proviso "as of the date of his retirement" in
Section 12-B(d) is unconstitutional; Dycaico v. SSS,
et al.; GR No. 161357, November 30, 2005.
 The proviso infringes the equal protection
clause
 The proviso infringes the due process clause
Q: Who is entitled to a lump sum only?
A: A covered member who is sixty (60) years old at
retirement and who does not qualify for pension
benefits xxx shall be entitled to a lump sum benefit
equal to the total contributions paid by him and on his
Agrarian Law and Social Legislation Reviewer
Downloaded by Ysza Gian Vispo (yszavispo@gmail.com)
Atty. Cesar Santamaria
Professor – 2C (2017-2018)
behalf. Provided, that he is separated from
employment and is not continuing payment of
contributions to the SSS on his own.
Death Benefits
Pension or Lump sum
Upon the death of a member who has paid at least
thirty-six (36) monthly contributions prior to the
semester of death, his primary beneficiaries shall be
entitled to the MONTHLY PENSION:
 If he has no primary beneficiaries, his
secondary beneficiaries shall be entitled to a
LUMP SUM benefit equivalent to thirty-six
(36) times the monthly pension.
If he has not paid the required thirty-six (36)
monthly contributions, his primary or secondary
beneficiaries shall be entitled to a LUMP SUM benefit
equivalent to the monthly pension times the number
of monthly contributions paid to the SSS or twelve
(12) times the monthly pension, whichever is higher.
Note: In case of death benefits, if no beneficiary
qualifies under this Act, said benefits shall be paid to
the legal heirs in accordance with the law of
succession.
Funeral Benefits
A funeral grant equivalent to Twelve thousand pesos
(P12,000.00) shall be paid, in cash or in kind, to help
defray the cost of funeral expenses upon the death of
a member, including, permanently totally disabled
member or retiree.
Q: May the SSS give a coffin worth P12,000?
A: Yes.
Q: X suffered PTD in 2000. He hasn’t paid any
contributions since. He died in 2013. Are his
beneficiaries entitled to the funeral benefit?
A: Yes.
Q: What are the types of loans available to
members?
Page 9 of 14
 lOMoARcPSD|5916110

Social Security Law Reviewer Atty. Cesar Santamaria

University of Santo Tomas Faculty of Civil Law Professor – 2C (2017-2018)

A: (SSS v. Aguas; GR 165546, February 27,

• Salary 2006)
• Educational
• Livelihood Note: The dependent illegitimate children shall be
• Marital entitled to fifty percent (50%) of the share of the
• Calamity and legitimate, legitimated or legally adopted children:
• Emergency loans
– In the absence of the dependent legitimate,
Beneficiaries and Dependents legitimated or legally adopted children of the member,
his/her dependent illegitimate children shall be
Primary Beneficiaries entitled to one hundred percent (100%) of the
benefits.
The dependent spouse until he or she remarries.
Secondary Beneficiaries
Dependent spouse: The legal spouse entitled by law
to receive support from the member. The dependent parents
– i.e. parents who are receiving regular support from
The claimant-spouse must therefore establish two the member.
qualifying factors:
1. that she is the legitimate spouse, and In the absence of all of the foregoing, any other
2. that she is dependent upon the member for person designated by the member as his/her
support. secondary beneficiary.
o a husband and wife are obliged to  In short, if there is a named beneficiary and
support each other, but whether the designation is not invalid (as it is not so
one is actually dependent for in this case), it is not the heirs of the
support upon the other is employee who are entitled to receive the
something that has to be shown; it benefits (unless they are the designated
cannot be presumed from the fact beneficiaries themselves).
of marriage alone. (SSS v. Aguas;  It is only when there is no designated
GR 165546, February 27, 2006.) beneficiaries or when the designation is void,
that the laws of succession are applicable.
The dependent legitimate, legitimated or legally And we have already held that the Social
adopted, and illegitimate children Security Act is not a law of succession. (SSS
 unmarried, not gainfully employed and has v. Davac; GR L-21642, July 30, 1966)
not reached twenty-one years (21) of age,
or Q: May a national of a foreign country be a
 if over twenty-one (21) years of age, he is beneficiary?
congenitally or while still a minor has been
permanently incapacitated and incapable of A: Yes, provided that his country extends benefits to
self- support, physically or mentally a Filipino beneficiary residing in the Philippines, or is
recognized by the Philippines.
Legally Adopted
– Provided further, that notwithstanding the foregoing,
Under Section 8 (e) of Republic Act No. 1161, as where the best interest of the SSS will be served, the
amended, only "legally adopted" children are Commission may direct payments without regard to
considered dependent children. nationality or country of residence:

Absent any proof that the family has legally adopted Q: Who may receive benefits for a minor or
Janet, the Court cannot consider her a dependent incompetent beneficiary?
child of Pablo, hence, not a primary beneficiary.

