The SOCIAL SECURITY LAW R.A. 8282 - took effect on May 01, 1997 R.A.

1161 took effect on June 18, 1954 Sec 1. Short Title An Act further strengthening the social security system thereby amending for this purpose, Republic Act No. 1161, as amended, otherwise known as the Social Security Law." Sec 2. Declaration of Policy To establish, develop, promote and perfect a sound and viable tax-exempt social security service suitable to the needs of the people 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 Sec 3. Social Security System It shall be directed and controlled by the Social Security Commission The general conduct of the operations and management functions of the SSS shall be vested in the SSS President who shall serve as the CEO The Commission, upon the recommendation of the SSS President, shall appoint an actuary, and such other personnel as may be deemed necessary Composition of the Commission 1. Secretary of Labor and Employment or his duly designated undersecretary 2. SSS president 3. Seven (7) appointive members a. Three (3) from the workers' group (of at least one woman) who shall be chosen from among the nominees of workers' organizations b. Three (3) from the employers' group (of at least one woman) who shall be chosen from among the nominees employers organizations c. One (1) from the general public whose representative shall have adequate knowledge and experience regarding social security, to be appointed by the President d. The Chairman of the Commission shall be designated by the President of the Philippines from among its members. Term of Appointive Members The term of the appointive members shall be three (3) years They shall continue to hold office until their successors shall have been appointed and duly qualified All vacancies, prior to the expiration of the term, shall be filled for the unexpired term only. Remuneration SSS President A person who has had previous experience in the technical and administrative fields Appointed by the President of the Philippines Receives a salary to be fixed by the Commission with the approval of the President of the Philippines, payable from the funds of the SSS Actuary and Other Personnel Personnel of the SSS below the rank of Vice-President, except those below the rank of assistant manager, shall be appointed by the SSS President and shall be subject to the confirmation by the Commission Personnel of the SSS shall be selected only from civil service eligibles and be subject to civil service rules and regulations Sec 4. Powers and Duties of the Commission 1. Adopt, amend and rescind rules and regulations 2. Establish a provident fund for the members 3. Maintain a provident fund for its officials and employees 4. Approve restructuring proposals 5. Authorize cooperatives to act as collecting agents 6. Compromise or release any interest, penalty or any civil liability to SSS in connection with the investments 7. Approve, confirm, pass upon or review any and all actions of the SSS Sec 4. Powers and Duties of SSS 1. Submit annually not later than April 30, a public report to the President and to the Congress of the Philippines 2. Require the actuary to submit a valuation report on the SSS benefit program every four (4) years, or more frequently as may be necessary 3. Establish offices of the SSS 4. Enter into agreements or contracts for such service and aid 5. Adopt, from time to time, a budget of expenditures 6. Set up its accounting system 7. Require reports, compilations and analyses of statistical and economic data

Acquire and dispose of property, real or personal Acquire, receive, or hold, by way of purchase, expropriation or otherwise, public or private property for the purpose of undertaking housing projects 10. Sue and be sued in court 11. Perform such other corporate acts as it may deem appropriate Sec 5. Settlement of Disputes Q: What are these disputes? A: Disputes arising under this Act with respect to coverage, benefits, contributions and penalties thereon or any other matter related thereto Q: Who shall have jurisdiction over these disputes? A: Social Security Commission Q: What Rules shall apply? A: Filing, determination and settlement of disputes shall be governed by the rules and regulations promulgated by the Commission Q: What is the Procedure? Remedial Procedures Sec 6. Auditor and Counsel Sec 7. Oaths, Witnesses, and Production of Records When authorized by the Commission, an official or employee thereof shall have the power to administer oath and affirmation, take depositions, certify to official acts, and issue subpoena and subpoena duces tecum to compel the attendance of witnesses and the production of books, papers, correspondence as evidence in connection with any question arising under this Act Any case of contumacy shall be dealt with by the Commission in accordance with law Sec 8. Definition of Terms Exceptions to Employment 1. Employment purely casual and not for the purpose of occupation or business of the employer 2. Service performed on or in connection with an alien vessel by an employee if he is employed when such vessel is outside the Philippines 3. Service performed in the employ of the Philippine Government or instrumentality or agency thereof 4. Service performed in the employ of a foreign government or international organization, or their wholly-owned instrumentality 5. Such other services performed by temporary and other employees which may be excluded by regulation of the Commission Sec 8. Definition of Terms Sec 8. Definition of Terms Formula Sec 8. Definition of Terms Sec 9. Coverage Compulsory upon all employees not over sixty (60) years of age and their employers, provided that: Spouses on a voluntary basis who devote full time to managing the household and family affairs, unless they are also engaged in other vocation or employment which is subject to mandatory coverage Filipinos recruited by foreign-based employers for employment abroad Conditions to Sec 9(a) For domestic helpers, their monthly income shall not be less than P1,000.00 a month Any benefit already earned by the employees under private benefit plans shall not be discontinued, reduced or otherwise impaired Private plans which are existing and in force at the time of compulsory coverage shall be integrated with the plan of the SSS Any changes which may be necessary to adopt by reason of the reduced contributions thereto as a result of the integration, shall be subject to agreements between the employers and employees concerned Sec 9-A. Compulsory Coverage of the Self-employed Includes but not limited to the following: 1. All self-employed professionals; 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 Section 8 (d) of this Act; 4. Professional athletes, coaches, trainers and jockeys; and 5. Individual farmers and fishermen Sec 10. Effective Date of Coverage

8. 9.

