Presented to:

Atty. Noel C. Felongco I

Professor

Prepared by:

Calvo, Aira D.
Caroro, Carlisle T.
Cruza, Regine Ashley D.
SOCIAL SECURITY SYSTEM LAW Castillo, Mary Elizah D.
Ngo, Patrick Samuel L.
Agrarian Reform & Social Legislation Panelo,
Finals Desiree Clemence B.
Group Activity
Piol, Burt Ezra L.
JD-WT 2 | EH 305
 TABLE OF CONTENTS

!. Summary of the Law 1

Brief History 1

Purpose 2

Coverage 2

Conditions for Entitlement of Benefits 4

Penal Clauses 8

II. Social Security System Law as Social Legislation 10

III. References 14
 Social Security Act of 2018
R.A. 11199
I. Summary of the Law

Brief History

1948 - President Manuel Roxas called for the immediate creation of the Social
Security Commission with the idea of providing a social security
scheme for Filipino workers in the private sector.

1949 - President Elpidio Quirino recommended the establishment of a system

that would benefit and protect wage earners and low-salaried
employees to Congress. This was based on the studies conducted by the
Commission.

1957 - The old Social Security Law of 1954 (Republic Act No. 1161) was
implemented after amendments correcting the flaws of the original
legislation were passed.
- SSS provided:
1. pensions only for retirement and permanent total disability;
2. lump sum benefits for 1death, 2permanent partial disability, and
3
sickness

1964 - The 1housing, 2salary, and 3educational loan programs were introduced
as part of the benefit entitlements of members.

1975 - The System carried out the new Employees' Compensation Program
(Executive Order No. 441) by offering benefits and medical services to
members who suffer from work-related 1sickness, 2disability, or 3death.

1978 - The social security program was enhanced.

- Funeral benefits, survivor's pension, and dependent's pension were
introduced.
- The mechanism for the granting of maternity benefits to qualified SSS
female members who give birth or suffer from miscarriage was
instituted.

1979 - benefits recommended by the International Social Security Association

(ISSA) were administered by the SSS, to wit:
1. Retirement;
2. Survivorship;
3. Disability
4. Sickness;
5. Maternity;
6. Hospitalization
7. Employment injury
1980 - The SS Law was amended to extend compulsory coverage to certain
groups of self-employed persons such as 1artists, 2entertainers,
3
proprietors and 4professionals.
- The SS Commission was also empowered to effect benefit increases
whenever actuarially feasible, subject to the approval of the President.

1997 - The Social Security Act of 1997 (Republic Act 8282) was enacted which
enabled SSS to enhance benefits, expand coverage, and broaden
investment alternatives.
- It exempted the SSS from the Attrition and Standardization Laws, thus
enabling the System to have a more competitive salary structure as it
expanded its branch network.

2019 - Republic Act No. 11199 was recently signed into law by President
Duterte to ensure the long-term viability of the social security system
(SSS), known as the Social Security Act of 2018.
- RA No. 11199 repeals the 21-year old prior SSS law with an aim to,
among other things, enhance both state-provided benefits and the long-
term sustainability of the SSS, and for the first time, provide an SSS
unemployment benefit.

Purpose

R.A. 11199 aims to strengthen the policy of the State 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 through savings, and ensure meaningful social security
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 Filipino workers, local
or overseas, and their beneficiaries.

In the pursuit of this policy, a social security program was developed,

emphasizing the value of “work, save, invest and prosper”. The maximum
profitability of investible funds and resources of the program is ensured
through a culture of excellence in management grounded upon sound and
efficient policies employing internationally recognized best practices.

Coverage

Coverage in the SSS may be 1compulsory or 2voluntary.

