Republic of the Philippines Congress of the Philippines Metro Manila Tenth Congress

contin,encies resultin, in loss o! income or !inancial burden. $owards this end, the State shall endea*or to e+tend social security protection to workers and their bene!iciaries. "S"#. /. Social Security System. ' 0a1 $o carry out the purposes o! this Act, the Social Security System, hereina!ter re!erred to as 2SSS2, a corporate body, with principal place o! business in Metro Manila, )hilippines is hereby created. $he SSS shall be directed and controlled by a Social Security #ommission, hereina!ter re!erred to as 2#ommission2, composed o! the Secretary o! abor and "mployment or his duly desi,nated undersecretary, the SSS president and se*en 031 appointi*e members, three 0/1 o! whom shall represent the workers2 ,roup, at least one o! whom shall be a woman4 three 0/1, the employers2 ,roup, at least one 011 o! whom shall be a woman4 and one 011, the ,eneral public whose representati*e shall ha*e ade5uate knowled,e and e+perience re,ardin, social security, to be appointed by the )resident o! the )hilippines. $he si+ 061 members representin, workers and employers shall be chosen !rom amon, the nominees o! workers2 and employers2 or,ani.ations, respecti*ely. $he #hairman o! the #ommission shall be desi,nated by the )resident o! the )hilippines !rom amon, its members. $he term o! the appointi*e members shall be three 0/1 years: Provided, $hat the terms o! the !irst si+ 061 appointi*e members shall be one 011, two 0(1 and three 0/1 years !or e*ery two members, respecti*ely: Provided, further, $hat they shall continue to hold o!!ice until their successors shall ha*e been appointed and duly 5uali!ied. All *acancies, prior to the e+piration o! the term, shall be !illed !or the une+pired term only. $he appointi*e members o! the #ommission shall recei*e at least two thousand !i*e hundred pesos 0)(,677.771 per diem !or each meetin, actually attended by them but not to e+ceed $en thousand pesos 0)17,777.771 a month:: Provided, $hat members o! the #ommission shall also recei*e a per diem o! at least $wo thousand !i*e hundred pesos 0)(,677.771 but not to e+ceed 8i!teen thousand pesos 0)16,777.771 a month:

Republic Act No. 8282

May 01, 1

AN ACT "#RT$%R &TR%N'T$%N(N' T$% &)C(A* &%C#R(T+ &+&T%M T$%R%,+ AM%N-(N' ")R T$(& P#RP)&%, R%P#,*(C ACT N). 11.1, A& AM%N-%-, )T$%R/(&% 0N)/N A& T$% &)C(A* &%C#R(T+ *A/ Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:: &ection 1. Republic Act No. 1161, as amended, otherwise known as the "Social Security aw", is hereby further amended to read as !ollows: "S"#$%&N 1. Short Title. ' $his Act shall be known as the "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." "S"#. (. Declaration of Policy. ' %t is the policy o! the Republic o! the )hilippines to establish, de*elop, promote and per!ect a sound and *iable ta+'e+empt social security ser*ice suitable to the needs o! the people throu,hout the )hilippines which shall promote social -ustice and pro*ide meanin,!ul protection to members and their bene!iciaries a,ainst the ha.ards o! disability, sickness, maternity, old a,e, death, and other

Provided , further, $hat said members o! the #ommission shall also recei*e reasonable transportation and representation allowances as may be !i+ed by the #ommission, but not to e+ceed $en thousand pesos 0)17,777.771 a month. "0b1 $he ,eneral conduct o! the operations and mana,ement !unctions o! the SSS shall be *ested in the SSS )resident who shall ser*e as the chie! e+ecuti*e o!!icer immediately responsible !or carryin, out the pro,ram o! the SSS and the policies o! the #ommission. $he SSS )resident shall be a person who has had pre*ious e+perience in the technical and administrati*e !ields related to the purposes o! this Act. 9e shall be appointed by the )resident o! the )hilippines and shall recei*e salary to be !i+ed by the #ommission with the appro*al o! the )resident o! the )hilippines, payable !rom the !unds o! the SSS. "0c1 $he #ommission, upon the recommendation o! the SSS )resident, shall appoint an actuary, and such other personnel as may be deemed necessary, !i+ their reasonable compensation, allowances and other bene!its, prescribe their duties and establish such methods and procedures as may be necessary to insure the e!!icient, honest and economical administration o! the pro*isions and purposes o! this Act: Provided, however, $hat the personnel o! the SSS below the rank o! :ice')resident shall be appointed by the SSS )resident: Provided, further, $hat the personnel appointed by the SSS )resident, e+cept those below the rank o! assistant mana,er, shall be sub-ect to the con!irmation by the #ommission: Provided, further, $hat the personnel o! the SSS shall be selected only !rom ci*il ser*ice eli,ibles and be sub-ect to ci*il ser*ice rules and re,ulations: Provided, finally, $hat the SSS shall be e+empt !rom the pro*isions o! Republic Act No. 636; and Republic Act No. 3</7.

"S"#. <. Powers and Duties of the Commission and SSS. ' 0a1 $he #ommission. ' 8or the attainment o! its main ob-ecti*es as set !orth in Section ( hereo!, the #ommission shall ha*e the !ollowin, powers and duties: "011 $o adopt, amend and rescind, sub-ect to the appro*al o! the )resident o! the )hilippines, such rules and re,ulations as may be necessary to carry out the pro*isions and purposes o! this Act4 "0(1 $o establish a pro*ident !und !or the members which will consist o! *oluntary contributions o! employers and=or employees, sel!'employed and *oluntary members and their earnin,s, !or the payment o! bene!its to such members or their bene!iciaries, sub-ect to such rules and re,ulations as it may promul,ate and appro*ed by the )resident o! the )hilippines4 "0/1 $o maintain a pro*ident !und which consists o! contributions made by both the SSS and its o!!icials and employees and their earnin,s, !or the payment o! bene!its to such o!!icials and employees or their heirs under such terms and conditions as it may prescribe4 "0<1 $o appro*e restructurin, proposals !or the payment o! due but unremitted contributions and unpaid loan amorti.ations under such terms and conditions as it may prescribe4 "061 $o authori.e cooperati*es re,istered with the cooperati*e de*elopment authority or associations re,istered with the appropriate ,o*ernment a,ency to act as collectin, a,ents o! the SSS with respect to their members: Provided, $hat the SSS shall accredit the

cooperati*e or association: Provided, further, $hat the persons authori.ed to collect are bonded4 "061 $o compromise or release, in whole or in part, any interest, penalty or any ci*il liability to SSS in connection with the in*estments authori.ed under Section (6 hereo!, under such terms and conditions as it may prescribe and appro*ed by the )resident o! the )hilippines4 and "031 $o appro*e, con!irm, pass upon or re*iew any and all actions o! the SSS in the proper and necessary e+ercise o! its powers and duties hereina!ter enumerated. "0b1 $he Social Security System. ' Sub-ect to the pro*ision o! Section !our 0<1, para,raph se*en 031 hereo!, the SSS shall ha*e the !ollowin, powers and duties: "011 $o submit annually not later than April /7, a public report to the )resident o! the )hilippines and to the #on,ress o! the )hilippines co*erin, its acti*ities in the administration and en!orcement o! this Act durin, the precedin, year includin, in!ormation and recommendations on broad policies !or the de*elopment and per!ection o! the pro,ram o! the SSS4 "0(1 $o re5uire the actuary to submit a *aluation report on the SSS bene!it pro,ram e*ery !our 0<1 years, or more !re5uently as may be necessary, to undertake the necessary actuarial studies and calculations concernin, increases in bene!its takin, into account in!lation and the !inancial stability o! the SSS, and to pro*ide !or !easible increases in bene!its e*ery !our 0<1 years, includin, the addition o! new ones, under such rules and re,ulations as the #ommission may adopt, sub-ect to the

appro*al o! the )resident o! the )hilippines: Provided, $hat the actuarial soundness o! the reser*e !und shall be ,uaranteed: Provided, further, $hat such increases in bene!its shall not re5uire any increase in the rate o! contribution4 "0/1 $o establish o!!ices o! the SSS to co*er as many pro*inces, cities and con,ressional districts, whene*er and where*er it may be e+pedient, necessary and !easible, and to inspect or cause to be inspected periodically such o!!ices4 "0<1 $o enter into a,reements or contracts !or such ser*ice and aid, as may be needed !or the proper, e!!icient and stable administration o! the SSS4 "061 $o adopt, !rom time to time, a bud,et o! e+penditures includin, salaries o! personnel, a,ainst all !unds a*ailable to the SSS under this Act4 "061 $o set up its accountin, system and pro*ide the necessary personnel there!or4 "031 $o re5uire reports, compilations and analyses o! statistical and economic data and to make in*esti,ation as may be needed !or the proper administration and de*elopment o! the SSS4 "0;1 $o ac5uire and dispose o! property, real or personal, which may be necessary or e+pedient !or the attainment o! the purposes o! this Act4 "0>1 $o ac5uire, recei*e, or hold, by way o! purchase, e+propriation or otherwise, public or pri*ate property !or the purpose o! undertakin, housin, pro-ects pre!erably !or the bene!it o! low'income members and