Agrarian Law and Social Legislation Reviewer Page 10 of 14

Downloaded by Ysza Gian Vispo (yszavispo@gmail.com)

 lOMoARcPSD|5916110
Social Security Law Reviewer
University of Santo Tomas Faculty of Civil Law
A: If the recipient is a minor or a person incapable of
administering his own affairs, the Commission shall
appoint a representative under such terms and
conditions as it may deem proper:
Provided, further, that such appointment shall not be
necessary in case –
 the recipient is under the custody of or living
with the parents or spouse of the member in
which case the benefits shall be paid to
such parents or spouse, as representative
payee of the recipient.
Q: May persons other than the beneficiary collect
under an SPA?
A: Such benefits are not transferable and no power
of attorney or other document executed by those
entitled thereto, in favor of any agent, attorney or any
other person for the collection thereof on their behalf
shall be recognized, except when they are physically
unable to collect personally such benefits:
Settlement of Disputes
The Social Security Commission (SSC) has
jurisdiction over disputes arising under the SSS law
with respect to coverage, benefits, contributions and
penalties thereon or any other matter related thereto.
GR: The Court of Appeals has jurisdiction to review
the decisions of the SSC
XPN: If the decision of the Commission involves only
questions of law, the same shall be reviewed by the
Supreme Court.
NOTE: No appeal shall act as a supersedeas or a
stay of the order of the Commission unless the
Commission itself, or the Court of Appeals or the
Supreme Court, shall so order.
Q: May fees be charged for the preparation, filing
or pursuing any claim for benefit under this Act?
A: No, even as deductions from the benefits. Any
stipulation to the contrary shall be null and void.
Q: What about attorney’s fees?
A: Any member of the Philippine Bar who appears as
counsel in any case heard by the Commission shall
Agrarian Law and Social Legislation Reviewer
Downloaded by Ysza Gian Vispo (yszavispo@gmail.com)
Atty. Cesar Santamaria
Professor – 2C (2017-2018)
be entitled to attorney's fees not exceeding ten
percent (10%) of the benefits awarded by the
Commission, which fees shall not be payable before
the actual payment of the benefits, and any
stipulation to the contrary shall be null and void.
Q: What if the lawyer merely prepared the claim
documents and assisted in filing and collecting?
A: No. He must have appeared as counsel in a case
heard by the SSC.
"Any violation of the provisions of this Section shall
be punished by a fine of not less than five hundred
pesos (P500.00) nor more than five thousand pesos
(P5,000.00), or imprisonment for not less than six (6)
months nor more than one (1) year, or both, at the
discretion of the court.
Exemption from Tax, Legal Process and Lien
All benefit payments made by the SSS shall likewise
be exempt from all kinds of taxes, fees or charges
and shall not be liable to attachments, garnishments,
levy or seizure by or under any legal or equitable
process whatsoever, either before or after receipt by
the person or persons entitled thereto, except to pay
any debt of the member to the SSS.
BAR EXAM QUESTIONS
GSIS
Compulsory Coverage (Bar 2009)
Q: No. X. a. State briefly the compulsory coverage of
the Government Service Insurance Act. (2%)
SUGGESTED ANSWER:
The following are compulsorily covered by the GSIS
pursuant to Sec. 3 of R.A. 8291. (A) All employees
receiving compensation who have not reached the
compulsory retirement age, irrespective of
employment status. (B) Members of the judiciary and
constitutional commission for life insurance policy.
Paternity Leave Act of 1996 (Bar 2013)
Page 11 of 14
 lOMoARcPSD|5916110
Social Security Law Reviewer
University of Santo Tomas Faculty of Civil Law
Q: No. IV. b. Because of the stress in caring for her
four (4) growing children, Tammy suffered a
miscarriage late in her pregnancy and had to undergo
an operation. In the course of the operation, her
obstetrician further discovered a suspicious-looking
mass that required the subsequent removal of her
uterus (hysterectomy). After surgery, her physician
advised Tammy to be on full bed rest for six (6)
weeks. Meanwhile, the biopsy of the sample tissue
taken from the mass in Tammy's uterus showed a
beginning malignancy that required an immediate
series of chemotherapy once a week for four (4)
weeks. What can Roger-Tammy's 2nd husband and
the father of her two (2) younger children -claim as
benefits under the circumstances? (4%)
SUGGESTED ANSWER:
Under R.A. No. 8187 or the Paternity Leave Act of
1996, Roger can claim paternity leave of seven (7)
days with full pay if he is lawfully married to Tammy
and cohabiting with her at the time of the miscarriage.
SSS; Compulsory Coverage; Cooperative Member
(2009)
Q: No. X. b. Can a member of a cooperative be
deemed an employee for purposes of compulsory
coverage under the Social Security Act? Explain.
(2%)
SUGGESTED ANSWER:
Yes, an employee of a cooperative, not over sixty (60)
years of age, under the SSS Law, subject to
compulsory coverage. The Section 8(d) SSS Law
defines an employee as –
―Sec. 8(d) – any person who performs services for an
employer in which either or both mental and physical
efforts are used and who receives compensation for
such service, where there is an employer-employee
relationship‖
SSS; Maternity Benefits (Bar 2010)
Q: No. III. A, single, has been an active member of
the Social Security System for the past 20 months.
She became pregnant out of wedlock and on her 7th
month of pregnancy, she was informed that she would
have to deliver the baby through caesarean section
because of some complications. Can A claim
Agrarian Law and Social Legislation Reviewer
Downloaded by Ysza Gian Vispo (yszavispo@gmail.com)