I. Compulsory Coverage

The following employees are compulsorily covered:

1. Private employees, not over 60 years old
 - any person who performs services for an employer in which either or
both mental or physical efforts are used and who receives compensation
for such services, where there is an employer-employee relationship.
- employees of bona fide independent contractors shall not be deemed
employees of the employer engaging the service of said contractors.
- all employees, regardless of tenure, would qualify for compulsory
membership in the SSS, except those classes of employees contemplated
in Section 8 (j) of the Social Security Act. (Chua v. Court of Appeals, G.R.
125837, October 6, 2004)
- compulsory coverage commences on the first day of employment.
- registration may be done within 30 days from the first day of
employment and shall retroact to the first day of employment
- employer has the duty to register the employee.
2. Kasambahays and Domestic Workers, not over 60 years old
3. Self-Employed
- any person whose income is not derived from employment as well as
those persons enumerated in Section 9-A including but not limited to:
- All self-employed professionals;
- Partners and single proprietors of businesses;
- Actors and actresses, directors, scriptwriters and news correspondents
who do not fall within the definition of the term "employee" in Section
8 (d) of this Act;
- Professional athletes, coaches, trainers and jockeys;
- Individual farmers and fishermen who shall be both employee and
employer at the same time. (Section 8[d])
- compulsory coverage commences upon registration with SSS
- has 30 days to register from start of practice of profession or start of
business operations
4. OFWs, who are not over 60 years old;
5. Employees of Foreign or International Governments, with agreement with
the Philippines for SSS coverage.

II. Voluntary Coverage

The following, although not under compulsory coverage, may be covered by

the SSS on a voluntary basis:

1. Spouse who devotes full time to managing household and family

affairs
- must be with the consent of the member-spouse
- contributions will be based on 50% of the working spouse’s last
posted monthly salary but in no case shall it be lower than Php 1,000
- voluntary coverage commences upon first payment of contribution
2. Separated members
- members who were 1separated, or 2whose contracts have ended, or
3
have ceased to be self-employed
- voluntary coverage begins on the month the person resumed
payment of contribution
 3. Permanent Filipino migrants
- Filipino permanent migrants and immigrants, permanent residents
and naturalized citizens of their host countries

When an employee under compulsory coverage is separated from

employment, 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, but 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. (Sec. 11, R.A. 11199)

Conditions for Entitlement of Benefits

A person, although covered under the System, cannot enjoy the benefits if the
conditions thereof do not warrant. The conditions vary from one benefit to
any another.

The benefits provided under the Social Security Act are the following:
1. Sickness Benefit;
2. Death Benefit;
3. Maternity Benefit;
4. Retirement Benefit;
5. Disability Benefit;
6. Unemployment Benefit.

Sickness Benefit
The Sickness Benefit is a daily cash allowance paid by the employer to the
member who is unable to work due to sickness or injury for each day of
compensable confinement or a fraction thereof, or by the SSS, if such person is
unemployed or is self-employed (SE), OFW, voluntary member (VM) who have
been previously covered either as employed/SE/OFW and nonworking (NW)
spouse. (Rule 25, Section 1, IRR of R.A. 11199)

To be eligible for the aforementioned benefit, the following conditions must

be met: 1) Has paid at least three monthly contributions within the twelve-
month period immediately before the semester of sickness or injury; 2) Was
confined for at least four days either in a hospital or elsewhere as defined by
the SSS; 3) Has notified the employer, if employed, or the SSS, if unemployed
or SE/VM of the sickness or injury; and 4) Has used up all current company
sick leave with pay for the current year, if employed, except sea-based OFWs.
(Rule 25, Section 2, IRR of R.A. 11199)

A member may be granted a maximum sickness benefit of one hundred

twenty days in one calendar year. The sickness benefit shall be paid for not
more than two hundred forty days on account of the same illness or
confinement. (Rule 25, Section 6, IRR of R.A. 11199)
Death Benefit
The Death Benefit is a cash benefit either in monthly pension or lump sum
paid to the beneficiaries of a deceased member. Upon the death of a member
who has paid at least thirty-six (36) monthly contributions before the
semester of death, his/her primary beneficiaries shall be entitled to a monthly
pension. (Rule 22, Sec. 1-2, IRR of R.A. 11199)

The following are considered as primary beneficiaries: 1) The dependent

spouse who has not re-married, cohabited or entered in a "live-in"
relationship before or after the death of the member, and 2) The dependent
legitimate, legitimated or legally adopted and illegitimate children. Where
there are legitimate or illegitimate children, the former shall be preferred.
(Rule 12, Sec. 12, IRR of R.A. 11199)

If the Member fails to pay at least 36 monthly contributions, the beneficiaries

will be entitled to the lump sum amount equivalent to the monthly pension
times the number of monthly contributions paid or twelve times the monthly
pension, whichever is higher.