!or the maintenance o! hospitals and institutions !or the sick, a,ed and disabled, as well as schools !or the members and their immediate !amilies4 "0171 $o sue and be sued in court4 and "0111 $o per!orm such other corporate acts as it may deem appropriate !or the proper en!orcement o! this Act. "S"#. 6. Settlement of Disputes. ' 0a1 Any dispute arisin, under this Act with respect to co*era,e, bene!its, contributions and penalties thereon or any other matter related thereto, shall be co,ni.able by the #ommission, and any case !iled with respect thereto shall be heard by the #ommission, or any o! its members, or by hearin, o!!icers duly authori.ed by the #ommission and decided within twenty 0(71 days a!ter the submission o! the e*idence. $he !ilin,, determination and settlement o! disputes shall be ,o*erned by the rules and re,ulations promul,ated by the #ommission. "0b1 Appeal to #ourts. ' Any decision o! the #ommission, in the absence o! an appeal there!rom as herein Provided, shall become !inal and e+ecutory !i!teen 0161 days a!ter the date o! noti!ication, and -udicial re*iew thereo! shall be permitted only a!ter any party claimin, to be a,,rie*ed thereby has e+hausted his remedies be!ore the #ommission. $he #ommission shall be deemed to be a party to any -udicial action in*ol*in, any such decision, and may be represented by an attorney employed by the #ommission, or when re5uested by the #ommission, by the Solicitor ?eneral or any public prosecutors. "0c1 #ourt Re*iew. ' $he decision o! the #ommission upon any disputed matter may be re*iewed both upon the law and the !acts by the #ourt o! Appeals. 8or the purpose o! such re*iew, the procedure concernin, appeals !rom the Re,ional $rial #ourt shall be !ollowed as !ar as practicable and consistent with the

purposes o! this Act. Appeal !rom a decision o! the #ommission must be taken within !i!teen 0161 days !rom noti!ication o! such decision. %! the decision o! the #ommission in*ol*es only 5uestions o! law, the same shall be re*iewed by the Supreme #ourt. No appeal bond shall be re5uired. $he case shall be heard in a summary manner, and shall take precedence o*er all cases, e+cept that in the Supreme #ourt, criminal cases wherein li!e imprisonment or death has been imposed by the trial court shall take precedence. No appeal shall act as a supersedeas or a stay o! the order o! the #ommission unless the #ommission itsel!, or the #ourt o! Appeals or the Supreme #ourt, shall so order. "0d1 "+ecution o! @ecisions. ' $he #ommission may, motu proprio or on motion o! any interested party, issue a writ o! e+ecution to en!orce any o! its decisions or awards, a!ter it has become !inal and e+ecutory, in the same manner as the decision o! the Re,ional $rial #ourt by directin, the city or pro*incial sheri!! or the sheri!! whom it may appoint to en!orce such !inal decision or e+ecute such writ4 and any person who shall !ail or re!use to comply with such decision, award or writ, a!ter bein, re5uired to do so shall, upon application by the #ommission pursuant to Rule 31 o! the Rules o! #ourt, be punished !or contempt. "S"#. 6. uditor and Counsel. ' 0a1 $he #hairman o! the #ommission on Audit shall be the e+'o!!icio Auditor o! the SSS. 9e or his representati*e shall check and audit all the accounts, !unds and properties o! the SSS in the same manner and as !re5uently as the accounts, !unds and properties o! the ,o*ernment are checked and audited under e+istin, laws, and he shall ha*e, as !ar as practicable, the same powers and duties as he has with respect to the checkin, and auditin, o! public accounts, !unds and properties in ,eneral.

"0b1 $he Secretary o! Austice shall be the e+'o!!icio counsel o! the SSS. 9e or his representati*e shall act as le,al ad*iser and counsel thereo!. "S"#. 3. !aths" #itnesses" and Production of Records. ' Bhen authori.ed by the #ommission, an o!!icial or employee thereo! shall ha*e the power to administer oath and a!!irmation, take depositions, certi!y to o!!icial acts, and issue subpoena and subpoena duces tecum to compel the attendance o! witnesses and the production o! books, papers, correspondence and other records deemed necessary as e*idence in connection with any 5uestion arisin, under this Act. Any case o! contumacy shall be dealt with by the #ommission in accordance with law. "S"#. ;. Terms Defined. ' 8or purposes o! this Act, the !ollowin, terms shall, unless the conte+t indicates otherwise, ha*e the !ollowin, meanin,s: "0a1 SSS ' $he Social Security System created by this Act. "0b1 #ommission ' $he Social Security #ommission as herein created. "0c1 "mployer' Any person, natural or -uridical, domestic or !orei,n, who carries on in the )hilippines any trade, business, industry, undertakin,, or acti*ity o! any kind and uses the ser*ices o! another person who is under his orders as re,ards the employment, e+cept the ?o*ernment and any o! its political subdi*isions, branches or instrumentalities, includin, corporations owned or controlled by the ?o*ernment: Provided, $hat a sel!'employed person shall be both employee and employer at the same time. "0d1 "mployee ' Any person who per!orms ser*ices !or an employer in which either or both mental or physical e!!orts are used and who recei*es compensation !or such ser*ices, where

there is an employer'employee relationship: Provided, $hat a sel!'employed person shall be both employee and employer at the same time. "0e1 @ependents ' $he dependents shall be the !ollowin,: "011 $he le,al spouse entitled by law to recei*e support !rom the member4 "0(1 $he le,itimate, le,itimated or le,ally adopted, and ille,itimate child who is unmarried, not ,ain!ully employed, and has not reached twenty'one 0(11 years o! a,e, or i! o*er twenty'one 0(11 years o! a,e, he is con,enitally or while still a minor has been permanently incapacitated and incapable o! sel!'support, physically or mentally4 and "0/1 $he parent who is recei*in, re,ular support !rom the member. "0!1 #ompensation ' All actual remuneration !or employment, includin, the mandated cost'o!'li*in, allowance, as well as the cash *alue o! any remuneration paid in any medium other than cash e+cept that part o! the remuneration in e+cess o! the ma+imum salary credit as Provided under Section "i,hteen o! this Act. "0,1 Monthly salary credit ' $he compensation base !or contributions and bene!its as indicated in the schedule in Section "i,hteen o! this Act. "0h1 Monthly ' $he period !rom one end o! the last payroll period o! the precedin, month to the end o! the last payroll period o! the current month i! compensation is on hourly, daily or weekly basis4 i! on any other basis, 2monthly2 shall mean a period o! one 011 month.

"0i1 #ontribution ' $he amount paid to the SSS by and on behal! o! the members in accordance with Section "i,hteen o! this Act. "0-1 "mployment ' Any ser*ice per!ormed by an employee !or his employer e+cept: "011 "mployment purely casual and not !or the purpose o! occupation or business o! the employer4 "0(1 Ser*ice per!ormed on or in connection with an alien *essel by an employee i! he is employed when such *essel is outside the )hilippines4 "0/1 Ser*ice per!ormed in the employ o! the )hilippine ?o*ernment or instrumentality or a,ency thereo!4 "0<1 Ser*ice per!ormed in the employ o! a !orei,n ,o*ernment or international or,ani.ation, or their wholly'owned instrumentality: Provided, however, $hat this e+emption notwithstandin,, any !orei,n ,o*ernment, international or,ani.ation or their wholly' owned instrumentality employin, workers in the )hilippines or employin, 8ilipinos outside o! the )hilippines, may enter into an a,reement with the )hilippine ?o*ernment !or the inclusion o! such employees in the SSS e+cept those already co*ered by their respecti*e ci*il ser*ice retirement systems: Provided, further, $hat the terms o! such a,reement shall con!orm with the pro*isions o! this Act on co*era,e and amount o! payment o! contributions and bene!its: Provided, finally, $hat the pro*isions o! this Act shall be supplementary to any such a,reement4 and "061 Such other ser*ices per!ormed by temporary and other employees which may be e+cluded by re,ulation

o! the #ommission. "mployees o! bona !ide independent contractors shall not be deemed employees o! the employer en,a,in, the ser*ice o! said contractors. "0k1 Cene!iciaries ' $he dependent spouse until he or she remarries, the dependent le,itimate, le,itimated or le,ally adopted, and ille,itimate children, who shall be the primary bene!iciaries o! the member: Provided, $hat the dependent ille,itimate children shall be entitled to !i!ty percent 067D1 o! the share o! the le,itimate, le,itimated or le,ally adopted children: Provided, further, $hat in the absence o! the dependent le,itimate, le,itimated children o! the member, his=her dependent ille,itimate children shall be entitled to one hundred percent 0177D1 o! the bene!its. %n their absence, the dependent parents who shall be the secondary bene!iciaries o! the member. %n the absence o! all the !ore,oin,, any other person desi,nated by the member as his=her secondary bene!iciary. "0l1 #ontin,ency ' $he retirement, death, disability, in-ury or sickness and maternity o! the member. "0m1 A*era,e monthly salary credit ' $he result obtained by di*idin, the sum o! the last si+ty 0671 monthly salary credits immediately precedin, the semester o! contin,ency by si+ty 0671, or the result obtained by di*idin, the sum o! all the monthly salary credits paid prior to the semester o! contin,ency by the number o! monthly contributions paid in the same period, whiche*er is ,reater: Provided, $hat the in-ury or sickness which caused the disability shall be deemed as the permanent disability !or the purpose o! computin, the a*era,e monthly salary credit. "0n1 A*era,e daily salary credit' $he result obtained by di*idin, the sum o! the si+ 061 hi,hest monthly salary credits in

the twel*e'month period immediately precedin, the semester o! contin,ency by one hundred ei,hty 01;71. "0o1 Semester ' A period o! two 0(1 consecuti*e 5uarters endin, in the 5uarter o! contin,ency. "0p1 Euarter ' A period o! three 0/1 consecuti*e calendar months endin, on the last day o! March, Aune, September and @ecember. "051 #redited years o! ser*ice ' 8or a member co*ered prior to Aanuary nineteen hundred and ei,hty !i*e 01>;61 minus the calendar year o! co*era,e plus the number o! calendar years in which si+ 061 or more contributions ha*e been paid !rom Aanuary nineteen hundred and ei,hty !i*e 01>;61 up to the calendar year containin, the semester prior to the contin,ency. 8or a member co*ered in or a!ter Aanuary nineteen hundred and ei,hty !i*e 01>;61, the number o! calendar years in which si+ 061 or more contributions ha*e been paid !rom the year o! co*era,e up to the calendar year containin, the semester prior to the contin,ency: Provided, $hat the #ommission may pro*ide !or a di!!erent number o! contributions in a calendar year !or it to be considered as a credited year o! ser*ice. "0r1 Member ' $he worker who is co*ered under Section Nine and Section Nine'A o! this Act. "0s1 Sel!'employed ' Any person whose income is not deri*ed !rom employment, as de!ined under this Act, as well as those workers enumerated in Section Nine'A hereo!. "0t1 Net earnin,s ' Net income be!ore income ta+es plus non' cash char,es such as depreciation and depletion appearin, in the re,ular !inancial statement o! the issuin, or assumin, institution.