Compulsory coverage of the employer shall take effect on the first day of his operation and that of the employee on the day of his employment: Provided, That the compulsory coverage of the self-employed person shall take effect upon his registration with the SSS Sec 11. Effect of Separation 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 He may, however, continue to pay the total contributions to maintain his right to full benefit Sec 11-A. Effect of Interruption of Business or Professional Income If the self-employed realizes no income in any given month, he shall not be required to pay contributions for that month. He may, however, be allowed to continue paying contributions, Provided, That no retroactive payment of contributions shall be allowed Sec 12. Monthly Pension The monthly pension shall be the highest of the following amounts: Notwithstanding, the minimum pension shall be: P1,200.00 for members with at least 10 credited years of service and P2,400.00 for those with twenty (20) credited years of service Monthly Pension Formula The sum of the following: = P300.00 + 20% of the average monthly salary credit + 2% of the average monthly salary credit for each credited year of service in excess of 10 years 40% of the average monthly salary credit P1,000.00, Provided, That the monthly pension shall in no case be paid for an aggregate amount of less than 60 months Sec 12-A. Dependents Pension Requisites: 1. Where monthly pension is payable on account of death, permanent total disability or retirement 2. Equivalent to 10% of the monthly pension or P250.00, whichever is higher 3. It shall 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 Sec 12-B. Retirement Benefits 1. A member who has paid at least 120 monthly contributions prior to the semester of retirement and who: 2. If not qualified under (1), he shall be entitled to a lump sum benefit equal to the total contributions paid by him and on his behalf 3. Monthly pension shall be suspended upon the reemployment or resumption of self-employment of a retired member who is less than 65 years old 4. Upon the death of the retired member, his primary beneficiaries as of the date of his retirement shall be entitled to receive the monthly pension 5. monthly pension of a member who retires after reaching age sixty (60) shall be the higher of either: Monthly pension computed at the earliest time he could have retired had he been separated from employment or ceased to be self-employed plus all adjustments thereto; or Monthly pension computed at the time when he actually retires Conditions of a Retiree Member (1) Has reached the age of 60 years and is already separated from employment or has ceased to be self-employed; or (2) Has reached the age of 65 years Provided, That he shall have the option to receive his first 18 monthly pensions in lump sum discounted at a preferential rate of interest to be determined by the SSS Sec 13. Death Benefits Primary Beneficiaries are entitled to monthly pension- upon the death of a member who has paid at least 36 monthly contributions prior to the semester of death Secondary beneficiaries are entitled to a lump sum benefit equivalent to 36 times the monthly pension member has no primary beneficiaries 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 12 times the monthly pension, whichever is higher member has not paid the required 36 monthly contributions Sec 13-A. Permanent Disability Benefits When is Monthly Pension be granted? When is Monthly Pension be suspended? What are permanent disabilities? Grant of Monthly Pension 1. Upon the permanent total disability of a member who has paid at least 36 monthly contributions prior to the semester of disability

If he has not paid the required 36 monthly contributions, he 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. A member who has received a lump sum benefit and is reemployed or has resumed self-employment not earlier than 1 year from the date of his disability, shall again be subject to compulsory coverage and shall be considered a new member. 2. Upon the death of the permanent total disability pensioner, his primary beneficiaries as of the date of disability shall be entitled If he has no primary beneficiaries and he dies within sixty (60) months from the start of his monthly pension, his 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. Suspension of Monthly Pension Upon the reemployment or resumption of self-employment or Upon recovery of the disabled member from his permanent total disability or his failure to present himself for examination at least once a year upon notice by the SSS Permanent Disabilities 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. Sec 13-B. Funeral Benefit A funeral grant equivalent to 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 Sec 14. Sickness Benefit A daily sickness benefit equivalent to 90% of the average daily salary credit for: A member who has paid at 3 monthly contributions in the twelve-month period immediately preceding the semester of sickness or injury Confined for more than 3 days in a hospital or elsewhere with the approval of the SSS Shall be paid by his employer, or the SSS, if such person is unemployed or self-employed Conditions: Conditions for Hospital Benefits In no case shall the daily sickness benefit be paid longer than 120 days in 1 calendar year Daily sickness benefit shall not be paid for more than 240 days on account of the same confinement Member shall notify his employer of the fact of his sickness or injury within 5 calendar days after the start of his confinement Sec 14. Sickness Benefit Compensable confinement shall begin on the first day of sickness, and the payment of such allowances shall be promptly made by the employer 100% of the daily benefits shall be reimbursed by the SSS to said employer upon receipt of satisfactory proof of such payment and legality thereof 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, such employer shall have no right to recover Claim of reimbursement shall be adjudicated by the SSS within a period of 2 months from receipt thereof Sec. 14-A. Maternity Leave Benefit A female member who has paid at 3 monthly contributions in the 12-month period immediately preceding the semester of her childbirth or miscarriage She shall be paid a daily maternity benefit equivalent to 100% of her average daily salary credit for 60 days or 78 days in case of caesarian delivery Conditions: Conditions for Maternity Leave Benefits Employee shall have notified her employer of her pregnancy and the probable date of her childbirth, which notice shall be transmitted to the SSS Full payment shall be advanced by the employer within 30 days from the filing of the maternity leave application Payment of daily maternity benefits shall be a bar to the recovery of sickness benefits for the same period for which daily maternity benefits have been received Maternity benefits shall be paid only for the first 4 deliveries or miscarriages