Maternity Benefit
The Maternity Benefit is a daily cash allowance granted to female member
who was unable to work due to childbirth or miscarriage. Therefore, it is
equivalent to 100% of member’s average daily salary credit multiplied by the
applicable number of days.

Under R.A. 11210 or the Expanded Maternity Law, the extent of maternity
leave is as follows: (a) For live child birth: up to 105 days regardless of mode
of delivery plus additional 15 days, if solo parent; (b) For miscarriage and
emergency termination of pregnancy: 60 days. In case only of live childbirth,
there is an option to extend maternity leave up to a period of 30 days unpaid
leave.

To be eligible for maternity leave benefits, the female worker must be a

member who has paid at least three (3) monthly contributions in the twelve-
month period immediately preceding the semester of childbirth, miscarriage,
or emergency termination. The said female worker must also have notified the
employer of the fact of pregnancy and probable date of childbirth. The
employer will then transmit such notice to the SSS in accordance with existing
SSS rules.

The law specifically prohibits recovery of sickness benefits for the same
period which daily maternity leave benefits have been received.

Retirement Benefit
The Retirement Benefit is a monthly pension or lump sum granted to a
member who can no longer work due to old age. To be eligible for this benefit,
the following conditions must be met:
 1. The member must have at least one hundred twenty (120) monthly
contributions prior to semester of retirement;
2. Has reached sixty (60) years old and is separated from employment or
has ceased to be self-employed, except: a) in the case of an underground
mineworker, at least 55 years old effective 13 March 1998; and b) in the
case of an underground or a surface mineworker, at least 50 years old
effective 27 April 2016;
3. Is at least 65 years old, except:
 in the case of an underground mineworker effective 13 March 1998
or a surface mineworker effective 27 April 2016, at least 60 years old
 in the case of a racehorse jockey, at least 55 years old effective 24 May
2016. (Rule 21, Sec. 1-2, IRR of R.A. 11199)

The monthly benefits shall be suspended upon the re-employment or

resumption of self-employment of a retired member who is less than sixty-
Bve (65) years old, less than sixty (60) years old in the case of an underground
or a surface mineworker. (Rule 21, Sec. 7, IRR of R.A. 11199)

Disability Benefit
The disabilities covered by the SSS Law only include permanent disabilities
which may either be total or partial.

The Permanent Disability Benefit is a cash benefit granted to a member who

becomes permanently disabled either partially or totally. The following
disabilities shall be deemed permanent total:
 Complete loss of sight of both eyes;
 Loss of two limbs at or above the ankle or wrists;
 Permanent complete paralysis of two limbs;
 Brain injury resulting to incurable imbecility or insanity;
 Such cases as determined and approved by the SSS and/or the
Commission. (Rule 23, Sec. 1-2, IRR of R.A. 11199)

A. Permanent Total Disability Benefit

To be entitled to the monthly pension, the Member must have suffered a

permanent total disability and he or she must have paid at least thirty-six (36)
monthly contributions prior to the semester of disability.

The monthly benefits shall be suspended upon:

 Reemployment;
 Resumption of self-employment;
 Recovery from permanent total disability;
 Failure to report or present oneself for examination at least once a year
upon notice by the SSS. (Rule 23, Sec. 10, IRR of R.A. 11199)