"0u1 8i+ed char,es ' Recurrin, e+pense such as amorti.ation o! debt discount or rentals !or leased properties, includin, interest on !unded and un!unded debt. "S"#. >. Coverage. ' 0a1 #o*era,e in the SSS shall be compulsory upon all employees not o*er si+ty 0671 years o! a,e and their employers: Provided, $hat in the case o! domestic helpers, their monthly income shall not be less than &ne thousand pesos 0)1,777.771 a month: Provided, further, $hat any bene!it already earned by the employees under pri*ate bene!it plans e+istin, at the time o! the appro*al o! this Act shall not be discontinued, reduced or otherwise impaired: Provided, further, $hat pri*ate plans which are e+istin, and in !orce at the time o! compulsory co*era,e shall be inte,rated with the plan o! the SSS in such a way where the employer2s contribution to his pri*ate plan is more than that re5uired o! him in this Act, he shall pay to the SSS only the contribution re5uired o! him and he shall continue his contribution to such pri*ate plan less his contribution to the SSS so that the employer2s total contribution to his bene!it plan and to the SSS shall be the same as his contribution to his pri*ate bene!it plan be!ore the compulsory co*era,e: Provided, further, $hat any chan,es, ad-ustments, modi!ications, eliminations or impro*ements in the bene!its to be a*ailable under the remainin, pri*ate plan, which may be necessary to adopt by reason o! the reduced contributions thereto as a result o! the inte,ration, shall be sub-ect to a,reements between the employers and employees concerned: Provided, further, $hat the pri*ate bene!it plan which the employer shall continue !or his employees shall remain under the employer2s mana,ement and control unless there is an e+istin, a,reement to the contrary: Provided, finally, $hat nothin, in this Act shall be construed as a limitation on the ri,ht o! employers and employees to a,ree on and adopt bene!its which are o*er and abo*e those Provided under this Act.

"0b1 Spouses who de*ote !ull time to mana,in, the household and !amily a!!airs, unless they are also en,a,ed in other *ocation or employment which is sub-ect to mandatory co*era,e, may be co*ered by the SSS on a *oluntary basis. "0c1 8ilipinos recruited by !orei,n'based employers !or employment abroad may be co*ered by the SSS on a *oluntary basis. "S"#. >'A. Compulsory Coverage of the Self$%mployed. ' #o*era,e in the SSS shall also be compulsory upon such sel!' employed persons as may be determined by the #ommission under such rules and re,ulations as it may prescribe, includin, but not limited to the !ollowin,: "1. All sel!'employed pro!essionals4 "(. )artners and sin,le proprietors o! businesses4 "/. Actors and actresses, directors, scriptwriters and news correspondents who do not !all within the de!inition o! the term "employee" in Section ; 0d1 o! this Act4 "<. )ro!essional athletes, coaches, trainers and -ockeys4 and "6. %ndi*idual !armers and !ishermen. "Fnless otherwise speci!ied herein, all pro*isions o! this Act applicable to co*ered employees shall also be applicable to the co*ered sel!'employed persons. "S"#. 17. %ffective Date of Coverage. ' #ompulsory co*era,e o! the employer shall take e!!ect on the !irst day o! his operation and that o! the employee on the day o! his employment:

Provided, $hat the compulsory co*era,e o! the sel!'employed person shall take e!!ect upon his re,istration with the SSS. "S"#. 11. %ffect of Separation from %mployment. ' Bhen an employee under compulsory co*era,e is separated !rom employment, his employer2s contribution on his account and his obli,ation to pay contributions arisin, !rom that employment shall cease at the end o! the month o! separation, but said employee shall be credited with all contributions paid on his behal! and entitled to bene!its accordin, to the pro*isions o! this Act. 9e may, howe*er, continue to pay the total contributions to maintain his ri,ht to !ull bene!it. "S"#. 11'A. %ffect of &nterruption of Business or Professional &ncome. ' %! the sel!'employed reali.es no income in any ,i*en month, he shall not be re5uired to pay contributions !or that month. 9e may, howe*er, be allowed to continue payin, contributions under the same rules and re,ulations applicable to a separated employee member: Provided, $hat no retroacti*e payment o! contributions shall be allowed other than as prescribed under Section $wenty'two'A hereo!. "S"#. 1(. 'onthly Pension. ' 0a1 $he monthly pension shall be the hi,hest o! the !ollowin, amounts: "011 $he sum o! the !ollowin,: "0i1 $hree hundred pesos 0)/77.774 plus "0ii1 $wenty percent 0(7D1 o! the a*era,e monthly salary credit4 plus "0iii1 $wo percent 0(D1 o! the a*era,e monthly salary credit !or each credited year o! ser*ice in e+cess o! ten 0171 years4 or

"0(1 8orth percent 0<7D1 o! the a*era,e monthly salary credit4 or "0/1 &ne thousand pesos 0)1,777.771: Provided, $hat the monthly pension shall in no case be paid !or an a,,re,ate amount o! less than si+ty 0671 months. "0b1 Notwithstandin, the precedin, para,raph, the minimum pension shall be &ne thousand two hundred pesos 0)1,(77.771 !or members with at least ten 0171 credited years o! ser*ice and $wo thousand !our hundred pesos 0)(,<77.771 !or those with twenty 0(71 credited years o! ser*ice. "S"#. 1('A. Dependents( Pension. ' Bhere monthly pension is payable on account o! death, permanent total disability or retirement, dependents2 pension e5ui*alent to ten percent 017D1 o! the monthly pension or $wo hundred !i!ty pesos 0)(67.771, whiche*er is hi,her, shall also be paid !or each dependent child concei*ed on or be!ore the date o! the contin,ency but not e+ceedin, !i*e 061, be,innin, with the youn,est and without substitution: Provided, $hat where there are le,itimate or ille,itimate children, the !ormer shall be pre!erred. S"#. 1('C. Retirement Benefits. ' 0a1 A member who has paid at least one hundred twenty 01(71 monthly contributions prior to the semester o! retirement and who: 011 has reached the a,e o! si+ty 0671 years and is already separated !rom employment or has ceased to be sel!'employed4 or 0(1 has reached the a,e o! si+ty'!i*e 0661 years, shall be entitled !or as lon, as he li*es to the monthly pension: Provided, $hat he shall ha*e the option to recei*e his !irst ei,hteen 01;1 monthly pensions in lump sum discounted at a pre!erential rate o! interest to be determined by the SSS. "0b1 A co*ered member who is si+ty 0671 years old at retirement and who does not 5uali!y !or pension bene!its under para,raph

0a1 abo*e, shall be entitled to a lump sum bene!it e5ual to the total contributions paid by him and on his behal!: Provided, $hat he is separated !rom employment and is not continuin, payment o! contributions to the SSS on his own. "0c1 $he monthly pension shall be suspended upon the reemployment or resumption o! sel!'employment o! a retired member who is less than si+ty'!i*e 0661 years old. 9e shall a,ain be sub-ect to Section "i,hteen and his employer to Section Nineteen o! this Act. "0d1 Fpon the death o! the retired member, his primary bene!iciaries as o! the date o! his retirement shall be entitled to recei*e the monthly pension: Provided, $hat i! he has no primary bene!iciaries and he dies within si+ty 0671 months !rom the start o! his monthly pension, his secondary bene!iciaries shall be entitled to a lump sum bene!it e5ui*alent to the total monthly pensions correspondin, to the balance o! the !i*e'year ,uaranteed period, e+cludin, the dependents2 pension. "0e1 $he monthly pension o! a member who retires a!ter reachin, a,e si+ty 0671 shall be the hi,her o! either: 011 the monthly pension computed at the earliest time he could ha*e retired had he been separated !rom employment or ceased to be sel!'employed plus all ad-ustments thereto4 or 0(1 the monthly pension computed at the time when he actually retires. "S"#. 1/. Death Benefits. ' Fpon the death o! a member who has paid at least thirty'si+ 0/61 monthly contributions prior to the semester o! death, his primary bene!iciaries shall be entitled to the monthly pension: Provided, $hat i! he has no primary bene!iciaries, his secondary bene!iciaries shall be entitled to a lump sum bene!it e5ui*alent to thirty'si+ 0/61 times the monthly pension. %! he has not paid the re5uired thirty'si+ 0/61 monthly contributions, his primary or secondary bene!iciaries shall be entitled to a lump sum bene!it e5ui*alent to the