Atty. Cesar Santamaria
Professor – 2C (2017-2018)
maternity benefits? If yes, how many days can she go
on maternity leave? If not, why is she not entitled?
(3%)
SUGGESTED ANSWER:
Yes, the SSS Law does not discriminate based on the
civil status of a female member-employee. As long as
said female employee has paid at least three (3)
monthly contributions in the twelve-month period
immediately preceding the semester of her childbirth,
she can avail of the maternity benefits under the law.
Since A gave birth through C-section, she is entitled
to one hundred percent (100%) of her average salary
credit for seventy-eight (78) days, provided she
notifies her employer of her pregnancy and the
probable date of her childbirth, among others (See
Section 14-A, Rep. Act No. 8282). The same
maternity benefits are ensured by Sec. 22 (b)(2) of
the magna Carta of Women (Rep. Act No. 9710).
SSS; Maternity Benefits (Bar 2007)
Q: No. XIV. AB, single and living-in with CD (a
married man), is pregnant with her fifth child. She
applied for maternity leave but her employer refused
the application because she is not married. Who is
right? Decide. (5%)
SUGGESTED ANSWER:
AB is right. The Social Security Law, which
administers the Maternity Benefit Program does not
require that the relationship between the father and
the mother of the child be legitimate. The law is
compensating the female worker because of her
maternal function and resultant loss of compensation.
The law is morality free.
ALTERNATIVE ANSWER:
Neither party is correct. The employer cannot refuse
the application on the ground that she is only living
with CD, as legitimate marriage is not a precondition
for the grant of maternity leave. Neither AB is correct,
since maternity leave is only available for the first four
deliveries or miscarriage.
SSS; Magna Carta of Women (2013)
Page 12 of 14
 lOMoARcPSD|5916110
Social Security Law Reviewer
University of Santo Tomas Faculty of Civil Law
Q: No. VI. a. Because of the stress in caring for her
four (4) growing children, Tammy suffered a
miscarriage late in her pregnancy and had to undergo
an operation. In the course of the operation, her
obstetrician further discovered a suspicious-looking
mass that required the subsequent removal of her
uterus (hysterectomy). After surgery, her physician
advised Tammy to be on full bed rest for six (6)
weeks. Meanwhile, the biopsy of the sample tissue
taken from the mass in Tammy's uterus showed a
beginning malignancy that required an immediate
series of chemotherapy once a week for four (4)
weeks. What benefits can Tammy claim under
existing social legislation? (4%)
SUGGESTED ANSWER:
Assuming she is employed, Tammy is entitled to a
special leave benefit of two moths with full pay
(Gynecological Leave) pursuant to R.A. No. 9710 or
the Magna Carta of Women. She can also claim
Sickness Leave benefit in accordance with the SSS
Law.
SSS; Money Claims (2008)
Q: No. VIII. Carol de la Cruz is the secretary of the
proprietor of an auto dealership in Quezon City. She
resides in Caloocan City. Her office hours start at 8
a.m. and end at 5 p.m. On July 30, 2008, at 7 a.m.
while waiting for public transport at Rizal Avenue
Extension as has been her routine, she was
sideswiped by a speeding taxicab resulting in her
death. The father of Carol filed a claim for employee's
compensation with the Social Security System. Will
the claim prosper? Why? (6%)
SUGGESTED ANSWER:
Yes, under the ―Going-To-And-Coming-From-Rule,‖
the injuries (or death, as in this case) sustained by an
employee ―going to and coming from‖ his place of
work are compensable (Bael v. Workmen‗s
Compensation Commission, G.R. No. L-42255,
January 31, 1977). SSS; Monthly Contribution (2008)
No. VII. Tito Paciencioso is an employee of a foundry
shop in Malabon, Metro Manila. He is barely able to
make ends meet with his salary of P4,000.00 a
month. One day, he asked his employer to stop
deducting from his salary his SSS monthly
Agrarian Law and Social Legislation Reviewer
Downloaded by Ysza Gian Vispo (yszavispo@gmail.com)
Atty. Cesar Santamaria
Professor – 2C (2017-2018)
contribution, reasoning out that he is waiving his
social security coverage.
Q: If you were Tito's employer, would you grant his
request? Why? (6%)
SUGGESTED ANSWER:
No, payment of SSS monthly contribution is
compulsory and cannot be waived. To grant Tito‗s
request will violate the SSS law and expose me to the
risk of punishment of fine or imprisonment or both at
the discretion of the Court (Sec. 9, Social Security
Act, R.A. 8282).
MULTIPLE CHOICE QUESTIONS
Q: Which of the following is not considered an
employer by the terms of the Social Security Act?
(A) A self-employed person;
(B) The government and any of its political
subdivisions, branches or instrumentalities, including
corporations owned or controlled by the government;
(C) A natural person, domestic or foreign, who carries
on in the Philippines, any trade, business, industry,
undertaking or activity of any kind and uses the
services of another person who is under his orders as
regards the employment;
(D) A foreign corporation.
SUGGESTED ANSWER:
(B) The government and any of its political
subdivisions, branches or instrumentalities. Including
corporations owned or controlled by the government.
[Sec. 8 (c), RA 8282]
Q: Jennifer, a receptionist at Company X, is covered
by the SSS. She was pregnant with her fourth child
when she slipped in the bathroom of her home and
had a miscarriage. Meanwhile, Company X neglected
to remit the required contributions to the SSS.
Jennifer claims maternity leave benefits and sickness
benefits. Which of these two may she claim?
(A) None of them;
(B) Either one of them;
(C) Only maternity leave benefits;
(D) Only sickness benefits.
SUGGESTED ANSWER:
Page 13 of 14
 lOMoARcPSD|5916110