Upon the death of the permanent total disability pensioner, the primary
beneficiaries as of the date of disability, shall be entitled to one hundred
percent (100%) of the monthly pension. If the permanent total disability
pensioner has no primary beneficiaries and dies within sixty (60) months
from the start of the monthly pension, the secondary beneficiaries shall be
entitled to a lump sum benefit equivalent to the total monthly pensions
corresponding to the balance of the five-year guaranteed period, excluding the
dependents' pension, additional benefit. allowance and supplemental
disability allowance. If there are no primary and secondary beneficiaries, the
lump sum benefit specified in the immediately preceding paragraph shall form
part of his/her estate and shall be paid to his/her legal heirs in accordance
with the law of succession. (Rule 23, Sec. 12, IRR of R.A. 11199)
The disability pension shall cease upon retirement or death of a member who
is on partial disability pension. Moreover, applications for disability benefit
claim shall be filed within ten (10) years from the date of occurrence of
disability. (Rule 23, Sec. 13, IRR of R.A. 11199)

B. Permanent Partial Disability

If the disability is permanent partial and such disability occurs after thirty-six
(36) monthly contributions have been paid prior to the semester of disability,
the benefit shall be the monthly pension for permanent total disability
payable not longer than the period designated in the following schedule (e.g.,
loss of one thumb, 10 months; loss of hearing in both ears, 50 months).

In case of permanent partial disability, the monthly pension benefit shall be

given in lump sum if it is payable for less than twelve (12) months.

Should a member on permanent partial disability pension retire or die, the

pension shall cease. A separate application must be filed for death benefits
since the law provides no automatic conversion to death benefits unlike
permanent total disability.

Unemployment Benefit
The unemployment insurance or involuntary separation benefit is a monthly
cash payment equivalent to Bfty percent (50%) of the AMSC for a maximum of
two (2) months, subject to the rules and regulations that the Commission may
prescribe. [Sec. 14-B, R.A. 11199]

The grant of unemployment insurance or involuntary separation benefit may

be availed by members subject to the following conditions:
1. The member is not over 60 years old;
2. He has paid at least 36 months contribution, 12 months of which should
be in the 18-month period preceding the involuntary unemployment or
separation;
3. Unemployment benefit can only be claimed once every 3 years;
4. In case of concurrence with 2 or more compensable contingencies, only
the highest benefit shall be paid;
5. The claim must not have prescribed.
A claim for unemployment insurance or involuntary separation benefits shall
be filed within one (1) year from the date of separation or unemployment. A
member who is involuntarily separated from employment is entitled to the
same benefit, provided that such separation did not arise from fault or
negligence of the employee and which may be attributed to any of, but not
limited to, the following: a) Installation of labor-saving devices; b)
Redundancy; c) Retrenchment to prevent loss; d) Closure or cessation of
operation; or e) Disease/illness. A covered employee who is involuntarily
unemployed can only claim unemployment benefit once every three (3) years
starting from the date of involuntary separation or unemployment. (Rule 27,
Sec. 2-3, R.A. 11199)

In cases where the benefit cannot be paid to the member, especially in case of
death, the benefits shall be paid to the beneficiaries.

The following are considered as primary beneficiaries:

 The dependent spouse who has not re-married [Sec. 8, (k)], cohabited or
entered in a "live-in" relationship before or after the death of the
member, and
 The dependent legitimate, legitimated or legally adopted and illegitimate
children who are not yet 21 years old.

In the absence of primary beneficiaries, the secondary beneficiaries are as

follows:
 The dependent parents of the deceased member; and
 In the absence of dependent parents, any other person/s designated and
reported by the member to the SSS

Penal Clauses

Sec. 1 to 10, of the Implementing Rules and Regulations of R.A. 11199

enumerate the acts penalized for non-compliance under the said law, namely:
 False Statement, Representation, Affidavit or Document;
 Fraudulent Acquisition or Receipt of Money or Check;
 Unauthorized Purchase, Sale, Use, Transfer, Exchange or Pledge of
Stamps, Coupons, Etc.;
 Fraudulent Alteration, Forgery or Counterfeiting of Stamps, Coupons,
Etc.;
 Non-Compliance with the Social Security Act of 2018, This IRR and Other
Regulations;
 Failure or Refusal to Register Employees or Self-Employed Individuals;
 Failure or Refusal to Deduct and Remit Contributions;
 SSS Employee's Appropriation or Misappropriation of Funds of SSS or Its
Properties;
 Employer's Misappropriation of Contributions or Loan Amortizations of
Its Employees;
  Acts or omission committed by an association, partnership, corporation
or any other institution
II. Social Security Act of 2018 as a Social Legislation

Social Legislation refer to laws that seek to promote the common good.
Generally, Social Legislation laws are intended to protect and assist the
weaker members of society (Owlgen, n.d.). It is meant to be a foothold or a
helping hand, to help regain balance for the present inequality. These specific
laws aim to improve social conditions or bring about social reform to ensure
the elimination of the imbalance on the basis of age, sex, race or religion as
well protect the rights of the weaker members of society.