monthly pension times the number o! monthly contributions paid to the SSS or twel*e 01(1 times the monthly pension, whiche*er is hi,her. "S"#. 1/'A. Permanent Disability Benefits. ' 0a1 Fpon the permanent total disability o! a member who has paid at least thirty'si+ 0/61 monthly contributions prior to the semester o! disability, he shall be entitled to the monthly pension: Provided, $hat i! he has not paid the re5uired thirty'si+ 0/61 monthly contributions, he shall be entitled to a lump sum bene!it e5ui*alent to the monthly pension times the number o! monthly contributions paid to the SSS or twel*e 01(1 times the monthly pension, whiche*er is hi,her. A member who 011 has recei*ed a lump sum bene!it4 and 0(1 is reemployed or has resumed sel!' employment not earlier than one 011 year !rom the date o! his disability shall a,ain be sub-ect to compulsory co*era,e and shall be considered a new member. "0b1 $he monthly pension and dependents2 pension shall be suspended upon the reemployment or resumption o! sel!' employment or the reco*ery o! the disabled member !rom his permanent total disability or his !ailure to present himsel! !or e+amination at least once a year upon notice by the SSS. "0c1 Fpon the death o! the permanent total disability pensioner, his primary bene!iciaries as o! the date o! disability shall be entitled to recei*e the monthly pension: Provided, $hat i! he has no primary bene!iciaries and he dies within si+ty 0671 months !rom the start o! his monthly pension, his secondary bene!iciaries shall be entitled to a lump sum bene!it e5ui*alent to the total monthly pensions correspondin, to the balance o! the !i*e'year ,uaranteed period e+cludin, the dependents2 pension. "0d1 $he !ollowin, disabilities shall be deemed permanent total:

"1. #omplete loss o! si,ht o! both eyes4 "(. oss o! two limbs at or abo*e the ankle or wrists4 "/. )ermanent complete paralysis o! two limbs4 "<. Crain in-ury resultin, to incurable imbecility or insanity4 and "6. Such cases as determined and appro*ed by the SSS. "0e1 %! the disability is permanent partial, and such disability occurs be!ore thirty'si+ 0/61 monthly contributions ha*e been paid prior to the semester o! disability, the bene!it shall be such percenta,e o! the lump sum bene!it described in the precedin, para,raph with due re,ard to the de,ree o! disability as the #ommission may determine. "0!1 %! the disability is permanent total and such disability occurs a!ter thirty'si+ 0/61 monthly contributions ha*e been paid prior to the semester o! disability, the bene!it shall be the monthly pension !or permanent total disability payable not lon,er than the period desi,nated in the !ollowin, schedule: #omplete and permanent loss o! use o! &ne thumb &ne inde+ !in,er &ne middle !in,er &ne ri,ht !in,er &ne little !in,er &ne bi, toe &ne hand Number o! Months 17 ; 6 6 / 6 />

&ne arm &ne !oot &ne le, &ne ear Coth ears 9earin, o! one ear 9earin, o! both ears Si,ht o! one eye

67 /1 <6 17 (7 17 67 (6

"S"#. 1/'C. )uneral Benefit. ' A !uneral ,rant e5ui*alent to $wel*e thousand pesos 0)1(,777.771 shall be paid, in cash or in kind, to help de!ray the cost o! !uneral e+penses upon the death o! a member, includin, permanently totally disabled member or retiree. "S"#. 1<. Sic*ness Benefit. ' 0a1 A member who has paid at least three 0/1 monthly contributions in the twel*e'month period immediately precedin, the semester o! sickness or in-ury and is con!ined there!or !or more than three 0/1 days in a hospital or elsewhere with the appro*al o! the SSS, shall, !or each day o! compensable con!inement or a !raction thereo!, be paid by his employer, or the SSS, i! such person is unemployed or sel!' employed, a daily sickness bene!it e5ui*alent to ninety percent 0>7D1 o! his a*era,e daily salary credit, sub-ect to the !ollowin, conditions: "011 %n no case shall the daily sickness bene!it be paid lon,er than one hundred twenty 01(71 days in one 011 calendar year, nor shall any unused portion o! the one hundred twenty 01(71 days o! sickness bene!it ,ranted under this section be carried !orward and added to the total number o! compensable days allowable in the subse5uent year4 "0(1 $he daily sickness bene!it shall not be paid !or more than two hundred !orty 0(<71 days on account o! the same con!inement4 and "0/1 $he employee member shall noti!y his employer o! the !act o! his sickness or in-ury within !i*e 061 calendar days a!ter the start o! his con!inement unless such con!inement is in a hospital or the employee became sick or was in-ured while workin, or within the premises o! the employer in which case, noti!ication to the employer is necessary: Provided, $hat i! the member is unemployed or sel!'employed, he shall directly noti!y the SSS o! his con!inement within !i*e 061 calendar days a!ter the start

"0,1 $he percenta,e de,ree o! disability which is e5ui*alent to the ratio that the desi,nated number o! months o! compensability bears to se*enty'!i*e 0361, rounded to the ne+t hi,her inte,er, shall not be additi*e !or distinct, separate and unrelated permanent partial disabilities, but shall be additi*e !or deterioratin, and related permanent partial disabilities to a ma+imum o! one hundred percent 0177D1, in which case, the member shall be deemed as permanently totally disabled. "0h1 %n case o! permanent partial disability, the monthly pension bene!it shall be ,i*en in lump sum i! it is payable !or less than twel*e 01(1 months. "0i1 8or the purpose o! ad-udicatin, retirement, death and permanent total disability pension bene!its, contributions shall be deemed paid !or the months durin, which the member recei*ed partial disability pension: Provided, $hat such contributions shall be based on his last contribution prior to his disability. "0-1 Should a member who is on partial disability pension retire or die, his disability pension shall cease upon his retirement or death.

thereo! unless such con!inement is in a hospital in which case noti!ication is also not necessary: Provided, further, $hat in cases where noti!ication is necessary, the con!inement shall be deemed to ha*e started not earlier than the !i!th day immediately precedin, the date o! noti!ication. "0b1 $he compensable con!inement shall be,in on the !irst day o! sickness, and the payment o! such allowances shall be promptly made by the employer e*ery re,ular payday or on the !i!teenth and last day o! each month, and similarly in the case o! direct payment by the SSS, !or as lon, as such allowances are due and payable: Provided, $hat such allowance shall be,in only a!ter all sick lea*es o! absence with !ull pay to the credit o! the employee member shall ha*e been e+hausted. "0c1 &ne hundred percent 0177D1 o! the daily bene!its Provided in the precedin, para,raph shall be reimbursed by the SSS to said employer upon receipt o! satis!actory proo! o! such payment and le,ality thereo!: Provided, $hat the employer has noti!ied the SSS o! the con!inement within !i*e 061 calendar days a!ter receipt o! the noti!ication !rom the employee member: Provided, further, $hat i! the noti!ication to the SSS is made by the employer beyond !i*e 061 calendar days a!ter receipt o! the noti!ication !rom the employee member, said employer shall be reimbursed only !or each day o! con!inement startin, !rom the tenth calendar day immediately precedin, the date o! noti!ication to the SSS: Provided, finally, $hat the SSS shall reimburse the employer or pay the unemployed member only !or con!inement within the one'year period immediately precedin, the date the claim !or bene!it or reimbursement is recei*ed by the SSS, e+cept con!inement in a hospital in which case the claim !or bene!it or reimbursement must be !iled within one 011 year !rom the last day o! con!inement. "0d1 Bhere the employee member has ,i*en the re5uired noti!ication but the employer !ails to noti!y the SSS o! the

con!inement or to !ile the claim !or reimbursement within the period prescribed in this section resultin, in the reduction o! the bene!it or denial o! the claim, such employer shall ha*e no ri,ht to reco*er the correspondin, daily allowance he ad*anced to the employee member as re5uired in this section. "0e1$he claim o! reimbursement shall be ad-udicated by the SSS within a period o! two 0(1 months !rom receipt thereo!: Provided, $hat should no payment be recei*ed by the employer within one 011 month a!ter the period prescribed herein !or ad-udication, the reimbursement shall therea!ter earn simple interest o! one percent 01D1 per month until paid. "0!1 $he pro*isions re,ardin, the noti!ication re5uired o! the member and the employer as well as the period within which the claim !or bene!it or reimbursement may be !iled shall apply to all claims !iled with the SSS. "S"#. 1<'A. 'aternity +eave Benefit. ' A !emale member who has paid at least three 0/1 monthly contributions in the twel*e' month period immediately precedin, the semester o! her childbirth or miscarria,e shall be paid a daily maternity bene!it e5ui*alent to one hundred percent 0177D1 o! her a*era,e daily salary credit !or si+ty 0671 days or se*enty'ei,ht 03;1 days in case o! caesarian deli*ery, sub-ect to the !ollowin, conditions: "0a1 $hat the employee shall ha*e noti!ied her employer o! her pre,nancy and the probable date o! her childbirth, which notice shall be transmitted to the SSS in accordance with the rules and re,ulations it may pro*ide4 "0b1 $he !ull payment shall be ad*anced by the employer within thirty 0/71 days !rom the !ilin, o! the maternity lea*e application4