SSS shall immediately reimburse the employer of 100% of the amount of maternity benefits advanced to the employee by the employer upon receipt of satisfactory proof of such payment Sec 15. Non-Transferability of Benefits GENERAL RULE: SSS shall promptly pay the benefits to such persons as may be entitled thereto CONDITIONS: 1. Retirement Benefits payable on the day of contingency to qualified members who have submitted the necessary documents at least six (6) months before 2. Beneficiary who is a national of a foreign country shall not be entitled to receive any benefit 3. Notwithstanding in No. 2, where the best interest of the SSS will be served, it may direct payments without regard to nationality or country of residence 4. If the recipient is a minor or a person incapable of administering his own affairs, the Commission shall appoint a representative 5. Death Benefits - if no beneficiary qualifies, benefits shall be paid to the legal heirs in accordance with the law Sec 16. Exemption from Tax, Legal Process and Lien All laws to the contrary notwithstanding, the SSS and all its assets and properties, all contributions collected, all benefit payments made and all accruals thereto and income or investment earnings as well as all supplies, equipment, papers or documents shall be exempt from any tax, assessment, fee, charge, or customs or import duty nor be liable to attachments, garnishments, levy or seizure by or under any legal or equitable process whatsoever No tax measure of whatever nature enacted shall apply to the SSS, unless it expressly revokes the declared policy of the State in Section 2 hereof granting tax-exemption to the SSS Sec 17. Fees of Agents, Attorneys, etc. No agent, attorney or other person in charge of the preparation, filing or pursuing any claim for benefit shall demand or charge for his services any fee, and any stipulation to the contrary shall be null and void. Retention/deduction of any amount from benefit granted for the payment of fees for such services is prohibited Any member of the Philippine Bar who appears as counsel in any case heard by the Commission shall be entitled to attorneys' fees not exceeding 10% of the benefits awarded Sec 18. Employees Contributions Beginning as of the last day of the calendar month when an employee's compulsory coverage takes effect and every month thereafter during his employment, the employer shall deduct and withhold from such employee's monthly salary, wage, compensation or earnings, the employee's contribution in an amount corresponding to his salary, wage, compensation or earnings during the month Sec 19. Employers Contributions Remittance of such contributions by the employer shall be supported by a quarterly collection list to be submitted to the SSS at the end of each calendar quarter indicating the correct ID number of the employer, the correct names and the SSS numbers of the employees and the total contributions paid for their account during the quarter Sec 19-A. Contributions of the Self-Employed Member Contributions to the SSS of the self-employed member shall be determined in accordance with Sec 18 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 such latest declaration becomes the new basis Sec 20. Government Contribution Congress shall annually appropriate out of any funds in the National Treasury not otherwise appropriated, the necessary sum or sums to meet the estimated expenses of the SSS for each ensuing year and to assure the maintenance of an adequate working balance of the funds of the SSS Sec 23. Method of Collection and Payment SSS shall require a complete and proper collection and payment of contributions and proper identification of the employer and the employee. Payment may be made in cash, checks, stamps, coupons, tickets, or other reasonable devices that the Commission may adopt Sec 25-26. Deposits & Disbursements; Investment of Reserve Funds All money paid to or collected by the SSS every year and all accruals thereto shall be deposited, administered and disbursed in the same manner as provided by law for other public special funds All revenues of the SSS that are not needed to meet the current administrative and operational expenses incidental to the carrying out of this Act shall be accumulated in a fund to be known as the "Reserve Fund Sec 27. Records and Reports SSS President shall keep and cause to keep records of operations of the funds of the SSS and of disbursements thereof and all accounts of payments made out of said funds Every January, SSS President shall prepare for submission to the President of the Philippines and to Congress of the Philippines a report of operations of the SSS during the preceding year

He shall also cause to be published in 2 newspapers of general circulation in the Philippines a synopsis of the annual report, showing in particular the status of the finances of the SSS and the benefits administered. Thank you!