By its nature and subject, the Social Security Act is a social legislation as
it was enacted with the common good mind and which implemented to afford
protection to the weaker sectors in society.

The Social Security Act of 2018 is an improvement of past legislation

aimed to promote social welfare by providing for financial aid with regards to
the hazards of age, disability, sickness, and other incidents. With the passage
of the Social Security Act of 2018, it gives rise to not only increased minimum
and maximum salary credits and contribution rates but also increased
premiums for the employers and employees. Although this entails higher
priced payments than previous years for the premiums, there would in turn
be higher payouts guaranteed to covered individuals. This would serve as
financial aid in case of contingencies and emergencies which may result in
loss of income or financial burden.

Unlike the old SSS law, the Social Security Act of 2018 has opted to
include in its compulsory coverage, all sea-based or land-based OFW
(Overseas Foreign Workers). The same law also provides for unemployment
insurance and involuntary separation benefits to an SSS member, less than 60
years old who paid at least 36 months of contributions, as monthly cash
payment equivalent to 50% of the average monthly salary credit with a
maximum for two months.

With benefits granted in the event of hazards such as but not limited to
sickness, old age, death, the Act ensures that a social security system suitable
for the needs of the Filipino people is established through savings and social
security protection against accidents.

A particular instance today where the Act affords such protection is the
grant of benefits to employees affected with current pandemic. An article in
Philippine News Agency provides that SSS is prepared to pay unemployment
benefits to thousands of workers projected to lose their jobs as a result of the
possible layoffs or closures of private companies hit by the economic fallout
from the 2019 coronavirus disease. The Act intends to ensure protection for
indeed it would be too much a burden for an employee to deal with income
loss at such a time as this.
 In addition, the Social Security Act specifically addresses the fact of
financial inequality and disparity of wealth and status. It tries to rectify the
disproportion and variation of social inequality present so as to implement
the principle of social justice.

As provided in Sec. 2 of R.A. 11199, the Act promotes social justice by

means of savings, putting emphasis on the value of “work, save, invest and
prosper.” As the case of Calalang v. Williams puts it, social justice is the
humanization of laws and the equalization of economic forces. The Act itself
acknowledges the occurrence of hazards that may create financial burden or
loss of income and consequently ensures that, through consistent contribution
or savings, the members and their beneficiaries can have protection against
inevitable and unforeseen misfortunes in life.

Just like every social legislation, the Social Security Act of 2018 chiefly
ensures that a viable social security program is established so every Juan and
Maria can build a future they can rest secure in.

In the new SS Law, Section 8, (j) (1) of R.A. No. 11199, the term
Employment now includes as an exception those with no employer-employee
relationship to wit:

“(j) Employment- Any service performed by an employee for

his employer except:

(1) Services where there is no employer-employee

relationship in accordance with existing labor laws, rules,
regulations and jurisprudence”.

This new provision sets the record straight that when there is no
employer-employee relationship, the member could declare himself as a
voluntary member. Also, the provision in the old law, including in the
exception (a) employment which is purely casual and not for the purpose of
occupation or business of employer and (b) service performed on or in
connection with an alien vessel by an employee if he is employed when such
vessel is outside the Philippines is now deleted.

Equally significant is Section 9-B of the law on Overseas Filipino

Workers to Compulsory Coverage which provides:

“Coverage in the SSS shall be compulsory upon all sea-based and

land-based OFWs as defined under Republic Act No. 8042,
otherwise known as the Migrant Workers and Overseas Filipinos
Act of 1995, as amended by Republic Act No. 10022: Provided, That,
they are not over sixty (60) years of age.
 All benefit provisions under this Act shall apply to all covered OFWs.
The benefits include, among others, retirement, death, disability,
funeral, sickness and maternity.