"0c1 $hat payment o! daily maternity bene!its shall be a bar to the reco*ery o! sickness bene!its Provided by this Act !or the same period !or which daily maternity bene!its ha*e been recei*ed4 "0d1 $hat the maternity bene!its Provided under this section shall be paid only !or the !irst !our 0<1 deli*eries or miscarria,es4 "0e1 $hat the SSS shall immediately reimburse the employer o! one hundred percent 0177D1 o! the amount o! maternity bene!its ad*anced to the employee by the employer upon receipt o! satis!actory proo! o! such payment and le,ality thereo!4 and "0!1 $hat i! an employee member should ,i*e birth or su!!er miscarria,e without the re5uired contributions ha*in, been remitted !or her by her employer to the SSS, or without the latter ha*in, been pre*iously noti!ied by the employer o! the time o! the pre,nancy, the employer shall pay to the SSS dama,es e5ui*alent to the bene!its which said employee member would otherwise ha*e been entitled to. "S"#. 16. ,on$Transferability of Benefits. ' $he SSS shall promptly pay the bene!its Provided in this Act to such persons as may be entitled thereto in accordance with the pro*isions o! this Act: Provided, $hat the SSS shall pay the retirement bene!its on the day o! contin,ency to 5uali!ied members who ha*e submitted the necessary documents at least si+ 061 months be!ore: Provided, further, $hat the bene!iciary who is a national o! a !orei,n country which does not e+tend bene!its to a 8ilipino bene!iciary residin, in the )hilippines, or which is not reco,ni.ed by the )hilippines, shall not be entitled to recei*e any bene!it under this Act: Provided, further, $hat notwithstandin, the !ore,oin,, where the best interest o! the SSS will be ser*ed, the #ommission may direct payments

without re,ard to nationality or country o! residence: Provided, further, $hat i! the recipient is a minor or a person incapable o! administerin, his own a!!airs, the #ommission shall appoint a representati*e under such terms and conditions as it may deem proper: Provided, further, $hat such appointment shall not be necessary in case the recipient is under the custody o! or li*in, with the parents or spouse o! the member in which case the bene!its shall be paid to such parents or spouse, as representati*e payee o! the recipient. Such bene!its are not trans!erable and no power o! attorney or other document e+ecuted by those entitled thereto in !a*or o! any a,ent, attorney or any other person !or the collection thereo! on their behal! shall be reco,ni.ed, e+cept when they are physically unable to collect personally such bene!its: Provided, further, $hat in case o! death bene!its, i! no bene!iciary 5uali!ies under this Act, said bene!its shall be paid to the le,al heirs in accordance with the law o! succession. "S"#. 16. %-emption from Ta-" +egal Process and +ien. '' All laws to the contrary notwithstandin,, the SSS and all its assets and properties, all contributions collected and all accruals thereto and income or in*estment earnin,s there!rom as well as all supplies, e5uipment, papers or documents shall be e+empt !rom any ta+, assessment, !ee, char,e, or customs or import duty4 and all bene!it payments made by the SSS shall likewise be e+empt !rom all kinds o! ta+es, !ees or char,es, and shall not liable to attachments, ,arnishments, le*y or sei.ure by or under any le,al or e5uitable process whatsoe*er, either be!ore or a!ter receipt by the person or persons entitled thereto, e+cept to pay any debt o! the member to the SSS. No ta+ measure o! whate*er nature enacted shall apply to the SSS, unless it e+pressly re*okes the declared policy o! the State in Section ( hereo! ,rantin, ta+'e+emption to the SSS. Any ta+ assessment imposed a,ainst the SSS shall be null and *oid. 0As amended by Sec. >, ).@. No. (<, S. 1>3(4 and Sec. 1<, ). @. No. 3/6, S. 1>361.

"S"#. 13. )ee of gents" ttorneys" %tc. ' No a,ent, attorney or other person in char,e o! the preparation, !ilin, or pursuin, any claim !or bene!it under this Act shall demand or char,e !or his ser*ices any !ee, and any stipulation to the contrary shall be null and *oid. $he retention or deduction o! any amount !rom any bene!it ,ranted under this Act !or the payment o! !ees !or such ser*ices is prohibited: Provided, however, $hat any member o! the )hilippine Car who appears as counsel in any case heard by the #ommission shall be entitled to attorneys2 !ees not e+ceedin, ten percent 017D1 o! the bene!its awarded by the #ommission, which !ees shall not be payable be!ore the actual payment o! the bene!its, and any stipulation to the contrary shall be null and *oid.

"Any *iolation o! the pro*isions o! this Section shall be punished by a !ine o! not less than 8i*e hundred pesos 0)677.771 nor more than 8i*e thousand pesos 0)6,777.771, or imprisonment !or not less than si+ 061 months nor more than one 011 year, or both, at the discretion o! the court. "S"#. 1;. %mployee(s Contributions. ' 0a1 Ce,innin, as o! the last day o! the calendar month when an employee2s compulsory co*era,e takes e!!ect and e*ery month therea!ter durin, his employment, the employer shall deduct and withhold !rom such employee2s monthly salary, wa,e, compensation or earnin,s, the employee2s contribution in an amount correspondin, to his salary, wa,e, compensation or earnin,s durin, the month in accordance with the !ollowin, schedule:

SA ARG RAN?" &8 M&N$9 CRA#H"$ #&M)"NSA$%&N G SA ARG #R"@%$ % %% %%% %: : :% :%% :%%% %I I I% I%% I%%% I%: I: I:% I:%% 1,777.77 ' 1,(<>.>> 1,(67.77 ' 1,3<>.>> 1,367.77 ' (,(<>.>> (,(67.77 ' (,3<>.>> (,367.77 ' /,(<>.>> /,(67.77 ' /,3<>.>> /,367.77 ' <,(<>.>> <,(67.77 ' <,3<>.>> <,367.77 ' 6,(<>.>> 6,(67.77 ' 6,3<>.>> 6,367.77 ' 6,(<>.>> 6,(67.77 ' 6,3<>.>> 6,367.77 ' 3,(<>.>> 3,(67.77 ' 3,3<>.>> 3,367.77 ' ;.(<>.>> ;,(67.77 ' ;,3<>.>> ;,367.77 ' &:"R

M&N$9 G #&N$R%CF$%&N &G"" $&$A //./7 ;<.77 67.77 1(6.77 66.37 16;.77 ;/./7 (17.77 177.77 (6(.77 116.37 (><.77 1//./7 //6.77 167.77 /3;.77 166.37 <(7.77 1;/.37 <6(.<7 (77.77 67<.77 (16.3; 6<6.77 (//./7 6;;.77 (67.77 6/7.77 (66.37 63(.77 (;/./7 31<.77 /77.77 366.77

"M) &G"R "M) 1777 67.37 1677 36.77 (777 171./7 (677 1(6.37 /777 16(.77 /677 133./7 <777 (7(.37 <677 ((;.77 6777 (6/./7 6677 (3;.37 6777 /7<.77 6677 /(>./7 3777 /6<.37 3677 /;7.77 ;777 <7/./7 ;677 </7.37 >777 <66.77

"$he !ore,oin, schedule o! contribution shall also apply to sel!' employed and *oluntary members. "$he ma+imum monthly salary credit shall be Nine thousand pesos 0)>,777.771 e!!ecti*e Aanuary Nineteen hundred and ninety si+ 01>>614 Provided, $hat it shall be increased by &ne thousand pesos 0)1,777.771 e*ery year therea!ter until it shall ha*e reached $wel*e thousand pesos 0)1(,777.771 by Nineteen hundred and ninety nine 01>>>1: Provided, further, $hat the minimum and ma+imum monthly salary credits as well as the rate o! contributions may be !i+ed !rom time to time by the #ommission throu,h rules and re,ulations takin, into consideration actuarial calculations and rate o! bene!its, sub-ect to the appro*al o! the )resident o! the )hilippines. "S"#. 1>. %mployer(s Contributions. ' 0a1 Ce,innin, as o! the last day o! the month when an employee2s compulsory co*era,e takes e!!ect and e*ery month therea!ter durin, his employment, his employer shall pay, with respect to such co*ered employee, the employer2s contribution in accordance with the schedule indicated in Section "i,hteen o! this Act. Notwithstandin, any contract to the contrary, an employer shall not deduct, directly or indirectly, !rom the compensation o! his employees co*ered by the SSS or otherwise reco*er !rom them the employer2s contributions with respect to such employees. "0b1 $he remittance o! such contributions by the employer shall be supported by a 5uarterly collection list to be submitted to the SSS at the end o! each calendar 5uarter indicatin, the correct %@ number o! the employer, the correct names and the SSS numbers o! the employees and the total contributions paid !or their account durin, the 5uarter. "S"#. 1>'A. #ontributions o! the Sel!'"mployed Member. ' $he contributions to the SSS o! the sel!'employed member shall be determined in accordance with Section "i,hteen o! this Act:

Provided, $hat the monthly earnin,s declared by the sel!' employed member at the time o! his re,istration with the SSS shall be considered as his monthly compensation and he shall pay both the employer and the employee contributions: Provided, further, $hat the contributions o! sel!'employed persons earnin, &ne thousand pesos 0)1,777.771 monthly or below may be reduced by the #ommission. "$he monthly earnin,s declared by the sel!'employed member at the time o! his re,istration shall remain the basis o! his monthly salary credit, unless he makes another declaration o! his monthly earnin,s, in which case such latest declaration becomes the new basis o! his monthly salary credit. "S"#. (7. .overnment Contribution. ' As the contribution o! the ?o*ernment to the operation o! the SSS, #on,ress shall annually appropriate out o! any !unds in the National $reasury not otherwise appropriated, the necessary sum or sums to meet the estimated e+penses o! the SSS !or each ensuin, year. %n addition to this contribution, #on,ress shall appropriate !rom time to time such sum or sums as may be needed to assure the maintenance o! an ade5uate workin, balance o! the !unds o! the SSS as disclosed by suitable periodic actuarial studies to be made o! the operations o! the SSS. "S"#. (1. .overnment .uarantee. '' $he bene!its prescribed in this Act shall not be diminished and to ,uarantee said bene!its the ?o*ernment o! the Republic o! the )hilippines accepts ,eneral responsibility !or the sol*ency o! the SSS. "S"#. ((. Remittance of Contributions. '' 0a1 $he contributions imposed in the precedin, Section shall be remitted to the SSS within the !irst ten 0171 days o! each calendar month !ollowin, the month !or which they are applicable or within such time as the #ommission may prescribe. "*ery employer re5uired to deduct and to remit such contributions shall be liable !or their

payment and i! any contribution is not paid to the SSS as herein prescribed, he shall pay besides the contribution a penalty thereon o! three percent 0/D1 per month !rom the date the contribution !alls due until paid. %! deemed e+pedient and ad*isable by the #ommission, the collection and remittance o! contributions shall be made 5uarterly or semi'annually in ad*ance, the contributions payable by the employees to be ad*anced by their respecti*e employers: Provided, $hat upon separation o! an employee, any contribution so paid in ad*ance but not due shall be credited or re!unded to his employer. "0b1 $he contributions payable under this Act in cases where an employer re!uses or ne,lects to pay the same shall be collected by the SSS in the same manner as ta+es are made collectible under the National %nternal Re*enue #ode, as amended. 8ailure or re!usal o! the employer to pay or remit the contributions herein prescribed shall not pre-udice the ri,ht o! the co*ered employee to the bene!its o! the co*era,e. "$he ri,ht to institute the necessary action a,ainst the employer may be commenced within twenty 0(71 years !rom the time the delin5uency is known or the assessment is made by the SSS, or !rom the time the bene!it accrues, as the case may be. "0c1 Should any person, natural or -uridical, de!ault in any payment o! contributions, the #ommission may also collect the same in either o! the !ollowin, ways: "1. Cy an action in court, which shall hear and dispose o! the case in pre!erence to any other ci*il action4 or "(. Cy issuin, a warrant to the Sheri!! o! any pro*ince or city commandin, him to le*y upon and sell any real and personal property o! the debtor. $he Sheri!!2s sale by *irtue o! said warrant shall be ,o*erned by the same

procedure prescribed !or e+ecutions a,ainst property upon -ud,ments by a court o! record. "0d1 $he last complete record o! monthly contributions paid by the employer or the a*era,e o! the monthly contributions paid durin, the past three 0/1 years as o! the date o! !ilin, o! the action !or collection shall be presumed to be the monthly contributions payable by and due !rom the employer to the SSS !or each o! the unpaid month, unless contradicted and o*ercome by other e*idence: Provided, $hat the SSS shall not be barred !rom determinin, and collectin, the true and correct contributions due the SSS e*en a!ter !ull payment pursuant to this para,raph, nor shall the employer be relie*ed o! his liability under Section $wenty'ei,ht o! this Act. "S"#. (('A. Remittance of Contributions of Self$%mployed 'ember. ' Sel!'employed members shall remit their monthly contributions 5uarterly on such dates and schedules as the #ommission may speci!y throu,h rules and re,ulations: Provided, $hat no retroacti*e payment o! contributions shall be allowed, e+cept as Provided in this Section. "S"#. (/. 'ethod of Collection and Payment. ' $he SSS shall re5uire a complete and proper collection and payment o! contributions and proper identi!ication o! the employer and the employee. )ayment may be made in cash, checks, stamps, coupons, tickets, or other reasonable de*ices that the #ommission may adopt. "S"#. (<. %mployment Records and Reports. ' 0a1 "ach employer shall immediately report to the SSS the names, a,es, ci*il status, occupations, salaries and dependents o! all his employees who are sub-ect to compulsory co*era,e: Provided, $hat i! an employee sub-ect to compulsory co*era,e should die or become sick or disabled or reach the a,e o! si+ty 0671 without the SSS ha*in, pre*iously recei*ed any report or

written communication about him !rom his employer, the said employer shall pay to the SSS dama,es e5ui*alent to the bene!its to which said employee member would ha*e been entitled had his name been reported on time by the employer to the SSS, e+cept that in case o! pension bene!its, the employer shall be liable to pay the SSS dama,es e5ui*alent to the accumulated pension due as o! the date o! settlement o! the claim or to the !i*e 061 years2 pension, includin, dependents2 pension: Provided, further, $hat i! the contin,ency occurs within thirty 0/71 days !rom the date o! employment, the employer shall be relie*ed o! his liability !or dama,es: Provided, further, $hat any person or entity en,a,in, the ser*ices o! an independent contractor shall be subsidiarily liable with such contractor !or any ci*il liability incurred by the latter under this Act: Provided, finally, $hat the same person or entity en,a,in, the ser*ices o! an independent contractor shall re5uire such contractor to post a surety bond to ,uarantee the payment o! the worker2s bene!its. "0b1 Should the employer misrepresent the true date o! employment o! the employee member or remit to the SSS contributions which are less than those re5uired in this Act or !ail to remit any contribution due prior to the date o! contin,ency, resultin, in a reduction o! bene!its, the employer shall pay to the SSS dama,es e5ui*alent to the di!!erence between the amount o! bene!it to which the employee member or his bene!iciary is entitled had the proper contributions been remitted to the SSS and the amount payable on the basis o! contributions actually remitted: Provided, $hat i! the employee member or his bene!iciary is entitled to pension bene!its, dama,es shall be e5ui*alent to the accumulated pension due as o! the date o! settlement o! the claim or to the !i*e 061 years2 pension, whiche*er is hi,her, includin, dependents2 pension. "%n addition to the liability mentioned in the precedin, para,raphs 0a1 and 0b1 hereo!, the employer shall also be liable

!or the correspondin, unremitted contributions and penalties thereon. "0c1 $he records and reports duly accomplished and submitted to the SSS by the employer or the member, as the case may be, shall be kept con!idential by the SSS e+cept in compliance with a subpoena duces tecum issued by the #ourt, shall not be di*ul,ed without the consent o! the SSS )resident or any o!!icial o! the SSS duly authori.ed by him, shall be presumed correct as to the data and other matters stated therein, unless the necessary corrections to such records and reports ha*e been properly made by the parties concerned be!ore the ri,ht to the bene!it bein, claimed accrues, and shall be made the basis !or the ad-udication o! the claim. %! as a result o! such ad-udication the SSS in ,ood !aith pays a monthly pension to a bene!iciary who is in!erior in ri,ht to another bene!iciary or with whom another bene!iciary is entitled to share, such payments shall dischar,e the SSS !rom liability unless and until such other bene!iciary noti!ies the SSS o! his claim prior to the payments. "0d1 "*ery employer shall keep true and accurate work records !or such period and containin, such in!ormation as the #ommission may prescribe, in addition to an "Annual Re,ister o! New and Separated "mployees" which shall be secured !rom the SSS wherein the employer shall enter on the !irst day o! employment or on the e!!ecti*e date o! separation, the names o! the persons employed or separated !rom employment, their SSS numbers, and such other data that the #ommission may re5uire and said annual re,ister shall be submitted to the SSS in the month o! Aanuary o! each year. Such records shall be open !or inspection by the SSS or its authori.ed representati*es 5uarterly or as o!ten as the SSS may re5uire. "$he SSS may also re5uire each employer to submit, with respect to the persons in his employ, reports needed !or the e!!ecti*e administration o! this Act.

"0e1 "ach employer shall re5uire, as a condition to employment, the presentation o! a re,istration number secured by the prospecti*e employee !rom the SSS in accordance with such procedure as the SSS may adopt: Provided, $hat in case o! employees who ha*e been assi,ned re,istration numbers by *irtue o! a pre*ious employment, such numbers ori,inally assi,ned to them should be used !or purposes o! this Section: Provided, further, $hat the issuance o! such re,istration numbers by the SSS shall not e+empt the employer !rom complyin, with the pro*isions o! para,raph 0a1 o! this Section. "0!1 Notwithstandin, any law to the contrary, micro!ilm, or non' erasable optical disk and other similar archi*al media copies o! ori,inal SSS records and reports, duly certi!ied by the o!!icial custodian thereo!, shall ha*e the same e*identiary *alue as the ori,inals and be admissible as e*idence in all le,al proceedin,s. "0,1 Notwithstandin, any law to the contrary, local ,o*ernment units shall, prior to issuin, any annual business license or permit, re5uire submission o! certi!icate o! SSS co*era,e and compliance with the pro*isions o! this Act: Provided, $hat the certi!ication or clearance shall be issued by the SSS within !i*e 061 workin, days !rom receipt o! the re5uest. "S"#. (<'A. Report and Registration of the Self$%mployed 'ember. ' "ach co*ered sel!'employed person shall, within thirty 0/71 days !rom the !irst day he started the practice o! his pro!ession or business operations re,ister and report to the SSS his name, a,e, ci*il status, and occupation, a*era,e monthly net income and his dependents. "S"#. (6. Deposits and Disbursements. ' All money paid to or collected by the SSS e*ery year under this Act, and all accruals thereto shall be deposited, administered and disbursed in the same manner and under the same conditions and re5uirements as Provided by law !or other public special !unds: Provided,