Social Security Law Reviewer Atty. Cesar Santamaria

University of Santo Tomas Faculty of Civil Law Professor – 2C (2017-2018)

C) Only maternity leave benefits [Sec. 14-A (c), RA

1161 (SSS) Law) as amended by RA 8282]

Q: H files for a seven-day paternity leave for the

purpose of lending support to his wife, W, who
suffered a miscarriage through intentional abortion. W
also filed for maternity leave for five weeks. H and W
are legally married but the latter is with her parents,
which is a few blocks away from H's house. Which of
the following statements is the most accurate?
(A) Paternity leave shall be denied because it does
not cover aborted babies;
(B) Paternity leave shall be denied because W is with
her parents;
(C)Maternity leave shall be denied because it does
not cover aborted babies;
(D) Maternity leave shall be denied because grant of
paternity leave bars claim for maternity leave.

SUGGESTED ANSWER:

(B) Paternity leave shall be denied because W is with

her parents [RA 8187, Section 2]

Q: Which of the following statements is the most

accurate?
(A) Domestic helpers with monthly income of at least
P3,000.00 are compulsory members of the SSS Law;
(B) House helpers with monthly income of at least
P2,000.00 are compulsory members of the SSS Law;
(C) Domestic helpers, 55 years of age and who
worked for at least five (5) years, are covered by the
Retirement Pay Law under optional retirement, in the
absence of a CBA;
(D) Domestic helpers in the personal service of
another are not entitled to 13th month pay.

SUGGESTED ANSWER:

(D) Domestic helpers in the personnel service of

another are not entitled to 13th month pay.

Agrarian Law and Social Legislation Reviewer Page 14 of 14

Downloaded by Ysza Gian Vispo (yszavispo@gmail.com)