Manning agencies are agents of their principals and are considered

as employers of sea-based OFWs.

For purposes of the implementation of this Act, any law to the

contrary notwithstanding manning agencies are jointly and
severally or solidarily liable with their principals with respect to the
civil liabilities incurred for any violation of this Act.

The persons having directs control, management or direction of the

manning agencies shall be held criminally liable for any act or
omission penalized under this Act notwithstanding Section 28(f)
hereof

Land-based OFWs are compulsory members of the SSS and

considered in the same manner as self-employed persons under
such rules and regulations that the Commission shall prescribe”.

The DFA, the DOLE, and the SSS shall ensure compulsory coverage of the
OFWs through bilateral social security and labor agreements and other
measures for enforcement. Upon the termination of their employment
overseas, OFWs may continue to pay contributions on a voluntary basis to
maintain their rights to full benefits. Filipino permanent migrants, including
Filipino immigrants, permanent residents and naturalized citizens of their
host countries may be covered by the SSS on a voluntary basis.

This new provision is important because there was no provision

requiring OFWs to be covered compulsorily in the SSS in the old SSS Law. Now
the Department of Foreign Affairs (DFA) and the Department of Labor and
Employment (DOLE) and all its agencies will be helping SSS in its mandate to
ensure the social security of OFWs. As such, the DFA and DOLE are mandated
to negotiate bilateral agreements with countries where the primary
consideration is to ensure that OFWs will have social security either secured
abroad or locally, in the Philippines, but bearing in mind that those offered
abroad should be equivalent or more than what is given in the Philippines.

SECTION 14-B which provides for Unemployment Insurance or

Involuntary Separation Benefits provides for another benefit that can be
availed of a member to wit:

“A member who is not over sixty (60) years of age who has paid at
least thirty-six (36) months contributions twelve (12) months of
which should be in the eighteen-month period immediately
preceding the involuntary unemployment or separation shall be
 paid benefits in the form of monthly cash payments equivalent to
fifty percent (50%) of the average monthly salary credit for a
maximum of two (2) months: Provided, That an employee who is
involuntarily unemployed can only claim unemployment benefits
once every three (3) years: Provided, further, That in case of
concurrence of two or more compensable contingencies, only the
highest benefit shall be paid, subject to the rules and regulations
that the Commission may prescribe”.

This new provision enabled those who were recently unemployed,

involuntarily or separated from work, to avail of this unemployment
insurance or involuntary separation benefits provided that the qualifications
have been met. In summary:

1. The member is not over sixty (60) years of age; and

2. Has paid at least thirty-six (36) months contributions twelve (12)
months of which should be in the eighteen-month period immediately
preceding the involuntary unemployment or separation.

It must be noted that it can only be availed of once every three (3) years
provided that the above-mentioned qualifications have been met. This is very
helpful for those who find themselves suddenly and involuntarily unemployed
in order for them to still afford the basic needs.

In sum, the Social Security Law is a social legislation because it is a form

of a social insurance.
References

Owlgen India (2020) What is the Concept of Social Legislation? Discuss the
Need and Objectives of Social Legislation. Retrieved from: What is the
Concept of Social Legislation? Discuss the Need and Objectives of Social
Legislation. - Owlgen

Philippine News Agency (2020) SSS ready to pay unemployment benefits of

covid-affected workers. Retrieved from: SSS ready to pay unemployment
benefits of Covid-affected workers | Philippine News Agency
(pna.gov.ph)

Willis Towers Watson (2019) Philippines: New Legislation increases social

security contributions and introduces unemployment insurance. Global
News Briefs. Retrieved from: Philippines: New SSS law enhances state-
provided benefits

Republic Act No. 11199 – 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
Republic Act No. 1161 as amended by Republic Act No. 8282, otherwise
known as “Social Security Act of 1997”. Retrieved from: sss.gov.ph