$hat not more than twel*e percent 01(D1 o! the total yearly contributions plus three percent 0/D1 o! other re*enues shall be disbursed !or operational e+penses such as salaries and wa,es, supplies and materials, depreciation and the maintenance o! o!!ices o! the SSS: Provided, further, $hat i! the e+penses in any year are less than the ma+imum amount permissible, the di!!erence shall not be a*ailed o! as additional e+penses in the !ollowin, years. "S"#. (6. &nvestment of Reserve )unds. ' All re*enues o! the SSS that are not needed to meet the current administrati*e and operational e+penses incidental to the carryin, out o! this Act shall be accumulated in a !und to be known as the "Reser*e 8und." Such portions o! the Reser*e 8und as are not needed to meet the current bene!it obli,ations thereo! shall be known as the "%n*estment Reser*e 8und" which the #ommission shall mana,e and in*est with the skill, care, prudence and dili,ence necessary under the circumstances then pre*ailin, that a prudent man actin, in like capacity and !amiliar with such matters would e+ercise in the conduct o! an enterprise o! a like character and with similar aims. )ursuant thereto, and in line with the basic principles o! sa!ety, ,ood yield and li5uidity, the #ommission shall in*est the !unds to earn an annual income not less than the a*era,e rates o! treasury bills or any other acceptable market yield indicator in any or in all o! the !ollowin,: "0a1 %n bonds, securities, promissory notes or other e*idence o! indebtedness o! the ?o*ernment o! the )hilippines, or in bonds, securities, promissory notes or other e*idence o! indebtedness to which the !ull !aith, credit and unconditional ,uarantee o! the ?o*ernment o! the )hilippines is pled,ed4 "0b1 %n bonds, securities, promissory notes or other e*idence o! indebtedness o! the ?o*ernment o! the )hilippines, or any a,encies or instrumentalities to !inance domestic in!rastructure

pro-ects such as roads, brid,es, ports, telecommunications, and other similar pro-ects: Provided, $hat the instruments issued by an a,ency or instrumentality o! the ,o*ernment shall be ,uaranteed by the ?o*ernment o! the )hilippines or any ,o*ernment !inancial institution or acceptable multilateral a,ency: Provided, further, $hat the SSS shall ha*e priority o*er the re*enues o! the pro-ects: Provided, finally, $hat such in*estments shall not e+ceed thirty percent 0/7D1 o! the %n*estment Reser*e 8und4 "0c1 %n bonds, securities, promissory notes or other e*idence o! indebtedness o! ,o*ernment !inancial institutions or ,o*ernment corporations with acceptable credit or ,uarantee: Provided, $hat such in*estments shall not e+ceed thirty percent 0/7D1 o! the %n*estment Reser*e 8und4 "0d1 %n bonds, securities, promissory notes or other e*idence o! indebtedness o! any bank doin, business in the )hilippines and in ,ood standin, with the Can,ko Sentral n, )ilipinas to !inance loans to pri*ate corporations doin, business in the )hilippines, includin, schools, hospitals, small'and'medium scale industries, cooperati*es and non',o*ernmental or,ani.ations, in which case the collaterals or securities shall be assi,ned to the SSS under such terms and conditions as the #ommission may prescribe: Provided, $hat in the case o! bank deposits, they shall not e+ceed at any time the unimpaired capital and surplus or total pri*ate deposits o! the depository bank, whiche*er is smaller: Provided, further, $hat said bank shall !irst ha*e been desi,nated as a depository !or this purpose by the Monetary Coard o! the Can,ko Sentral n, )ilipinas: Provided, finally, $hat such in*estments shall not e+ceed !orty percent 0<7D1 o! the %n*estment Reser*e 8und4 "0e1 %n bonds, securities, promissory notes or other e*idence o! indebtedness o! shelter a,encies o! the National ?o*ernment or !inancial intermediaries to !inance housin, loans o! members4

and in lon,'term direct indi*idual or ,roup housin, loans ,i*in, priority to the low'income ,roups, up to a ma+imum o! ninety percent 0>7D1 o! the appraised *alue o! the properties to be mort,a,ed by the borrowers4 and "%n short and medium term loans to members such as salary, educational, li*elihood, marital, calamity and emer,ency loans: Provided, $hat not more than thirty !i*e percent 0/6D1 o! the %n*estment Reser*e 8und at any time shall be in*ested !or housin, purposes: Provided, further, $hat not more than ten percent 017D1 o! the %n*estment Reser*e 8und shall be in*ested in short and medium term loans4 "0!1 %n bonds, securities, promissory notes or other e*idence o! indebtedness o! educational or medical institutions to !inance the construction, impro*ement and maintenance o! schools and hospitals and their e5uipment and !acilities: Provided, $hat such in*estments shall not e+ceed ten percent 017D1 o! the %n*estment Reser*e 8und4 "0,1 %n real estate property, includin, shares o! stocks in*ol*in, real estate property, and in*estment secured by !irst mort,a,es on real estate or other collaterals acceptable to the SSS: Provided, $hat such pro-ects and in*estments shall, in the determination o! the #ommission, redound to the bene!it o! the SSS, its members, as well as the ,eneral public: Provided, further, $hat in*estment in real estate property, includin, shares o! stocks in*ol*in, real estate property shall not e+ceed !i*e percent 06D1 o! the %n*estment Reser*e 8und: Provided, finally, $hat in*estments in other income earnin, pro-ects and in*estments secured by !irst mort,a,es or other collaterals shall not e+ceed twenty !i*e percent 0(6D1 o! the %n*estment Reser*e 8und4 "0h1 %n bonds, debentures, securities, promissory notes or other e*idence o! indebtedness o! any prime corporation or

multilateral institutions to !inance domestic pro-ects: Provided, $hat the issuin, or assumin, entity or its predecessors shall not ha*e de!aulted in the payment o! interest on any o! its securities and that durin, each o! any three 0/1 includin, the last two 0(1 o! the !i*e 061 !iscal years ne+t precedin, the date o! ac5uisition by the SSS o! such bonds, debentures or other e*idence o! indebtedness, the net earnin,s o! the issuin, or assumin, institution a*ailable !or its !i+ed char,es, as de!ined in this Act, shall ha*e been not less than one and one'5uarter times the total o! its !i+ed char,es !or such year: Provided, further, $hat such in*estments shall not e+ceed thirty percent 0/7D1 o! the %n*estment Reser*e 8und4 "0i1 %n pre!erred or common shares o! stocks listed or about to be listed in the stock e+chan,e or options or warrants to such stocks or, sub-ect to prior appro*al o! the Can,ko Sentral n, )ilipinas, such other risk mana,ement instruments o! any prime or sol*ent corporation or !inancial institution created or e+istin, under the laws o! the )hilippines with pro*en track record o! pro!itability o*er the last three 0/1 years and payment o! di*idends at least once o*er the same period: Provided, $hat such in*estments shall not e+ceed thirty percent 0/7D1 o! the %n*estment Reser*e 8und4 "0-1 %n domestic or !orei,n mutual !unds in e+istence !or at least three 0/1 years4 Provided, $hat such in*estments shall not e+ceed twenty percent 0(7D1 o! the %n*estment Reser*e 8und: Provided, further, $hat in*estments in !orei,n mutual !unds shall not e+ceed one percent 01D1 o! the %n*estment Reser*e 8und in the !irst year which shall be increased by one percent 01D1 !or each succeedin, year, but in no case shall it e+ceed se*en and one'hal! percent 03.6D1 o! the %n*estment Reser*e 8und4 "0k1 %n !orei,n currency deposits or triple "A" !orei,n currency denominated debts, prime and non'speculati*e e5uities, and

other Can,ko Sentral n, )ilipinas appro*ed !inancial instruments or other assets issued in accordance with the e+istin, laws o! the countries where such !inancial instruments are issued: Provided, $hat these instruments or assets are listed in bourses o! the respecti*e countries where these instruments or assets are issued: Provided, further, $hat the issuin, company has pro*en track o! record o! pro!itability o*er the last three 0/1 years and a record o! re,ular di*idend pay'out o*er the same period: Provided, finally, $hat such in*estments shall not e+ceed one percent 01D1 o! the %n*estment Reser*e 8und in the !irst year which shall be increased by one percent 01D1 !or each succeedin, year, but in no case shall it e+ceed se*en and one' hal! percent 03.6D1 o! the %n*estment Reser*e 8und4 "0l1 %n loans secured by such collaterals like cash, ,o*ernment securities or ,uarantees o! multilateral institutions: Provided, $hat such in*estments shall not e+ceed thirty percent 0/7D1 o! the %n*estment Reser*e 8und4 and "0m1 %n other Can,ko Sentral n, )ilipinas appro*ed in*estment instruments with the same intrinsic 5uality as those enumerated in para,raphs 0a1 to 0l1 hereo!, sub-ect to the policies and ,uidelines which the #ommission may !ormulate. "No portion o! the %n*estment Reser*e 8und or income thereo! shall accrue to the ,eneral !und o! the National ?o*ernment or to any o! its a,encies or instrumentalities, includin, ,o*ernment'owned or controlled corporations, e+cept as may be allowed under this Act: Provided, $hat no portion o! the %n*estment Reser*e 8und shall be in*ested !or any purpose or in any instrument, institution or industry o*er and abo*e the prescribed cumulati*e ceilin,s as !ollows: <7D in pri*ate securities /6D in housin,

/7D in real estate related in*estments 17D in short and medium'term member loans /7D in ,o*ernment !inancial institutions and corporations /7D in in!rastructure pro-ects 16D in any particular industry 3.6D in !orei,n'currency denominated in*estments "S"#. (6'A. 8und Mana,ers. ' As part o! its in*estment operations, the SSS may appoint local or, in the absence thereo!, !orei,n !und mana,ers to mana,e the %n*estment Reser*e 8und, as it may deem appropriate. "S"#. (6'C. Mort,a,or %nsurance Account. ' 0a1 As part o! its in*estment operations, the SSS shall act as insurer o! all or part o! its interest on SSS properties mort,a,ed to the SSS, or li*es o! mort,a,ors whose properties are mort,a,ed to the SSS. 8or this purpose, the SSS shall establish a separate account to be known as the "Mort,a,ors2 %nsurance Account." All amounts recei*ed by the SSS in connection with the a!oresaid insurance operations shall be placed in the Mort,a,ors2 %nsurance Account. $he assets and liabilities o! the Mort,a,ors2 %nsurance Account shall at all times be clearly identi!iable and distin,uishable !rom the assets and liabilities in all other accounts o! the SSS. Notwithstandin, any pro*ision o! law to the contrary, the assets held in the Mort,a,ors2 %nsurance Account shall not be char,eable with the liabilities arisin, out o! any other business the SSS may conduct but shall be held and applied e+clusi*ely !or the bene!it o! the owners or bene!iciaries o! the insurance contracts issued by the SSS under this para,raph.

"0b1 $he SSS may insure any o! its interest or part thereo! with any pri*ate company or reinsurer. $he %nsurance #ommission or its authori.ed representati*es shall make an e+amination into the !inancial condition and methods o! transactin, business o! the SSS at least once in two 0(1 years, but such e+amination shall be limited to the insurance operation o! the SSS as authori.ed under this para,raph and shall not embrace the other operations o! the SSS4 and the report o! said e+amination shall be submitted to the #ommission and a copy thereo! shall be !urnished the &!!ice o! the )resident o! the )hilippines within a reasonable time a!ter the close o! the e+amination: Provided, $hat !or each e+amination, the SSS shall pay to the %nsurance #ommission an amount e5ual to the actual e+pense o! the %nsurance #ommission in the conduct o! e+amination, includin, the salaries o! the e+aminers and o! the actuary o! the %nsurance #ommission who ha*e been assi,ned to make such e+amination !or the actual time spent in said e+amination: Provided, further, $hat the ,eneral law on insurance and the rules and re,ulations promul,ated thereunder shall ha*e suppletory application inso!ar as it is not in con!lict with this Act and its rules and re,ulations. "S"#. (3. Records and Reports. ' $he SSS )resident shall keep and cause to keep records o! operations o! the !unds o! the SSS and o! disbursements thereo! and all accounts o! payments made out o! said !unds. @urin, the month o! Aanuary o! each year, the SSS )resident shall prepare !or submission to the )resident o! the )hilippines and to #on,ress o! the )hilippines a report o! operations o! the SSS durin, the precedin, year, includin, statistical data on the number o! persons co*ered and bene!ited, their occupations and employment status, the duration and amount o! bene!its paid, the !inances o! the SSS at the close o! the said year, and recommendations. 9e shall also cause to be published in two 0(1 newspapers o! ,eneral circulation in the )hilippines a synopsis o! the annual report,

showin, in particular the status o! the !inances o! the SSS and the bene!its administered. "S"#. (;. Penal Clause. ' 0a1 Bhoe*er, !or the purpose o! causin, any payment to be made under this Act, or under an a,reement thereunder, where none is authori.ed to be paid, shall make or cause to be made !alse statement or representation as to any compensation paid or recei*ed or whoe*er makes or causes to be made any !alse statement o! a material !act in any claim !or any bene!it payable under this Act, or application !or loan with the SSS, or whoe*er makes or causes to be made any !alse statement, representation, a!!ida*it or document in connection with such claim or loan, shall su!!er the penalties Provided !or in Article &ne hundred se*enty'two o! the Re*ised )enal #ode. "0b1 Bhoe*er shall obtain or recei*e any money or check under this Act or any a,reement thereunder, without bein, entitled thereto with intent to de!raud any member, employer or the SSS, shall be !ined not less than 8i*e thousand pesos 0)6,777.771 nor more than $wenty thousand pesos 0)(7,777.771 and imprisoned !or not less than si+ 061 years and one 011 day nor more than twel*e 01(1 years. "0c1 Bhoe*er buys, sells, o!!ers !or sale, uses, trans!ers or takes or ,i*es in e+chan,e, or pled,es or ,i*es in pled,e, e+cept as authori.ed in this Act or in re,ulations made pursuant thereto, any stamp, coupon, ticket, book or other de*ice, prescribed pursuant to Section $wenty'three hereo! by the #ommission !or the collection or payment o! contributions re5uired herein, shall be !ined not less than 8i*e thousand pesos 0)6,777.771 nor more than $wenty thousand pesos 0)(7,777.771, or imprisoned !or not less than si+ 061 years and one 011 day nor more than twel*e 01(1 years, or both, at the discretion o! the court.

"0d1 Bhoe*er, with intent to de!raud, alters, !or,es, makes or counter!eits any stamp, coupon, ticket, book or other de*ice prescribed by the #ommission !or the collection or payment o! any contribution re5uired herein, or uses, sells, lends, or has in his possession any such altered, !or,ed or counter!eited materials, or makes, uses, sells or has in his possession any such altered, !or,ed, material in imitation o! the material used in the manu!acture o! such stamp, coupon, ticket, book or other de*ice, shall be !ined not less than 8i*e thousand pesos 0)6,777.771 non more than $wenty thousand pesos 0)(7,777.771 or imprisoned !or not less than si+ years 061 and one 011 day nor more than twel*e 01(1 years, or both, at the discretion o! the court. "0e1 Bhoe*er !ails or re!uses to comply with the pro*isions o! this Act or with the rules and re,ulations promul,ated by the #ommission, shall be punished by a !ine o! not less than 8i*e thousand pesos 0)6,777.771 nor more than $wenty thousand pesos 0)(7,777.771, or imprisonment !or not less than si+ 061 years and one 011 day nor more than twel*e 01(1 years, or both, at the discretion o! the court: Provided, $hat where the *iolation consists in !ailure or re!usal to re,ister employees or himsel!, in case o! the co*ered sel!'employed or to deduct contributions !rom the employees2 compensation and remit the same to the SSS, the penalty shall be a !ine o! not less 8i*e thousand pesos 0)6,777.771 nor more than $wenty thousand pesos 0)(7,777.771 and imprisonment !or not less than si+ 061 years and one 011 day nor more than twel*e 01(1 years. "0!1 %! the act or omission penali.ed by this Act be committed by an association, partnership, corporation or any other institution, its mana,in, head, directors or partners shall be liable !or the penalties Provided in this Act !or the o!!ense. "0,1 Any employee o! the SSS who recei*es or keeps !unds or property belon,in,, payable or deli*erable to the SSS and who

shall appropriate the same, or shall take or misappropriate, or shall consent, or throu,h abandonment or ne,li,ence, shall permit any other person to take such property or !unds, wholly or partially, or shall otherwise be ,uilty o! misappropriation o! such !unds or property, shall su!!er the penalties Provided in Article $wo hundred se*enteen o! the Re*ised )enal #ode. "0h1 Any employer who, a!ter deductin, the monthly contributions or loan amorti.ations !rom his employee2s compensation, !ails to remit the said deduction to the SSS within thirty 0/71 days !rom the date they became due, shall be presumed to ha*e misappropriated such contributions or loan amorti.ations and shall su!!er the penalties Provided in Article $hree hundred !i!teen o! the Re*ised )enal #ode. "0i1 #riminal action arisin, !rom a *iolation o! the pro*isions o! this Act may be commenced by the SSS or the employee concerned either under this Act or in appropriate cases under the Re*ised )enal #ode: Provided, $hat such criminal action may be !iled by the SSS in the city or municipality where the SSS o!!ice is located, i! the *iolation was committed within its territorial -urisdiction or in Metro Manila, at the option o! the SSS. "S"#. (>. .overnment id. ' $he establishment o! the SSS shall not dis5uali!y the members and employers !rom recei*in, such ,o*ernment assistance, !inancial or otherwise, as may be Provided. "S"#. /7. Transitory Clause. ' Any employer who is delin5uent or has not remitted all contributions due and payable to the SSS may, within si+ 061 months !rom the e!!ecti*ity o! this Act, remit said contributions or submit a proposal to pay the same in installment within a period o! not more than twel*e 01(1 months !rom the e!!ecti*ity o! this Act without incurrin, the prescribed penalty, sub-ect to the implementin, rules and re,ulations

which the #ommission may prescribe: Provided, $hat the employer submits the correspondin, collection lists to,ether with the remittance or proposal to pay in installments: Provided, further, $hat in case the employer !ails to remit contributions within the si+'month ,race period or de!aults in the payment o! any amorti.ation Provided the appro*ed proposal, the prescribed penalty shall be imposed !rom the time the contributions !irst became due as Provided in Section (( 0a1 hereo!." &ection 2. Separab ! "# C!a$%e. ' %! any pro*ision o! this Act is declared in*alid, the other pro*isions not a!!ected thereby shall remain *alid. &ection 1. Repea! &' C!a$%e. ' All laws, proclamations, e+ecuti*e orders, rules and re,ulations or parts thereo! inconsistent with this Act are hereby repealed, modi!ied or amended accordin,ly: Provided, $hat no person shall be deemed to be *ested with any property or other ri,ht by *irtue o! the enactment or operation o! this Act. &ection 2. E((e)" * "# C!a$%e. ' $his Act shall take e!!ect !i!teen 0161 days a!ter its complete publication in the &!!icial ?a.ette or in at least two 0(1 national newspapers o! ,eneral circulation whiche*er comes earlier. Appro*ed: May 01, 1 !

$he awphil )ro-ect ' Arella